Module-5: Intellectual Property Rights(IPR’s)

What is Intellectual Property?

Intellectual property (IP) refers to creations of the mind, such as inventions;
literary and artistic works; designs; and symbols, names and images used in
commerce.

Intellectual Property Rights Objectives

The term "intellectual property" (IP) refers to any original work of
the human mind, including those in the arts, sciences, literature,
technology, or other fields. Intellectual property rights are granted
by considering the following objectives:

 Allowing people to profit financially or gain popularity from

their inventions and creations
 to promote an environment where creativity and innovation
can thrive by striking a balance between the interests of
innovators and the larger public interest
 To protect traditional knowledge

Types of intellectual property

1) Patents –

A patent is an exclusive right granted for an invention. Patents benefit inventors

by providing them with legal protection of their inventions. However, patents
also benefit the society by providing public access to technical information
about these inventions, and thus accelerating innovation. Products as well as
processes are eligible for patent protection.

Generally speaking, a patent provides the patent owner with the right to decide
how - or whether - the invention can be used by others. In exchange for this
right, the patent owner makes technical information about the invention publicly
available in the published patent document.

2) Copyright - Copyright is a legal term used to describe the rights that creators
have over their literary and artistic works. Works covered by copyright range
from books, music, paintings, sculpture and films, to computer programs,
databases, advertisements, maps and technical drawings.

3) Trademarks - A trademark is a sign capable of distinguishing the goods or

services of one enterprise from those of other enterprises. Trademarks date back
to ancient times when artisans used to put their signature or "mark" on their
products.

4) Industrial Designs - An industrial design constitutes the ornamental or

aesthetic aspect of an article. A design may consist of three-dimensional
features, such as the shape or surface of an article, or of two-dimensional
features, such as patterns, lines or color.

5) Geographical Indications - Geographical indications and appellations of

origin are signs used on goods that have a specific geographical origin and
possess qualities, a reputation or characteristics that are essentially attributable
to that place of origin. Most commonly, a geographical indication includes the
name of the place of origin of the goods.
6) Trade secrets - are IP rights on confidential information which may be sold
or licensed. The unauthorized acquisition, use or disclosure of such secret
information in a manner contrary to honest commercial practices by others is
regarded as an unfair practice and a violation of the trade secret protection.

Intellectual Property Acts (IP Acts)

Intellectual properties rights in India is governed under the following Acts:

 Trade Marks Act, 1999 - An Act to amend and consolidate the law
relating to trade marks, to provide for registration and better protection of
 trade marks for goods and services and for the prevention of the use of
fraudulent marks.

 McDonald’s

 The Patents Act, 1970 (amended in 2005) - The Patents (Amendment)

Bill 2005 introduces product patent regime for food, chemicals and
pharmaceuticals. India was required to introduce product patent
protection in these sectors from 1.1. 2005 in accordance with the
obligation under the TRIPS Agreement of the WTO.

(TRIPS (Trade Related Intellectual Property Rights) Agreement 1994 -

TRIPS establishes minimum standards for the availability, scope, and use of
seven forms of intellectual property namely, trademarks, copyrights,
geographical indications, patents, industrial designs, layout designs for
integrated circuits, and undisclosed information or trade secrets.)

 The Copyright Act, 1957- The Copyright Act, 1957 protects original
literary, dramatic, musical and artistic works and cinematograph films
and sound recordings from unauthorized uses. Unlike the case with
patents, copyright protects the expressions and not the ideas.

 The Designs Act, 2000 – The Designs Act, 2000. Hindi Title: डिजाइन
अधिनियम, 2000. Long Title: An Act to consolidate and amend the law
relating to protection of designs.

 The Geographical Indication of Goods (Registration and Protection)

Act, 1999- An Act to provide for the registration and
better protection of geographical indications relating to goods. A
geographical indication (GI) is a distinctive sign used to identify a
product whose quality, reputation or other such characteristics relate to its
geographical origin.
  The Protection of Plant Varieties and Farmers Rights Act, 2001- An
Act to provide for the establishment of an effective system for protection
of plant varieties, the rights of farmers and plant breeders and to
encourage the development of new varieties of plants. To accelerate
agricultural development in the country, protect plant breeders' rights;
stimulate investment for research and development both in public &
private sector for the development new of plant varieties.

 The Information Technology Act, 2000- An Act to provide legal

recognition for transactions carried out by means of electronic data
interchange and other means of electronic communication, commonly
referred to as "electronic commerce", which involve the use of
alternatives to paper-based methods of communication and storage of
information,

The primary objectives of the IT Act, 2000 are: Granting legal

recognition to all transactions done through electronic data exchange,
other means of electronic communication or e-commerce in place of the
earlier paper-based communication.

Advantages of IPR
The main advantage of intellectual property rights (IPRs) is to encourage and
protect the creation, distribution, and offering of new goods and services that
are based on the development and use of inventions, trademarks, designs,
creative works, and other intangible assets.

 Economic growth: Giving statutory expression to the creators' economic

rights and fostering fair trade, intellectual property rights can support
economic growth by fostering economic development.
o IPRs can generate income not only from direct marketing but also
by licencing them to third parties.
 Fostering of culture: Copyright allows authors, performers, producers,
and other creators to receive an economic reward for their works that
enrich cultural heritage, enhance cultural diversity, and benefit society as
a whole. These creative industries include publishing, music, and film.
 Technical information dissemination: Any member of the public,
including researchers, can use patent information even when a company,
university, or research institution does not intend to use its own patented
inventions.
 Impetus to fair competition: By allowing consumers to make informed
decisions about various products and services, the protection of IPRs such
as distinctive signs aims to encourage and ensure fair competition as well
as to protect consumers.
 Research and development: IPRs promote R and D activities due to the
financial benefits indirectly provided to the creators. These R and D
facilitate two things:
o It facilitates the innovations and production of new technology,
like a new formula of drugs against any life-threatening disease.
o This new technology/formula, after the patent period, helps a large
population (for example, through the development of generics).
Thus, it serves the social purpose of IPRs.
 "Open source" is dependent on IPR: In industries like software, open
source mechanisms like General Public Licences (GPLs) are common.
o With no contractual obligation to use a single vendor, its benefits
include reduced startup costs, quicker project launches, quicker
iterations, more adaptable software development processes, strong
community-driven support, and simpler licence management.
o It's important to note that a typical GPL actually depends on IPRs
since it is generally a copyright licence that is only valid as long as
certain requirements are met.
 Collateral used to secure financing: IPRs, which are intangible assets,
frequently aid small and medium enterprises (including start-ups) in their
efforts to persuade outside parties to provide them with financing (such as
investing equity or granting loans).
o The financial industry, particularly knowledge-intensive SMEs,
depends heavily on the valuation of intangible assets, such as
patents.