Company Law

List any fifteen privileges available to a private company under the Companies Act, 1956.
1) Financial assistance can be given for the purchase of or subscribing for its own shares or shares in its holding company - Sec. 77 (2). 2) Further shares can be issued without passing a special resolution or obtaining the Central government's approval and without offering the same necessarily to existing share holders Sec.81 (3). ****3) Provisions as to the kinds of share capital (Sec. 85), the further issue of share of capital (Sec.86), voting rights (Sec.87), the issue of shares with disproportionate rights (Sec.88) and the termination of disproportionate excessive rights (Sec.89), do not apply to private companies Sec. 90 (2). 4) Business can be commenced immediately on incorporation without obtaining a certificate of commencement from Registrar - Sec.149 (7). 5) It is not necessary to hold a statutory meeting and to send a statutory report to shareholders and file the same with the Registrar - Sec.165 (10). ****6) Articles of a private company may provide for regulations relating to general meetings which need not conform to the provisions of Sec 171 to 186 - Sec.170 (1). 7) Any amount can be paid to the directors as remuneration and the same is not restricted to any particular proportion of the net profits - Sec.198 (1). 8) A private company need not have more than two directors - Sec.252 (2). 9) A proportion of directors need not retire every year - Sec.255 (1). 10) Statutory notice etc., is not required for a person to stand for election as a director - Sec.257 (2). 11) The Central Government's sanction is not required to effect an increase in the number of directors beyond 12 or the number fixed by the articles of association-Sec. 259. 12) The Central Government's sanction is not required to modify any provision relating to the appointment of managing, whole-time or non-rotational directors - Sec.268. 13) The Central Government's approval is not required for appointment of managing or wholetime director or manager - Sec. 269 (2). 14) Directors of a private company need not possess any share qualifications, in terms of section 270- Sec. 273. ***15) Restrictive provisions regarding the total number of directorships which any person may hold do not include directorships held in private companies which are not subsidiaries of public companies - Sec. 275 to 279.

16) Certain restrictions on powers of board of directors do not apply - Sec. 293(1). 17) The prohibition against loans to directors does not apply - Sec. 295 (2). 18) The prohibition against participation in board meetings by interested directors does not apply - Sec. 300 (2). 19) The date of birth of director need not be entered in the register of directors - Sec. 303(1). 20) There is no restriction on the remuneration payable to directors - Sec. 309 (9). 21) There is no restriction on any change in remuneration of directors - Sec. 310. ***22) Any increase in the remuneration not being sitting fees beyond the specified limit of directors on appointment or reappointment does not require the Central Government's approval Sec. 311. 23) There's also no restriction on the appointment of a managing director - Sec. 316(1) and 317 (4). 24) There is no restriction on making loans to other companies - Sec. 370 (2). 25) There is no prohibition against the purchase of shares, etc. in other companies - Sec. 372 (14). 26) The Central Government cannot exercise its power to prevent change in the board of directors, which is likely to affect the company prejudicially - 409 (3).

What are the modes by which a person can be a member/shareholder of a company? Subscription Qualification Shares Allotment Transfer Transmission Nomination How does a person cease to be member of a company? Cessation of Member - Transfer - Death - Forfeiture - Surrender on winding up - By law Explain the procedure for forfeiture of shares. When a shareholder is deprived of his/her membership due to non payment of calls, it is known as forfeiture of shares. The result of forfeiture of shares is Notice

Procedure of forfeiture of shares The authority to forfeit shares is given to the Board of Directors in Articles of Association of the company. The Board of Directors has to give at least fourteen days notice to the defaulting members calling upon them to pay outstanding amount with or without interest as the case may be before the specified date. The notice must also state that if the shareholders fail to remit the amount mentioned therein within the stipulated period, their shares will be forfeited. If they still fail to pay the amount within the specified period of time, the Board of Directors of the company may decide to forfeit such shares by passing a resolution. The decision regarding the forfeiture of shares should be communicated to the concerned allottees and should be asked to return the allotment letters and share certificates of the forfeited shares to the company Resolution of Board of Directors To act in good faith. Explain the procedure for buy-back of shares. (imp_rata)

a. Where a company proposes to buy back its shares, it shall, after passing of the special/Board resolution make a public announcement at least one English National Daily, one Hindi National daily and Regional Language Daily at the place where the registered office of the company is situated. b. The public announcement shall specify a date, which shall be "specified date" for the purpose of determining the names of shareholders to whom the letter of offer has to be sent. c. A public notice shall be given containing disclosures as specified in Schedule I of the SEBI regulations. d. A draft letter of offer shall be filed with SEBI through a merchant Banker. The letter of offer shall then be dispatched to the members of the company. e. A copy of the Board resolution authorising the buyback shall be filed with the SEBI and stock exchanges. f. The date of opening of the offer shall not be earlier than seven days or later than 30 days after the specified date g. The buyback offer shall remain open for a period of not less than 15 days and not more than 30 days. h. A company opting for buy back through the public offer or tender offer shall open an escrow Account

