Legal Aspects and Intellectual Property

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LEGAL ASPECTS AND INTELLECTUAL

PROPERTY
RIGHTS

THE SOCIAL SECURITY CODE, 2020


The Social Security Code is one of the labour codes
introduced in India to consolidate and simplify
various laws related to social security for
workers. The Social Security Code, 2020 replaces and
subsumes several existing legislations, including the
Employees' Provident Funds and Miscellaneous
Provisions Act, 1952; Employees' State Insurance Act,
1948; Maternity Benefit Act, 1961; and several other
laws pertaining to social security.
The key provisions of the Social Security Code, 2020
are as follows: -

1. Applicability: The code applies to establishments


employing ten or more employees, and it covers
both organized and unorganized sectors of
employment. The definition of employees has
been widened to include inter-state migrant
workers, construction workers, film industry
workers and platform workers/gig workers.
2. Social Security Benefits: The code provides for
various social security benefits for workers,
including the following: -

a. Employees' Provident Fund (E.P.F): The code


governs the establishment and administration of
E.P.F, which is a contributory fund where both the
employer and employee make contributions towards
the employees' retirement savings. E.P.F’s
coverage would be applicable to all
establishments having 20 workers. At present,
it was applicable only to establishments included in
the Schedule.

b. Employees' State Insurance (E.S.I): The code


mandates the establishment of the E.S.I scheme,
which provides medical, cash, maternity, and
other benefits to covered employees and their
dependents.

c. Employee State Insurance Corporation


(E.S.I.C): The code establishes the Employee State
Insurance Corporation (E.S.I.C) as a statutory body
responsible for the administration of the E.S.I
scheme and other related functions. The facility of
E.S.I.C would now be provided in all 740 districts.
At present, this facility is being given in 566
districts only.

d. Gratuity: The code outlines the provisions for the


payment of gratuity, which is a lump sum amount
paid to employees as a retirement benefit after
completing a certain period of continuous service.
Provision for Gratuity has been made for
Fixed Term employees and there would not be
any condition for a minimum service period
for this. The gratuity period for working
journalists has been reduced from 5 years to 3
years.

e. Maternity Benefits: The code extends the


coverage and scope of maternity benefits,
including paid leave and other facilities for
pregnant women and new mothers.

3. Pension and Insurance Schemes: The code


provides for the establishment of various pension
and insurance schemes, including the National
Social Security Board, which advises the
government on matters related to social security
schemes. The National Social Security Board
recommends to the central government about
the formulation of schemes for the various
sections of unorganised, gig and platform
workers.

4. Funding Mechanism: The code outlines the


funding mechanism for social security schemes,
primarily through contributions from employers
and employees. The specific contribution rates
and thresholds are determined by the government
and may vary for different schemes.

5. Registration and Compliance: The code


establishes the process and requirements for
registration of establishments under the social
security schemes. It also specifies penalties for
non-compliance with the provisions of the code.

6. It also empowers the Centre to frame any other


schemes for the self-employed, unorganised
workers, gig workers and platform workers
and the members of their families.
7. Firms employing more than 20 workers have
to mandatorily report vacancies online under
this code.

8. The Code has a provision for the creation of a social


security fund for workers in the unorganized
sector.

9. With the aim of making a national database for


unorganised sector workers, registration of all these
workers would be done on an online portal and this
registration would be done on the basis of Self
Certification through a simple procedure.

THE INDUSTRIAL RELATIONS CODE, 2020


The Industrial Relations Code, 2020 is part of the labour
law reforms introduced by the Indian government to
consolidate and streamline various laws related to
industrial relations. It aims to promote better
employer-employee relationships, facilitate ease
of doing business, and simplify the legal
framework governing industrial relations in the
country.
Some key provisions proposed in the Industrial
Relations Code, 2020 were as follows:
1. This labour code amalgamates three existing laws
and expands the definition of worker to include
persons employed in a skilled or unskilled,
manual, technical, operational and clerical
capacity.

2. Besides, persons employed in a supervisory


capacity and earning less than Rs.18,000 per
month have been brought under the definition.

3. The code introduces a new provision for fixed-term


employment, giving employers the flexibility to
engage a worker on the basis of a written
contract. Fixed-term employees will get the
same benefits as permanent employees.

4. The minimum number of workers employed for


an establishment to have standing orders has been
raised to 300. With the increased threshold, it
becomes more flexible and easier to hire and
fire thus leading to increased employment
according to the government.
5. The new industrial relation code would also improve
the ease of doing business by allowing firms with
up to 300 workers to go ahead with lay-offs,
retrenchment and closure without
government permission.

6. The new Code also proposes the setting up of a re-


skilling fund for training retrenched workers
with a contribution from the employer, of an
amount equal to 15 days last drawn by the
worker.

7. Efforts made by the Government to quickly


resolve disputes of the workers include a
Compulsory facility for the Helpline for the
redressal of problems of migrant workers.
Making a national database of migrant workers.
Provision for the accumulation of one day of leave
for every 20 days worked when work has been
done for 180 days instead of 240 days.

8. Equality for women in every sphere: Women have to


be permitted to work in every sector at night, but it
has to be ensured that provision for their security
is made by the employer and consent of
women is taken before they work at night.

9. In the event of the death of a worker or injury


to a worker due to an accident at his
workplace, at least 50% share of the penalty
would be given. This amount would be in
addition to the Employee’s Compensation.

10. The provision of a “Social Security Fund” for 40


Crore unorganized workers along with GIG and
platform workers will help Universal Social Security
coverage.

THE EMPLOYEES STATE INSURANCE ACT, 1948


Employees’ State Insurance Act, 1948 applies to
factories employing 10 or more persons.
The Act contains an enabling provision under which the
‘Appropriate Government is empowered to extend the
provision of the Act to other classes of establishments,
industrial, commercial agricultural or otherwise.
Employees of Factories and establishments covered
under the Act drawing
monthly wages up to Rs. 21000/- per month and
Rs. 25000/- per month for persons with
disabilities are covered under the scheme.
The ESI Scheme is administered by a statutory body
called the Employees’ State Insurance Corporation
(E.S.I.C), which has members representing
Employers’, Employees, Central and State
Governments, Medical Profession and
the Parliament.
The E.S.I Scheme financed from contributions paid
by the employers and employees as per provisions
of ESI Act, 1948. The rate of E.S.I Contribution is 4% of
the monthly wages out of which the employer’s and
the employee’s share of contribution are 3.25% and
0.75% respectively.
An employee, on joining the employment in a covered
establishment and getting wages up to Rs.15,000/- is
required to become a member of the fund.

Benefits
Under Section 46 of the Act, the insured persons, their
dependents are entitled to the following benefits on
prescribed scale: -
1. Periodical payments in case of sickness certified by
medical practitioner;
2. Periodical payments to an insured workman in case
of confinement or miscarriage or sickness arising
out of pregnancy, confinement;
3. Periodical payment to an insured person suffering
from disablement as a result of employment injury;
4. Periodical payment to dependents of insured
person;
5. Medical treatment and attendance on insured
person;
6. Payment of funeral expenses on the death of
insured person at the prescribed rate.

Employees’ Insurance Court (E.I. COURT)


The State Government shall by notification in the
Official Gazette constitute an Employees’ Insurance
Court for such local area as may be specified in the
notification.
The Court shall consist of such number of judges as the
State Government may think fit.
Any person who is or has been judicial officer or
is a legal practitioner of 5 years standing shall be
qualified to be a judge of E.I. Court. The State
Government may appoint the same Court for two or
more local areas or two or more Courts for the same
local area and may regulate the distribution of business
between them.

Matters to be decided by E.I. Court


1. Adjudication of Disputes: The Employees’
Insurance Court has jurisdiction to adjudicate
disputes, namely, whether any person is an
employee under the Act, rate of wages/contribution,
as to who is or was the principal employer, right of a
person to any benefit under the Act.

2. Adjudication of Claims: The EI Court also has


jurisdiction to decide claims for recovery of
contribution from principal employer or immediate
employer, action for failure or negligence to pay
contribution, claim for recovery of any benefit
admissible under the Act.

