You are on page 1of 18

SCHOOL OF LAW

SUBJECT: PROPERTY LAW (LF 561)

NAME OF THE TOPIC: INTRODUCTION TO LAWS


RELATING TO INTELLECTUAL PROPERTY

SESSION: 2019-2024

SUBMITTED TO: SUBMITTED BY:

DR. POOJA JAIN MITALI RAKHECHA

ASSISTANT PROFESSOR 190260

MODY UNIVERSITY B.B. A L.L.B 5TH YEAR


Contents
Background.............................................................................................................................3

Intellectual Property.............................................................................................................. 3

History Of IPR........................................................................................................................4

India’s Status on IPR............................................................................................................. 5

Legislations of IPR................................................................................................................. 6

Tangible and Intangible property........................................................................................11

Transfer of Property and Intellectual Property Rights.....................................................13

Conclusion.............................................................................................................................14

Bibliography......................................................................................................................... 16

Plagiarism Report................................................................................................................ 17
Background
Intellectual property (IP) refers to legal rights that are granted to individuals or entities for
their creations or inventions of the mind. These creations can be intangible, such as ideas,
designs, or artistic works, or they can be tangible, like inventions, literary and artistic works,
and symbols, names, and images used in commerce. Intellectual property rights are designed
to protect and provide incentives for creators and inventors by giving them exclusive control
over their creations for a specified period.

Intellectual Property
The use of human creativity and invention is the foundation of intellectual property (IP). To
create anything new, significant investments must be made in terms of people, time, money,
experience, and other resources. The legal right to reap the financial benefits of one's
discoveries or works is provided to inventors and creators by law. These legal privileges,
sometimes referred to as intellectual property rights (IPR), are restricted to particular
geographical areas and may be legally registered with governmental agencies. IPR is a
tangible asset that may be purchased, sold, or licenced. IPR establishes a safe atmosphere that
promotes creativity and a spirit of scientific inquiry. It is advantageous to a wide spectrum of
professionals, including traders, scientists, artists, and investors. IPR is crucial to
international trade and daily life in the current era of globalisation. An effective IPR system is
an essential tool for advancing a nation's innovation and development objectives.

The goal of intellectual property law is to protect human-generated information in order to


promote and spark more innovation. For instance, if they could not earn from their works and
if others could steal and profit from them, writers and musicians would be less inspired to
produce new ones. Similar to this, pharmaceutical corporations wouldn't make significant
investments in R&D without the promise of recovering expenses and creating additional
medications.

However, giving intellectual property owners total and eternal rights might result in
monopolies and exorbitant prices, which would be detrimental to the general welfare. By
allowing owners to profit from their labours while maintaining a competitive market that
benefits the public, intellectual property law seeks to find a balance.
Federal legislation, for instance, stipulates that a patent for a beneficial innovation is only
good for 20 years from the date the patent application was submitted. After this time, the
product may be produced and sold by others without restriction.

History Of IPR
The concept of intellectual property rights, which grant individuals control over their creative
works and inventions, has a long history dating back centuries:

In ancient Greece around 500 BC, inventors were allowed to enjoy the profits of their
creations for just one year. In 1449 AD, during the reign of King Henry VI in England, the
patent period was extended from one year to 20 years. John of Utinam was the first person to
receive a 20-year patent for his invention of colored glass. Venice had a decree in place as
early as 1474, which served as a legal framework for protecting inventions. The first English
patent was granted to Giacopo Acotio in 1565 for a new type of furnace. In 1594, Galileo
received a Venetian patent for an irrigation machine. Samuel Winslow obtained a patent in
1641 in America for his invention of a new procedure for making salt. In 1794, Elivitni
secured a patent for a cotton gin machine designed to separate seeds from cotton. In 1837,
Thomas Davenport patented the DC electric motor, even though he didn't earn profits due to
the absence of electricity at that time. In 1851, Doctor John Gorri invented an ice
manufacturing machine to keep his patents room cool and received a patent. He later became
known as the "Father of Refrigeration." In 1872, Alexander Graham Bell was granted a patent
for his telephone invention. In 1880, Thomas Edison received a patent for his light bulb
invention. Historical records also document actions taken by a jeweler named Claudio Vom
Creutz in Nuremberg between 1593 and 1604 to protect his patent rights related to gemstone
polishing. In one instance, an infringer was imprisoned, fined, and banished from the city as a
penalty for violating these patent rights.