Who can become a director? What are disqualifications of a director? ****Qualifications of director: a) Share Qualification b) Anyone disqualified by the companys own Articles of Association (the rules relating to the running of the company). c) One who is not discharged bankrupt. d) Someone disqualified by a court order. e) The companys auditor. Disqualifications of a director: a) b) c) d) He has been found to be of unsound mind by a Court of competent jurisdiction and the findings are in force. He is an undercharged insolvent He has applied to be adjudicated as an insolvent and his application is pending ***He has been convicted by a Court of any offence involving moral turpitude and sentenced to imprisonment for not less than 6 months period and a period of 5 years has not elapsed from the date of expiry of the sentence. He has not paid any call in respect of the shares of the company held by him, whether alone or jointly with others and 6 months have elapsed from the last day fixed for payment of the call. An order disqualifying him for appointment as a director has been passed by a Court on account of fraud or misfeasance and is in force unless leave of the court is obtained for his appointment. He is a director of a public company, which _ (i) Has not filed the annual accounts and annual returns for any continuous three financial years commencing on or after April 1, 1999. (ii) Has failed to repay its deposit or interest thereon on due date or redeem its debentures on due date or pay dividend and such failure continues for one year or more.

e) f)

g)

This disqualification will be for five years from the date of default. Explain the procedure and purpose of calling an annual general body meeting.
1. Hold and Convene a Board Meeting after giving notice to all the directors [Section 286] to discuss besides others the following matters. Approval of draft balance sheet and profit and loss account.

The declaration of dividend. The appointment of directors in places of those retiring. The Appointment of and the fixing of remuneration of the auditors.

To fix the date, time and place for convening the Annual General Meeting of shareholders. Approval of the notice of the meeting.

2. 3. 4.

5. 6.

7.

Issue and despatch notices in writing at least 21 clear days before the date of the General Meeting [Section 171(1)] [Agenda] Inform the Stock Exchange with which shares of the company are listed about the date of this meeting prior to the board meeting. [Clause 19 of the Standard Listing Agreement] Inform the said Stock Exchange within 15 minutes of the board Meeting, by letter or fax of all outcome of the meeting of the board. The notice is to be given to all the members, to all the debenture holders, if any, to every person entitled to a share of the company in consequence of death or insolvency of a member, to every trustee of debenture holders and to the directors and auditors of your company. Hold and convene the Annual General meeting and pass the resolutions as specified in the notice. Forward 3 copies of the notice and copy of the minutes of meeting to Stock Exchange with which the shares of the company are listed. [Clause 31 (c) and (d) of the Standard Listing Agreement] Filing of Balance sheet of the Company in [E-Form No. 23 AC] with in 30 days from the date of Annual General Meeting along with the following attachment : Copy of duly signed Balance Sheet with Schedule and Notes to Accounts. Copy of Directors Report Copy of Notice of Annual General Meeting. Statement of subsidiaries as per Section 212 of the Companies Account

8.

Balance Sheet of Subsidiary Companies. Filing of Profit and Loss Account of the Company in [E-form No. 23 ACA] within 30 days from the date of Annual General Meeting along with the following attachments: Copy of profit and loss account and other documents.

9. 10. 11.

Statement of subsidiaries as per section 212. Make the payment of requisite fees prescribed by the Companies [Schedule X of Companies Act, 1956]. Fees can be paid through Credit Card / by cash / by cheque in favour of MCA Collection Account ICICI Bank at the prescribed rates. (Fee Calculator) Filing of Annual Return of the Company in [E-Form No. 20B] within 60 days of the Annual General Meeting along with the following attachment : Duly signed annual return prepared and authenticated as per section 159 read with schedule V of the Companies Act, 1956. In case the number of share holders / debenture holders exceed 100, attach details of all the shares holders / debenture holders in CD separately. If any extension is granted for the financial year or AGM then approval letter for

12. 13.