PAYMENT OF GRATUITY ACT, 1972


The Payment of Gratuity Act, 1972 provides for a
scheme of compulsory payment of gratuity to
employees engaged in factories, mines, oilfields,
plantations, ports, railway companies, motor
transport undertakings, shops or other
establishments on the termination of his employment
after he has rendered continuous service for not less
than five years on his superannuation, or on his
retirement or resignation, or on his death or
disablement due to accident or disease.
Provided that the completion of continuous service of
five years shall not be necessary where the
termination of the employment of any employees
is due to death or disablement. Payment of Gratuity
is an employer’s liability under the extant provisions of
the Act.

THE MATERNITY BENEFIT ACT, 1961


The Maternity Benefit Act,1961 regulates the
employment of women in factories, mines, the
circus industry, plantation units and shops or
establishments employing 10 or more persons
except the employees covered under the Employees
State Insurance (ESI) Act, 1948 for certain period before
and after birth and provides for maternity and other
benefits. It extends to the whole of India.
It also provides for maternity leave and payment of
certain monetary benefits to women workers subject
to fulfilment of certain conditions during the period
when they are out of employment on account of
pregnancy. The services of a woman worker
cannot be terminated during the period of her
absence on account of pregnancy except for
gross misconduct.
As per the Maternity Benefit (Amendment) Act, 2017,
maximum period for which a woman can get paid
maternity benefit is twenty-six weeks up to two
surviving children.
For adopting/commissioning mothers and for
more than two surviving children, 12 weeks of
paid maternity leave is also available.
A medical bonus is being provided under the Act. The
creche facility has also been provided by the
Maternity Benefit (Amendment) Act, 2017 after
insertion of new Section 11A, according to which every
establishment having fifty or more employees shall
have the facility of creche within such distance, as
may be prescribed, either separately or along with
common facilities.

THE INDUSTRIAL DISPUTES ACT, 1947


The Industrial Disputes Act, 1947 is a comprehensive
piece of legislation envisaging elaborate machinery for
prevention and settlement of industrial disputes.
The main object of the Act is: -
 To harmonize the relation between the employer and
employees so as to maintain industrial peace and to
ensure social justice.
 An investigation and settlement of Industrial disputes
between;
I. Employers and Employers;
II. Employer and Workmen; and
III. Workmen and Workmen.
 Prevention of illegal strikes and lock-outs;
 Relief to Workmen in the matter of lay-off and
retrenchment; and
 Collective bargaining.

Application of the Act


It applies to all industries establishment throughout
India except the state of Jammu and Kashmir. It
applies to workmen employed in both the private and
public sector industries.

STRIKE & LOCK-OUT


STRIKE
It means, stoppage of work or putting of work by
employees in their economic struggle with capital.
Essentials of Strike
1. Cessation of work;
2. Cessation of work by a body of persons employed in
any industry;
3. Acting in combination;
4. The industry must be an “industry”;
5. Concerted refusal;
6. The refusal must be under common understanding
to continue to work or to accept the employment;
7. It must relate to employment, non-employment or
term of employment or with the condition of labour
of the workmen.
Classification of Strikes:
1. General Strike,
2. Stay-In-Strike,
3. Go Slow Strike
 Sympathetic Strike
 Hunger Strike
 Work to Rule

Based on Utility of Industries


1. Strike in Public Utility Services; and
2. Strikes in Non-Public Utility Services.

Lock-Out
Meaning to shut or to close. It refers to closure of an
industrial establishment for a particular period to
suppress the prevailing situation in the industry.

Definition
Lock-out means the temporary closing of a place of
employment, or the suspension of work, or the refusal
by an employer to continue to employ any number of
persons employed by him.

Prohibition of Strikes and Lock-outs in Public


Utility Services
According to Sec.22 (l) of the Act, no person employed
in Public Utility Services, shall go on strike in breach of
contract: -
1. Without giving to the employer, notice of strike
within 6 weeks before striking; or
2. Within 14 days of giving such notice; or
3. Before the expiry of the date of strike specified in
any such notice as aforesaid; or
4. During the pendency of any conciliation proceeding
before a conciliation officer and 7 days after the
conclusion of such proceedings.
METHODS OF SETTLEMENT ON INDUSTRIAL
DISPUTES
1. Collective Bargaining;
2. Conciliation;
3. Voluntary Arbitration;
4. Adjudication

COLLECTIVE BARGAINING
Collective bargaining or Negotiation is one of the
methods for settlement of an industrial dispute.
Collective bargaining is a process/method by which
problems of wages and conditions of employment are
settled amicably, peacefully and voluntarily between
labour and management.
In collective bargaining, the parties to the dispute i.e.,
the employer and the employees/workmen settle their
disputes by mutual discussions and agreements without
the intervention of a third party. Such settlements are
called ‘bipartite settlement’.

CONCILIATION
Conciliation is a process by which a third party
persuades the parties to an industrial dispute, to come
to an equitable adjustment of claims.
There are two authorities designed for the process of
conciliation as follows: -
• Conciliation Officer (Sec.4)
• Board of Conciliation (Sec.5)
Conciliation Officer
The appropriate Government may appoint one or more
conciliation officers for a specified area or for specified
industries on permanent or temporary basis. He has to
mediate and promote the settlement of industrial
disputes. The conciliation officer is empowered to
exercise all quasi-judicial powers of a civil court.

Board of Conciliation
It consists of a chairman and 2 or 4 members. The
board is appointed as and when a dispute arises and to
settle the same amicably.

COMPULSORY ADJUDICATION
Labour Court (Sec.7)
It consisted of one person, appointed by the
government. He is called the presiding officer. It can
decide disputes of certain specified matters of greater
importance when the number of the workmen affected
is not more than 100 and when the appropriate
government thinks fit.
Jurisdiction: Dismissal, retrenchment, strike, lock out
etc.

THE CODE ON WAGES, 2019

1. The Code on Wages applies to all establishments


and to all employees in both organised and
unorganised sectors.

2. This labour code envisages uniform applicability of


the provisions of timely payment of wages and
minimum wages to all employees and bonus
payments in all employments where any industry,
business, trade or manufacture is carried out.

3. It introduces the concept of a floor wage, which is


to be determined by the Centre after taking into
account the minimum living standards of
workers which may be different for different
geographical areas.

4. The state government can, under no


circumstance, fix a minimum wage rate lower
than the floor rate determined by the Centre.
5. The minimum wages decided by the central or
state governments should be above the floor
wages. In case the existing minimum wages are
higher than the floor wages, the central or state
governments cannot reduce the minimum wages.

6. While fixing the minimum wages, the government


should take into account the difficulty level of the
work, and the workers’ skill levels also.

7. The Code prohibits gender discrimination in


wages and recruitment of people for the same
work or work of similar nature. Work of a similar
nature is defined as work for which the skill, effort,
experience, and responsibility required are the
same.

8. Wages include salary, allowance or any other


monetary component. It does not include
bonuses and travelling allowances.
9. The number of working hours will be fixed by the
central or state governments. In the case of
overtime work, the worker is entitled to overtime
compensation which should be at least twice the
standard wages.

10. The employer can fix the wage period as either


daily, weekly, fortnightly, or monthly.

11. Advisory boards will be constituted which will


advise the governments on minimum wage
fixing and increasing the employment
opportunities for women.

12. The Code specifies penalties for offences


committed by an employer for Contravention of
any provision of the Code, paying less than
the minimum wage and the maximum
punishment is three-month imprisonment along
with a fine of Rs. 1 lakh.

THE PAYMENT OF BONUS ACT, 1965


The Payment of Bonus Act, 1965 provides for the
payment of bonus to persons employed in certain
establishments, employing 20 or more persons, on
the basis of profits or on the basis of production or
productivity and for matters connected therewith.
The minimum bonus of 8.33% is to be paid by every
industry and establishment. The maximum bonus
including productivity linked bonus that can be paid in
any accounting year shall not exceed 20% of the
salary/wage of an employee.

