CHAPTER -IV IPR
CHAPTER -IV IPR
Introduction
Intellectual Property Rights (IPRs) are the rights associated with intangible property owned
by a person/company and protected against use without consent. Thus, rights relating to
ownership of intellectual property are called Intellectual Property Rights. These rights aim to
protect intellectual property (creations of human intellect) by allowing the creators of
trademarks, patents, or copyrighted works to benefit from their creations. The Universal
Declaration of Human Rights (UDHR) also refers to intellectual property rights under Article
27 which states that “Everyone has the right to the protection of the moral and material
interests resulting from any scientific, literary or artistic production of which he is the
author.”
Thus, the purpose of IPR is to reward human intellect by providing exclusive rights to the
creators over their inventions, artistic, musical works, etc.
In this article, the author has discussed the meaning of intellectual property and intellectual
property rights, the international regime of IPR and laws relating to IPR in India, etc.
Intellectual property (IP) is an intangible property that comes into existence through human
intellect. It refers to the creations of the mind or the products of human intellect such as
inventions; designs; literary and artistic works; symbols, names and images used in
commerce.
The “Convention Establishing the World Intellectual Property Organisation” states
that “intellectual property” shall include the rights relating to: —
1. literary, artistic, and scientific works,
2. performances of performing artists, phonograms, and broadcasts,
3. inventions in all fields of human endeavour,
4. scientific discoveries,
5. industrial designs,
6. trademarks, service marks, commercial names and designations,
7. protection against unfair competition, and
8. all other rights resulting from intellectual activity in the industrial, scientific, literary,
or artistic fields.
Other categories of intellectual property include geographical indications, rights in respect of
know-how or undisclosed information, and layout designs of integrated circuits.
The term “Intellectual Property Rights (IPR)” is used to refer to the bundle of rights
conferred by law on a creator/owner of intellectual property. These are the rights that a
person has over the creations of his mind. They seek to protect the interests of the creators by
rewarding their mental labour and allowing them to retain property rights over their creations.
The creators and inventors are thus allowed to benefit from their creations. IP rights are the
legal rights governing the use of intellectual property.
Need for legal protection of intellectual property
The various reasons behind granting protection to intellectual property through the enactment
of suitable Intellectual Property (IP) laws are as follows:
1. To encourage inventions and creations that promote the social, economic, scientific,
and cultural development of society by incentivising the creators and allowing them to
make economic gains out of their creations.
2. To provide legal protection to intellectual creations.
3. To prevent third parties from enjoying the fruits of someone else’s creativity.
4. To facilitate fair trading.
5. To promote creativity and its dissemination.
6. Giving recognition to the efforts of creators.
7. Preventing the infringement of proprietary rights of creators in their creations from
unauthorised use.
8. To encourage investment of skill, time, finance, and other resources into innovation
activities in a manner that is beneficial to society.
1. IPR protection gives your business a competitive advantage over other similar
businesses.
2. IPR protection allows you to prevent unauthorised use of your intellectual property
and works.
3. IPR enhances the value of your company and also opens avenues for collaborations
and opportunities for generating income such as by entering into licensing agreements
to exploit/work the invention/work.
4. IPR helps to attract clients and creates your brand value. For example, the consumers
start identifying your products with the unique logo or registered trademark.
Copyright
The term ‘copyright’ concerns the rights of the creators/authors of literary and artistic
works. A copyright is also called a ‘literary right’ or ‘author’s right’. Copyright gives an
author exclusive rights to his creation and prevents the copying and unauthorised
publishing of his work. Copyright protection begins at the very moment a work is created
and expressed in some tangible form. Copyright protection is granted to a work that is an
original creation. Also, the protection extends only to expressions. Mere ideas without
any tangible expression are not granted legal protection and do not form the subject
matter of copyright. Copyright protects the following two rights of the author:
1. Economic rights i.e., the right of the owner to derive financial benefit from the use of
their works by others. For instance, the right to prohibit or authorise reproduction of
the work in various forms, the right to prohibit unauthorised translation of the work,
etc.
