INTELLECTUAL

PROPERTY
RIGHTS
Session 2
CAN YOU TRADE A BOWL OF
RICE?
COST, PRICE AND VALUE
 The best-kept secret about strategy is that you are in control. 
 Regulations on IPRs provide you with an opportunity to choose the game you want to play
and how you might win it. 
 If shoes were your business, for example, is your market “shoe retailing”?

Or is it the retailing of “high-priced, custom-made women’s leather sandals”?

Your answer will determine your chances of becoming a market leader.

The Christian Louboutin
A GLASS OF JUICE: HOW DO
YOU ADD PREMIUM TO THE
PRODUCT ?
COST, PRICE AND VALUE Trademark – brand
Advertisement –
Copyright

Patent
Industrial Design
GIs

Trade
secret
IP RIGHTS DISTINGUISHED

Shape ?
Creative
layout ?

Brand?? Useful cap ?

Any IP ? 7
IP RIGHTS DISTINGUISHED
And a Product may incorporate several forms of IP!

Design
Copyright

Trademark ? Patent

Any IP ? 8
WHAT ARE IPRS
 ‘Intellectual Property Rights’ is basically a concept wherein all the three terms:
 ‘Intellectual’, ‘Property’ and ‘Rights’ carry an independent meaning and when all of them are put
together, they become an important aspect of properties.
INTELLECTUAL, PROPERTY
AND RIGHTS
 Intellectual- refers to creations of the mind, something which is intangible but has a tangible
value to it.

 Property- These properties have all the attributes of tangible properties, ‘Possidendi Utendi
Disponendi i.e. they have a right to possess, right to use and right to be disposed off.

 Rights- Intellectual properties are adapted into rights only when under statutory provisions
governing them determines the duration for which ownership lies with creator of these properties
have been complied with and have been registered as per those acts.
 Illustrations
WHY SHOULD BE PROTECT
IP ?
 Helps to be a differentiator with proprietary (ownership) rights
 Capital expenditure for new products
 R and D
 Marketing and advertisement
 No free loaders
 Maintaining loyal followers
 Profits
WHAT CAN YOU DO WITH
YOUR IP?
 Can be sold
 Can be bought
 Can be lease or rent
 Can pass under a will
 Can be assigned
IMPORTANCE OF IPRS
 Though these properties are created by human intellectual and have an element of ownership,
the law assumes that these properties should finally belong to the public.
 Each Intellectual property will have time duration to it and beyond which they must pass to the
public domain. All intellectual properties to be converted into rights must have a commercial
value to them.
 Intellectual property rights are the rights (exclude and include) given to persons over the
creations of their minds.
 They usually give the creator an exclusive right, mostly statutory over the use of his/her
creation for a certain period of time.
 The rights include usage, sale, distribution, protection and transfer of technology through
assignment, licensing, franchising, functional and enabling.
TYPES OF IP
Copyright
+
Industrial rights which includes patents, trade secrets, trademarks, geographical
indications
=
Intellectual property rights

 Intellectual: creative human activity

 Property: special form of ownership
 Other characteristics: negative, exclusive, absolute
HISTORY OF IPRS
 Patents - 1331 AD - King Edward III
 Letters patent- Latin word ‘patere means to open
 16 July 1331 King Edward III of England granted letters patent to John Kempe of Flanders,
'weaver of woollen cloths', to enter England with his men and exercise and teach his trade freely under
the king's protection.
 Copyrights - The Statute of Anne, 1710
 The first copyright act in the world, the British Statute of Anne.
 ‘….  The Author of any Book or Books already Printed, who hath not
Transferred to any other the Copy or Copies of such Book or
Books, Share or Shares thereof, or the Bookseller or Book-
sellers, Printer or Printers, or other Person or Persons, who
hath or have Purchased or Acquired the Copy or Copies of any
Book or Books, in order to Print or Reprint the same, shall
have the sole Right and Liberty of Printing such Book and
Books……’
CONT…
 Trademarks- in 1266, the Parliament of England under the reign of King
Henry III gave first trademark, according to which all bakers were required to
use a distinctive mark for the bread they sold.
 In 1876, Bass Brewery's label incorporating its triangle logo for ale was the
first trade mark to be registered under the Trade Mark registration Act 1875.
 Logo, ® trade mark of Bass Brewery.
INTERNATIONALIZATION OF
IPRS
 1873, World Exposition, Vienna, Austria
 Objective to promote
 Knowledge
 Education
 Culture
 USA boycotted this event on the ground that rights of inventors were limited to their own
country and hence there was a fear of copying IPRs at the exposition.
 Led to provisional protection
DEVELOPMENT OF IPR
REGIME
1883 Paris Convention For The Protection Of Industrial Property
Berne Convention For the Protection of Literary and Artistic
1886 Work

