You are on page 1of 25

Faculty of Law,

Jamia Millia Islamia, New Delhi

Subject: Intellectual Property Rights-I

Assignment Topic: Concept, Nature and Kinds of Intellecual


Property Rights.

Submitted To: Mrs. Shabana Shabnam


Submitted By: Aamir Ali
Course: B.A.LL.B (H)
Semester: 08 (Regular)
Roll No: 02
Student Id: 20183043

1
Acknowledgement

I would like to express by special thanks of gratitude to my teacher Shabana Shabnam ma’am,
who gave the opportunity to do this wonderful project on the topic “CONCEPT, NATURE AND
KINDS OF INTELLECTUAL PROPERTY RIGHTS”, which also helped me in doing research
and I came to know about so many new things. I am really thankful to them who helped me in
doing research. Secondly I would also like to thank my friends who helped me a lot in finishing
this project.

Yours Sincerely,
AAMIR ALI

2
Table of Contents

1. Introduction.
2. Meaning of intellectual property rights.
3. The Concept of Intellectual Property.
4. Intellectual Property System in India.
5. Development of TRIPS Compiled Regime in India.

6. Leading International Instruments Concerning IPR.


7. Nature of intellectual Property.
8. Kinds of intellectual Property.
9. Conclusion.
10. Bibliography.

3
Introduction:
Intellectual property (IP) refers to the creations of the human mind like inventions, literary and
artistic works, and symbols, names, images and designs used in commerce. Intellectual property
is divided into two categories: Industrial property, which includes inventions (patents),
trademarks, industrial designs, and geographic indications of source; and Copyright, which
includes literary and artistic works such as novels, poems and plays, films, musical works,
artistic works such as drawings, paintings, photographs and sculptures, and architectural designs.
Rights related to copyright include those of performing artists in their performances, producers
of phonograms in their recordings, and those of broadcasters in their radio and television
programs. Intellectual property rights protect the interests of creators by giving them property
rights over their creations.
The most noticeable difference between intellectual property and other forms of property,
however, is that intellectual property is intangible, that is, it cannot be defined or identified by its
own physical parameters. It must be expressed in some discernible way to be protectable.
Generally, it encompasses four separate and distinct types of intangible property namely —
patents, trademarks, copyrights, and trade secrets, which collectively are referred to as
“intellectual property.” However, the scope and definition of intellectual property is constantly
evolving with the inclusion of newer forms under the gambit of intellectual property. In recent
times, geographical indications, protection of plant varieties, protection for semi-conductors and
integrated circuits, and undisclosed information have been brought under the umbrella of
intellectual property.

Meaning of intellectual property rights:


The intellectual property right is a kind of legal right that protects a person’s artistic works,
literary works, inventions or discoveries or a symbol or design for a specific period of time.
Intellectual property owners are given certain rights by which they can enjoy their Property
without any disturbances and prevent others from using them, although these rights are also
called monopoly rights of exploitation, they are limited in geographical range, time and scope.
As a result, intellectual property rights can have a direct and substantial impact on industry and
business, as the owners of IPRs one can enforce such rights and can stop the manufacture, use, or
sale of a product to the public. IP protection encourages publication, distribution, and disclosure

4
of the creation to the public, rather than keeping it a secret and to encourage commercial
enterprises to select creative works for exploitation.1
The Concept of Intellectual Property:
The concept of intellectual property is not new as Renaissance northern Italy is thought to be the
cradle of the Intellectual Property system. A Venetian Law of 1474 made the first systematic
attempt to protect inventions by a form of patent, which granted an exclusive right to an
individual for the first time. In the same century, the invention of movable type and the printing
press by Johannes Gutenberg around 1450, contributed to the origin of the first copyright system
in the world. Towards the end of 19th century, new inventive ways of manufacture helped trigger
large-scale industrialization accompanied by rapid growth of cities, expansion of railway
networks, the investment of capital and a growing transoceanic trade. New ideals of
industrialism, the emergence of stronger centralized governments, and nationalism led many
countries to establish their modern Intellectual Property laws. At this point of time, the
International Intellectual Property system also started to take shape with the setting up of the
Paris Convention for the Protection of Industrial Property in 1883 and the Berne Convention for
the Protection of Literary and Artistic Works in 1886. The premise underlying Intellectual
Property throughout its history has been that the recognition and rewards associated with
ownership of inventions and creative works stimulate further inventive and creative activity that,
in turn, stimulates economic growth.
Over a period of time and particularly in contemporary corporate paradigm, ideas and knowledge
have become increasingly important parts of trade. Most of the value of high technology
products and new medicines lies in the amount of invention, innovation, research, design and
testing involved. Films, music recordings, books, computer software and on-line services are
bought and sold because of the information and creativity they contain, not usually because of
the plastic, metal or paper used to make them. Many products that used to be traded as low-
technology goods or commodities now contain a higher proportion of invention and design in
their value, for example, brand-named clothing or new varieties of plants. Therefore, creators are
given the right to prevent others from using their inventions, designs or other creations. These
rights are known as intellectual property rights.