extension of financial year or AGM. Make the payment of requisite fees prescribed by the Companies [Schedule X of Companies Act, 1956]. Fees can be paid through Credit Card / by cash / by cheque in favour of MCA Collection Account ICICI Bank at the prescribed rates. (Fee Calculator)

NOTE Definition Every Company shall, in each year hold (in addition to any other meetings) a general meeting as its Annual General Meeting. Period of Holding the Annual General Meeting A Company may hold its Annual General Meeting within a period of 18 months from the date of its incorporation. If such AGM is held within that period, it shall not be necessary for the company to hold any AGM in the year of its incorporation or the following year. For Example: if a company is incorporated in December, 2008, it may hold its First AGM in April, 2010 and that meeting will be deemed to be the AGM for 2008, 2009 and 2010. It must be noted that the time for holding the AGM cannot be extended by any authority under any circumstances. A Company is required to hold an AGM in every calendar year. The Time lag between two successive AGM shall not exceed 15 months which may further be extended by the Registrar by 3 months. As per Section 210 of the Companies Act, 1956, the Company must lay before the Annual General Meeting, the profit and loss account within 9 months of the close of its first financial year in case of its First Annual General Meeting and within 6 months of the close of its relevant financial year in case of subsequent Annual General Meeting. As per the interpretation the first annual general meeting of the company must be held with in 18 month from the date of incorporation or within 9 months from the close of its first financial year, whichever is earlier. Day, Time and Place for Holding of Annual General Meeting 1. 2. Every AGM shall be called on a day, which is not a public holiday. Every AGM shall be called at a time during the business hours.

3. Every AGM shall be held either at the registered office of the Company or at some other place within the city, town or village in which the registered office of the company is situated.

How does a director cease to be in office? Resignation Retirement

- Retirement by Rotation Removal - Removal by shareholders - Removal by Central Government/Company Law Board Vacation of office a) Where he absents himself from three consecutive meetings of the board or from all meetings of the board for a period of three months whichever is longer, without leave of absence from the board. b) Where he takes loan from a company in contravention of the law. c) Where he makes a contract with the company without disclosing his interest in the contract. d) He fails to obtain his qualification a share within the prescribed period or at any time ceases to hold them. e) Becomes disqualified by an order of a Court. f) On Removal g) ****Where he is holding the office on ex-officio basis and he ceases to hold that office h) He incurs any disqualification stated above.

Who can appoint auditors? How are they re-appointed? How can the auditors be removed?
Who is an auditor: An auditor makes an independent report to a company's members as to whether its financial statements have been properly prepared in accordance with the Companies Act. The report must also say if a company's accounts give a true and fair view of its affairs How is a company auditor appointed? The directors appoint the first auditor of the company. The auditor then holds office until the end of the first meeting of the company at which its accounts are laid before the members. At that meeting the members of the company can re-appoint the auditor, or appoint a different auditor, to hold office from the end of that meeting until the end of the next meeting at which accounts are laid. However, private companies can pass an 'elective resolution' not to lay accounts before the members in a general meeting. If this is done, then the auditor has to be reappointed, or a new one appointed, at another meeting of the company's members that must be held within 28 days of the accounts being sent to the members.

Private companies can also pass an elective resolution dispensing with the need to appoint an auditor every year. If that happens, the auditor already appointed remains in office without further formality until a resolution is passed to re-introduce annual appointment or to remove him or her as auditor.
Can an auditor be removed n how?

Yes. The members of a company may remove an auditor from office at any time during his (or her) term of office or decide not to re-appoint the auditor for a further term. They must give the company 28 days' notice of their intention to put a resolution to remove the auditor, or to appoint somebody else, to a general meeting. A copy of the notice of the intended resolution must be sent to the auditor, who then has the right to make a written response and require that it be sent to the company's members

End of Company Law.

Consumer Protection Law

Who is a consumer? When can a consumer lodge a complaint under the Consumer protection law? Consumer is a person who a) buys any goods for a consideration b) hires or avails of any services for a consideration c) uses the goods with the approval of the person who has bought the goods for consideration d) is beneficiary of services with the consent of the person who has hired the services for consideration Consumer can make a complaint under following circumstances. a) b) c) as a result of any unfair trade practice adopted by the trader, the complainant has suffered loss or damage the goods suffer from one or more defects the services suffer from any deficiency in any respect

d)

the trader has charged for the goods a price in excess of the price fixed under any law or the price printed or displayed on the goods or on the package containing the goods

What the procedure for redressal of a consumers complaint under the Consumer protection law? Need to search the answer

