Law on Corporate Contracts.

1. Explain in detailed about T.R.I.P.S?

2. Detailed Explanation about WTO?

3.Explain in detail about Designs ACT 2000?

4.What is IP Audit?

5.What is the framework for Legal Protection of databases?

6.What is Patent system measurement?

7.Define the classification of Geographical Indications?

8. What is Patent Licencing?

9. What are the economic rights of authors under copyright Law?

10.What is the concept of protecting Peformers Rights?

1
---Internal Use---
1. Explain in detailed about T.R.I.P.S?

The Agreement on “Trade-Related Aspects of Intellectual Property Rights” (TRIPS) is

an international legal agreement between all the member nations of the World Trade
Organization (WTO). It establishes minimum standards for the regulation by national governments of
different forms of intellectual property (IP) as applied to nationals of other WTO member nations

As intellectual property grew more significant in commerce, the level of protection and enforcement of
these rights varied greatly throughout the world, and these variations became a source of stress in
international economic relations. New globally agreed-upon trade standards for intellectual property
rights were considered as a method to bring greater order and predictability to the market, as well as
a more systematic approach to resolving disputes.

The General Agreement on Tariffs and Trade (GATT) was the only multilateral mechanism overseeing
international commerce until the World Trade Organization (WTO) was established in 1995. Under
GATT, there were eight rounds of negotiations, the first five of which were solely focused on tariffs,
while the sixth round included discussions on anti-dumping measures, which included provisions for
member nations to control the dumping of goods into their territory by other nations that could harm
their economies.

The Uruguay Round was the last GATT round (1986-1994). It was in this session that the first
discussions on trade linked to agriculture, services, and intellectual property rights were conducted. All
123 countries that took part in the Uruguay Round, including India, became members of the WTO.
WTO now has 164 members, accounting for about 90% of the world’s countries. The World Trade
Organization (WTO) is in charge of negotiating and implementing new international trade agreements.
It is also responsible for ensuring that the majority of the world’s trading nations comply with the trade
agreements they have signed. The WTO is the legal and administrative framework for managing and
growing international connections between its 157 members on a multilateral basis. Its goal is to
establish fair and secure international trading arrangements in order to stimulate trade and investment
and raise global living standards.

The TRIPS Agreement is one of the most significant WTO accords. The Agreement went into effect on
January 1, 1995.

What is that TRIPS agreement about?

The TRIPS Agreement protects intellectual property in trade-related regions to a large extent and is
regarded as a comprehensive new framework for intellectual property standards protection. The
TRIPs Agreement also has the distinction of being the first legal agreement to address all areas of
intellectual property with a number of specific clauses. 

The three main issues governed by the agreement are:

 Standard– All member states are required to provide a minimum set of criteria for the
protection of IPRs in each of the IP categories covered by the Agreement. Each area of IP is
addressed in such a way that the major aspects of protection, such as the subject matter
sought to be protected, the rights to be granted, and possible exceptions to such rights, as
well as the minimum period of protection, are all explicitly stated.

 Enforcement– The second set of clauses focuses on domestic processes and remedies for
intellectual property rights enforcement. The Agreement establishes a set of broad rules that
apply to all IPR enforcement actions. It also includes rules on civil and administrative
processes and remedies, provisional measures, particular border requirements, and criminal
proceedings, all of which outline the procedures and remedies that must be provided so that
the right holders can successfully exercise their rights.

2
---Internal Use---
  Dispute settlement– Disputes occurring between WTO members over responsibilities
emanating from the TRIPS Agreement are subject to the WTO’s dispute resolution processes.

Need for the TRIPS Agreement?

IP protection was supposed to help not only promote technical innovation but also the transfer and
spread of new technology in a way that benefits both its producers and users while maintaining a
balance of rights and duties, all with the purpose of increasing social and economic wellbeing. As a
result, the TRIPS Agreement’s primary objectives included reducing trade distortions and obstructions
by supporting effective and appropriate protection of IPRs, as well as ensuring that measures and
processes for enforcing IPRs do not become hurdles to legitimate trade. 

Currently, the rise in IP legislative activity, as well as the quick adoption of TRIPS-covered IP rights,
demonstrated the TRIPS Agreement’s centrality in the global trade system. The TRIPS Agreement
continues to play a key role in facilitating international trade in knowledge, resolving trade issues over
IP, and guaranteeing WTO members the latitude to achieve their domestic objectives, while IP is at
the core of attempts to obtain benefits from innovation and creativity in today’s global economy.

3
---Internal Use---
2. Detailed Explanation about WTO?

The World Trade Organization (WTO) is the only global international organization dealing with the
rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the
bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of
goods and services, exporters, and importers conduct their business. The WTO is headquartered
in Geneva, Switzerland.

The overall objective of the WTO is to help its members use trade as a means to raise living
standards, create jobs and improve people’s lives. The WTO operates the global system of trade rules
and helps developing countries build their trade capacity. It also provides a forum for its members to
negotiate trade agreements and to resolve the trade problems they face with each other.

(i) Improving people’s lives

The fundamental goal of the WTO is to improve the welfare of people around the world. The WTO’s
founding Marrakesh agreement recognizes that trade should be conducted with a view to raising
standards of living, ensuring full employment, increasing real income and expanding global trade in
goods and services while allowing for the optimal use of the world’s resources.