1
Available at: https://blog.ipleaders.in/ipr-description/ (Visited on 8th may, 2022)

5
The Convention establishing the World Intellectual Property Organization (WIPO) (1967) gives
the following list of the subject matter protected by intellectual property rights:
1) literary, artistic and scientific works;
2) performances of performing artists, phonograms, and broadcasts; inventions in all fields
of human endeavor;
3) scientific discoveries;
4) industrial designs;
5) trademarks, service marks, and commercial names and designations;
6) protection against unfair competition; and
7) “all other rights resulting from intellectual activity in the industrial, scientific, literary or
artistic fields.”2
The areas mentioned under (1) belong to the copyright branch of intellectual property. The areas
mentioned in (2) are usually called “neighboring rights”, that is, rights neighboring on copyright.
The areas mentioned under 3, 5 and 6 constitute the industrial property branch of IP. The areas
mentioned may also be considered as belonging to that branch.
The expression industrial property covers inventions and industrial designs. Simply stated,
inventions are new solutions to technical problems, and industrial designs are aesthetic creations
determining the appearance of industrial products. In addition, industrial property includes
trademarks, service marks, commercial names and designations, including indications of source
and appellations of origin, and protection against unfair competition. Hence the aspect of
intellectual creations -although existent -is less prominent, but what counts here is that the object
of industrial property typically consists of signs transmitting information to consumers, in
particular, as regards products and services offered on the market, and that the protection is
directed against unauthorized use of such signs which is likely to mislead consumers and
misleading practices in general.
With the establishment of the world trade Organization (WTO), the importance and role of the
intellectual property protection has been crystallized in the Trade-Related Intellectual Property
Systems (TRIPS) Agreement. It was negotiated at the end of the Uruguay Round of the General
Agreement on Tariffs and Trade (GATT) treaty in 1994.

2
Available at: https://www.icsi.edu/media/website/IntellectualPropertyRightLaws&Practice.pdf (Visited on 9th
May, 2022)

6
The TRIPS Agreement encompasses, in principle, all forms of intellectual property and aims at
harmonizing and strengthening standards of protection and providing for effective enforcement
at both national and international levels. It addresses applicability of general GATT principles as
well as the provisions in international agreements on IP (Part I). It establishes standards for
availability, scope, use (Part II), enforcement (Part III), acquisition and maintenance (Part IV) of
Intellectual Property Rights. Furthermore, it addresses related dispute prevention and settlement
mechanisms (Part V). Formal provisions are addressed in Part VI and VII of the Agreement,
which cover transitional and institutional arrangements, respectively.
The TRIPS Agreement, which came into effect on 1 January 1995, is to date the most
comprehensive multilateral agreement on intellectual property. The areas of intellectual property
that it covers are:
i. Copyright and related rights (i.e. the rights of performers, producers of sound recordings
and broadcasting organisations);
ii. Trademarks including service marks;
iii. Geographical indications including appellations of origin;
iv. Industrial designs;
v. Patents including protection of new varieties of plants;
vi. The lay-out designs (topographies) of integrated circuits;
vii. The undisclosed information including trade secrets and test data.
Through time the laws of various countries started to incorporate protection to intellectual
creativity, though they are independent. There are two factors in lumping intellectual property
rights together. These are: Conceptual Basis and Historical Basis
Historical
The convention establishing the WIPO was signed in Stockholm in 1967 and entered into force
in 1970. However, the origin of WIPO goes back to 1883- the Paris Convention on industrial
property and 1886- the Berne Convention on copyright. Both were placed under the supervision
of the Swiss Federal Government. Initially there were two secretaries (one for industrial
property, and other for copyright). However, in 1893 the two secretaries united. United
International Bureaux for the Protection of IP (BIRPI) became WIPO.
Conceptual

7
IP rights objects (enterprises) are inherently inappropriable. They are intangible by nature. Use
by others cannot be denied by using the possession of a property first created. Once you have
written a book and published it then the public may make use of that property.
Intellectual Property System in India:
As discussed above, historically the first system of protection of intellectual property came in the
form of (Venetian Ordinance) in 1485. This was followed by Statute of Monopolies in England
in 1623, which extended patent rights for Technology Inventions. In the United States, patent
laws were introduced in 1760. Most European countries developed their Patent Laws between
1880 to 1889. In India Patent Act was introduced in the year 1856 which remained in force for
over 50 years, which was subsequently modified and amended and was called "The Indian
Patents and Designs Act, 1911". After Independence a comprehensive bill on patent rights was
enacted in the year 1970 and was called "The Patents Act, 1970". Specific statutes protected only
certain type of Intellectual output; till recently only four forms were protected. The protection
was in the form of grant of copyrights, patents, designs and trademarks. In India, copyrights were
regulated under the Copyright Act, 1957; patents under Patents Act, 1970; trade marks under
Trade and Merchandise Marks Act 1958; and designs under Designs Act, 1911.
With the establishment of WTO and India being signatory to the Agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS), several new legislations were passed for the
protection of intellectual property rights to meet the international obligations. These included:
Trade Marks, called the Trade Mark Act, 1999; Designs Act, 1911 was replaced by the Designs
Act, 2000; the Copyright Act, 1957 amended a number of times, the latest is called Copyright
(Amendment) Act, 2012; and the latest amendments made to the Patents Act, 1970 in 2005.
Besides, new legislations on geographical indications and plant varieties were also enacted.
These are called Geographical Indications of Goods (Registration and Protection) Act, 1999, and
Protection of Plant Varieties and Farmers’ Rights Act, 2001 respectively. 3
Over the past fifteen years, intellectual property rights have grown to a stature from where it
plays a major role in the development of global economy. In 1990s, many countries unilaterally
strengthened their laws and regulations in this area, and many others were poised to do likewise.
At the multilateral level, the successful conclusion of the Agreement on Trade-Related Aspects

