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Introduction:
Intellectual property rights (IPR) have become important in the face of changing trade
environment which is characterized by global competition, high innovation risks, short
product cycle, need for rapid changes in technology, high investments in research and
development (R&D), production and marketing and need for highly skilled human
resources. Regardless of what product an enterprise makes or what service it
provides, it is likely that it is regularly using and creating a great deal of intellectual
property. There is an emergent need for enterprises and professionals to
systematically consider the steps required for protecting, managing and enforcing
intellectual property rights, so as to get the best possible commercial results from its
ownership.
Intellectual property has increasingly assumed a vital role with the rapid pace of
technological, scientific and medical innovation that we are witnessing today.
Moreover, changes in the global economic environment have influenced the
development of business models where intellectual property is a central element
establishing value and potential growth. In India several new legislations for the
protection of intellectual property rights (IPRs) have been passed to meet the
international obligations under the WTO Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS).
Intellectual property has therefore grown into one of the world’s biggest and fastest-
growing fields of law thereby necessitating the demand for IP professionals well versed
in this area to deal with (IPRs) across the national and international borders.
Intellectual property (IP) refers to the creations of the human mind like inventions,
literary and artistic works, and symbols, names, images and designs used in
commerce. Intellectual property is divided into two categories: Industrial property,
which includes inventions (patents), trademarks, industrial designs, and geographic
indications of source; and Copyright, which includes literary and artistic works such as
novels, poems and plays, films, musical works, artistic works such as drawings,
paintings, photographs and sculptures, and architectural designs. Rights related to
copyright include those of performing artists in their performances, producers of
phonograms in their recordings, and those of broadcasters in their radio and television
programs. Intellectual property rights protect the interests of creators by giving them
property rights over their creations.
What is Property:
Property is sometimes referred to as a bundle of rights. This simple metaphor provides
one helpful way to explore the core concept. It reveals that property is not a thing, but
a right, or better, a collection of rights (over things) enforceable against others.
Explained another way, the term property signifies a set of relationships among people
that concern claims to tangible and intangible items.
It is implicit in this notion of property that property must have or entail some exclusive
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right to make a claim against someone else. A general right to do something that
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anyone can do, or a right that belongs to everyone, is not the property of anyone.
Property is essentially of two kinds Corporeal Property and Incorporeal Property.
Corporeal Property can be further divided into Movable and Immovable Property.
Incorporeal property is of two kinds-in re propria and rights in re aliena or
encumbrances.
1. Corporeal Property –
Corporeal property is the right of ownership in material things. Corporeal
property is always visible and tangible. Corporeal property can be perceived by
senses. It can be seen or touched.
Examples -A House, Land, Car, Bike etc
Corporeal property may be divided into two classes-
Movable Property (Chattels) and Immovable property. (Land and
buildings)
All Corporeal Property is either movable or immovable. In English law,
these are termed as chattels and land respectively.
Movable Property - Movable property is one, which can be transferred
from one place to another place with the human efforts.
Immovable Property -According to the General Clauses Act, 1897
"Immovable property includes land, benefits arising out of land and
things attached to the earth or permanently fastened or anything
attached to the earth."
According to the Indian Regulation Act, "immovable property includes
land, building, hereditary allowance, rights of way, lights, Ferries,
Fisheries or any other benefit to arise out of land and things attached to
the earth or permanently fastened to anything attached to the earth but
not standing Timber, growing crops or grass.
Section 3 Para 2 of the Transfer of Property Act 1882 defines immovable
property as "immovable property does not include standing Timber,
growing crops or grass.
2. Incorporeal Property –
Incorporeal property also called as intellectual or conventional property.
it includes all those valuable interests which are protected by law.
Incorporeal property is intangible. It cannot be Perceived by Senses.
Examples - Patents, Copyrights, Trademarks etc.