Two ceilings are available under the Payment of


Bonus Act, 1965. The limit specified under Section 2
(13) which defines an eligible employee under the Act,
is generally known as the eligibility limit. Similarly,
the limit prescribed for calculation of bonus under
Section 12 is known as the calculation ceiling. The
two ceilings are revised to keep pace with the price rise
and increase in the salary structure.
The present Eligibility limit (Rupees per month) is
Rs.21,000/- and Calculating Ceiling for bonus
(Rupees per month) is Rs.7,000/- per mensem or the
minimum wage for the scheduled employment, as fixed
by the appropriate Government, whichever is higher.
Disqualification For Bonus
An employee shall be disqualified from receiving bonus
under this Act, if he is dismissed from service for: -
 Fraud; or
 Riotous or violent behavior while on the premises or
the establishment; or
 Theft, misappropriation or sabotage of any property
of the establishment.

MINIMUM WAGES ACT, 1948


According to its preamble the Minimum Wages Act,
1948, is an Act to provide for fixing minimum rates
of wages in certain employments. The Act
extends to whole of India.
Fixing of minimum rates of wages Section 3(1) provides
that the appropriate Government shall, in the manner
hereinafter provided: —
1. Fix the minimum rates of wages payable to
employees employed in an employment specified in
Part I or Part II.
2. Review at such intervals as it may think fit,
such intervals not exceeding five years, the
minimum rates of wages so fixed and revise
the minimum rates.
As per Section 3(2) of the Act the appropriate
Government may fix: —
1. A minimum rate of wages for time work.
2. A minimum rate of wages for piece work.
3. A minimum rate of remuneration to apply in the
case of employees employed on piece work for the
purpose of securing to such employees a minimum
rate of wages on a time work basis.
4. A minimum rate to apply in substitution for the
minimum rate which would otherwise be
applicable, in respect of overtime work done by
employees.

Section 3(3) provides that in fixing or revising minimum


rates of wages under this section: —
A. Different minimum rates of wages may be fixed for:

 Different scheduled employments;
 Different classes of work in the same scheduled
employment;
 Adults, adolescents, children and apprentices;
 Different localities;
B. Minimum rates of wages may be fixed by any one or
more of the following wage-periods, namely: —
 By the hour,
 By the day,
 By the month, or
 By such other larger wage-period as may be
prescribed;
Minimum rate of wages
According to Section 4 of the Act, any minimum rate of
wages fixed or revised by the appropriate Government
in respect of scheduled employments under section 3
may consist of: —
 A basic rate of wages and a special allowance at a
rate to be adjusted, at such intervals and in such
manner as the appropriate Government may direct,
to accord as nearly as practicable with the variation
in the cost-of-living index number applicable to
such workers (hereinafter referred to as the “cost of
living allowance”); or.
 A basic rate of wages with or without the cost-of-
living allowance, and the cash value of the
concessions in respect of supplies of essential
commodities at concession rates, where so
authorized; or
 An all-inclusive rate allowing for the basic rate, the
cost-of-living allowance and the cash value of the
concessions, if any.
Procedure for fixing and revising minimum wages
Under Section 5(1) in fixing minimum rates of wages in
respect of any scheduled employment for the first time
under this Act or in revising minimum rates of wages so
fixed, the appropriate Government shall either: —
 Appoint as many committees and sub-committees
as it considers necessary to hold enquiries and
advise it in respect of such fixation or revision, as
the case may be, or
 By notification in the Official Gazette, publish its
proposals for the information of persons likely to be
affected thereby and specify a date, not less than
two months from the date of the notification, on
which the proposals will be taken into consideration.

OCCUPATIONAL SAFETY, HEALTH AND WORKING


CONDITIONS CODE, 2020.
The Occupational Safety, Health, and Working
Conditions (OSHWC) Code, 2020 is a legislation enacted
in India to consolidate and streamline various labour
laws related to occupational safety, health, and working
conditions. It was introduced as part of the
government's initiative to simplify and update labour
laws in the country.
The code aims to provide a comprehensive framework
for ensuring the safety, health, and welfare of workers
across different sectors of employment.

Key features of the Occupational Safety, Health, and


Working Conditions Code, 2020 include: -
1. Scope and Applicability: The code applies to
establishments employing ten or more workers,
subject to certain exceptions specified in the law.

2. Occupational Safety and Health: The code sets


standards for occupational safety and health in
workplaces, covering aspects such as cleanliness,
ventilation, temperature, lighting, hazardous
processes, and handling of hazardous
substances. It also mandates the appointment of
safety officers, provision of first aid facilities,
and implementation of safety committees in
certain cases.

3. Welfare Measures: The code includes provisions


related to welfare measures for workers, including
drinking water, canteens, restrooms, creche
facilities for establishments with a specified
number of female workers, and adequate provisions
for sanitation.

4. Working Conditions: The code addresses working


conditions such as working hours, intervals for
rest and meals, overtime, and annual leave
entitlements. It also covers provisions for night
shifts and employment of women during night
hours, subject to certain conditions.

5. Employment of Contract Labour: The code


regulates the employment of contract labour and
provides for the welfare and working conditions
of contract workers. It aims to ensure that
workers employed through contractors receive fair
treatment and protection of their rights.

6. Enforcement and Compliance: The code


establishes mechanisms for enforcement,
inspections, and penalties for non-compliance
with its provisions. It also provides for the
establishment of an Occupational Safety and
Health Advisory Board to advise the
government on policy matters.
Measures To Be Taken by Factories for Health,
Safety and Welfare of Workers
HEALTH
1. Cleanliness
2. Disposal of waste and effluents
3. Ventilation and temperature
4. Dust and fume
5. Artificial humidification
6. Overcrowding
7. Lighting
8. Drinking water
9. Latrines and urinals
10. Spittoons
SAFETY
1. Fencing of machinery
2. Safety measures in case of work on or near
machinery in motion
3. Employment of young persons on dangerous
machines
4. Striking gear and devices for cutting off power
5. Self-acting machines
6. Casing of new machinery
7. Prohibition of employment of woman and children
near cotton openers
8. Hoists and lifts
9. Lifting machines, chains, ropes and lifting tackles
10. Safety measures in case of use of revolving
machinery
11. Pressure plant
12. Floor, stairs and means of access
13. Pits, sumps, openings in floors etc.
14. Excessive weights
15. Protection of eyes
16. Precautions against dangerous fumes, gases etc.
17. Precautions regarding the use of portable electric
light
18. Explosive or inflammable dust gas, etc.
19. Precautions in case of fire
20. Power to require specification of defective parts or
test to stability
21. Safety of buildings or machinery
22. Maintenance of buildings
23. Safety officers
WELFARE
1. Washing facilities
2. Facilities for storing and drying clothing
3. Facilities for sitting
4. First aid appliances
5. Canteens
6. Shelters, rest rooms and lunch rooms
7. Creches
8. Welfare officers

THE PATENTS ACT, 1970


Short Brief
Patents protect technical embodiments of an
invention. They are granted for marketable
inventions in all fields of technology which satisfy
the threefold criteria of novelty, inventive step, and
industrial applicability.
A patent is valid for a fixed term, usually 20 years, and
the holder of the patent right, known as a patentee is
entitled to use (by exclusion) or transfer the right
the use the patent to others. Disclosure is a
mandatory requirement for grant of patent and the
applicant is required to disclose the technical
specifications of a patent in the patent application.
A patent is a negative right which grants exclusive
rights to a patentee to prevent or exclude others from
making, using, selling, offering to sell or importing the
invention. The patent law recognizes the exclusive right
of a patentee to gain commercial advantage out of
his invention. This is to encourage the investors to
invest their creative faculties, knowing that their
inventions for certain period during which the
respective investors would have exclusive rights.

Standard Of Patent or Concept of Novelty,


Inventive Step and Utility or Patentable Subject
Matter
A Patent is statutory Instrument of Monopoly
granted as a reward for an Invention by the
Government to the Inventor for a Limited Period of 20
years from date of filing in return for which the
inventor has to disclose to the Public his invention in its
entirety. Patent is Quid Pro Quo where quid is the
exclusive right to commercially exploit the invention of
the patentee and quo is the disclosure of such invention
to the public.