3
Available at: https://www.icsi.edu/media/website/IntellectualPropertyRightLaws&Practice.pdf (visited on 9th
May 2022)

8
of Intellectual Property Rights (TRIPS) in the World Trade Organization elevates the protection
and enforcement of IPRs to the level of solemn international commitment. It is strongly felt that
under the global competitive environment, stronger IPR protection increases incentives for
innovation and raises returns to international technology transfer.
Development of TRIPS Compiled Regime in India:
The establishment of WTO as a result of institutionalization of international framework of trade
calls for harmonization of several aspects of Indian Law relating to Intellectual Property Rights.
The TRIPS agreement set minimum standards for protection for IPR rights and also set a time
frame within which countries were required to make changes in their laws to comply with the
required degree of protection. In view of this, India has taken action to modify and amend the
various IP Acts in the last few years.
Patents Act, 1970
After India became a signatory to the TRIPS agreement forming part of the Agreement
establishing the World Trade Organization (WTO) for the purpose of reduction of distortions and
impediments to international trade and promotion of effective and adequate protection of
intellectual property rights, the Patents Act, 1970 has been amended in the year 1995, 1999, 2002
and 2005 to meet its obligations under the TRIPS agreement. The Patents Act has been amended
keeping in view the development of technological capability in India, coupled with the need for
integrating the intellectual property system with international practices and intellectual property
regimes. The amendments were also aimed at making the Act a modern, harmonized and user-
friendly legislation to adequately protect national and public interests while simultaneously
meeting India’s international obligations under the TRIPS Agreement.
Subsequently the rules under the Patent Act have also been amended and these became effective
from May 2003. These rules have been further amended by Patents (Amendment) Rules 2005
w.e.f 01.01.2005. Thus, the Patent Amendment Act, 2005 is now fully in force and operative.
Trade Mark Act, 1999
The law of trademarks is also now modernized under the Trademarks Act of 1999. A trademark
is a special symbol for distinguishing the goods offered for sale or otherwise put on the market
by one trader from those of another. In India the trademarks have been protected for over four
decades as per the provisions of the Trade and Merchandise Mark (TMM) Act of 1958. India

9
became a party to the WTO at its very inception. One of the agreements in that related to the
Intellectual Property Rights (TRIPS). In December, 1998 India acceded to the Paris Convention.
Meanwhile, the modernisation of Trade and Merchandise Marks Act, 1958 had been taken up
keeping in view the current developments in trading and commercial practices, increasing
globalisation of trade and industry, the need to encourage investment flows and transfer of
technology, need for simplification of trademark management system and to give effect to
important judicial decisions. To achieve these purposes, the Trademarks Bill was introduced in
1994. The Bill pointed towards the changes which were contemplated and were under
consideration of the Government of India, but it lapsed in 1994. A comprehensive review was
made of the existing laws in view of the developments in trading and commercial practices, and
increasing globalization of trade and industry. The Trademarks Bill of 1999 was passed by
Parliament that received the assent of the President on 30th December, 1999 as Trade Marks Act,
1999 thereby replacing the Trade and Merchandise Mark Act of 1958. The important salient
features of the Act inter-alia include:
 It broadens the definition of infringement of a registered trademark to include action
against the unauthorized use of a confusingly similar mark, not only in respect of the
goods and services covered by registration, as was previously the case, but also in respect
of goods and services which are so similar that a likelihood of deception or confusion
exists.
 An action for infringement will also be available against the unauthorized use of a mark
in relation to dissimilar goods, if such mark is similar to a registered mark that is well
known in India and the interest of the owner is likely to be affected adversely. The
remedy for infringement of a trademark is also strengthened under the new law by
authorizing the police with the power to seize infringing articles without a warrant.
The Designs Act, 2000 The Designs Act of 1911 has been replaced by the Designs Act, 2000. In
view of considerable progress made in the field of science and technology, a need was felt to
provide more efficient legal system for the protection of industrial designs in order to ensure
effective protection to registered designs, and to encourage design activity to promote the design
element in an article of production. In this backdrop, the Designs Act, 2000 has been enacted
essentially to balance these interests and to ensure that the law does not unnecessarily extend

10
protection beyond what is necessary to create the required incentive for design activity while
removing impediments to the free use of available designs.
The new Act complies with the requirements of TRIPS and hence is directly relevant for
international trade. Industrial Design law deals with the aesthetics or the original design of an
industrial product. An industrial product usually contains elements of both art and craft, that is to
say artistic as well as functional elements. The design law excludes from its purview the
functioning features of an article and grants protection only to those which have an aesthetic
appeal. For example, the design of a teacup must have a hollow receptacle for holding tea and a
handle to hold the cup. These are functional features that cannot be registered. But a fancy shape
or ornamentation on it would be registrable. Similarly, a table, for example, would have a flat
surface on which other objects can be placed. This is its functional element. But its shape, colour
or the way it is supported by legs or otherwise, are all elements of design or artistic elements and
therefore, registrable if unique and novel.
The salient features of the Design Act, 2000 are as under:
a) Enlarging the scope of definition of the terms "article", "design" and introduction of
definition of "original".
b) Amplifying the scope of "prior publication".
c) Introduction of provision for delegation of powers of the Controller to other officers and
stipulating statutory duties of examiners.
d) Provision of identification of non-registrable designs.
e) Provision for substitution of applicant before registration of a design.
f) Substitution of Indian classification by internationally followed system of classification.
g) Provision for inclusion of a register to be maintained on computer as a Register of
Designs.
h) Provision for restoration of lapsed designs.
i) Provisions for appeal against orders of the Controller before the High Court instead of
Central Government.
j) Revoking of period of secrecy of two years of a registered design.
k) Providing for compulsory registration of any document for transfer of right in the
registered design.

