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INTELLECTUAL PROPERTY RIGHTS   AN INTRODUCTION

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What is Intellectual Property Intellectual property refers to creations of the mind:  inventions; literary and artistic works; and symbols, names and images used in commerce.

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Intellectual property is divided into two categories: Industrial Property includes patents for inventions, trademarks, industrial designs and geographical indications. Copyright covers literary works (such as novels, poems and plays), films, music, artistic works (e.g., drawings, paintings, photographs and sculptures) and architectural design. Rights related to copyright include those of performing artists in their performances

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What are intellectual property rights? Intellectual property rights are like any other property right. They allow creators, or owners, of patents, trademarks or copyrighted works to benefit from their own work or investment in a creation. These rights are outlined in Article 27 of the Universal Declaration of Human Rights, which provides for the right to benefit from the protection of moral and material interests resulting from authorship of scientific, literary or artistic productions.

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What are intellectual property rights? The importance of intellectual property was first recognized in the Paris Convention for the Protection of Industrial Property (1883) and the Berne Convention for the Protection of Literary and Artistic Works (1886).  Both treaties are administered by the World Intellectual Property Organization (WIPO).

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Why promote and protect intellectual property? There are several compelling reasons. First, the progress and well-being of humanity rest on its capacity to create and invent new works in the areas of technology and culture. Second, the legal protection of new creations encourages the commitment of additional resources for further innovation. Third, the promotion and protection of intellectual property spurs economic growth, creates new jobs and industries, and enhances the quality and enjoyment of life.

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An efficient and equitable intellectual property system can help all countries to realize intellectual property’s potential as a catalyst for economic development and social and cultural well-being. The intellectual property system helps strike a balance between the interests of innovators and the public interest, providing an environment in which creativity and invention can flourish, for the benefit of all.

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How does the average person benefit? Intellectual property rights reward creativity and human  endeavor , which fuel the progress of humankind.  Some examples: The multibillion dollar film, recording, publishing and software industries – which bring pleasure to millions of people worldwide – would not exist without copyright protection.

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Without the rewards provided by the patent system, researchers and inventors would have little incentive to continue producing better and more efficient products for consumers. Consumers would have no means to confidently buy products or services without reliable,  international trademark protection and enforcement mechanisms to discourage  counterfeiting and piracy.

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What is a Patent? A patent is an exclusive right granted for an invention – a product or process that provides a new way of doing something, or that offers a new technical solution to a problem. A patent provides patent owners with protection for their inventions.  Protection is granted for a limited period, generally 20 years.

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Why are patents necessary? Patents provide incentives to individuals by recognizing their creativity and offering the possibility of material reward for their marketable inventions. These incentives encourage innovation, which in turn enhances the quality of human life.

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What kind of protection do patents offer? Patent protection means an invention cannot be commercially made, used, distributed or sold without the patent owner’s consent. Patent rights are usually enforced in courts that, in most systems, hold the authority to stop patent infringement. Conversely, a court can also declare a patent invalid upon a successful challenge by a third party.

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What rights do patent owners have? A patent owner has the right to decide who may or may not use the patented invention for the period during which it is protected. Patent owners may give permission to, or license, other parties to use their inventions on mutually agreed terms. Owners may also sell their invention rights to someone else, who then becomes the new owner of the patent.

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What role do patents play in everyday life? Patented inventions have pervaded every aspect of human life, from electric lighting (patents held by Edison and Swan) and sewing machines (patents held by Howe and Singer), to magnetic resonance imaging (MRI) (patents held by  Damadian ) and the iPhone (patents held by Apple).

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In the Indian context, in 1856, the Act on protection of inventions based on the British Patent Law of 1852 was established. During this period certain privileges were granted to inventors of new manufacturers for a period of 14 year.  In 1859, the act was modified as Act XV in which making, selling, using of inventions in India and authorizing others to do so for 14 year from the date of filing the specification.

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In 1872, the act was renamed as The Patents and Design Protection Act,  in 1883 as The Protection of Inventions Act,  in 1888 consolidated as The Inventions and Designs Act In 1911 as the Indian Patent and design act.