Incorporeal property is divided into two classes-
Jura in re propria Over Material things (for example patents, copyrights,
trademarks etc)
Jura in re Aliena encumbrances, whether over material or immaterial
things, for example, Lease, Mortgages and Servitude etc.
Here we are concern with the Incorporeal/intangible property.
What is Intellectual Property Right: Meaning and Definitions:
Intellectual property is an intangible creation of the human mind, usually expressed or
translated into a tangible form that is assigned certain rights of property. Examples of
intellectual property include an author's copyright on a book or article, a distinctive logo
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design representing a soft drink company and its products, unique design elements of
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Its subject matter is formed by new ideas generated by man. Their application to
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human needs and desires can be of considerable benefit to mankind. New ideas
can be embodied in familiar things such as books, music and art, in technical
machinery and processes, in designs for household objects and for commercial
ventures, and in all other sources of information.
In one line, IPR is Products of the human mind, the fruits of human creativity and
innovation
Need and Scope: Why Intellectual Property Rights?
The expressed goal of the IPR (except for Trademarks) is to promote progress. The
implementation of intellectual property rights is important because:
- To provide incentive to the individual for new creations.
- Providing due recognition to the creators and inventors.
- Ensuring the availability of the genuine and original products.
- Intellectual property protection is critical to fostering innovation.
Without protection of ideas, businesses and individuals would not reap the full benefits
of their inventions and would focus less on research and development. And even one
cannot fully compensate the creation of an artist and cultural vitality.
Thus, the needs of Intellectual Property Rights are properly stated above may be
summarized as:
1. “Monetary profit is the most important, in most cases, the only motive behind
man’s relentless toil, inventiveness and ingenuity”.
2. With the advent of biotechnology one of issue is legal characterization of the
invention.
3. It is created to protect the rights of individual to enjoy their creations and
invention.
4. Created to insure protection against unfair trade practices.
5. To assure the world a flow of useful, informative and intellectual works.
6. To encourage the continuing innovativeness and creativity of owners of IP.
Historical Background:
The concept of intellectual property is not new as Renaissance northern Italy is thought
to be the cradle of
the Intellectual Property system. A Venetian Law of 1474 made the first systematic
attempt to protect inventions by a form of patent, which granted an exclusive right to
an individual for the first time. In the same century, the invention of movable type and
the printing press by Johannes Gutenberg around 1450, contributed to the origin of the
first copyright system in the world.
Towards the end of 19th century, new inventive ways of manufacture helped trigger
large-scale industrialization accompanied by rapid growth of cities, expansion of
railway networks, the investment of capital and a growing transoceanic trade. New
ideals of industrialism, the emergence of stronger centralized governments, and
nationalism led many countries to establish their modern Intellectual Property laws. At
this point of time, the International Intellectual Property system also started to take
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shape with the setting up of the Paris Convention for the Protection of Industrial
Property in 1883 and the Berne Convention for the Protection of Literary and Artistic
Works in 1886.
Paris convention for the protection of Industrial property was convened in Paris in 1883
and was initially signed by 11 states. Convention was revised at Brussels in 1900, at
Washington in 1911, at The Hague in 1925, at London in 1934, at Lisbon in 1958 and
at Stockholm in 1967 and was amended in 1979.
The Paris Convention addresses patents, industrial design rights, trademarks, well
known marks, names and unfair competition (Colston, 1999). The Republic of India is
a member of Paris Convention since December 7, 1998. At present total 177 member
countries are part of the Paris Convention.
Berne Convention was formulated in the year 1886, for the protection of Literary and
Artistic works. “To protect, in as effective and uniform a manner as possible, the rights
of the authors in their literary and artistic works” is the aim of the Convention.
Berne Convention protects literary works, artistic works, dramatic works, musical
works and cinematographic works and it also protects derivative works based on other
pre-existing works, such as translation, adaptations, arrangements of music and other
alterations of a literary or artistic work. Berne Convention states the duration of the
copyright protection as 50 years after the author’s death. The Berne Convention was
revised several times to cope up with the technological challenges that is, first revision
took place in Berlin in 1908, followed by the revision in Rome in 1928, in Brussels in
1948, in Stockholm in 1967, and in Paris in 1971.