Patent Subject Matter


Patentability, statutory or patent eligible subject matter
is a subject matter which is susceptible of patent
protection. Together with novelty, inventive step or
non-obviousness, utility and industrial
applicability, an invention can be granted patent
provided it doesn’t fall under Sections 3 and 4 where
it lists out non-patentable subject matter.

1. Novelty: Inventions must be novel (unlike any


other, unique): Novelty is an important criterion in
determining patentability of an invention. Invention
means a new product or process involving an
inventive step and capable of Industrial application.
The novelty requirement states that an invention
should never have been published in the public
domain. It must be new with no same or similar
prior arts.
2. Inventive step or non-Obviousness: Inventive
step measures the technical accomplishment
reflected in an invention i.e., whether an
invention is an adequate technical
advancement to merit the award of a patent.
Even if an invention is new and useful it does not
deserve a patent if it represents merely a trivial
step forward in the art. The term inventive step
means that the invention must not be obvious
to a person skilled in the same field as the
invention relates to. It must be inventive.
3. Capable of Industrial application: Industrial
applicability is defined under Section 2(ac) of the
Act as “the invention is capable of being made
or used in an industry”. This essentially means
that the invention cannot exist in abstract. It must
be capable of being applied in any industry, which
means that the invention must have practical utility
in order to be patentable. It is a quality of an
invention which makes it better than the preceding
knowledge of the trade. It is not necessary that the
invention as described should be commercially
useful, it is sufficient that the invention must be of
some use to the public. That is society should
receive some positive benefit.

Thus, in order for an invention to get patent it need to


satisfy three conditions: the invention should be
novel, should have inventive step and should
have some utility or should be capable of
industrial application and also that the
inventions should not fall into non-patentable
inventions mentioned under Sections 3 and 4 of the
Patents Act, 1970.

Prior Art Search


Conducting a thorough search to identify prior art
references similar to your invention. This step
helps determine the novelty and non-obviousness of
your invention and aids in drafting a strong patent
application.

Priority Date
The date at which the novelty is to be assessed is the
date of filing of the patent application with the
complete specification i.e., the priority date.
Prior Publication
Prior publication means Act of making invention known
to the public.

Non-Patentable Inventions
Section 3 and 4 of The Indian Patent Act:
Section 3 and Section 4 of the Patent Act is highly
debatable and deals with the list of exclusions that are
non-patentable that do not satisfy the above conditions.
Following are not the “inventions” under the meaning
of this act:
1. Inventions that are contrary to natural laws.
2. Inventions which go against public morality.
3. Inventions that are a mere discovery of
something that already exists in nature.
4. Mere admixing of mixtures leading in the
aggregation of properties are non-
patentable.
5. Mere aggregation or duplication of devices
working in a known way is not an invention.
6. Horticulture or agricultural method is non-
patentable.
7. Medicinal, curative, prophylactic, diagnostic,
therapeutic for treating diseases in human
and animals are non-patentable.
8. Essential biological processes for the
production or propagation of animals and
plants are not an invention.
9. Simple mathematical or business or computer
programs are not an invention.
10. Aesthetic creation is not an invention.
11. Mental act, rule or method is not an
invention.
12. Presentation of information is non-
patentable.
13. The topography of integrated circuits is non-
patentable.
14. Traditional Knowledge is not an invention.
15. Atomic-Energy inventions are non-
patentable.
Procedure For Obtaining Patent
According to Patent law in India, an application for a
patent can be made by any person claiming to be the
true and first inventor of the invention, any person
being the assignee of the person claiming to the true
and first inventor or by the legal representative of
any deceased person who immediately before his death
was entitled to make such an application. Thus, it is not
mandatory that only an inventor can apply for and get a
patent over an invention.

An application for a patent can be made for only


one invention and should be in the prescribed form.
The application must be accompanied by a provisional
or complete specification. The first to file system is
employed, in which among the persons having filed for
the same inventions, first one is granted a patent;
therefore, a patent application should be filed properly
after conceiving the invention.

Specification
The Patents Act states that every application for a
patent shall be accompanied by a specification. A
patent specification is a unilateral statement by the
patentee, in words of his own choosing, addressed to
those likely to have a practical interest in the subject
matter of his invention, by which he informs them what
he claims to be the essential features of the new
product or process for which the letters patent grant
him a monopoly.

Provisional Specification
Provisional specification helps in the determination of
priority of patents. The object of filing a provisional
specification is more manifest in cases where there are
similar inventions which give rise to competing
applications. Where two or more persons develop
similar concepts and make competing applications for
patents for the same invention, in different parts of the
world, the priority of the co-pending applications is
determined on a ‘first-to file’ basis. The provisional
specification should describe the true nature of the
invention, and such description should be the same as
that claimed in the complete specification.

Provisional Specification contains: Title of the


invention and requirements of describing invention.
Complete Specification contains – Title, fully and
particularly describing invention, manner in which
invention is to be performed and best method, end with
the claim defining the scope of the invention, and be
accompanied by an abstract. Additionally, a complete
specification may further be supplemented by drawings
and models or samples.

Procedure For Patent in India Under Patent Law

1. Determine Patentability: Assess whether your


invention meets the criteria for patentability, which
include novelty, inventive step, and industrial
applicability. Ensure that your invention is not
excluded from patent protection as per the
provisions of the Indian Patent Act.

2. Prior Art Search: Conduct a thorough search to


identify prior art references similar to your
invention. This step helps determine the novelty
and non-obviousness of your invention and aids in
drafting a strong patent application.
3. Drafting the Patent Application: Prepare a
complete and detailed patent specification
describing your invention, its technical features,
and its potential applications. The application
must comply with the formal requirements and
guidelines set by the Indian Patent Office.

4. Filing the Application: Submit your patent


application to the Indian Patent Office (either
the Patent Office in Kolkata, Chennai, Mumbai, or
New Delhi) along with the prescribed filing fees.
You can file either a provisional or complete
application, depending on your requirements.

5. Publication: After filing, your patent application


will be published in the Indian Patent Office's
Official Journal after a mandatory 18-month
period from the filing date or priority date,
whichever is earlier. Once published, it becomes
part of the public domain.

6. Request for Examination: For your application to


proceed further, you need to file a request for
examination within 48 months from the filing
date or priority date, whichever is earlier. The
request should be accompanied by the required
fees.
7. Examination: The patent application will be
examined by the Patent Office to assess the
patentability of your invention based on the
criteria mentioned earlier. The examination may
involve the issuance of an examination report
detailing objections or requirements for
amendment.

8. Response and Amendments: Respond to the


examination report within the prescribed
timeframe (usually six months) by addressing
the objections raised or making amendments
to the application as required. Arguments and
amendments should be supported by relevant
evidence and justifications.

9. Grant or Refusal: If the examiner is satisfied


with the response and amendments, the patent
will be granted, and the applicant will be
required to pay the grant fees. In case of
refusal, the applicant has the option to
request a hearing before the Intellectual
Property Appellate Board (I.P.A.B) or file a
review petition.

10. Patent Term and Maintenance: Once the patent


is granted, it is valid for 20 years from the date of
filing the application, subject to the payment of
annual maintenance fees. Ensure timely payment
of fees to maintain the validity of the patent.

Rights And Obligations of Patentee


A patent shall confer on the patentee a monopoly right
for a fixed term, but subject to certain conditions and
obligations. A patentee has exclusive right to
exploit, use, sale or transfer his patent. He can
exclude others from exercising those rights which are
available to him alone.
Rights of Patentee: -
1. Right to exploit patent: -
The patentee or the person legally authorized by him
can make commercial use of the patented invention. He
can exclude third parties who do not have his consent.
2. Right to license: -
If a patentee is not able or willing to exploit the patent
himself, he can grant license to some other person and
authorize him to exploit the patent and pay him the
consideration or royalty.
3. Right to Assign: -
A patentee can fully or partially assign his patent to
another person through sale, gift or any other legal
mode.
4. Right to surrender the patent: -
The patentee has the right to surrender his patent.
5. Right to be issued duplicate Patent: -
If a patent is lost or destroyed or its non-production is
explained satisfactorily to the Controller, the patentee
has a right to apply for duplicate patent.
6. Rights against infringement: -
The exclusive rights of patentee can be legally
protected by excluding unauthorized persons from
exploiting patent of others. Violation of rights of
patentee amounts to infringement. Patentee has right
to seek legal remedies including civil suit against
infringer.