The concept of intellectual property (IP) has ancient roots, as early civilizations recognized
the need to safeguard valuable creations and knowledge. However, the modern system of
intellectual property rights (IPR) began taking shape during the 18th and 19th centuries,
driven by the Industrial Revolution and the necessity to protect inventions and discoveries.
The first significant milestone in modern IP history was the enactment of the first patent law
in England in 1623. This law granted inventors a limited monopoly, providing exclusive
rights to their inventions for a period of fourteen years. The United States followed suit in
1790 by passing its own federal patent law. The foundation for international cooperation on
intellectual property was laid with the signing of the Paris Convention for the Protection of
Industrial Property in 1883. This landmark agreement established fundamental principles for
safeguarding patents, trademarks, and industrial designs. Subsequently, various other
international treaties and agreements were concluded, including the Berne Convention for the
Protection of Literary and Artistic Works in 1886 and the Universal Copyright Convention in
1952. A pivotal moment in the global standardization of intellectual property rights occurred
in 1994 with the signing of the Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS). TRIPS was part of the World Trade Organization (WTO) Uruguay Round
negotiations and set minimum standards for the protection and enforcement of IP rights
among member countries. The World Intellectual Property Organization (WIPO) was
established in 1967 as a specialized agency of the United Nations, with a mission to promote
the protection of intellectual property rights on a global scale. WIPO administers several
crucial international treaties and agreements related to intellectual property, including the
Patent Cooperation Treaty, the Madrid System for the International Registration of Marks,
and the WIPO Copyright Treaty.

India's system of intellectual property rights (IPRs) dates back to the British colonial era,
when the colony created laws and enforcement procedures for IP rights. Following its
independence, India kept some of these systems in place while also modernising a few
administrative and regulatory elements. Policymakers in India continued to adjust in
following decades, notably in the 1990s when the country embraced economic liberalisation,
privatisation, and globalisation, to satisfy the changing requirements of both internal and
external stakeholders. It's important to note that India complies completely with the TRIPS
Agreement, which is governed by the World Trade Organisation (WTO) and covers all
aspects of intellectual property rights.

Today, intellectual property rights are widely acknowledged as a vital driver of innovation,
creativity, and economic progress. However, ongoing debates persist regarding the delicate
balance between safeguarding the rights of creators and IP owners and ensuring access to
affordable medicines, education, and technology, especially in developing nations.

India’s Status on IPR


India ranks 60th out of 127 nations in the 2017 Global Innovation Index (GII), a joint
publication of the World Intellectual Property Organisation (WIPO), Cornell University, and
INSEAD, along with collaborators including the Confederation of Indian Industry. India
performs noticeably better than comparable groups of lower- and upper-middle-income
nations, placing 14th overall in terms of hosting international research and development
(R&D) enterprises. In addition, India does better than the majority of other middle-income
countries in a number of categories, including as the proportion of graduates in the sciences
and engineering, the volume of capital investment, the amount of money spent by enterprises
on R&D, the availability of research talent, and other input variables. India excels in terms of
output in terms of the calibre of its scholarly output, the growth rate of its GDP per worker,
the exports of high-tech and ICT services, the exports of creative goods, the production of
high-tech manufactured goods, and the income from intellectual property (IP).

Legislations of IPR
1. Patents1- It doesn't matter if it's a brand-new product or a cutting-edge procedure that
provides a creative solution to a problem, a patent is a particular privilege given to
inventors, granting them exclusive rights over their creation. This protection has a
finite lifespan of generally 20 years. In essence, having a patent prevents anybody
from lawfully manufacturing, using, distributing, or selling the innovation without the
patent holder's consent. The owner of a patent has complete control over who may
utilise their idea while it is covered by the patent. They may provide people
permission—also referred to as licensing—under predetermined conditions. In
addition, they have the option of selling the patent to another party to transfer
ownership. The innovation enters the public domain when a patent's protection period
has passed. This indicates that the innovation is now available for use and economic
exploitation by others, and the patent owner no longer has exclusive rights.
2. Trademarks2- A trademark is a distinctive sign that identifies particular products or
services as coming from a specific person or business. Words, letters, numbers, or a
mix of these can all be used as this sign. As identifiers, it may also comprise pictures,
symbols, three-dimensional objects (such as product designs and packaging), sounds
(such as music or spoken phrases), smells, or colours. A trademark's main function is
to protect its owner by giving them the only right to use the mark to describe their
products or services. In exchange for payment, they may also grant permission for
others to utilise it. The distinctive characteristics of the trademark serve as an
indication of this exclusive identity, which aids customers in finding and purchasing