2. Moral rights i.e., protection of non-economic interests of the author. For instance, the
right to oppose changes to work and the right to claim authorship, etc.
Copyright infringement
Section 51 of the Copyright Act, 1957 provides for ‘What constitutes copyright
infringement’. Copyright is said to be infringed:
Copyright infringement
Section 51 of the Copyright Act, 1957 provides for ‘What constitutes copyright
infringement’. Copyright is said to be infringed:
1. when a person does something that the owner of the copyright has the exclusive right
to do, or permits for profit the use of any place for the purpose of the communication
of the work to the public, where such communication constitutes an infringement of
the copyright in the work, without a licence or in violation of the conditions of the
licence.
2. When any person makes for sale or hire, sells or lets for hire, or displays or offers for
sale or hire, or distributes either for the purpose of trade or to such an extent as to
prejudice the owner of the copyright, or exhibits in public, or imports into India any
infringing copies of the work.
Section 52 enlists the acts which do not constitute an infringement of copyright such as
fair dealing in any work for personal, private use or for research, reproducing any work
for the purpose of a judicial proceeding or replication by a teacher or a pupil in the course
of teaching etc.
It is pertinent to note that the Copyright Act provides for both civil and criminal remedies
against infringement of copyright.
1. It should be novel.
2. It should have inventive steps or it must be non-obvious.
3. It should be capable of Industrial application.
What kind of protection is given by patents
The patent owner possesses the exclusive right to prevent others from commercially
exploiting the patented invention.
Third parties are prevented from manufacturing, using, distributing, selling etc. the
patented invention/product without the consent of the patent owner.
Patent law in India: the Patents Act, 1970
The invention of a person can be patented only if the procedure and other requirements
prescribed in the Patents Act, 1970 are fulfilled. The Patent Act, 1970 provides for a
detailed procedure for obtaining a patent, right from the filing of an application to the
grant of a patent. The Act also contains provisions for rights and obligations of the
patentee, term of the patent, transfer of patent, surrender, revocation, and restoration of
patent, infringement of patent, and remedies thereof. The Act provides for patent
protection for a period of 20 years after which the technology or invention goes to the
public domain.
Section 3 of the Act provides a list of non-patentable inventions for which no patent could
be granted. Under Section 4, the inventions relating to atomic energy are also declared as
non-patentable.
It is worth mentioning that earlier no product patent could be granted for medicine, food
items and chemicals and only the process of manufacturing medicines, food items and
chemicals could be patented. However, after the Patent (Amendment) Act, 2005 product
patents can be issued for manufacturing these products.
Any violation of the rights of the patentee constitutes infringement of patent such as a
colorable imitation of your invention or taking of the essential features of your invention.
Under the Patents Act, Sections 47 and 107-A provides for the acts that shall not be
considered as an infringement of patent. For example, the import of any machine or other
articles by or on behalf of the government or the manufacturing or use of a patented
process by or on behalf of the government does not constitute patent infringement. The
various remedies available against patent infringement are as follows:
Injunction
Damages or account of profits
Delivery up or destruction of infringing goods
Certificate of validity
Procedure of obtaining a patent in India
You can file a patent application at the Patent Office in physical mode or in electronic
mode.
Following are the steps involved in obtaining a patent:
1. Filing of application
Place of filing patent application: A patent application has to be filed at the head
office of the patent office or the branch office, within whose territorial limits:
1. Applicant normally resides or has a domicile, or
2. Applicant has a place of business, or
3. At the place where the invention actually originated.
Mode of filing application: You can submit the patent application through post or by
hand. You can also opt for e-filing
through https://ipindiaonline.gov.in/epatentfiling/user/frmLogin.aspx.
Who can file the application: Following persons either alone or jointly can file the
patent application:
1. Any person claiming to be the true and first inventor of the invention;
2. Assignee of the above in respect of the right to make such an application;
3. The legal representative of any deceased person who was entitled to make such an
application immediately before his death.