Limitation On Rights Of Patentee


The rights of patentee as mentioned in the introductory
remarks are not absolute. They are subject to certain
limitations, following conditions and limitations can be
imposed.
1. Use of Patent by Government: -
A patent has the same effect as against the
Government as it has against any other person. But the
Government may use the patented invention, and even
acquire it, under certain circumstances and terms, or
prohibit a person from using an invention.
2. Acquisition of invention and patent by
Government: -
Section 102 lays down that the Central Government on
being satisfied that it is necessary that an invention
mentioned in an application for a patent or in any
already granted patent, should be acquired for public
purpose, it would publish a notification to that effect in
the official Gazette. Upon such publication, the
invention or the patent and all the rights in respect of
the same shall stand transferred and be vested in the
Central Government.

Obligations Of Patentee
1. Duty to work out patent and make it
available to public: -
Patents are granted not only to encourage inventions
but also to secure that the inventions are worked in
India on a commercial scale and to the fullest extent
that is practicable without undue delay.
2. Duty to furnish information: -
It is the duty of the patentee to furnish information
demanded by Controller under Section 100 and 146. If
he fails to furnish such information, he is liable for
penalty up to Rupees ten lakh.

Compulsory License Under Patent Law


Compulsory licensing is a measure which is provided by
the patent act. It ensures that the patentee do not
misuse their patent rights. Compulsory Licensing is
given only for public health and nutrition. Simply
speaking, it is a license given to a 3rd party to
manufacture, use, or sell the product or use the process
that provides a new way of doing something which has
been already granted patent without the permission of
the owner. This is done for the public health, or in
national emergency and health crisis. As this license
works against the owner of the patent there are
conditions that are given by the government to be
fulfilled.

Compulsory license will be granted on the


following grounds: -
1. That the reasonable requirements of the public with
respect to the patented invention have not been
satisfied or,
2. That the patented invention is not available to the
public at a reasonably affordable price or,
3. That the patented invention is not worked in the
territory of India.
4. For exports, if the product is used for exporting to
another country, then government can grant
licenses but this is only in exceptional
circumstances.
5. If there is national emergency, this is the case
where the product is needed on an urgent basis like
in war or in health crisis.

Conclusion
Compulsory licensing is important for a underdeveloped
or developing countries especially in making available
the medicines to the public. Medicine is a necessity for
the society and if a patented drug is available in a
country but is very expensive that a normal person
cannot afford that drug then the government of that
country has to do something for the people who cannot
afford it. Here, the compulsory license role comes in.
Compulsory licenses will make the similar product
available to the people who cannot afford that drug.

Transfer Of Patent
Like physical property, intellectual property may also
be transferred by the owner. As such, patent is a
transferable property. The owner of patent, i.e.,
patentee can transfer partially or fully his patent to
another person, either for consideration or without
consideration. Transfer of patent can take place in the
following manners: -
1. Assignment.
2. License.
3. Transmission by operation of law.

1. Assignment
Assignment means the transfer by a party all of its
rights or interest in the property. It may be through sale
for consideration or gift where no monetary
consideration prevails. Assignment differs from license.
In license only limited and personal privilege to do
some particular act or acts is conferred, whereas, in
assignment all rights and privileges available to
patentee (assignor) are transferred to assignee.
There can be three kinds of assignments: -
 Legal assignment.
 Equitable assignment.
 Mortgage.

Legal Assignment
An assignment of an existing patent through an
agreement which has been duly registered is a legal
assignment. A legal assignee has the right to have his
name entered in the Register of Patents maintained in
the Controller's Office as proprietor of the patent and
can thereafter exercise all the rights conferred on him
by the proprietor of patent.

Equitable Assignment
Any document such as letter but not being an
agreement, which is duly registered with the Controller
in which patentee agrees to give another person certain
defined rights in the patent with immediate effect, is an
equitable assignment. An assignee in such a case
cannot have his name entered in the Register as the
proprietor of patent. He can only have a notice of his
interest entered in the Register. He can convert the
equitable assignment to legal assignment by getting a
written agreement to this effect and having it duly
registered.

Mortgage
A mortgage is also a form of assignment. A mortgage is
a document transferring the patent rights either wholly
or partly to the mortgagee with a view to secure the
payment of a specified sum of money. The mortgagee
(a person in whose favor a mortgage is made) is not
entitled to have his name entered in the Register as the
proprietor, but he can get his name entered in the
Register as a mortgagee.

2. License
A license is a permission to make, use or exercise the
patented invention which would otherwise be illegal to
do so. In license the ownership of patent remains with
patentee, mere partial use is permitted. Licenses may
be classified into two categories viz. voluntary license
and compulsory license.

Voluntary License: Voluntary license is a written


authority granted by the owner of the patent to another
person(s) empowering the latter to make, use, sell the
patented article in the manner and on terms and
conditions provided in the license. The terms and
conditions are settled between the patentee and the
licensee. Controller or Government have no role in the
matter of grant of license. So, it is termed as voluntary
license.

3. Transmission by Law
Transfer of patent by operation of law occurs when the
patentee dies or becomes bankrupt or, in the case of a
company, it is dissolved. On the death of the patentee,
his interest in the patent passes to his legal
representative in the same manner as any other form
of property. In the case of bankruptcy or dissolution of a
company, devolution of property in the patent takes
place in the same manner as in any other property.
Infringement Of Patent and Remedies
Any violation of the rights of patentee will constitute
infringement of patent.
What amounts to Infringement?
Following acts may constitute infringement: -

1. The colorable imitation of an invention.

2. Immaterial variations in the invention.

3. Mechanical equivalent.

4. Taking essential features of the invention.

A colorable variation or immaterial variation: -


A colorable variation or immaterial variation amounting
to infringement is where an infringer makes slight
modification in the process or product but in fact takes
in substances the essential features of the patentee's
invention.

Infringement by mechanical equivalents: -


Infringement by mechanical equivalents would occur
when he uses mere substitutes for those features so as
to get the same result for the same purpose as
obtained by the patentee.

Acts which do not amount to infringement: -


1. Import of any machine, apparatus or other articles
(of which patent is granted) by or on behalf of
government.
2. Manufacturing or use of patented process by or on
behalf of government.
3. Manufacturing or use of patented articles or
patented process by any person for the purpose
merely of experimentation or research including
imparting instruction to pupils.
4. Import of patented drugs or medicines by the
government for the purposes merely for its own use
or for distribution in any hospital or dispensary or
medical institution run or maintained by
government.
5. Any act of making, constructing, using, selling or
importing a patented invention solely for uses
reasonably related to the development and
submission of information required under any law
for the time being in force, in India, or in a country
other than India, that regulates the manufacture,
construction, use, sale or import of any product.
6. Importation of patented products by any person
from a person who is duly authorized by the
patentee to produce, sell or distribute the product.

Remedies (Procedural Aspects)


Indian Patent Act provides the procedure and various
remedies against infringement of patent.
Jurisdiction: -
Section 104 provides that a suit for infringement
shall not be instituted in any court inferior to a
District Court having jurisdiction to try the suit.
Who can sue:
1. The patentee, including co-owner of patent.
2. The exclusive licensee if the license is registered.
3. A compulsory licensee when the patentee refuses
or neglects to institute proceedings.
4. A licensee other than the above two licensees can
bring an action for infringement depending upon the
terms of the contract between the licensor and
licensee.
5. Assignee, he can sue only after the application for
registration of the assignment in his favor has been
filed. If a patent is assigned after the
commencement of action, the assignee is to be
joined as a co-plaintiff. An assignee cannot sue for
infringement which occurred prior to the
assignment.

Any person who infringes the patent, may be


sued for infringement. Therefore manufacturers,
importers, dealers, their servants and agents,
sometimes even users of the patented articles may be
made defendants in a suit for infringement. A person
who threatens to infringe may also be sued. In
the case of a company guilty of infringement, its
directors cannot be personally sued for
infringement unless the evidence establishes the
relationship of principal and agent between the
directors and the company.

