ANSWER 1-

Intellectual Property; IP, a term that has acquired wide usage in the world today, can be defined
as “creations of the mind: inventions; literary and artistic works; and symbols, names and
images used in commerce”. Like any other property rights, IPRs allow creators, or owners of
patents, trademarks or copyrighted works to benefit from their creation, allowing their holder to
exercise a monopoly on them for a specified period. Clearly outlined in the Universal
Declaration of Human Rights, Article 273, these rights were officially recognized in the Paris
Convention for the Protection of Industrial Property (1883), then Berne Convention for the
Protection of Literary and Artistic Works (1886); but it was not until the the late 20th century
that they became embraced by the international community. Intellectual property rights are
meant to reward creativity thus fueling the progress of humankind, where the exclusive rights
given are generally subject to a number of limitations and exceptions, aimed at reaching the
balance between the legitimate interests of right holders and of users.

It is divided into two categories, Industrial Property that includes Patents, trademarks, industrial
designs and geographical indications; and Copyright that includes literary work such as films,
novels and artistic works. The two main objectives of applying IPRs are:

(1) maximizing the interest of a particular country, industry or individual, and

(2) encouraging and utilizing humankind’s innovative abilities to improve human

conditions.

Ever since IPRs have been recognized, there has been a controversy about enforcing the IPR
laws, as it is seen by many that it could generate abuses of market power or monopolistic
behavior and thus preventing the reach of such creations to the developing and least developed
countries. Though such concerns could be valid, the IPR encouragers debate that if IPRs are
enforced with special conditions and circumstances, their benefits would so much outweigh their
costs, and they will actually help improve the economic conditions of developing countries by
striking the right balance between the interest of innovators and public interest. However,
suspicions will still hold up till there are enough proofs and positive experiences of developing
countries that have applied stronger IPR systems.
IPR Measures

The various types of intellectual property as envisaged by world intellectual Property

organisation (WIPO) and the TRIPS( Trade Related Aspect of intellectual Property Rights)
have specific aims and objects. Although various types of intellectual property have been given
in various enactments,which are as under:

a. The Copyright Act,1957 (Amended in 1999)

b. The Patents Act ,1970 (Amended in 1999,2002,2005) .
c. The trade marks Act,1999
d. The Geographical Indications of the Goods(Registration and Protection ) Act.1999
e. The Designs Act,2000
f. The Semiconductor Integrated Circuits Layout Designs Act,2000
g. The protection of Plant Varieties and Farmers Rights Act,2001
h. The Biological Diversity Act,2002.

IPR Governance

International economic relations and activities raised the need to have specialized organizations
and treaties concerned IPR; availing strong incentives particularly among immerging economies
encouraging them to adjust their patent systems to meet national requirements and international
standards for a better IPRS system, and meanwhile celebrating and protecting the existing strong
IPR systems in the developed countries. These are:

a. The World Intellectual Property Rights Organization (WIPO) 1967: it encourage

creative activity and promote the protection of intellectual property, the WIPO is one of
the specialized agencies of the United Nations. WIPO now has 189 member states, and its
headquarters lies in Geneva (WIPO, 2004).
b. The World Trade Organization (WTO) and its Agreement on Trade Related aspects
of Intellectual Property Rights (TRIPS) agreement 1995: it has replaced General
Agreement on Tariffs and Trade (GATT ). The Agreement on Trade Related aspects of
Intellectual Property Rights (TRIPS) establishes the minimum standards of protection for
a wide variety of intellectual property that aim to facilitate and promote trade in goods
 and services. A room has been left intentionally for maneuvering so that each government
can adapt its domestic IP laws and policies to safeguard important national interests.

Intellectual Property Rights for Economic Development

The economization and commercialization of IP is debated to have a significant stimulus to

economic growth; IP is now considered by many as a potential valuable asset to be transformed
into tradable economic commodity. Developed countries and the Intergovernmental
Organizations argue that an IPR strong system have a causative potential towards to a country’s
efforts to attract Foreign Direct Investments (FDIs) as well as to promote innovation and increase
a country’s exports. IPR cheerers are encouraging public awareness of the developing countries
on the role of tightened IPR systems in order to create a broad understanding and eagerness for
compliance to be able to harness its economic - besides the legal and social benefits.

Economic growth refers to the increase of the real per capita income of a country over a period
of time; a country is deemed to record economic growth when there is a measurable increase in
the amount of goods and services produced in that country. And hence, R&D, exports (trade) and
FDIs are introduced as vital agents for economic growth. Such economic growth within the long
term lead to improvement of the economic and social aspects of a developing country, leading to
economic growth in the long term

IPR and Innovation

IPR systems play a vital role in encouraging and facilitating the process of taking innovative
technology to the market place, and that it plays a major role in enhancing competitiveness of
technology-based enterprises, whether such enterprises are commercializing new or improved
products or providing service on the basis of a new or improved technology. Innovation is
usually measured through the expenditure of an economy on R&D. Technology innovation costs
a lot, and it need to be financed through mass R&D expenditure.

IPR and FDI

FDI is a necessity in developing countries, because those countries do not have the capacity or
the sufficient capital and expertise to establish mega businesses and create mass jobs on their
own, besides encouraging technology transfer, enabling the developing countries to start creating
patentable products themselves and availing them to the global market, and to improve existing
technology and adapt it best to their situation and needs hence, contributing to helping the local
economy by bringing expertise, revenues and confidence to the developing economy.
Transitional MNCs often look to developing countries for their expansion plans in order to
maximize their revenues either by reducing labour costs, to reduce transportation costs, to be
closer to resource inputs or sometimes to be in a more supportive governmental environment.

IPR and Trade

International trade nowadays involves an increasingly diverse range of products in which ideas
and knowledge play an important role. Globalization of trade has revealed the differences
between IPR national regulations, and it is now being argued by developed countries and IP
Intergovernmental institutions’ representatives that strengthening IPR systems is vital if a
country wants to adopt an export extensive strategy and open up new export opportunities.
Through developing advantageous market position in export markets and identifying the
appropriate export market distribution channels, a country can resort to a strong IPR in order to
protect its products’ designs, brand images, confidential business information and strengthen
their position in the export market competition.

India has been among of the fastest growing and largest economies in the world in the recent
years. Creativity and innovation have been a constant in growth and development of the Indian
Economy. Many features of that can be observed through he evolution of the Indian film and
music industry, the contribution of the Indian pharmaceutical sector in enabling access to
affordable medicines globally, the presence of a strong competitive software industry as well as
the Indian popular practices such as Ayurveda and Yoga. While India has always been a rich
society with innovative and creative works, much of the IP created remains unprotected both on
account of lack of awareness and complexity of the IPR system. India significantly assented the
WTO and signing the TRIPS agreement for reasons mainly as of boosting economic growth and
bilateral and international trade relations with developed economies as well as its local financial
institutions.

It must be noted that India’s national improved IPR policy is a reflection of the ongoing process
of marketing India’s IP regime globally. The improvements are aspired to result in making India
more attractive to FDIs, earning more through exports and encouraging R&D. Policy makers
even go further that the TRIPs and WTO would be responsible for attracting the entry of MNEs
into India in large numbers and for improving trading relations between India and many
developed countries. Thus Developing countries need to adopt some form of IPR system sooner
or later them so that can join the race of globalization and international trade