1891 Madrid System For The International Registration of Marks

United International Bureaux for the Protection of IPRs
1893 (BIPRI)
BIPRI became World Intellectual Property
1970 Organization
WIPO joins UN- 189 members, administers 26 treaties and
1983 WIPO Conventions
1995 Trade Related Intellectual Property Rights (TRIPS)
Different Acts governing IP assets in India
The Trade Marks Act, 1999
Trade Marks

The Patents Act, 1970

Patents

Copyright The Copyright Act, 1957

The Designs Act, 2000

Designs
The Geographical Indications
Geographical Indications Of Goods Act, 1999
The Protection of plant varieties and
Plant Varieties Farmers’ Right Act, 2001
Semi conductor IC layout design
Semi conductor IC layout Act,2000

19
 CONTROLLER GENERAL OF PATENTS, DESIGNS
AND TRADEMARKS
(CGPDTM)

IPTI ,NIIPM,
PATENT OFFICE T M REGISTRY G.I. REGISTRY
P.I.S. Nagpur

Head Office
Head Office DESIGN OFFICE CHENNAI
MUMBAI
KOLKATA

Branch DELHI
DELHI KOLKATA

Branch KOLKATA
CHENNAI

Branch CHENNAI
MUMBAI

A’BAD
WHAT IS A PATENT ?
 WIPO- ‘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.’
 A Patent is a statutory right for an invention granted for a limited period of time to the
patentee by the Government, in exchange of full disclosure of his invention for excluding
others, from making, using, selling, importing the patented product or process for producing
that product for those purposes without his consent.
 
 PATENT- INVENTION
 Patent is granted for an “invention” – this is a universally accepted principle of patent law.
 The patent specification describes the invention and if the application is granted by the Patent Office,
the patentee is entitled to exclusive rights over the “invention”.
 Section 2(j) of the Patents Act, 1970 defines the term invention in the following terms:
 “invention” means a new product or process involving an inventive step and capable of industrial
application”
 The invention must be a “product” or a “process”.
 In order to qualify as an invention, a product or process:

 Must be “new”; and

 Must involve an “inventive step”; and
 Must be “capable of industrial application”

 
CRITERIA FOR GRANT OF
PATENT
 An invention to become patentable subject matter must meet the following criteria:

i)  It should be novel (not a prior art)

Invention should not have been published or used anywhere in the world before the date of
filing the patent application in the patent office.
ii) It should have inventive step; it must be non-obvious 
According to the Patents Act, 1970 (as amended in 2005) Sec 2 (ja) "inventive step" means a
feature of an invention that involves technical advance as compared to the existing knowledge
or having economic significance or both and that makes the invention not obvious to a person
skilled in the art;
iii) It should be capable of Industrial application. (utility of invented process or product)
Provided subject matter is patentable.
INVENTIVE STEP
The Supreme Court in the Novartis case broke down Section 2(ja) into the following:
“It [The product] must come into being as a result of an invention which has a feature that:
(a) Entails technical advance over existing knowledge;
Or
(b) Has an economic significance
And
(c) Makes the invention not obvious to a person skilled in the art”
WHAT IS NOT PATENTABLE ?
(a) an invention which is frivolous or which claims anything obviously contrary to well established
natural laws;
(b) an invention the primary or intended use or commercial exploitation of which could be contrary
public order or morality or which causes serious prejudice to human, animal or plant life or health or
to the environment;]
(c) the mere discovery of a scientific principle or the formulation of an abstract theory  [or discovery
of any living thing or non-living substances occurring in nature];
[(d) the mere discovery of a new form of a known substance which does not result in the
enhancement of the known efficacy of that substance or the mere discovery of any new property or
new use for a known substance or of the mere use of a known process, machine or apparatus unless
such known process results in a new product or employs at least one new reactant.
Explanation. -For the purposes of this clause, salts, esters, ethers, polymorphs, metabolites, pure
form, particle size, isomers, mixtures of isomers, complexes, combinations and other derivatives of
known substance shall be considered to be the same substance, unless they differ significantly in
properties with regard to efficacy;]
CONT..
(e) a substance obtained by a mere admixture resulting only in the aggregation of the properties of the
components thereof or a process for producing such substance;
(f) the mere arrangement or re-arrangement or duplication of known devices each functioning
independently of one another in a known way;  
(h) a method of agriculture or horticulture;
(j) any process for the medicinal, surgical, curative, prophylactic   [diagnostic, therapeutic] or other
treatment of human beings or any process for a similar treatment of animals   to render them free of disease
or to increase their economic value or that of their products.
(j) plants and animals in whole or any part thereof other than micro-organisms but including seeds,
varieties and species and essentially biological processes for production or propagation of plants and
animals;
(k) a mathematical or business method or a computer programe per se or algorithms;
(l) a literary, dramatic, musical or artistic work or any other aesthetic creation whatsoever including
cinematographic works and television productions;
(m) a mere scheme or rule or method of performing mental act or method of playing game;
SECTION 4 IN THE PATENTS
ACT, 1970 AND PCT
4 Inventions relating to atomic energy not patentable.
-No patent shall be granted in respect of an invention relating to atomic energy falling within
sub-section(1) of section 20 of the Atomic Energy Act, 1962 (33 of 1962).
PCT
 Making it easier to make patent application
 Designated country.
 International phase to national phase.
STEPS TO FILE A PATENT:
1. The first step starts with a prior art search which means a thorough search of various patent databases, technical
literature and can even include a market survey.
2. The above step is ensure that the invention is novel and non-obvious on the date of filing the application.
3. Once the patentability of the invention is established after a thorough prior art search, a patent application
should be drafted. This document is known as the complete specification.
It must comprise:
I. Title of the invention indicating its technical field
II. Abstract
III. Prior art and drawbacks in the prior art (if any)