Defenses Which May Be Set Up By Defendant


In addition to the grounds on which patent may be
revoked.' defendant may also take one or more of the
following defenses in suit for infringement: -
1. At the time of infringement there existed a
contract relating to the patent containing a
condition which is unlawful under the provisions of
Section 140.
2. Act complained of, falls within the scope of
innocent infringement, that is, the defendant
was unaware of the existence of the patent
when the alleged act of the infringement occurred
or done after failure to pay renewal fee or done
before the date of amendment of specification.

Remedies (Substantive Relief)


According to Section 108 if the plaintiff is able to prove
the infringement by defendant, the court may grant
following reliefs:
1. Injunction whether interlocutory or final.
2. Damages or Account of profits.
3. Delivery up or destruction of infringing goods.

Injunction
The plaintiff may at the commencement of the suit or
any time during the suit, move the court for grant of an
interim injunction to restrain the defendant from
committing and continuing to commit the acts of
alleged infringement.

Final Injunction
Such injunction is granted at the conclusion of suit. The
final injunction will remain in force till the
remaining term of the patent. But when the
infringement relates to a patent endorsed as "License
or right", no injunction will be granted if the defendant
is willing to take a license.

Damages Or Account of Profits


Plaintiff may be awarded either of the two. Both
cannot be awarded together. The damages may
be awarded to compensate for the loss or injury
suffered by plaintiff due to the action of defendant.
Whereas, the account of profits is determined on
the basis of actual use of patentee's invention by
infringer during the period of commission of the act or
infringement.

Delivery Up or Destruction Of Infringing Goods


An order for delivery up or destruction is made with a
view to prevent the defendant from making use of the
infringing articles which might be in his possession. It is
a discretionary order. The property in the articles which
are made in violation of a patent resides in the infringer
though he is prevented from using them.

Offence By Company
If the offence is committed by company, every person
in charge of and responsible to the company for
conduct of its business at the time of commission of the
offence shall be deemed to be guilty of offences.

Patent Exhaustion
It is also known as the "first sale doctrine" or
"exhaustion of rights." The doctrine of patent
exhaustion limits the control a patent owner has over a
patented invention after it has been sold or disposed of
by the patent owner or with their authorization.
Under the Indian Patents Act, once a patented
product is sold by the patent owner or with their
authorization, the patent owner's rights over that
particular product are said to be "exhausted."
This means that the patent owner cannot control or
restrict the further use, resale, or disposition of that
particular product by the purchaser or subsequent
owners.
The principle of patent exhaustion is important because
it enables the free circulation of patented goods
in the marketplace and promotes competition. It
allows consumers to fully utilize and exploit the
patented invention without interference from the
patent owner beyond the first authorized sale.

Types of Patent Exhaustion


In India, there are two recognized types of patent
exhaustion: National Exhaustion and International
Exhaustion.

National Exhaustion: National exhaustion, also


known as Domestic exhaustion, applies within the
borders of a specific country. In the case of India, it
means that once a patented product is sold or disposed
of within the country by the patent owner or with their
authorization, the patent owner's exclusive rights over
that particular product are considered exhausted.
Subsequent purchasers or owners of the product can
use, resell, or dispose of it freely within India without
infringing on the patent owner's rights.
International Exhaustion: International exhaustion,
also referred to as Global exhaustion or Parallel
importation, extends the exhaustion principle
beyond national borders. Under international
exhaustion, once a patented product is sold or
authorized for sale by the patent owner in any country,
their exclusive rights over that product are exhausted
globally. This means that the patent owner cannot
prevent the importation, sale, or use of the product in
another country, including India, even if the product
was first sold in a different country.

THE COPYRIGHT ACT, 1957

Copyright are rights given to creators for their literary


and artistic works.

Scope of Copyright: -

 Original literacy, dramatic, musical and artistic


works.
 Cinematograph films
 Sound recordings
 Computer programs
Owner Of Copyright Enjoys Following Rights

Granted Under Law:

1. Right to reproduce the work in any material form.

2. Right to issue copies of the work to public.

3. Right to perform the work in public.

4. Right to make cinematograph film or sound

recording of the work in literary, dramatic or

musical work.

5. Right to make translation of the work.

Core Principles of Copyright

1. Originality: In order for a work to be eligible for


copyright protection, it must be original.
2. Fixation: The work must be fixed in a tangible
form, such as a written document or a recorded audio
or video file, so that it can be reproduced or
communicated to others.
3. Ownership: The creator of a work is usually the
owner of the copyright, but ownership can also be
transferred or assigned to someone else through a
contract or agreement. The owner has the exclusive
right to use, reproduce, distribute, and display the
work, and can prevent others from doing so without
their permission.

Fair Dealing Concept Under Copy Right Law

Fair dealing is a legal concept under copyright law that


allows limited use of copyrighted material without
the permission of the copyright owner. Fair dealing
is a defence to copyright infringement and is intended
to balance the rights of the copyright owner with the
public interest in accessing and using copyrighted
works.

The specific criteria for fair dealing vary by jurisdiction,


but generally include the purpose and character of
the use, the nature of the copyrighted work, the
amount and substantiality of the portion used in
relation to the whole work, and the effect of the
use on the potential market or value of the
copyrighted work.

Public Undertaking in Copy Rights


In the context of copyright law, a "public undertaking"
refers to a government-owned or government-
controlled entity that engages in activities related
to the exploitation, management, or
administration of copyright-protected works.
These entities are typically responsible for licensing,
collecting royalties, and enforcing copyright laws
on behalf of the rights holders.

Public undertakings can take various forms depending


on the jurisdiction. They may include national or
regional copyright offices, collecting societies, or
collective management organizations. The primary
objective of these entities is to facilitate the legal
and efficient use of copyrighted works, ensuring
that creators receive appropriate compensation
for the use of their works.

Public undertakings play a crucial role in copyright


enforcement, as they often establish licensing
schemes, collect royalties from users of
copyrighted materials (such as broadcasters,
venues, or online platforms), and distribute those
royalties to the rights holders. They may also
provide services such as copyright registration,
information dissemination, and dispute
resolution.

By centralizing the administration of copyright-related


matters, public undertakings help streamline the
licensing process, reduce transaction costs, and
simplify the legal framework for users and rights
holders. Additionally, they contribute to the overall
protection and promotion of copyright as an
important aspect of intellectual property rights.

THE DESIGN ACT, 2000


Design laws are maintained by the Design Act, 2000.
Design means features of shape, pattern,
configuration, ornament or composition of colors
or lines which is applied in three dimensional or
two dimensional or in both the forms using any of
the process whether manual, chemical, mechanical,
separate or combined which in the finished article
appeal to or judged wholly by the eye.

Objectives of design act 2000


The primary objective of the Design Act is to protect
the designs.
Essential Requirements for registration: -
1. Novelty and originality
2. Design must be unique, a Prior publication is not
acceptable
3. Making application of design to an article
4. The design must not be contrary to the order and
morality.

Novelty & Originality


A design can be considered for registration only if they
are unique. A combination of previously registered
design can also be considered only if the combination
produces new visuals.

Design Must Be Unique


The design must not be a published one. If the design is
already published than the design is not eligible for the
publication.

Making Application of Design to An Article


The applicability of the design should be to the article
itself. It can be formed of a three-dimensional figure.
There are two-dimensional figures also included in this
act i.e., any painting or any graffiti on the walls or print
on the bedsheets.

The Design Must Not Be Contrary to The Order


and Morality
The design must be registrable under the Design Act,
2000. It must not be prohibited by the Government of
India or any institution so authorized. The design must
be capable of registering under Section 5 of this act.
The design which can cause a breach of peace and may
hurt the sentiments of the people may not be allowed
to get register.

Rights Of the Proprietor of The Design


When a proprietor applies for the registration of the
design he shall automatically get ‘copyrights in design’
for the period of 10 years from the date of
registration. This period can be extended if the
proprietor wants to continue with the design.

Who Is Entitled to Seek Registration?


