LEGAL CHALLENGES FOR

THE ENTREPRENEURIAL
VENTURE AND
ENTREPRENEUR’S
CAPITAL
Learnings
• Intellectual Property Protection
• Legal structures for Entrepreneurial Ventures
• Sources of capital
• Entrepreneurial development
Intellectual Property Protection-Patents,
Copyrights, Trademarks
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• Counterfeit consumer goods are goods, often of inferior quality, made
or sold under another's brand name without the brand owner's
authorization.
• Sellers of such goods may infringe on either the trademark, patent or
copyright of the brand owner by passing off its goods as made by the
brand owner.
• Knockoff products are those that copy or imitate the physical
appearance of other products but which do not copy the brand name
or logo of a trademark.
Intellectual Property Protection

• Intellectual property (IP) refers to creations of the mind, such as inventions;

literary and artistic works; designs; and symbols, names and images used in
commerce.
• Patents
• Copyright
• Trademarks
• Trade Secrets
 Major Types of IP

Functional & Technical Purely A symbol, logo, word, sound,

Inventions Artistic works color, design, etc.

Copyright Act,
Trademark
Patents Act, 1970 1957
Act, 1999
Amended Amended in1982,
Amended in 1994,
in 1999 & 2005 1984, 1992,
1996 & 2000
1994 & 1999
Patents

• One might say that a patent is a contract between

society as a whole and an individual inventor.
• A patent is an exclusive right granted for an invention, which is a
product or a process that provides, in general, a new way of doing
something, or offers a new technical solution to a problem.
• To get a patent, technical information about the invention must be
disclosed to the public in a patent application.
• The objective of a patent is to provide the holder with a temporary
monopoly on their innovation and thus to encourage the creation
and disclosure of new ideas and innovations in the marketplace.
• WTO’s TRIPs agreement provides the
• international standard for duration of patent exclusivity, which is
20 years from the date of filing. Under all patent systems, once
this period has expired people are free to use the invention as
they wish.
 PATENTS
(1) It is covered under the Act called the Patents Act, 1970
[Amended by Patents Act, 2005]
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central
Government may publish, by notification in
the Official Gazette.
 Patents
Definition:
• A patent describes an invention for which the inventor
claims the exclusive right.
INVENTION PATENABLE IF.....
NEW (Novel)
USEFUL
NOT OBVIOUS
PERTAINS TO PATENTABLE
SUBJECT MATTER
 Life & Duration
• Term of the patent is 20 years from the date of
filling for all types of inventions.
• Design patents last for 14 years; all others last for 20
years.
• Priority date- first to file
• The date of patent is the date of filing the
application for patent.
• The term of the patent is counted from this
date.
 Securing a Patent

• Rule 1: Pursue patents that are broad, are

commercially significant, and offer a
strong position
• Rule 2: Prepare a patent plan in detail
• Rule 3: Have your actions relate to your
original patent plan
• Rule 4: Establish an infringement budget
• Rule 5: Evaluate the patent plan strategically
 Copyright

• The Indian CopyrightAct,1957 governs the system of

copyrights in India.
[Amended in 1982, 1984, 1992, 1994 & 1999]

• Meaning : It is a right which Grants protection to the unique

expression of Ideas.
• A copyright provides exclusive rights to creative individuals
for the protection of their literary or artistic productions.
• Duration: life of the authors life plus 60 years.
 Original
• The term original in the copyright law means that
the work originated with the author.
• There is no requirement for novelty or uniqueness
as there is in patent law.
• Copyright law protects the expression of an idea.
Not the idea itself.
What is covered by copyright?
Literary Films Dramatic

Musical Artistic Sound Recording

 What is not covered by copyright?

• Ideas
• Facts
• Recipes
• Works lacking originality (e.g. The phone book)
• Names, titles or short phrases
 Registration Procedure

• Register a copyright by completing a simple

application form, along with the appropriate fee
• Need not send a copy of your work,
• It may appear with the same title, but if each
work has been created independently, each will
have its own copyright protection.
 Duration of Copyright
Copyright lasts for the-

• In the case of original literary, dramatic, musical and artistic works,

the duration of copyright is the lifetime of the author or artist, and
60 years counted from the year following the death of the author.
• In the case of cinematograph films, sound recordings,
photographs, posthumous publications, anonymous and
pseudonymous publications, works of government and works of
international organizations are protected for a period of 60 years
which is counted from the year following the date of publication.
 What is “Fair Use”?
• Gives permission to use copyrighted materials if
certain criteria are met
• Protects freedom of speech
• Promotes public benefits like education.
 Beware the “Fair Use Excuse”

• Never assume that your use falls under

the fair-use exception!
• “Saving money” is not a sufficient
excuse
• I did not know
• Not giving due credit.
 Trademark

1. It is covered under the Act called the Trade

Marks Act, 1999.
2. The Act came into effect on September 15,
2003. It replaced the Trade and
Merchandise Marks Act, 1958.
3. It extends to the whole of India.
4. It shall come into force on such date as the
Central Government may publish, by
notification in the Official Gazette
Trademarks

Name

Logotype

Symbol

Slogan

Shape

Color
• Fanciful trademarks: These have no meaning before they
became trademarks
examples include Starbucks (coffee) and Vero
(insurance).
• Arbitrary trademarks: These are common words that
have an arbitrary relationship to
the product – examples include Apple (computers) and
Amazon (e-commerce).
• Suggestive trademarks: Suggestive trademarks indirectly
allude to a quality of the product – examples include
Playboy bunny (men’s magazine).
• Descriptive trademarks: These describe the goods or
service they market – examples
include -Vision Center (optics store).
 Trademarks
• Trademark:
Different Symbols are :

™ Intent to use application filed for product

SM
Intent to use application filed for services
® Registered trademark
 Registration Procedure

• Application for search.

• Application for registration.
• Examination of trademark.
• Advertisement of trademark.
• Filing of opposition.
• Certificate issued.
 DURATION OF TRADEMARK
• Trademark is valid for 10 years from the date of
application which may be renewed for further period of 10
years on payment of prescribed fees.
• Service mark Rights are reserved exclusively for owners
for 17 year & it can also be renewed.
 ™ Applicability Of Trademark SM

• A trademark is a sign Used on, or in connection with the

marketing of goods or services.
• “Used on” the goods means that it may appear not only on
the goods themselves but on the container or wrapper in
which the goods are when they are sold.
Trade secrets
• Trade secrets are business processes and information
that are unpatentable, patentable but not
enforceable, or patentable but for some reason you
do not wish to disclose.
• This might include customer lists, plans, research and
development, pricing information, marketing
techniques and production techniques.