Information Technology law

Explain any five types of crimes on internet under the Information Technology Act, 2000. Cyber crimes Some of the possible crimes on the Internet are a) b) Computer network break-ins Industrial Espionage: It is the theft of trade secrets by removal,copying or recording of confidential information of one company for use by a competitor. It is usually practiced in heavy technology industry where like auto industry,I industry,R&d is associated . It includes blackmail,bribery,technological surveillance. Copyright piracy

c)

d) e) f) g) h) i) j)

Software piracy Child Pornography E-mail bombings Password sniffers Spoofing: Cyber squatting Misleading search words

What is Digital Signature? digital signature means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of Section 3. Digital Signature How the Technology works Digital signatures are created and verified by means of cryptography, the branch of applied mathematics that concerns itself with transforming messages into seemingly unintelligible forms and back again. For digital signatures, two different keys are generally used, one for creating a digital signature or transforming data into a seemingly unintelligible form, and another key for verifying a digital signature or returning the message to its original form. Computer equipment and software utilizing two such keys is often termed an asymmetric cryptosystem. The keys of an asymmetric cryptosystem for digital signatures are termed the private key, which is known only to the signer and used to create the digital signature, and the public key, which is ordinarily more widely known and is used to verify the digital signature. A recipient must have corresponding public key in order to verify the signers digital signatures, the public key must be distributed to all of them, perhaps by publication in an on-line repository or directory where they can easily obtain it. Use of digital signatures is comprised of two processes, one performed by the signer and the other by the receiver of the digital signature. Digital Signature creation is the process of the computing a code derived from and unique to both the signed message and a given private key. For that code or digital signature to be secure, there must be at most only a negligible chance that the same digital signature could be created by any other message or private key.

Digital signature verification is the process of checking the digital signature by reference to the original message and a public key, and thereby determining whether the digital signature was created for that same message using the private key that corresponds to the referenced public key. A more fundamental process, termed a Hash function is used in both creating and verifying a digital signature. A hash function creates in effect a digital freeze frame of the message, a code usually much smaller than the message but nevertheless unique to it. To sign a document or any other item of information, the signer first delimits precisely what is to be signed. Then a hash function in the signers software computes has a result, a code unique to the message. The signers software then transforms the result into a digital signature by reference to the signers private key. This transformation is sometimes described as encryption. A digital signature is usually attached to its message or maintains a reliable association with its message. Verification of a digital signature is accomplished by computing a new hash result of the original message by means of the same hash function used in creating the digital signature. Then using the public key, the verifier checks whether the digital signature was created using the corresponding private key and whether the newly computed has result matches the result derived from the digital signature. If the signers private key was used and the hash results are identical, the signature is verified, because only the signers public key will verify a digital signature created with the signers private key. It will also ensure that message was not altered, for if it was altered, the hash results would not match. Various asymmetric cryptosystems create and verify digital signatures using different mathematical formulae and procedures, but all share this overall operational pattern. Who are the authorities under the Information technology Act and what are their respective functions? Authorities under Information Technology Act, 2000 Controller: to be appointed by the Central Government and includes office of Deputy Controller or Assistant Controller. His functions shall be to exercise supervision over the activities of the Certifying Authorities, certify public keys of the Certifying Authorities, lay down standards for Certifying authorities, specifying qualifications of the employees of the Certifying Authorities and do all such acts and deeds to control and regulate the working of Certifying authorities. He shall also act as a repository and shall ensure that the secrecy and security of the digital signatures are assured by use of such hardware/software that is secure from intrusion and misuse.

Certifying Authorities: The Controller may appoint Certifying Authorities on an application made to him. An individual, being a citizen of India and having a capital of five crores of rupees or more in his business or profession or a company having a paid-up capital of five crores rupees or more and having net worth of not less than fifty crores can make an application to be appointed as Certifying Authority or a firm having capital subscribed by all partners of not less than five crores and the net worth of the firm being not less than five crores of rupees. Shareholding by Non-resident Indians, Foreign Institutional Investors or foreign companies/foreign nationals should not exceed 49% of capital of the company or firm as the case may be. The Central/State Government can also act as Certifying Authority. The Certifying Authority shall gets its operations audited which shall include security policy and planning, technology evaluation, physical security, regulations prescribed by the Controller. The audit shall be conducted half yearly. However in case the Certifying Authority is having repository activities, the audit shall be on quarterly basis. The audit report shall be submitted to the Controller within four weeks of the completion of the audit. Where any irregularities are reported, the Certifying Authority shall take steps to remove them. Any person may make an application along with fees thereof not exceeding Rs. 25,000/-, to the Certifying Authority and a certification practice statement or a statement containing such particulars as may be prescribed. On scrutiny of the application, the Certifying Authority may grant the Digital Signature Certificate or for reasons to be recorded in writing, reject the application. By issuing the Digital Signature Certificate, The Certifying Authority represents that a) It has complied with the provisions of the Act and the rules and regulations framed there under.