1
The Patents Act, 1970
2
The Trade Marks Act, 1999
goods or services that satisfy their demands. Strong ownership proof, such as
trademark registration, confers legal rights on the owner. The validity of a trademark
may continue forever. A trademark registration is valid for 10 years at first, but it may
be renewed on a regular basis to keep it protected.
3. Copyright3- Copyright is a legal principle that gives authors and artists the sole right
to publish and exhibit their works. These works include a broad range of genres,
including poetry and literary works like novels, databases, movies, music
compositions, works of art like paintings and sculptures, architectural designs, and
numerous other forms of creative expression like ads, maps, and technical drawings.
A work is immediately protected by copyright as soon as it is produced, and official
registration is not required. However, registering copyright confirms the inventor as
the property's legitimate owner and acts as evidence of its existence. Many times,
authors decide to sell the rights to their works to people or businesses who can
successfully use and promote them in exchange for remuneration. Royalties are
payments that are frequently based on how the work is really used. With the exception
of pictures, these commercial rights normally last for the author's lifetime and an extra
sixty years after their passing.
4. Geographical Indications4- Geographical indications (GIs) are marks applied to
goods to identify their precise geographic origin and any special characteristics or
reputation connected to that location. Agricultural goods frequently have features that
are impacted by the region in which they were grown, including local climate and soil
conditions. The distinctive features of a product can also be influenced by human
factors like particular production processes and local customs. A geographical
indicator is simply a symbol that identifies a product's unique qualities as being from
a certain area or region where it was produced. It's vital that the brand's reputation and
quality be inextricably linked to that particular location. This origin might be as
localised as a town, a village, a bigger area, or even an entire nation. Importantly, a
particular community is given the rights attached to a geographical indicator, and
everyone in that group benefits from its registration. Wet grinders, Chanderi saris,
Kullu shawls, and other products have recently been successfully recognised as GIs.
For instance, producers of Darjeeling tea have the authority to limit the use of the
term "Darjeeling" for tea that is not grown in their particular tea gardens or doesn't

3
The Copyright Act, 1957
4
The Geographical Indications of Goods (Registration and Protection) Act, 1999
follow the standards outlined in the geographical indication's code of practise in
regions where the geographical indication for Darjeeling is legally protected. It's
crucial to remember that having a protected geographical indication does not provide
the owner the authority to stop others from producing a product using the same
techniques as those listed in the criteria for that indication. A geographical indicator is
often protected by purchasing the legal rights to the particular sign that serves as the
indication. A variety of products, including agricultural commodities, culinary items,
wine and spirits, handicrafts, and industrial goods, frequently use geographic
indicators.
5. Industrial Designs5- Industrial designs are artistic endeavours that influence a
product's aesthetic or formal appearance. The owner of a lawfully registered,
distinctive design is awarded design rights. These patterns are protected by
intellectual property. India, a developing nation, has implemented the TRIPS
Agreement's minimal provisions for industrial design protection into its own law.
Encouragement and protection of the design component of industrial production is the
main objective of design legislation. Additionally, it strives to encourage industry-
wide innovation. The New Designs Act of 2000, which outlines India's current
industrial design laws, is still relevant in the face of quick technical advancements and
major world shifts. Given the globalised economy and India's advanced standing in
the field of industrial designs, the country's existing legal framework keeps up with
changing commercial and technical environments while following global trends in
design administration. In order to accommodate the expanding range of design-related
activities across multiple disciplines and to align with the global system, this new Act
aims to give a more thorough classification of designs. Industrial designs are used on
a wide range of manufactured and handcrafted objects, including textiles, lighting
equipment, jewellery, domestic furnishings, and a variety of packaging and
containers. Graphical user interfaces (GUI), logos, and graphic symbols may all be
influenced by industrial designs.
6. Layout Design for Integrated Circuits6- A semiconductor integrated circuit is a
piece of equipment that includes transistors and different circuitry parts that are
carefully built on insulating or semiconductor materials and serve a particular purpose
in an electronic circuit. The Semiconductor Integrated Circuits Layout-Design Act of