11
l) Introduction of additional grounds in cancellation proceedings and provision for initiating
the cancellation proceedings before the Controller in place of High Court.
m) Enhancement of quantum of penalty imposed for infringement of a registered design.
n) Provision for grounds of cancellation to be taken as defence in the infringement
proceedings to be in any court not below the Court of District Judge.
o) Enhancing initial period of registration from 5 to 10 years, to be followed by a further
extension of five years.
p) Provision for allowance of priority to other convention countries and countries belonging
to the group of countries or inter-governmental organizations apart from United Kingdom
and other Commonwealth Countries.
q) Provision for avoidance of certain restrictive conditions for the control of anticompetitive
practices in contractual licenses.
The Geographical Indications of Goods (Registration and Protection ) Act, 1999:
Until recently, Geographical indications were not registrable in India and in the absence of
statutory protection, Indian geographical indications had been misused by persons outside India
to indicate goods not originating from the named locality in India. Patenting turmeric, neem and
basmati are the instances which drew a lot of attention towards this aspect of the Intellectual
property. Mention should be made that under the Agreement on Trade Related Aspects of
Intellectual Property Rights (TRIPS), there is no obligation for other countries to extend
reciprocal protection unless a geographical indication is protected in the country of its origin.
India did not have such a specific law governing geographical indications of goods which could
adequately protect the interest of producers of such goods.
To cover up such situations it became necessary to have a comprehensive legislation for
registration and for providing adequate protection to geographical indications and accordingly
the Parliament has passed a legislation, namely, the Geographical indication of Goods
(Registration and Protection) Act, 1999. The legislation is administered through the
Geographical Indication Registry under the overall charge of the Controller General of Patents,
Designs and Trade Marks.
The salient features of this legislation are as under:
a) Provision of definition of several important terms like "geographical indication",
"goods", "producers", "packages", "registered proprietor", "authorized user" etc.

12
b) Provision for the maintenance of a Register of Geographical Indications in two parts-
Part A and Part B and use of computers etc. for maintenance of such Register. While
Part A will contain all registered geographical indications, Part B will contain
particulars of registered authorized users.
c) Registration of geographical indications of goods in specified classes.
d) Prohibition of registration of certain geographical indications.
e) Provisions for framing of rules by Central Government for filing of application, its
contents and matters relating to substantive examination of geographical indication
applications.
f) Compulsory advertisement of all accepted geographical indication applications and
for inviting objections.
g) Registration of authorized users of registered geographical indications and providing
provisions for taking infringement action either by a registered proprietor or an
authorized user.
h) Provisions for higher level of protection for notified goods.
i) Prohibition of assignment etc. of a geographical indication as it is public property.
j) Prohibition of registration of geographical indication as a trademark.
k) Appeal against Registrar's decision would be to the Intellectual Property Board
established under the Trade Mark legislation.
l) Provision relating to offences and penalties.
m) Provision detailing the effects of registration and the rights conferred by registration.
n) Provision for reciprocity powers of the registrar, maintenance of Index, protection of
homonymous geographical indications etc.
Copyright Act, 1957
Copyright in India is governed by Copyright Act, 1957. This Act has been amended several
times to keep pace with the changing times. As per this Act, copyright grants author's lifetime
coverage plus 60 years after death. Copyright and related rights on cultural goods, products and
services, arise from individual or collective creativity. All original intellectual creations
expressed in a reproducible form will be connected as "works eligible for copyright protections".
Copyright laws distinguish between different classes of works such as literary, artistic, musical
works and sound recordings and cinematograph films. The work is protected irrespective of the

13
quality thereof and also when it may have very little in common with accepted forms of literature
or art.
Copyright protection also includes novel rights which involve the right to claim authorship of a
work, and the right to oppose changes to it that could harm the creator's reputation. The creator
or the owner of the copyright in a work, can enforce his right administratively and in the courts
by inspection of premises for evidence of production or possession of illegally made "pirated"
goods related to protected works. The owner may obtain court orders to stop such activities, as
well as seek damages for loss of financial rewards and recognition. A vital field which gets
copyright protection is the computer industry. The Copyright Act, 1957, was amended in 1984
and computer programming was included with the definition of "literary work.' The new
definition of "computer programme" introduced in 1994, means a set of instructions expressed in
works, codes or in any other form, including a machine readable medium, capable of causing a
computer to perform a particular task or achieve a particular result. The greatest fear and
challenges to the copyright industry is the piracy of works whether, books, musical works, films,
television programmes or computer software or computer database. The special nature of
infringement of copyrights in computer programmes has again been taken note of by the
Copyright (Amendment) Act, 1994 by inserting a new section 63 B. The new section provides
that any person who knowingly makes use on a computer of an infringed copy of a computer
programme will be punishable with imprisonment for a term of not less than seven days, which
may extend to three years and with a fine of not less than ` 50,000/- and which may extend to `
2,00,000/-. Proviso to section 63 B, however, provides that where computer programme has not
been used for gain or in the course of trade or business, the court may at its discretion and for
reasons mentioned in the judgement not impose any sentence of imprisonment and impose only
fine upto ` 50,000/-.
The Copyright (Amendment) Act, 1999 makes it free for purchaser of a gadget/equipment to sell
it onwards if the item being transacted is not the main item covered under the Copyright Act.
This means computer software which is built in the integral part of a gadget/equipment can be
freely transacted without permission of copyright owner. This amendment also ensures fair
dealing of 'broadcasting' gaining popularity with the growth of the Internet. With this amendment
India has updated the Act to meet the concerns of the copyright industries mainly consisting of