Basic principles of Berne Convention are, “national treatment”, according to which
works originating in one of the member States are to be given the same protection in
each of the member States as these grant to works of their own nationals, “automatic
protection”, according to which such national treatment is not dependent on any
formality that is, protection is granted automatically and is not subject to the formality
of registration, deposit or the like, and “independent of protection”, according to which
enjoyment and exercise of the rights granted is independent of the existence of
protection in the country of origin of the work. It is administered by WIPO.
Another development was Madrid Agreement. The agreement was framed on April 14,
1891 which deals with International registration of Marks and Protocol related to
Madrid Agreement, concluded in 1989. Contracting countries to this Madrid
Agreement, secure protection for their marks applicable to goods or services,
registered in the country of origin, by filling the said marks at the International Bureau
of Intellectual Property. Duration of the protection is valid for 10 years and which can
be renewed by paying prescribed fees. Currently, total 100 members are under Madrid
Agreement covering 116 contracting countries. It is administered by WIPO.
TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement is a
multilateral agreement on intellectual property, which came into force on 1 January
1995. TRIPS Agreement is administered by WTO (World Trade Organization). It is an
attempt to narrow the gaps in the way these rights are protected around the world, and
to bring them under common international rules. The agreement operates on a
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countries unilaterally strengthened their laws and regulations in this area, and many
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others were poised to do likewise. At the multilateral level, the successful conclusion
of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) in
the World Trade Organization elevates the protection and enforcement of IPRs to the
level of solemn international commitment. It is strongly felt that under the global
competitive environment, stronger IPR protection increases incentives for innovation
and raises returns to international technology transfer.
Types of Intellectual Property Right:
According to WIPO, Intellectual property is divided into two categories that is, Industrial
Property and Copyright. Industrial property includes patents for inventions,
trademarks, industrial designs and geographical indications. Copyright covers literary
works (such as novels, poems and plays), films, music, artistic works (e.g., drawings,
paintings, photographs and sculptures) and architectural design. Rights related to
copyright include those of performing artists in their performances, producers of
phonograms in their performances, producers of phonogram their recordings, and
broadcasters in their radio and television programs.
1. The Rules and Laws governing Intellectual Property Rights in India are as
follows:
2. The Copyright Act, 1957, The Copyright Rules, 1958 and International
Copyright Order, 1999
3. The Patents Act, 1970 The Patents Rules, 2003, The Intellectual Property
Appellate Board (Patents Procedure) Rules, 2010 and The Patents (Appeals
and Applications to the Intellectual Property Appellate Board) Rules, 2011
4. The Trade Marks Act, 1999, The Trade Marks Rules, 2002, The Trade Marks
(Applications and Appeals to the Intellectual Property Appellate Board) Rules,
2003 and The Intellectual Property Appellate Board (Procedure) Rules, 2003
5. The Geographical Indications of Goods (Registration and Protection) Act, 1999
and The Geographical Indications of Goods (Registration and Protection)
Rules, 2002
6. The Designs Act, 2000 and The Designs Rules, 2001
7. The Semiconductors Integrated Circuits Layout-Design Act, 2000 and The
Semiconductors Integrated Circuits Layout-Design Rules, 2001
8. The Protection of Plant varieties and Farmers’ Rights Act, 2001 and The
Protection of Plant varieties and Farmers Rights’ Rules, 2003
9. The Biological Diversity Act, 2002 and The Biological Diversity Rules, 2004
10. Intellectual Property Rights (Imported Goods) Rules, 2007
Few of the IPRs are as follows:
1. Patents:
Patents are granted in respect of inventions, i.e. technological improvements, great
and small, which contain at least some scintilla of inventiveness over what is previously
known. As per WIPO, A Patent is an exclusive right granted for an invention, which is
a product or a process that provides, in general, a new way of doing something, or
offers a new technical solution to a problem. According to Halsbury's Laws of England,
the word patent is used denoting a monopoly right in respect of an invention.