b) It has published the Digital Signature Certificate or otherwise made it available to such person relying on it and the subscriber accepting it. c) The subscriber holds the private key corresponding to the public key.

d) The subscribers public key and private key constitute a functioning key pair. e) f) The information contained in the Digital Signature Certificate is accurate It has no knowledge of any material facts, which if it had been included in the Digital Signature Certificate, would adversely affect the reliability of the representations made in clauses a-d above.

The Certifying Authority may suspend the Digital Signature Certificate on a request from the subscriber or any person through him or if it is of the opinion

that the Digital Signature Certificate should be suspended in the public interest. The suspension shall not be for more than 15 days unless the subscriber is given an opportunity of being heard in the matter. The suspension shall be communicated to the subscriber. The Certifying Authority may revoke the Digital Signature Certificate in the following cases: a) b) c) On a request from the subscriber or any person through him. Upon the death of the subscriber or upon dissolution of the firm or winding up of a company, where the subscriber is a firm or a company. If it is of the opinion that the any material fact represented in the said certificate is false or has been concealed or the requirement for issuance of the said certificate was not satisfied or the Certifying Authoritys private key or security system was compromised to materially affect the reliability of the said certificate or the subscriber has been declared insolvent or dead. However a reasonable opportunity will be given to the subscriber before revoking the said certificate.

A notice of suspension/revocation shall be published or as the case may be, in the repository specified in the said certificate for publication of such notice. Duties of a Certifying Authority in respect of infrastructure and services to the client: There is minimum duty specified for the Certifying Authorities to whom the Controller grants a license to issue Digital Signature Certificate. Since the quality of service of these authorities will have a cascading effect, the law has considered it important to have the minimum conditions laid down in the Act itself. These are specified as: a) Hardware and software procedures used by the Certifying authorities should be free from intrusion and misuse. In other words, the systems used by them should have adequate security measures to prevent unauthorised persons from entering into their system and either copying data or manipulating data. This unauthorised entry into the system which has to be prevented will be both the physical entry by means of entry into the office area containing the computer system or even a remote entry via the modem b) Apart from the security aspect that will affect the service of the certifying authorities, they should also have standards that provide the quality of service as envisaged by the Act. Service can suffer due to reasons other than a security failure. This aspect is covered in this point. Though the Act

has not specified the definition of reliability, in the reference to Certifying Authority, reliability can be interpreted to mean and include all of the following : (b.1) Grant of Digital signature to applicants with a minimum of time delay (b.2) Grant of Certificates almost instantly to applicants c) Secrecy and privacy procedures should be adhered to. Translated to procedure of work for the Certifying authorities, they may also have to ensure that the certificate is given to authorised persons and in case of public key possession, these are not granted to persons other than those authorised to hold them and use them. d) Any other standards as set under the regulations of this Act will also have to be adhered to.

End of Information Technology law Intellectual Properties Rights

1. Patents A patent is a government granted and secured legal right to prevent others from practicing i.e. making, using or selling the inventions covered by the patent. A patent is a personal property which can be licensed or sold like any other property. To illustrate this concept consider the example of Alexander Graham Bell receiving patent for his telephone. This gave him the power to prevent anyone else from making, using or selling a telephone. Assuming that someone else later invented a dial telephone for which a patent was granted to him as an improvement on Bells telephone. The second person would then be able to prevent anyone else, including Bell, for making, using or selling a dial telephone in accordance to that patent. In these circumstances, it is essential that Bell would need a license from the owner of the dial telephone patent in order to make it. The owner of the dial telephone would as well need a license from Bell under Bells basic telephone patent in order to make, use or sell the dial telephone. Conditions for Patentability

An invention is patentable if it is new, involves an inventive step (i.e. it is not obvious) and is industrially applicable. The object of the invention is the applying if the well-know principles to the achievement of a practical result not yet achieved. Steps to obtain a Patent Establish essentiality of protection through Patents Decision to file a Patent Drafting of original Patent Application Basic elements of Patent Application : (i) Title of the invention (ii) Abstract containing a concise summary of disclosure in the description (iii) Description (iv) Claims (v) Any drawings etc. (vi) Technical field to which the invention belongs. Seeking assistance of the legal experts Filing the Patent Application with Patent Office Examination of the Patent Application in the Patent Office Grant of Patent/Publication of Patent Documents. Drafting of the patent application is an important art. Writing of the claim is the most important component of the patent application. This is neither to be too general nor to be too narrowly defined.