14
Book Industry, Music Industry, Film and Television Industry, Computer Industry and Database
Industry.
The Copyright Act, 1957 amended in 2012 with the object of making certain changes for clarity,
to remove operational difficulties and also to address certain newer issues that have emerged in
the context of digital technologies and the Internet. Moreover, the main object to amendments
the Act is that in the knowledge society in which we live today, it is imperative to encourage
creativity for promotion of culture of enterprise and innovation so that creative people realize
their potential and it is necessary to keep pace with the challenges for a fast growing knowledge
and modern society.
The Protection of Plant Varieties and Farmers’ Rights Act, 2001
The concept of Plant Breeders’ Rights arises from the need to provide incentives to plant
breeders engage in the creative work of research which sustains agricultural progress through
returns on investments made in research and to persuade the researcher to share the benefits of
his creativity with society.
The issue of enacting a law relating to Plant Varieties Protection and Farmers’ Rights in India
assumed importance particularly in the wake of TRIPS agreement under WTO which seeks to
promote effective protection of Intellectual Property Rights in all fields of technology. Article 27
of TRIPS Agreement defines patentable subject matter and requires member countries to provide
for the protection of plant varieties whether by patenting or by an effective sui generis system or
by any combination thereof.
With a view to provide for the establishment of an Authority to give an effective system of
protection of the rights of plant breeders and farmers, and to encourage the development of new
varieties of plants and to give effect to the provisions of TRIPS Agreement, the Government
enacted the Protection of Plant Varieties and Farmers’ Right Act, 2001. This Act seeks to
stimulate investment for research and development both in the public and private sectors for the
development of new plant varieties by ensuring appropriate returns on such investments. It also
seeks to facilitate the growth of the seed industry in the country through domestic and foreign
investment to ensure the availability of high quality seeds and planting material to Indian
farmers. It also recognizes the role of farmers as cultivators and conservers and the contribution
of traditional, rural and tribal communities to the country’s agro biodiversity by rewarding them
for their contribution through benefit sharing and protecting the traditional rights of the farmers.

15
The Act also provides for setting up of the Protection of Plant Varieties and Farmer’s Rights
Authority to promote and develop new varieties of plants and promotes rights of the farmers and
breeders.
The Semi Conductor Integrated Circuits Layout Design Act, 2000
Electronics and Information technology is one of the fastest growing sectors that has played a
significant role in world economy. This is primarily due to the advancements in the field of
electronics, computers and telecommunication. Microelectronics, which primarily refers to
Integrated Circuits (ICs) ranging from, Small Scale Integration (SSI) to Very Large Scale
Integration (VLSI) on a semiconductor chip - has rightly been recognized as a core, strategic
technology world-over, especially for Information Technology (IT) based society. Design of
integrated circuits requires considerable expertise and effort depending on the complexity.
Therefore, protection of Intellectual Property Rights (IPR) embedded in the layout designs is of
utmost importance to encourage continued investments in R & D to result in technological
advancements in the field of microelectronics.
The practice of providing protection through the methods of Copyright, Patents did not
appropriately accommodate the requirements of Intellectual Property Rights protection for the
Layout-Designs of Integrated Circuits. This was because of the fact that in the context of Layout
Designs, the concept of “originality” is of utmost significance, whether it is a “novelty or not”.
While the Patent Law requires that the idea should be original as well as novel, the copyright law
is too general to accommodate the original ideas of scientific creation of Layout-Designs of
Integrated Circuits. In view of the above, the necessity for providing protection for Layout-
Designs of Integrated Circuits was felt to reward and encourage an adequate level of investment
of human, financial and technological resources.
The Majority of countries that attach significance to protection of Intellectual Property Rights in
the Semiconductor Integrated Circuits provides for sui generis system of protection of Layout-
Designs of Integrated Circuits, which is usually contained in a separate Act. Trade Related
Intellectual Property Rights (TRIPS) Agreement under WTO contains provisions with regard to
setting up of standards concerning availability, scope and use of Intellectual Property Rights,
Geographical Indications, Layout-Design of Integrated Circuits etc. Therefore, the Government
enacted the Semiconductor Integrated Circuit Layout Designs Act, 2000 providing for protection
of Semiconductor Integrated Circuits Layout-Designs by process of registration, mechanism for