5
The Designs Act, 2000
6
The Semiconductors Integrated Circuits Layout-Design Act, 2000
2000 was created to protect IPR pertaining to semiconductor integrated circuit layout
designs and other relevant topics. This act's main goal is to create channels and
protections for IPR in the area of chip layout designs and associated matters. The
SICLD Act grants registered layout-design owners the inalienable right to use and
profit from their designs, as well as the right to pursue legal action in the event of
violation. The registration is initially valid for 10 years and is regularly renewable.
The registration of this act and associated matters are managed by the Department of
Information Technology, which is a division of the Ministry of Communications and
Information Technology. Layout-designs are eligible for registration if they meet the
following criteria:
i. they are unique,
ii. they possess inherent distinctiveness,
iii. they can be clearly differentiated from any other registered layout-design, and
iv. they have not been commercially utilized for over two years before the date of
the registration application.

Unlike patents, this Act doesn't necessitate "novelty" but rather emphasizes the need
for "distinctiveness" for the registration process.

7. Protection of Plant Varieties and Farmer’s Rights 7- The purpose of this law is to
recognise farmers as both cultivators and preservers of the nation's agro-biodiversity
while stressing the significant contribution of traditional, rural, and tribal groups. In
exchange for their efforts, these communities are being rewarded with incentives, and
investments in R&D to generate new plant kinds are being encouraged. For various
types of crops, registered varieties are protected for varying lengths of time. Trees and
vines, for instance, have an 18-year lifespan, whereas other crops have a 15-year
lifespan, and notified existent varieties have a 15-year lifespan under Section 5 of the
Seeds Act of 1966. The ultimate objective is to promote the development of the seed
business, ensuring that farmers have access to high-quality seeds and planting
supplies. Types of plant varies that can be registered-
i. New Varieties: A new variety is one that has not been publicly known or
available in India for more than a year before the filing date. For trees or
vines, this period extends to six years outside India, and for all other cases, it's
four years.
7
The Protection of Plant varieties and Farmers’ Rights Act, 2001
ii. Extant Variety: An extant variety can be a variety that has been officially
recognized under the Seed Act of 1966, a variety that is widely known to the
public, a variety commonly used by farmers, or any other variety that is
publicly accessible.
iii. Farmers' Variety: A farmers' variety is a type of variety that has traditionally
been cultivated and developed by farmers in their own fields. It can also
include wild relatives of a variety that farmers are familiar with.
iv. Essentially Derived Variety (EDV): An essentially derived variety is
considered to be derived primarily from an initial variety. It may also originate
from a variety that is predominantly derived from the initial variety. The key is
that it retains essential characteristics resulting from the genetic makeup of the
initial variety or the combination of genetic factors from that variety. An EDV
closely resembles the initial variety resulting from the genetic traits of the
original variety or the combination of traits from that variety.
8. Biodiversity8- Traditional knowledge is mentioned specifically in the preamble of the
Biological Diversity Act. Additionally, it covers conventional knowledge-related
topics under the wider umbrella of linked knowledge in several other provisions of the
Biological Diversity Act, 2002. According to Section 7 of the Biological Diversity Act
of 2002, the Indian business must notify the relevant State Biodiversity Boards
(SBBs) in advance of acquiring biological resources for commercial use. Any such
action that breaches the goals of conservation, sustainable usage, and fair benefit
sharing shall be subject to prohibition or restriction by the SBB. Individuals who
protect biological resources as well as those who produce and have access to
knowledge and information on the use of biological resources are eligible to receive
advantages under this act.
9. Trade Secrets- Confidential business knowledge that offers a business a competitive
edge is often the subject of trade secrets. These trade secrets sometimes contain
business tactics as well as manufacturing or industrial information. Examples include
customer profiles, advertising strategies, supplier and client lists, and production
procedures. They also include sales and distribution techniques. Trade secrets do not
need to be formally registered in order to be protected, unlike patents. Trade secrets
can be protected indefinitely, but it's critical to keep a high level of confidentiality.
This indicates that it should be difficult for others to find out this information, unless
8
The Biological Diversity Act, 2002
by using dishonest methods. Given how widely used traditional knowledge is
throughout the nation, protecting it in this way is essential if one wants to profit from
it. Geographical indicators are also strongly related to trade secrets and traditional
knowledge. It can be protected for unlimited time period. In 1886, Dr. John S.
Pemberton concocted a refreshing new beverage by blending sugar syrup and various
ingredients, giving birth to the confidential formula for COCACOLA®. He chose to
keep this formula a secret and safeguarded it as a trade secret. A trade secret is
information that fulfills two criteria:
i. it furnishes a business with a competitive edge, and
ii. it is managed in a manner that reasonably prevents the general public or
competitors from discovering it, unless acquired through improper means or
theft.