As per the provisions of Design Act, 2000 any
proprietor who is seeking registration of a design
which is original and unpublished previously in
any country which does not seems to be contrary
to any law and order of that country can file an
application for registration. A proprietor as per
Section 2(j) includes that person who
1. Is the author of that design.
2. Acquired design for a valid consideration.
3. Any person to whom the design has been devolved
from the original proprietor.
4. In case there is more than one author than the
design must be applied by the joint authors only.

Items That Cannot Be Registered as A Design


Under the Act: -
 Signs, emblems or flags of any country.
 Size of any article, if changed.
 Structures and buildings.
 Integrated circuits’ layout designs.
 Trade variations.
 Any principle or mode of construction of any
articles such as labels, tokens, cartoons, cards, etc.
 Books, calendars, certificates, jackets, forms-and
other documents, greeting cards, maps and plan
cards, postcards, leaflets, stamps, medals,
dressmaking patterns.
 A mechanical contrivance.
 Workshop alterations of components of an
assembly.
 Parts of any article which is not manufactured and
sold separately.

Duration Of the Registration of a Design


The total time for which a design can be registered is
15 years. Initially, it was 10 years, which could be
extended for another 5 years by paying a fee of
Rs.2000 to the Controller but it should be done before
the expiry of that 10 years period. The proprietor of
any design may even file an application as soon as the
design gets registered for such an extension.

The Grounds for Such Cancellation of


Registration Are as Follows: -
1. The design has been already registered in India
previously.
2. It has been published in India or somewhere else
before the date of registration.
3. The design is not original or new.
4. It is not registrable under the Act.
Register Of Designs
A book named ‘Register of Designs’ shall be kept at
the Patent Office which contains all the details
regarding the registered designs such as names,
addresses of proprietors of registered designs,
notifications and transmissions of designs and
other important information. Such register must be
maintained wholly or partly on computer diskettes or
floppies as may be prescribed.

Infringement Of Design
Just like any other Intellectual Property, the designs are
also prone to infringement and they can also be copied
by the competitors or some other person. If a design
has been copied then the owner of that design can
claim damages and can also apply for an injunction so
that the design cannot be used further.

Piracy Of Registered Designs


Section 22 of the Designs Act, 2000 deals with the
piracy of registered designs. According to this section,
any obvious or fraudulent imitation of a design
which is already registered without the consent
of its proprietor is unlawful. It also prohibits the
import of any material which closely resembles a
registered design.

This section also provides that in case if a civil suit is


brought against any piracy of a design, then the
compensation shall not exceed Rs.50,000 for the
infringement of one registered design. The
compensation is statutorily fixed so it serves a good
ground for an interim injunction even before the trial
commencement.

ELECTRONIC GOVERNANCE [E-Governance]

Electronic governance refers to the use of information


and communication technologies to improve the
efficiency, transparency, and accountability of
government processes and services. E-governance
is aimed at making government services more
accessible to citizens, reducing corruption, and
increasing public participation in decision-making
processes.

Examples of e-governance initiatives include:

1. Online portals for government services: Many


governments have developed online portals that allow
citizens to access government services, such as
applying for passports, paying taxes, or registering to
vote, from anywhere with an internet connection.

2. Electronic voting: Electronic voting systems can


make the voting process faster and more efficient, and
can help reduce fraud and errors in vote counting.

3. Social media for citizen engagement:


Governments can use social media platforms like
Twitter and Facebook to engage with citizens, share
information about government services and policies,
and gather feedback from the public.

4. Open data initiatives: Governments can release


public data in machine-readable formats, making it
easier for citizens to access and analyse information
about government programs, policies, and spending.

5. Digital identity systems: Digital identity systems


can provide citizens with a secure, portable, and
verifiable way to prove their identity online, making it
easier to access government services and participate in
online transactions.

Digital Signature

A digital signature is an electronic method of


signing a document or message using encryption
techniques to verify the authenticity of the
sender and the integrity of the message.

Features and Benefits of Digital Signatures:

1. Authentication: A digital signature provides a high


level of authentication, as it can only be generated by
the sender and cannot be replicated or forged by
anyone else.

2. Security: Digital signatures use encryption


techniques to ensure the security and integrity of the
message. The signature is encrypted using a private
key and can only be decrypted using a public key,
which is shared by the recipient.

3. Non-repudiation: Digital signatures provide non-


repudiation, which means that the sender cannot deny
having sent the message once the signature has been
verified.

4. Efficiency: Digital signatures can be used to sign


documents and messages electronically, which saves
time and reduces the need for physical signatures.

5. Legal validity: In many countries, including India,


digital signatures have the same legal validity as
physical signatures, and are recognized under the
Information Technology Act, 2000.
Procedure

To create a digital signature, a user must first obtain


a digital certificate from a trusted certification
authority (CA). The certificate includes the user's
public key, and is used to verify the authenticity of the
digital signature. Digital signatures can be created
using a variety of software tools, including Adobe
Acrobat, DocuSign, and HelloSign.

Legal Aspect

In India, the Ministry of Electronics and


Information Technology is responsible for the
regulation and implementation of digital signatures
under the Information Technology Act, 2000. The
Controller of Certifying Authorities (CCA) is the
regulatory body responsible for issuing digital
certificates and regulating the use of digital signatures
in India.

Duties Of Subscriber of Digital Signature

In India, a subscriber of a digital signature is a person


who has been issued a digital certificate by a Certifying
Authority (CA). The following are the key duties of a
subscriber of a digital signature:
1. Protection of Private Key: A subscriber is
responsible for the security of their private key, which is
used to create digital signatures. The private key
should be kept confidential and should not be shared
with anyone else.

2. Safekeeping of Digital Signature Certificate:


The subscriber should ensure that their digital signature
certificate is stored securely and is not accessible to
unauthorized persons.

3. Proper Usage of Digital Signature: The


subscriber should use their digital signature only for the
purposes for which it was issued, and should not use it
to sign documents or messages that they have not
authorized or that are fraudulent.

4. Prompt Reporting of Compromised Digital


Signature: If the subscriber suspects that their digital
signature has been compromised or used without
authorization, they should promptly report it to the CA
and take appropriate measures to prevent further
misuse.

5. Compliance with Legal Requirements: The


subscriber should comply with all legal requirements
related to the use of digital signatures, including those
under the Information Technology Act, 2000.

6. Revocation of Digital Signature Certificate:


The subscriber should promptly revoke their digital
signature certificate if they no longer require it or if it
has been compromised.

TRADE MARKS ACT, 1999

Introduction

In India the law relating to Trade Marks is contained in


the Trade Marks Act, 1999.

The Trade Mark one uses for distinguishing his


goods from others goods requires protection
under law. If not, others will use the very same trade
mark and exploit the market and cheat the consumer.
To avoid such type of practices the Trade Marks Act,
1999 is enacted.
Meaning And Definition of Trade Mark

A trade mark is a visual symbol in the form of a word,


a device or a label applied to articles of commerce
with a view to indicate the buyers that the goods
are manufactured by a particular organization as
distinguished from similar goods manufactured by
others.

A trade mark is a visual representation attached to


goods for the purpose of indicating their trade origin.

A person who sells his goods under a particular trade


mark acquires a limited exclusive right to use the mark
in relation to those goods.

The trade mark may be registered or


unregistered. An unregistered trade mark is
known as common law mark. A trade mark when
registered gets a stable existence. A trade mark can
be registered in relation to goods in existence
and for future goods.

Functions Of Trade Marks: -

 It identifies the product and its origin.


 It guarantees its quality.
 It advertises the product.
 It creates an image of the product in the minds of
the public particularly consumers.

Types Of Trademarks

1. Product Mark: Product mark is a mark that is used


on a good or on a product. This type of trademark is
used to recognize the origin of the product and
helps in maintaining the reputation of a business.

2. Service Mark: Service mark is used to represent a


service. The main purpose of the service mark is
that it distinguishes its proprietors from the owners
of other services.

3. Collective Mark: Collective mark is used to inform


the public about certain distinguished features of a
product or service used to represent a collective. A
group of individuals can use this mark so that they
are collectively protecting a goods or service. The
mark holder can be an association or can be a
public institution or can also be a Section 8
Company.
4. Certification Mark: Certification mark is a sign
that denotes a products origin, material, quality or
other specific details which are issued by the
proprietor. The main purpose of certification mark is
to bring out the standard of the product and
guarantee the product to the customers.