16
distinguishing Layout-Designs which can be protected, rules to prohibit registration of Layout-
Designs which are not original and/or which have been commercially exploited, period for
protection, provisions with regard to infringement, payment of royalty for registered Layout-
Design, provisions for dealing with willful infringement by way of punishment, appointing a
Registrar for registering the Layout Designs and mechanism of Appellate Board.
To conclude, the various modifications and amendments to earlier Intellectual Property Laws are
an indication of India's move towards new IPR regime so as to prepare ourselves for the global
trade competition.
Leading International Instruments Concerning IPR:
The International Intellectual Property System is in fact a system of accumulated practices rather
than a set of fixed rules. It is the practice of international relations in the matter of legal
protection of inventions and literary and artistic works, resulting from and governed by both
national legislation defining the treatment to be granted to foreigners, and international treaties
concerning such treatment. It may be emphasized that a country’s laws defining the rights of the
foreigners form part of the international system even when, the country is not party to any
international treaty on the subject, for such laws form the basis upon which in practice
intellectual property is protected in more than one country. There are number of International
Treaties/Conventions which deal with the various aspects of intellectual property and industrial
property. These Conventions are administered by World Intellectual Property Organisation,
popularly known as WIPO.
World Intellectual Property Organisation (WIPO)
The World Intellectual Property Organization (WIPO) is a specialized agency of the United
Nations. It is dedicated to developing a balanced and accessible international intellectual
property (IP) system, which rewards creativity, stimulates innovation and contributes to
economic development while safeguarding the public interest.
WIPO was established by the WIPO Convention in 1967 with a mandate from its Member States
to promote the protection of IP throughout the world through co-operation among states and in
collaboration with other international organizations. Its headquarters are in Geneva, Switzerland.
The roots of the World Intellectual Property Organization go back to the year 1883, when
Johannes Brahms was composing his third Symphony, Robert Louis Stevenson was writing
Treasure Island, and John and Emily Roebling were completing construction of New York’s

17
Brooklyn Bridge. The need for international protection of intellectual property became evident
when foreign exhibitors refused to attend the International Exhibition of Inventions in Vienna in
1873 because they were afraid their ideas would be stolen and exploited commercially in other
countries. The year 1883 marked the origin of the Paris Convention for the Protection of
Industrial Property, the first major international treaty designed to help the people of one country
obtain protection in other countries for their intellectual creations in the form of industrial
property rights, known as inventions (patents); trademarks; industrial designs. The Paris
Convention entered into force in 1884 with 14 member States, which set up an International
Bureau to carry out administrative tasks, such as organizing meetings of the member States. In
the year 1886, copyright also entered the international arena with the Berne Convention for the
Protection of Literary and Artistic Works to help nationals of its member States obtain
international protection of their right to control, and receive payment for, the use of their creative
works such as novels, short stories, poems, plays; songs, operas, musicals, sonatas; and
drawings, paintings, sculptures, architectural works. Like the Paris Convention, the Berne
Convention set up an International Bureau to carry out administrative tasks. In 1893, these two
small bureau united to form an international organization called the United International Bureau
(BIRPI) for the Protection of Intellectual Property. The BIRPI indeed was the predecessor of the
World Intellectual Property Organization.
With the growing importance of intellectual property, the structure and form of the Organization
also changed. In 1960 BIRPI moved from Berne to Geneva to be closer to the United Nations
and other international organizations in that city. A decade later, following the entry into force of
the Convention Establishing the World Intellectual Property Organization, BIRPI became WIPO
and in the year 1974, WIPO became a specialized agency of the United Nations system of
organizations, with a mandate to administer intellectual property matters recognized by the
member States of the UN.
Even the well-drafted treaty is powerless without member States to bring its provisions to life, so
WIPO actively encourages States to sign its treaties and to enforce them. Widespread accession
and consistent enforcement inspire confidence that intellectual property rights will be respected
around the world, encourage investment, and contribute to economic development and social
well-being. WIPO also initiated a new policy to adapt to rapid changes in the field of industrial
property, by using new options to speed up the development of internationally harmonized

18
principles and rules. The adoption of international recommendations on the protection of well-
known marks in 1999, on trademark licenses in 2000 and on the protection of marks on the
Internet in 2001, complements the traditional and more lengthy treaty-based approach to
international legal standard setting.
WIPO and WTO
WIPO expanded its role and further demonstrated the importance of intellectual property rights
in the management of globalized trade in 1996 by entering into a cooperation agreement with the
World Trade Organization (WTO). It provides for co-operation concerning the implementation
of the TRIPS Agreement, such as notification of laws and regulations and legal-technical
assistance and technical co-operation in favour of developing countries. In July 1998, a joint
initiative to help developing countries meet their TRIPS obligations till the year 2000 was
launched. Mention should be made that today WIPO, administers 24 treaties (three of those
jointly with other international organizations) and carries out a rich and varied program of work,
through its member States and secretariat, that seeks to:
 harmonize national intellectual property legislation and procedures,
 provide services for international applications for industrial property rights,
 exchange intellectual property information,
 provide legal and technical assistance to developing and other countries,
 facilitate the resolution of private intellectual property disputes, and
 marshal information technology as a tool for storing, accessing, and using valuable
intellectual property information.
Paris Convention for the Protection of Industrial Property
The Paris Union, established by the Convention, has an Assembly and an Executive Committee.
Every State member of the Union which has adhered to at least the administrative and final
provisions of the Stockholm Act (1967) is a member of the Assembly. The members of the
Executive Committee are elected from among the members of the Union, except for Switzerland,
which is a member ex officio.
The Paris Convention, concluded in 1883, was revised at Brussels in 1900, at Washington in
1911, at The Hague in 1925, at London in 1934, at Lisbon in 1958 and at Stockholm in 1967,
and it was amended in 1979.