IV. Solution provided by the inventor to obviate the drawbacks of the prior art
V. A concise but sufficient description of the invention and its usefulness
VI. Details of the best method of its(invention’s) working

VII. Claims
REGISTRATION OF PATENTS
 Following are the steps in the registration process:

I. File a patent application in the IPO (Indian Patent Office)

II. Patent application is published after 18 months or one has to request for early publication
III. File a request for examination along with requisite fees within 48 months from date of filing-
without the request the application will not be examined (Form 18)
IV. First Examination Report (FER) is issued if Patent office is not satisfied
V 12 months time to respond to the FER
VI. Pre-grant opposition can be filed by any person after the date of publication of application but
before the grant of patent
 VII. If requirements are satisfied, patent will be granted and notified in the Patent Office Journal
TIME, TERM AND PCT –
PATENTS
 It takes around 3 to 5 years to get a patent.
 The term of every patent in India is 20 years from the date of filing and not the date of grant of patent.
 PCT stands for Patent Cooperation Treaty.
 It is an international treaty for claiming one’s domestic priority (date) in member countries of PCT.
 Through PCT one can file applications in countries of interest within 30 months of the priority date.
 Under the PCT system, a patent search report is provided and on demand a preliminary examination of
application is also done.
 India is a member to this convention. Hence, if one applies for registration of patent in any member
country, within six months from the date of filing of patent application in India, they will have the same
priority as in India.
SALIENT POINTS ON PATENTS
Patent protection is territorial right and therefore it is effective only within the territory of India.
Filing an application in India enables the applicant to file a corresponding application for same
invention in convention countries, within or before expiry of twelve months from the filing date in
India (PCT)
A patent application can be filed either by true and first inventor or his assignee, either alone or
jointly with any other person.
However, legal representative of any deceased person can also make an application for patent.
Term of every patent in India is 20 years from the date of filing of patent application, irrespective
of whether it is filed with provisional or complete specification. 
In case of applications filed under PCT the term of 20 years begins from International filing date. 
GLOBAL INNOVATION INDEX
2020
 The Global Innovation Index 2020: India, ranked at the 48 th position:
 The Start-up India Scheme, IPR Awareness Creative India, Innovative India Scheme 

i. The setting up of incubation centres, allow tax exemption for start-ups, provide up to 80%
rebate on patent application fees, allow faster exits for start-ups, provide relaxed costs for
women inventors etc.
ii. As per NASSCOM Indian start-ups have filed over 200 patents in 2017-2018. wherein over
50 per cent of the technology patents filed, came from emerging technology trends such as
Artificial Intelligence, Cyber Security, IoT and Cloud Computing.
WHAT CAN BE PATENTED IN A
GLASS OF JUICE?
Process – novel, invention step and
industrial application
New Product
Herbs ?
New Process of making juice ?
Cold pressed ?
Trade secret ?
TRADE SECRET
 According to WIPO a trade secret is:
 "Any confidential business information which provides an enterprise a competitive edge may be
considered a trade secret. Trade secrets encompass manufacturing or industrial secrets and commercial
secrets."
 Brands like Coca-Cola, KFC, etc. keep some of their recipes secret and use that strategically for
advertising and brand image.
 Protected as a part of contractual obligation.
 Any kind of unauthorized use or disrespect for the secret information can attract serious corporate
criminal indictments including charges relating to commercial and industrial espionage, breach of trust
and breach of contract.