2. Technical knowhow Patent literature is an important and useful source of scientific and technical information: (a) It has an important use in searching for new technical solutions in the course of research and development, the creation and assimilation of new technology, the dissemination of experience in the use of inventions within the country, patenting them abroad, and granting and obtaining licenses for them. (b) A scientist or technologist, when beginning a new project, should first study the patented literature and other information sources to find out what should not be invented, what technical solutions have already been found, when, by whom and where. The timely use of patent information makes it possible to avoid unnecessary expenditure and to save time and resources. Patent information provides trends of the development of knowledge in the field of research and the current status for the technology. With about a million patents being taken each year the world over, the patents are the largest singly body of technological information available anywhere. As

already noted above, before research projects are initiated, a scan of patent literature to establish what is known can save a lot of efforts. It is estimated that European Industries are wasting over 20 billion pounds each year by simply repeating previous efforts, the results of which are known or can be found in published literature on patents. 3. Copyright The copyright protects only the form of expressions of ideas not the ideas themselves. The creativity protected by copyright law is creativity in the choice and arrangement of words, musical notes, colors, shapes and so on. Copyright law protects the owner of rights in artistic works against those who copy; those who take and use the form in which the original work was expressed by the author. Illustrative examples of the `literary, scientific and artistic works include productions such as books, pamphlets and other writings, lectures addresses, dramatic or dramatic musical works, choreographic works, musical compositions with or without words, cinematographic works, works of drawings, painting, architecture, photographic works, works of applied art, the maps, plans, sketches, three dimensional works relating to geography, topography, architecture or science, etc. (Whatever may be the mode or form of the expressions).

There are other forms or mode of expressions, which are protected by many copyright laws. Computer software/program is one such mode of expression. A computer program means a set of instructions expressed in words, codes, schemes or in any other form including a machine readable medium capable of causing a computer to perform a particular task or achieve a particular result. A computer program is produced by one or more human authors but, in its final, mode or form of expression it can be understood directly only by a machine (the computer) not by human readers. The rights bestowed by law on the owner of the copyright in a protected work are described as `exclusive rights to authorize others to use the protected works. (E.g. reproduction, performing, recording, broadcasting, translation) 4. Trademark A trademark is an identification symbol which is used in the course of trade to enable the purchasing public to distinguish one traders goods from the similar goods of other traders. The public makes use of these trade marks in order to

choose whose goods they will purchase. If that are satisfied with large purchase they can simply repeat their order by using the trademark. Where a trademark is used in connection with services, it may be called service mark. For example, service marks are used by hotels, restaurants, airlines, tourist agencies, car-rental agencies, laundries and cleaners. Illustrative example of trademarks is KODAK, for photographic goods, APPLE for computers, CAMEL for cigarettes. Commercial names and designations constitute another category of elements of intellectual property. Trade names are generally names, terms or designations which serve to identify and distinguish an enterprise and its business activities from those of other enterprises. What is Design The expression `Design means only the feature of shape, configuration, pattern or ornament applied to any article by any industrial process or means whether manual, mechanical or chemical, separate or combined, which in the finished article appeal to end are judged solely by the eye. It is clear that design means the features of shape etc. applied to an article and not the article itself. The features are conceived in the authors intellect. He gives those ideas conceived by him a material (visual) form as a pictorial illustration, or as a specimen, prototype, or model. By registration under the Designs Act, the features are protected as design.

The Act confers exclusive right to apply a design to any article in any class in which the design is registered. To qualify for registration, the design Must Must Must prior be a new or original design not have been previously published in India; and not have been previously published in India i.e. published in India to the date of registration

Illustrative examples are the distinctive shape of a coca - cola bottle, textile designs, etc. Know-how Know-how is another important form of intellectual property generated by R & D institutions that does not have the benefit of patent protection. This could be in the form of an aggregation of known processes/procedures, and accumulation of data, a secret formulation, or a combination of any of these.

Know-how is often transferred together with licensing of patents and under transfer of technology arrangements.

End of Intellectual Properties Rights