Form of application: Every patent application shall be for one invention only.
Every application must specify that the applicant possesses the invention and identify
the individual claiming to be the true and first inventor. If the individual claiming to
be the true and first inventor is not the applicant or one of the applicants, the
application must state that the applicant believes the person so listed/named to be the
true and first inventor.
Application must be accompanied by a provisional or a complete specification.
2. Filing of provisional and complete specification
What is patent specification: A patent specification is a technical document describing
the invention. The provisional specification gives the initial description of the
invention on the filing of the patent application. Whereas a complete specification
gives full and sufficient detail of an invention in such a manner that a person skilled in
the art can use the invention when he reads such a description.
If the patent application is accompanied by a provisional specification, the complete
specification has to be filed within 12 months from the date of the filing of such
application. In case it is not filed within the said period, the application is deemed to
have been abandoned.
3. Claim of priority date: Priority date is the date on which the patentee claims his
invention. There shall be a priority date for each claim of a complete specification.
Generally, the priority date is the date of filing of the provisional specification
provided the claims contained therein are fairly based on the description of the
invention as given in the provisional specification. But when the patent application is
accompanied by complete specification or if any application is post-dated to the date
of filing of complete specification, in that case the priority date shall be the date of
filing of the complete specification.
4. Amendment of specification: The applicant may amend the application, the complete
specification and other documents before or after the grant of the patent. Such
amendment shall be in accordance with the procedure prescribed as regards to the
permission of the Controller and publication of the amendment.
5. Publication and Examination of application
The patent application shall not be open to the public until the expiry of 18 months
from the date of filing of the application or the date of the priority of the application.
However, applicants may request the Controller to publish the application at an earlier
date.
The application is published within one month after the expiry of the said period of 18
months.
Thereafter, a request has to be made by the applicant or other interested persons for
examination of the application. Such a request shall be made within 48 months from
the date of priority of the application or from the date of filing of application,
whichever is earlier. If the request is not made within the prescribed period, the
application is treated as withdrawn.
6. Time for putting application in order for grant: The applicant must comply with all the
requirements imposed on him by or under the Act in relation to the application within
12 months from the date on which the Controller forwarded to the applicant the first
statement of objections to the application, complete specification, or other documents
related thereto.
7. Opposition to grant of patent
Pre-grant opposition: Before the patent has been granted, any person may, in writing,
represent by way of opposition to the Controller against the grant of the patent.
Post-grant opposition: After the grant of the patent but before the expiry of 1 year
from the date of publication of grant of patent, any interested person may give notice
of opposition to the Controller. Thereafter, the Controller constitutes the Opposition
Board and the patent may be revoked on the basis of the report of the Board.
8. Grant of patent
If the application for patent is found to be in order for grant of patent, the patent shall
be granted.
On the grant of patent, the Controller publishes the fact of such grant and thereupon
the application and other documents shall be open for public inspection.
What are the benefits of patent registration
1. Patent registration ensures the complete protection of your patent/invention against
any unauthorised use for a period of 20 years.
2. Patent registration allows you to enjoy monopoly in the market as regards your
invention during the period of patent protection.
3. Patent registration confers exclusive right to exploit the patent on patentee or his
licensee or assignee.
4. You can licence the patent and gain royalties for the same.
Trademarks and service marks
A trademark is a symbol that is used to distinguish the goods of one enterprise from its
competitors. A trademark may consist of a single letter, logo, symbol, design, or numerals
and three-dimensional features such as shape and packaging, etc. Section 2(zb) of
the Trademarks Act, 1999 defines “trademark” as a mark capable of graphical
representation and which can be used to distinguish the goods or services of one person
from those of others. A trademark may include the shape of goods, their packaging, and a
combination of colours. Hence, distinctiveness is the hallmark of a trademark.
Trademarks used in connection with services such as tourism, banking, etc., are called
Service Marks.