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Patent is a monopoly right conferred by Patent Office on an inventor to exploit his
invention subject to the provisions of Patents Act for a limited period of time. Patents
are territorial rights and the exclusive rights are only applicable in the country or region
in which a patent has been filed and granted, in accordance with the law of that country
or region.
Invention means a new product or process involving an inventive step and capable of
industrial application (The Patents Act of 1970).
Patent is an intellectual property right granted to inventor by concerned government
office for his novel technical invention. The term invention means solution of any
problem in terms of development of a product or a process. Among the different types
of IPR, patents are considered the most valuable and rightly so.
In India, the law governing patents is the Patents Act, 1970 (“Patents Act”). In India’s
continued efforts to comply with it’s commitment under TRIPS the Patents Act has
been amended thrice since 1995, by the Patents (Amendment) Act, 1999 (“First
Amendment”), the Patents (Amendment) Act, 2002 (“Second Amendment”) and
Patents (Amendment) Act, 2005 (“Third Amendment”), Prior to the Third Amendment,
the President of India had promulgated Patents (Amendment) Ordinance, 2004
(“Ordinance”), which was later replaced by the Third Amendment. The legislation is
supported by the Patents Rule, 2003 (“Rules”). These rules have been further
amended by Patents (Amendment) Rules 2005 w.e.f 01.01.2005. Thus, the Patent
Amendment Act, 2005 is now fully in force and operative.
The following outlines the current Indian patent law framework.
Which Inventions are Patentable?
The patentability of any invention needs to fulfil following criteria:
1. Usefulness: invention must have industrial applicability or applied for practical
purpose.
2. Novelty: invention must be new technology which has not been published or
available in prior art of the country or elsewhere in the world before the date of
patent filing.
3. Non obviousness: Invention which can be done by any ordinary skilled person
is obvious and cannot be patentable. Hence invention must not be obvious for
patentability.
As per Section 3 of the Patent Act, 1970 the following are not patentable:
- Frivolous invention
- Invention against the natural laws
- Inventions which are not fair to health of human, animal, plant life, environment
as well as contrary to public order or morality
- Discovery of any living thing; discovery of any non living substances occurring
in nature; formulation of any abstract theory; discovery of any scientific
principle.
- Substance or chemical obtained by mere admixture resulting in the aggregation
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2. Trademark:
Trademarks already existed in the ancient world. The Indian crafts men used to
engrave their signature on their jewellery or artistic creation around 3000 years ago.
With industrialization the trademark become key factor in modern world of international
trade.
A trade mark is a distinctive sign or logo that denotes about the particular item is
produced or provided by a specific person or industry or enterprise. Similar to
trademark, service mark distinguish service providing enterprises with their
competitors. A company may have different types of trademarks for their various
products but to distinguish themselves from other company or enterprise trade name
is being used.
Trade mark or trade name helps companies to make their recognition, reputation and
trust amongst the customers. In most of the cases, consumers rely on trademarks
where it is difficult to inspect a product or service quickly to determine its quality. A
particular segment of customers is very much concerned about the brand and pay
heavily for brands prestige even for similar sort of quality to distinguish themselves
from the crowd.
A trademark/ service mark comprises of words (name, surname, geographical name,
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slogan, etc), letters and numerals, drawing, logo, symbol, phrase, image, design or a
combination of these elements to distinguish a business or service from the other.
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Trade Marks Registry usually insists upon proof of use of the mark and the
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creations.
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Copyright Infringement
The copyright infringement means making, selling or taking financial benefits of
copyrighted work without permission of copyright owner. It is a criminal offence and as
per the act, minimum punishment for infringement is imprisonment for six month with
a minimum fine of Rs 50,000/-.