Examples of trade secrets encompass a wide range of things, such as a soft drink
recipe, marketing strategies, manufacturing methods, computer algorithms, and
customer lists

Tangible and Intangible property.


Tangible and intangible property are two fundamental categories used to classify assets, and
they play a crucial role in various aspects of property law, economics, and business.
Understanding these distinctions is essential, as they have significant implications for
ownership, valuation, taxation, and legal protection.

1. Tangible Property: Tangible property, also known as physical property, refers


to assets with a physical form that can be seen, touched, and perceived by the
senses. This category encompasses a wide range of physical objects and
possessions that people own, use, and transfer in their daily lives. Tangible
property can be further categorized into real property and personal property.
i. Real Property (Real Estate): Real property consists of land, buildings,
and fixtures permanently attached to the land. Land includes the earth's
surface, the soil beneath it, and everything attached to it, such as trees,
minerals, and water rights. Buildings and structures, like houses,
apartments, and commercial buildings, are considered part of real
property as long as they are affixed to the land in a permanent manner.
These assets often have enduring physical characteristics and cannot be
easily moved.
ii. Personal Property: Personal property, sometimes referred to as
movable property, encompasses all assets that are not considered part
of real property. It includes a vast array of items that individuals and
businesses own, ranging from everyday possessions like cars,
furniture, and electronics to valuable assets like jewelry, artwork, and
collectibles. Personal property can be further categorized into tangible
personal property and intangible personal property.
2. Intangible Property: Intangible property consists of assets that lack a physical
form and cannot be touched or seen in the same way as tangible property.
Instead, intangible property represents legal rights, interests, or intellectual
creations that have inherent value. This category encompasses a diverse range
of assets, each with its distinct characteristics and legal protections.
i. Intellectual Property (IP): Intellectual property is a prominent
subcategory of intangible property, encompassing various forms of
legal protection for intellectual creations. IP protects the exclusive
rights of creators and inventors, allowing them to control and benefit
from their innovations.
ii. Financial Assets: Financial assets are intangible property associated
with monetary value. Examples include stocks, bonds, derivatives, and
bank accounts. While these assets don't have physical form, they
represent ownership interests or contractual rights in various financial
instruments.
iii. Contracts and Agreements: Contracts and agreements are legally
binding documents that represent intangible property. They outline
rights, obligations, and responsibilities between parties in various
transactions and relationships. Contracts can include employment
agreements, leases, and purchase contracts.
iv. Digital Assets: With the rise of the digital age, digital assets have
become increasingly important. These include domain names, digital
content (e.g., e-books, music downloads), and cryptocurrencies like
Bitcoin. Digital assets have value and ownership rights but lack
physical presence.
v. Goodwill: Goodwill is an intangible asset that represents the positive
reputation, customer loyalty, and intangible value associated with a
business. It often arises from a company's brand, customer
relationships, and market position.

In summary, tangible property encompasses physical assets like real estate and personal
possessions, while intangible property includes non-physical assets such as intellectual
property, financial assets, contracts, and goodwill. These distinctions are crucial in property
law, accounting, taxation, and business valuation, as they determine the legal rights,
treatment, and economic value of various assets.