5. Shape Mark: Shape Mark is exclusively used to


protect the shape of the product so that the
customers find it relatable to a certain manufacturer
and prefer to buy the product.

6. Pattern Mark: Pattern marks are those products


that have specific designed patterns that come out
as the distinguishing factor of the product. For a
pattern to be registered, it has to show evidence of
its uniqueness.

7. Sound Mark: Sound mark is a sound that can be


associated with a product or service originating
from a certain supplier. To be able to register a
sound mark, when people hear the sound, they
easily identify that service or product or a show that
the sound represents.
TRADE SECRET

A trade secret is a type of intellectual property that


refers to confidential information that is used in
a business and provides a competitive advantage
over others. Trade secrets can include formulas,
processes, designs, patterns, techniques, or any
other information that is kept confidential and
provides a business with an advantage over its
competitors.

In India, trade secrets are protected under the


law of contract and tort, rather than through a
specific statute. The Indian Contract Act, 1872, and the
Indian Penal Code, 1860, provide protection for trade
secrets.

Generally, in order for information to be considered a


trade secret, it must meet three criteria:

1. The information must be confidential: The


information must not be generally known or easily
accessible to others.
2. The information must provide a competitive
advantage: The information must provide a
competitive advantage to the business that owns it.
3. The owner of the information must take
reasonable steps to keep it confidential: The
owner of the information must take reasonable steps to
keep it secret, such as by using non-disclosure
agreements, restricting access to the information, or
marking it as confidential.

Trade secrets do not require registration with a


government agency and can be protected indefinitely,
as long as the information remains confidential.

Types Of Trade Secret

There are many types of trade secrets that businesses


can protect, depending on the nature of their
operations and the type of confidential information they
generate:

1. Manufacturing processes: Trade secrets can


include the methods used to manufacture a product or
the equipment used to produce it.

2. Formulas and Recipes: Trade secrets can also


include the specific ingredients, measurements, or
preparation techniques used to make a product.

3. Customer Lists: Confidential information about a


business's customers, including their contact
information, buying habits, and preferences, can be
protected as a trade secret.

4. Marketing strategies: A business's marketing and


advertising strategies can be considered confidential
information that provides a competitive advantage.

5. Computer software: Trade secrets can also


include software code or algorithms that provide a
competitive advantage to a business.

6. Research and development: Confidential


information related to a business's research and
development efforts, including prototypes, data, and
testing results, can also be protected as a trade secret.

7. Financial information: Confidential financial


information, such as a business's budget, revenue
projections, or pricing strategies, can be considered a
trade secret.
GEOGRAPHICAL INDICATION

It is a name or sign used on certain products


which corresponds to a geographic location or
origin of the product, the use of geographical
location may act as a certification that the product
possesses certain qualities as per the traditional
method.

Darjeeling tea and basmati rice are a common example


of geographical indication.

It is necessary that the product obtains its qualities


and reputation from that place. Since those
properties depend on the geographic location of
production, a specific link exists between the
products and the place of origin.

The Competent Authorities for Geographical


Indications and Trademarks Registration and
Administration (CCA) is a government agency
responsible for protecting and promoting GIs in a
country. The CCA plays a critical role in protecting and
enforcing GIs by registering and administering the use
of GIs in their respective territories.

The CCA's responsibilities include:


1. Registering GIs: The CCA registers GIs for specific
products and certifies that they meet the criteria for
protection. This registration helps to prevent misuse of
the GI by unauthorized producers.

2. Monitoring use of GIs: The CCA monitors the use


of registered GIs to ensure that they are being used
only by authorized producers and that the products
meet the standards set out for the GI.

3. Enforcing GI rights: The CCA has the power to


take legal action against any person or entity that uses
a registered GI without authorization. This helps to
deter others from using GIs improperly and reinforces
the value of GIs to the economy and culture of the
region.

4. Promoting GIs: The CCA promotes the use of GIs


to increase consumer awareness and demand for
products with specific geographical origins. This helps
to support local economies and preserve cultural
traditions.

INTELLECUTUAL PROPERTY RIGHTS


Introduction

The Concept of Intellectual Property originated in


modern Europe.

The first creator of any property is intellectual right


holder in that property. Creation by itself is not
sufficient; the work has to be presented to the world.

Classification of Intellectual Property: -

 Literary Work
 Invention
 Designs

Definition: Intellectual property is the legal rights,


which result from intellectual activities in the industrial,
scientific, literary and artistic fields.

Benefits of Intellectual Property Law: -

 Encouragement to creativity and innovation


 Generation of revenue
 Democratization of system
 Enhancement of knowledge
 Enrichment of culture
 Investment
THE WORLD INTELLECTUAL PROPERTY
ORGANIZATION (WIPO)
The world Intellectual Property Organization is one of
the 17 specialized agencies of the United Nations. WIPO
was created to encourage creative activity and to
promote the protection of intellectual property
throughout the world.

RULES OF W.I.P.O

WIPO has established various rules and regulations to


facilitate the protection of IP rights around the world.
These rules govern the registration and management of
patents, trademarks, copyrights, and other related
rights.

1. Rules for the Patent Cooperation Treaty


(PCT): For submitting patent applications across
multiple nations, the PCT offers a standardised process.
WIPO is in charge of overseeing the PCT process and
has set forth guidelines and practises for submitting
PCT applications, carrying out international searches
and examinations, and controlling the international
publication of PCT applications.

2. Rules for the Madrid System for the


International Registration of Marks: The Madrid
System allows trademark owners to protect their marks
in multiple countries through a single application filed
with WIPO.

3. Rules for the Arbitration and Mediation


Centre: WIPO's Arbitration and Mediation Centre
provides dispute resolution services for IP disputes.
WIPO has established rules and procedures for the use
of its dispute resolution services, including mediation,
arbitration, and expert determination.

W.I.P.O Procedure for Trademark

The World Intellectual Property Organization (WIPO)


offers a trademark registration service known as the
Madrid System for the International Registration of
Marks.

The general procedures for registering a trademark


through the Madrid System:

1. Determine if you are eligible to file through the


Madrid System: To file a trademark through the
Madrid System, you must either be a resident of, or
have a business in, a country that is a member of the
Madrid Protocol. You must also have either an existing
national trademark application or registration in one of
those member countries.
2. File an application with your national or
regional trademark office.

3. File an international application through the


Madrid System: Once you have an existing national or
regional trademark application or registration, you can
file an international trademark application through the
Madrid System with WIPO. You will need to provide
details about your trademark, including a clear image
of the mark and a list of the goods or services for which
you are seeking protection.

4. Examination by WIPO: WIPO will examine your


international trademark application to ensure that it
complies with the Madrid System requirements. If any
issues arise, you will be notified and given an
opportunity to respond.

5. International Publication: If your application is


approved, WIPO will publish your trademark in the WIPO
Gazette of International Marks. Once published, your
trademark will be subject to a period of opposition
during which third parties can file an objection to your
trademark registration.

6. Designation of Contracting Parties: After the


opposition period has passed, you can designate the
countries in which you wish to protect your trademark.
WIPO will forward your application to each designated
country's trademark office for examination and
registration.

7. National or regional registration: If your


trademark application is successful in each designated
country, you will receive separate registrations for each
country.

 THE SOCIAL SECURITY CODE, 2020


 THE INDUSTRIAL RELATIONS CODE, 2020
 OCCUPATIONAL SAFETY, HEALTH AND
WORKING CONDITIONS CODE, 2020.
 THE CODE ON WAGES, 2019
 THE DESIGN ACT, 2000
 The INFORMATION TECHNOLOGY ACT,
2000CO
 TRADE MARKS ACT, 1999
 PAYMENT OF GRATUITY ACT, 1972
 THE PATENTS ACT, 1970
 THE PAYMENT OF BONUS ACT, 1965
 THE MATERNITY BENEFIT ACT, 1961
 THE COPYRIGHT ACT, 1957
 MINIMUM WAGES ACT, 1948
 THE EMPLOYEES STATE INSURANCE ACT,
1948
 THE INDUSTRIAL DISPUTES ACT, 1947

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