4. Industrial Design
The creative activity of achieving an ornamental or aesthetic appearance of mass
produced products or articles is covered under industrial design. The design can be
expressed either by two dimensional or by three dimensional forms. The Design Act
1949 of the United Kingdom refers to feature of shape, configuration, pattern or
ornament. Broadly, shape, surface, pattern, lines, colour, etc appearance related
features of industrial products such as watches, vehicles, mobiles, laptops, different
home appliances, buildings, textile designs or handicraft products are covered under
industrial design. The aesthetic value or how a product appeals is the main concern in
selling besides its technical quality and other aspects. To be protected under most
national laws, an industrial design must be new or original and nonfunctional.
Hence industrial design is only concerned with aesthetic features and any technical
features or aspects of the product to which it is applied are not protected by the design
registration. Although the technical features, if are novel could be protected by getting
the patent. Beside these, design which is literary or artistic in character such as
cartoon, label, leaflet, map, dressmaking pattern, etc is protected under copyrights
instead of industrial design.
The term of industrial design rights vary from country to country from 10 to 25 years.
In India as per Design Act, 2000 duration of protection of industrial design is for 10
years. This duration can be extended further for 5 years.
An industrial design encourages creativity and skill development amongst the
individual and manufacturing sector by promoting more aesthetically pleasing products
for the society. The design and shape of the product not only create aesthetic
appearance but in case of machine, furniture, automobile, etc. design is also indirectly
associated with ergonomics and plays a major role in customers ‘comfort.
5. The Protection of Plant and Varieties and Farmers Rights :
A plant variety represents a more precisely defined group of plants, selected from
within a species, with a common set of characteristics.
The Protection of Plant Varieties and Farmers' Right Act, 2001 has been enacted to
provide for the establishment of an effective system for protection of plant varieties,
the rights of farmers and plant breeders and to encourage the development of new
varieties of plants.
The objectives of the Act are:
- to establish an effective system for protection of plant varieties, the rights of
farmers and plant breeders and to encourage the development of new varieties
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of plants;
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- to recognize and protect the rights of the farmers in respect of their contribution
made at any time in conserving, improving and making available plant genetic
resources for the development of new plant varieties;
- to protect plant breeders’ rights to stimulate investment for research and
development both in the public and private sector for development of new plant
varieties;
- to facilitate the growth of seed industry in the country that will ensure the
availability of high-quality seeds and planting material to the farmers.
This Act was enacted to give effect to Article 27.3(b)79 of the TRIPs Agreement
relating to protection of plant varieties. India opted to protect them under a sui generis
system and passed the Act.
The Act includes:
- Protection of varieties developed through public and private sector research;
- Protection of varieties developed and conserved by farmers and traditional
communities, providing them with legal rights to save, use, sow, re-sow,
exchange, share, or sell their farm seed, although farmer shall not be entitled
to sell branded seed of a variety protected under this Act ;
- Encouraging plant breeders and researchers to develop new and improved
varieties;
- Establishment of the Protection of Plant Varieties and Farmers’ Rights Authority
(“PPV&FRA”) for the registration of new varieties and determine claims of
benefit sharing to such varieties;
- Provision of civil and criminal relief for infringement and passing off of protected
plant varieties.
- Provisions for granting compulsory licenses when reasonable requirements of
the public have not been satisfied.
The Act strikes a balance between the rights of farmers and breeders by rewarding the
farmers/local communities from the pool of National Gene Fund for their conservation
and development efforts and, at the same time, ensuring reward for innovation by
granting plant breeders’ rights.
Varieties Registerable under the Act
The following are registerable under the Act:
I. a new variety if it confirms the criteria of novelty, distinctiveness, uniformity
and stability; and
II. an extant variety if it confirms the criteria of novelty, distinctiveness,
uniformity and stability as specified under Protection of Plant Varieties and
Farmers’ Rights Regulations, 2006.
Term of Protection
As prescribed under Section 24 of the Act, the total period of validity of registration
shall not exceed:
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