19
The Convention applies to industrial property in the widest sense, including patents, marks,
industrial designs, utility models, trade names, geographical indications and the repression of
unfair competition. The substantive provisions of the Convention may be divided into three main
categories namely national treatment, right of priority, common rules.

Nature of intellectual Property:

1) Intangible Rights over Tangible Property: The main Property that distinguishes IP
from other forms of Property is its intangibility. While there are many important
differences between different forms of IP, one factor they share is that they establish
property protection over intangible things such as ideas, inventions, signs and
information whereas intangible assets and close relationships are a tangible object. In
which they are embedded. It allows creators or owners to benefit from their works when
they are used commercially.
2) Right to sue: In the language of the law, IP is an asset that can be owned and dealt with.
Most forms of IP are contested in rights of action that are enforced only by legal action
and by those who have rights. IP is a property right and can, therefore, be inherited,
bought, gifted, sold, licensed, entrusted or pledged. The holder of an IPR owner has a
type of Property that he can use the way he likes subject to certain conditions and takes
legal action against the person who without his consent used his invention and can
receive compensation against real Property.
3) Rights and Duties: IP gives rise not only to property rights but also duties. The owner of
the IP has the right to perform certain functions in relation to his work/product. He has
the exclusive right to produce the work, make copies of the work, market work, etc.
There is also a negative right to prevent third parties from exercising their statutory
rights.
4) Coexistence of different rights: Different types of IPRs can co-exist in relation to a
particular function. For example, an invention may be patented, and the invention
photograph may be copyrighted. A design can be protected under the Design Act, and the
design can also be incorporated into a trademark. There are many similarities and
differences between the various rights that can exist together in IP. For example, there are
common grounds between patent and industrial design; Copyright and neighbouring

20
rights, trademarks and geographical indications, and so on. Some intellectual property
rights are positive rights; the rest of them are negative rights.
5) Exhaustion of rights: Intellectual property rights are generally subject to the doctrine of
exhaustion. Exhaustion basically means that after the first sale by the right holder or by
its exhaustion authority, his right ceases and he is not entitled to stop further movement
of the goods. Thus, once an IP rights holder has sold a physical product to which IPRs are
attached, it cannot prevent subsequent resale of that product. The right terminates with
the first consent. This principle is based on the concept of free movement of goods which
is in force by consent or right of the rights holder. The exclusive right to sell goods
cannot be exercised twice in relation to the same goods. The right to restrict further
movements has expired as the right holder has already earned his share by the act of
placing goods for the first sale in the market.
6) Dynamism: IPR is in the process of continuous development. As technology is rapidly
evolving in all areas of human activities, the field of IP is also growing. As per the
requirement of scientific and technological progress, new items are being added to the
scope of IPR, and the scope of its preservation is being expanded. Bio Patents, Software
Copyrights, Plant Diversity Protection, these are few names which reflect contemporary
developments in the field of IPR. The importance of intellectual property and its mobility
is well established and reflected at all levels, including statutory, administrative and
judicial. 4

Kinds of intellectual Property:


The subject of intellectual property is very broad. There are many different forms of rights that
together make up intellectual property. IP can be basically divided into two categories, that is,
industrial Property and intellectual property. Traditionally, many IPRs were collectively known
as industrial assets.
It mainly consisted of patents, trademarks, and designs. Now, the protection of industrial
property extends to utility models, service marks, trade names, passes, signs of source or origin,
including geographical indications, and the suppression of unfair competition. It can be said that
the term ‘industrial property” is the predecessor of ‘intellectual property”.

4
Available at: https://www.abyssinialaw.com/study-on-line/item/467-concept-scope-and-nature-of-intellectual-
property-rights (visited on 9th May 2022)

21
Copyright
Copyright law deals with the protection and exploitation of the expression of ideas in a tangible
form. Copyright has evolved over many centuries with respect to changing ideas about creativity
and new means of communication and media. In the modern world, the law of copyright
provides not only a legal framework for the protection of the traditional beneficiaries of
copyright, the individual writer, composer or artist, but also the publication required for the
creation of work by major cultural industries, film; Broadcast and recording industry; And
computer and software industries.
It resides in literary, dramatic, musical and artistic works in ”original’ cinematic films, and in
sound recordings set in a concrete medium. To be protected as the copyright, the idea must be
expressed in original form. Copyright acknowledges both the economic and moral rights of the
owner. The right to copyright is, by the principle of fair use, a privilege for others, without the
copyright owner’s permission to use copyrighted material. By the application of the doctrine of
fair use, the law of copyright balances private and public interests.