Intellectual property (IP) is a prime example of intangible property, representing a category of


assets that lack a physical form but hold inherent value due to their legal and intellectual
characteristics. IP encompasses a broad range of creations of the human mind and the legal
rights associated with them. Intellectual property consists of legal rights granted by
governments to individuals, creators, or inventors as a means of recognizing and protecting
their innovative and creative efforts. These rights are legally enforceable, allowing the IP
holder to exercise control over their intellectual creations. Intellectual property is
characterized by its legal recognition, exclusive rights, economic value, and the critical role it
plays in incentivizing innovation, creativity, and competitiveness in various industries. IP
assets are among the most valuable and strategically significant assets for individuals,
businesses, and nations in today's knowledge-driven economy.

Transfer of Property and Intellectual Property Rights


The transfer of property relating to intellectual property (IP) involves the legal transfer of
rights and ownership of IP assets from one party to another. This process is crucial for various
reasons, such as monetizing IP assets, facilitating collaborations, and protecting the interests
of both the IP owner and the transferee. Types of IP Transfer:

a. Assignment: Assignment is a complete transfer of ownership rights in an IP


asset from the owner (assignor) to another party (assignee). In an assignment,
the assignor relinquishes all rights and interests in the IP asset, and the
assignee becomes the new owner. This often involves a formal written
agreement that specifies the terms and conditions of the transfer.
b. License: A license grants permission to use the IP asset without transferring
ownership. The IP owner (licensor) retains ownership but allows another party
(licensee) to use the IP asset under specific terms and conditions outlined in
the licensing agreement. Licensing can be exclusive (only one licensee) or
non-exclusive (multiple licensees).
c. Merger and Acquisition: In corporate transactions, such as mergers and
acquisitions, IP assets may be transferred as part of a larger transaction. The
acquiring company gains ownership of the IP assets of the target company.
This transfer is often governed by a merger or acquisition agreement.
d. Inheritance: IP assets can be transferred through inheritance when the owner
passes away. The ownership rights pass to the heirs or beneficiaries according
to applicable inheritance laws or the terms of the owner's will.

In summary, the transfer of property relating to intellectual property involves the legal
transfer of rights and ownership of IP assets through formal agreements like assignments,
licenses, mergers, or inheritance. Properly executed transfers protect the interests of both the
IP owner and the transferee while facilitating the utilization and monetization of valuable IP
assets.

Conclusion
In conclusion, India's intellectual property rights (IPR) industry is going through a significant
shift as the country aspires to become a major economic force on the world stage. Despite
significant improvements in the legal and regulatory elements of IPR protection, there are
still certain issues, notably in the areas of awareness and enforcement. Given the wide range
of industries in India that may considerably benefit from effective intellectual property
protection, the country's IPR industry has enormous development potential. But there are
obstacles to get over, especially when it comes to protecting these rights and promoting their
importance. The Indian government has taken significant steps to strengthen the legal
foundation for IPR protection and has signed international agreements to conform to
international norms. The IPR market includes a wide range of industries, including software
development, entertainment, and medicines. However, the Indian IPR industry continues to
face substantial difficulties from piracy and counterfeiting, prompting the need for more
potent methods to address these problems. Furthermore, knowledge of the value of protecting
intellectual property is still very low, necessitating continuous and extended educational and
communication programmes. Despite these obstacles, the Indian IPR market offers significant
commercial and investment prospects, particularly in cutting-edge sectors like technology.
India is a desirable location for businesses looking to diversify their intellectual property
portfolios due to the government's dedication to improving the legal and regulatory
framework for IPR protection as well as the big and expanding market there. In short, the
Indian IPR market is expected to experience rapid growth and development in the near future.
Companies and investors stand to benefit significantly from an understanding of the specifics
of this industry, including its possibilities and difficulties.
Bibliography
 https://www.rgmcet.edu.in/assets/img/departments/CIVIL/materials/R15/3-2/PESS/
unit-6.pdf
 https://sircrrengg.ac.in/images/newsletter/ITMATERIALS/IPRP.pdf
 https://loksabhadocs.nic.in/Refinput/New_Reference_Notes/English/Intellectual
%20Property%20Rights%20in%20India.pdf
 https://www.wipo.int/edocs/mdocs/tk/en/wipo_iptk_ge_14/
wipo_iptk_ge_14_wipo_presentation_1.pdf
Plagiarism Report

You might also like