The owner has the exclusive right to the use of a registered trademark. There are 45
classes of trademarks, consisting of 34 classes of products and 11 classes for services.
What is the function/purpose of a trademark
A trademark is a symbol that identifies a product and its source.
It reflects the goodwill of a business.
It assures the consumer about the established quality of the product.
It serves as an advertisement for the product.
A registered trademark provides legal protection to your brand.
It helps to establish a dedicated consumer base by preventing others from imitating
your brand.
Law regulating to trademarks in India: the Trademarks Act, 1999
The Trademarks Act, 1999 was enacted to provide for the registration and better
protection of trademarks for goods and services, as well as to prevent the use of
fraudulent marks. The Act contains provisions regarding:
1. Registration of trademarks
2. Effect of registration
3. Rights of the trademark holder
4. Special provisions relating to protection of trademarks through international
registration under the Madrid Protocol
5. Use of trademark and registered users
6. Collective marks
7. Certification of trademarks
8. Assignment and transmission of trademark
9. Infringement and passing off action in trademark and legal remedies thereof, etc.
A trademark is registered for 10 years but it can be periodically renewed and can be used
for an indefinite period.
Infringement of trademark
In order to constitute infringement of a registered trademark, following conditions are
required to be fulfilled:
1. The person is not authorised to use the trademark.
2. The infringing trademark is similar/identical/deceptively similar to the already
registered trademark.
3. The infringing trademark must be used in the course of regular trade in which the
registered proprietor or user is already engaged.
4. The infringing trademark must be printed represented usually in advertisement,
invoices or bills. Mere oral use of a trademark is not infringement.
5. Using either the whole of the registered trademark or an adopted one by making a few
additions and alterations.
Section 29 of the Trademarks Act provides for the common forms of trademark
infringement. For instance, the advertisement of a registered trademark of another for
promotion of one’s trade amounts to infringement. Following remedies are available to
the trademark owner against infringement of his trademark:
1. Filing suit for infringement
2. Criminal remedies
Process of registration of trademark in India
The various steps involved in registration of trademark are as follows:
Application for registration
A person claiming to be the proprietor of a trademark used or proposed to be used by
him, who desires to register it has to file an application with the Registrar for
registration of his trademark. Such an application shall be made in writing and must
be accompanied by prescribed fees.
A single application may be made for registration of a trademark for different classes
of goods and services.
The application has to be filed in the office of the Trade Marks Registry within whose
territorial limits the principal place of business in India of the applicant is situated.
Refusal, acceptance and withdrawal of acceptance
The Registrar may accept or reject an application after it has been received. The
application may be accepted with or without amendments, modifications, conditions
and limitations.
If after acceptance, but before registration, the Registrar discovers that the application
was erroneously accepted, he may withdraw the acceptance.
Advertisement of application
The Registrar shall after acceptance of the application, cause the application to be
advertised in the prescribed manner.
The application is advertised in the Trademark Journal for the purpose of inviting
objections from interested persons.
The Registrar may cause the application to be advertised before acceptance in certain
cases.
Opposition to registration
Any person may within 4 months from the date of the advertisement give a written
notice of his opposition to the registration. The notice of such registration is given to
the applicant and thereafter evidence is submitted to the Registrar. After hearing the
parties, the Registrar decides as to whether the registration is to be permitted or not.
Registration
If the application for trademark registration is accepted and not opposed, or if
opposed, the objection is ruled in the applicant’s favour, the Registrar must register
the trademark within 18 months of the filing of the application.
The date of registration of a trademark is the date of making of the said application.
On registration of a trademark, the Registrar shall issue to the applicant a certificate in
the prescribed form of the registration thereof, sealed with the seal of the Trademarks
Registry.
Benefits of trademark registration
1. A registered trademark is an intangible asset that adds value to the business.
2. Trademark registration aids in creating brand value and gaining a strong position in
the market.