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International organizations and treaties:
India is member to following treaties and organizations:
• World Intellectual Property Office organization (WIPO).
• Paris convention for the protection of industrial property (relating to patents,
trademarks, designs etc), 1883.
• Berne convention for the protection of literary and artistic works (relating to
copyrights), 1886.
• Patent co-operation treaty (PCT).
• World trade organization (W TO).
• WTO contains an agreement on Intellectual Property, namely the
Agreement on Trade Related Aspects of Intellectual Property (TRIPS).

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ASSETS OF AN ORGANIZATION
TANGIBLE ASSETS
Intellectual
property
INTANGIBLE ASSETS
Legal
Intangibles
Competitive
Intangibles

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ADVANTAGES OF INTELLECTUAL PROPERTY RIGHTS
FOR ORGANIZATION
• Market exclusivity
Intellectual Property Rights are negative legal rights- These rights exdude
others from the right, thus providing the market exclusivity to the right holder-
• Differentiation of the products
Intellectual property creates the distinction of the from other products-
Product differentiation in tum helps in capturing the bigger market size.

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• Brand values
The brand has a unique advantage of sentiments of the consumers- The
consumers stick to meir brands for status or the quality of the product
• Enhance product line
Intellectual property helps enhancing the product lines through further
research and the protection-
• Competitive advantage and market share
The Intellectual Property Office offers the competitive advantage over the
because of the brands.
• Minimizing risk
Intellectual property minimizes business risk by virtue of the legal protectm of
the products-

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• Lateral revenue through licensing opportunities
Intellectual property can be licensed. The licensing creates opportunities for
the lateral revenue for the organization. This may be exclusive licensing of the
Intellectual Property Office, non-exclusive licensing to multiple players or open
licensing.
• Valuations during merger and acquisitions
Intellectual property, being an intangible asset has value attached to it. The
valuations of these assets help to increase the overall valuation of the
organization.
• Freedom to operate
Intellectual property gives the freedom to operate with exclusive brand,
domain names of a particular product.

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2.
HISTORY OF IPR IN INDIA
George Alfred DePenning is supposed to have made the first application for a patent in India in
the year 1856. On Febluary 28, 1856, the Govemment of India promulgated legislation to grant
what was then tenned as "exclusive l)låvileges for the encouragement of inventions of new
manufactures" i.e the Patents Act. On March 3, 1856, a civil engineer, George Alfred DePenning
of 7, Grant's Lane, Calcutta petitioned the Government of India for grant of exclusive privileges
for his invention - "An Efficient Punkah Pulling Machine". On September 2, DePenning,
submitted the Specifications for his invention along with drawings to illustrate its working.
These were accepted and the invention was granted the first ever Intellectual Propelty protection
in India.

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3. TO LNTELLECTUAL PROPERTYRIGHTS
The Rules and Laws governing Intellectual Propeny Rights in India are as follows:
1-
2-
3.
4.
5.
6.
7.
8.
9-
The Cop}Tig11t Act, 1957, The Copyright Rules, 1958 and biternational Copyright
order, 1999
The Patents Act, 1970 The Patents Rules, 2003, The bltellectual Property Appellate
Board (Patents Procedure) Rules, 2010 and The Patents (Appeals and Applications to
the Intellectual Property Appellate Board) Rules, 2011
The Trade Marks Act, 1999, The Trade Marks Rules, 2002, The Trade Marks
(Applications and Appeals to the Intellectual Propaty Appellate Board) Rules, 2003
and The Intellectual Property Appellate Board (Procedure) Rules, 2003
The Geographical Indications of Goods (Registration and Protection) Act, 1999 and
The Geographical Indications of Goods (Registration and Protection) Rules, 2002
The Designs Act, 2000 and The Designs Rules, 2001
The Semiconductors Integrated Circuits Layout-Design Act, 2000 and The
Semiconductors Integrated Circuits Layout-Design Rules, 2001
The Protection of Plant varieties and Farmers' Rights Act, 2001 and The Protection of
Plant varieties and Farmers Rights' Rules, 2003
The Biological Diversity Act, 2002 and The Biological Diversity Rules, 2004
Intellectual Property Rights (Imported Goods) Rules, 2007

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