Patent
Patent law recognizes the exclusive right of a patent holder to derive commercial benefits from
his invention. A patent is a special right granted to the owner of an invention to the manufacture,
use, and market the invention, provided that the invention meets certain conditions laid down in
law. Exclusive right means that no person can manufacture, use, or market an invention without
the consent of the patent holder. This exclusive right to patent is for a limited time only.
To qualify for patent protection, an invention must fall within the scope of the patentable subject
and satisfy the three statutory requirements of innovation, inventive step, and industrial
application. As long as the patent applicant is the first to invent the claimed invention, the
novelty and necessity are by and large satisfied. Novelty can be inferred by prior publication or
prior use. Mere discovery ‘can’t be considered as an invention. Patents are not allowed for any
idea or principle.5
The purpose of patent law is to encourage scientific research, new technology, and industrial
progress. The economic value of patent information is that it provides technical information to
the industry that can be used for commercial purposes. If there is no protection, then there may

5
Available at: https://blog.ipleaders.in/ipr-description/ (visited on 9th May 2022)

22
be enough incentive to take a free ride at another person’s investment. This ability of free-riding
reduces the incentive to invent something new because the inventor may not feel motivated to
invent due to lack of incentives.

Trademark
A trademark is a badge of origin. It is a specific sign used to make the source of goods and
services public in relation to goods and services and to distinguish goods and services from other
entities. This establishes a link between the proprietor and the product. It portrays the nature and
quality of a product. The essential function of a trademark is to indicate the origin of the goods to
which it is attached or in relation to which it is used. It identifies the product, guarantees quality
and helps advertise the product. The trademark is also the objective symbol of goodwill that a
business has created.
Any sign or any combination thereof, capable of distinguishing the goods or services of another
undertaking, is capable of creating a trademark. It can be a combination of a name, word, phrase,
logo, symbol, design, image, shape, colour, personal name, letter, number, figurative element
and colour, as well as any combination representing a graph. Trademark registration may be
indefinitely renewable.

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. The relationship between objects and place
becomes so well known that any reference to that place is reminiscent of goods originating there
and vice versa.
It performs three functions. First, they identify the goods as origin of a particular region or that
region or locality; Secondly, they suggest to consumers that goods come from a region where a
given quality, reputation, or other characteristics of the goods are essentially attributed to their
geographic origin, and third, they promote the goods of producers of a particular region. They
suggest the consumer that the goods come from this area where a given quality, reputation or
other characteristics of goods are essentially attributable to the geographic region.

23
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. Geographical Indications are protected under the Geographical
Indication of Goods (Registration and Protection) Act, 1999.

Industrial design
It is one of the forms of IPR that protects the visual design of the object which is not purely
utilized. It consists of the creation of features of shape, configuration, pattern, ornamentation or
composition of lines or colours applied to any article in two or three-dimensional form or
combination of one or more features. Design protection deals with the outer appearance of an
article, including decoration, lines, colours, shape, texture and materials. It may consist of three-
dimensional features such as colours, shapes and shape of an article or two-dimensional features
such as shapes or surface textures or other combinations.
Trade Secrets
It gives the owner of commercial information that provides a competitive edge the right to keep
others from using such information if the information was improperly disclosed to or acquired by
a competitor and the owner of the information took reasonable precautions to keep it secret. It
protects confidential secrets of some commercial value. The holder of the secret wants this
information to be protected; some protect the holder from an unauthorized disclosure of the
information. A tort law, unfair competition or contract law can protect such information which is
secret /confidential information/. The holder (owner) has to do his/her best to keep the
information secret. Trade secrets exist without registration as it is to make the information
public, for example, the formula of Coca Cola. Information that are protected in trade secrets
can be patentable if they are novel and non obvious. But it is, most of the time, not to make the
secret public. However, their full-fledged IP rights are contestable. 6

Conclusion:
Intellectual property rights are monopoly rights that grant temporary privileges to their holders
for the exclusive exploitation of income rights from cultural expressions and inventions. There
must be good reasons for a society to grant such privileges to some of its individuals, and so

6
Available at: https://www.abyssinialaw.com/study-on-line/item/467-concept-scope-and-nature-of-intellectual-
property-rights (Visited on 9th May 2022)

24
proponents of these rights provide us with three widely accepted justifications to protect today’s
inter-global intellectual property rights.
It is clear that the management of IP and IPR is a multi-disciplinary task and calls for many
different functions and strategies that need to be aligned with national laws and international
treaties and practices. It is no longer fully driven from the national point of view.
Different forms of IPR demand different treatment, handling, planning and strategies, and
individuals’ engagement with different domain knowledge such as science, engineering,
medicine, law, finance, marketing, and economics. Intellectual property rights (IPR) have social,
economic, technical and political implications.
Leading rapid technology, globalization and fierce competition to protect against infringement of
innovations with the help of IPRs such as patents, trademarks, service marks, industrial design
registrations, copyrights and trade secrets. But there is still a violation of intellectual property
rights. The government is also taking measures to stop them. There are laws regarding the
prevention of infringement of intellectual property rights.

Bibliography:
 Dr. S. R. Myneni: Law of Intellectual Property, Asia Law House, Hyderabad.
 Alka Chawla: Copyright and Related Rights: National and International Perspectives,
Macmillan India Ltd., Delhi
 Jaya Shree Watal: Intellectual Property Rights in the WTO & Developing Countries,
Kluwer Law International, Netherlands.
 Latha R. Nair & Rajendra Kumar: Geographical Indications: A Search for Identity,
LexisNexis India, Gurgaon.
 M. Z. M Nomani: ‘Biological Diversity, IPR & Sustainable Development: A Critical
Appraisal of Access & Benefit Sharing Models of U.S., Australia & India’, VI (11&12)
International Journal of Environmental Consumerism, 40-55(2010)

25

You might also like