3. Registration of a trademark is prima facie evidence of its validity.
4. The registered trademark holder has the exclusive right to use that mark and to obtain
relief in case of infringement of trademark.
5. Trademark registration is for a period of 10 years and can be renewed as well.
6. A registered proprietor of a trademark has the right to transfer his right through
licence or assignment of his trademark.
Industrial designs
An industrial design means the ornamental or visual aspects of an article. It may consist
of three-dimensional features, for instance, the shape of an article, or two-dimensional
features, such as lines, patterns, or colour. An industrial design is purely aesthetic, non-
functional, and has no utility. It is necessary to provide legal protection to the creative
originality of an industrial design to prevent others from copying it.
Type of protection provided by industrial design
The owner of registered industrial design reserves the right to prevent others from
manufacturing, selling, or importing articles bearing or embodying a design which is a
copy of or is substantially similar to the protected design.
Kinds of products that can come under Industrial design protection
Products of industry and handicraft items
Household goods
Lighting equipment
Jewellery
Electronic devices
Textiles, etc.
Law relating to designs in India: the Designs Act, 2000
The Designs Act, 2000 seeks to promote the creation of novel, original designs along with
balancing competing interests by granting the time-bound monopoly right to use
registered industrial design by the owner. The Act contains provisions regarding
registration of designs, copyright in registered designs, industrial and international
exhibitions, restoration of lapsed designs, the penalty for infringement of registered
designs, etc.
Geographical Indications (GI)
A geographical indication (GI) is used to identify goods having a specific geographical
origin. These indications denote quality, reputation, or other characteristics of such goods
essentially attributable to their geographical origin. Generally, geographical indications
are used for foodstuffs, agricultural products, wine, industrial products and handicrafts.
Examples of GI include Basmati Rice, Darjeeling Tea etc.
Benefits of registration of GI
Confers legal protection to domestic/national GI which in turn boosts exports.
Prevents others from making unauthorised use of a Registered Geographical
Indication.
Promotes the economic well-being of producers of items produced in a specific
geographic area.
Law relating to GI in India: the Geographical Indications of Goods (Registration and
Protection) Act, 1999
The Geographical Indications of Goods (Registration and Protection) Act, 1999 provides
for the registration and better protection of geographical indications relating to goods.
The Act contains provisions relating to the establishment of a Geographical Indications
Registry, registration of geographical indications of goods, rights conferred by
registration, registration of authorised users of registered geographical indications,
provisions for renewal, rectification and restoration of geographical indications, and
prohibition of registration of geographical indication as a trade mark, etc.
Trade Secrets
Trade Secrets are IP rights on confidential information which may be sold or licensed. A
trade secret refers to any confidential business information and may include designs,
drawings, plans, business strategies, R & D related information, etc. In order to qualify as
a trade secret, the information should be commercially valuable i.e. useful in a trade or
business, known to a small number of people, and subject to reasonable steps taken by the
rightful holder of the information to keep it secret.
Types of trade secrets
Technical information such as information regarding manufacturing processes,
designs, drawings of computer programs, etc.
Commercial information, such as distribution methods, advertising strategies, etc.
Financial information, formulas, recipes, secret combination of elements, source
codes, etc.
Integrated circuits are used in products such as television, radio, mobile, washing
machine, and data processing instruments. The layout designs of integrated circuits not
only reduce the space but also enhance the capacity and performance of the system. In
India, the Semiconductor Integrated Circuit Layout Design Act, 2000 regulates the
registration, use, and protection of original and distinct layout designs.
The Act deals with the protection of Semiconductor Integrated Circuits layout designs. It
has been enacted to give effect to Section 6 in Part II of the TRIPS Agreement relating to
Layout-Design (Topographies) of Integrated Circuits. The Act contains provisions
relating to registration of Semiconductor Integrated Circuits layout designs including the
procedure and duration of registration, the effect of registration, assignment and
transmission of registered layout-design, use of layout-design, and penalty for
infringement of layout-design, etc.