(ii) Negotiating trade rules

The WTO was born out of five decades of negotiations aimed at progressively reducing obstacles to trade.
Where countries have faced trade barriers and wanted them lowered, the negotiations have helped to open
markets for trade. Conversely, in some circumstances, WTO rules support maintaining trade barriers – for
example, to protect consumers or the environment.

Overseeing WTO agreements

At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations.
Essentially contracts, these documents provide the rules for international commerce and bind
governments to keep their trade policies within agreed limits. Their goal is to help producers of goods
and services, exporters and importers conduct their business, with a view to raising standards of
living, while allowing governments to meet social and environmental objectives.

Maintaining open trade

The system’s overriding purpose is to help trade flow as freely as possible – provided there are no
undesirable side effects – because this stimulates economic growth and employment and supports
the integration of developing countries into the international trading system. Its rules have to be
transparent and predictable, to ensure that individuals, companies and governments know what the
trade rules are around the world, and to assure them that there will be no sudden changes of policy.

Settling disputes
Trade relations often involve conflicting interests. Agreements, including those painstakingly
negotiated in the WTO, often need interpreting. The most harmonious way to settle these differences
is through a neutral procedure based on an agreed legal foundation. That is the purpose behind the
dispute settlement process written into the WTO agreements.
The WTO is run by its member governments. All major decisions are made by the membership as a
whole, either by ministers (who usually meet at least once every two years) or by their ambassadors
or delegates (who meet regularly in Geneva).
While the WTO is driven by its member states, it could not function without its Secretariat to
coordinate the activities. The Secretariat employs over 600 staff, and its experts — lawyers,

4
---Internal Use---
economists, statisticians and communications experts — assist WTO members on a daily basis to
ensure, among other things, that negotiations progress smoothly, and that the rules of international
trade are correctly applied and enforced.

3.Explain in detail about Designs ACT 2000?

The primary objective of the Design Act is to protect the designs.

Design act 2000

Earlier this Act was governed by the Design Act, 1911. In order to bring the Design Act at par with the
International law the enactment of the Design Act, 2000 took place. So, presently the design laws are
regulated by the Design Act of 2000. It is an Act to consolidate and amend the law relating to the
protection of designs. It was published in the Gazette of India and came into force on 12.05.2000.
This Act is a complete code in itself and is statutory in nature. It extends to the whole of India.

Design act 2000 definition

“Design” means features of shape, pattern, configuration, ornament or composition of colors or lines
which is applied in three dimensional or two dimensional or in both the forms using any of the
process  whether manual, chemical, mechanical, separate or combined which in the finished article
appeal to or judged wholly by the eye. 

What it does not include?

-It does not include any mode of construction, or any trademark as defined under clause (v) of sub-
section (1) of Section 2 of the Trade and Merchandise Marks Act, 1958. 

-It does not include ‘property mark’ as defined in section 479 of the Indian Penal Code, 1860.

-It does not include any artistic work as defined in clause (c) of section 2 of the Copyright Act, 1957.

Salient features of design act 2000

India is a member of the World Trade Organization’s Paris Convention. It has signed the Patent
Cooperation Treaty which allows all the signatories of the convention to claim priority rights.

 Under the Act of 2000, Locarno classification has been adopted in which the classification
is based only on the subject matter of design. Under the previous provisions, the
classification was made on the basis of the material which has been used to make that
material. 
 The introduction of “Absolute Novelty” makes it possible to judge a novelty on the basis of
prior publication of any article. This is applicable in other countries also.
 As per the new law, a design can be restored which was absent in the previous
enactment. Now, the registration of a design can be restored.
 The Act allows the district courts to transfer cases to the high courts where the jurisdiction
is present. It is possible only in cases where a person is challenging the validity of any
registration. 
 Laws regarding the delegation of powers of the controllers to other controllers and the
duty of examiner are also mentioned in the new Act. 

5
---Internal Use---
  The quantum of punishment is also enhanced under the Act in case of any infringement.
 The secrecy of two years of a registered design is also revoked.
 Provisions regarding the avoidance of certain restrictive conditions are also there so as to
regulate anti-competitive practices in contractual licenses.
 Whenever a license is brought within the domain of public records and that too publicly,
the registration is likely to be taken into consideration. Anyone can get a certified copy of it
in order to inspect the same.
 The laws regarding the substitution of the application before registering a design are also
mentioned in the new enactment.
 Under new provisions, power has been given to district court to transfer cases to the high
court where the court is having jurisdiction. This is only possible if the person is
challenging the validity of the design registration.
 Incorporates the provisions regarding delegation of powers of the controller to other
controllers and duty of examiner.
 Under the new provision, the quantum of punishment is also enhanced in case of
infringement.
 It revokes the secrecy of two years of a registered design.
 It contains provisions for the avoidance of certain restrictive conditions so as to regulate
anti-competitive practices within contractual licenses.
 The registration is taken into consideration when it is brought within the domain of public
records that too physically. Anyone can inspect the records and get a certified copy of it.
 It contains provisions for substitution of the application before registering the design.
 Design Act, 2000 brings about many changes which are observed in the features. When a
developer develop something for example If an architect develops the structure of a building
there is an expectation that my structure will not be infringed. Many designs are capable of
providing the author with copyrights also.
 In that case infringement of both cannot be claimed separately. The owner must have to
choose which is more beneficial. High intellects are involved in making a design look good
and have an everlasting impact. Government come up with a great policy of protecting
designs. Moreover, these designs can also have a negative impact on the value of the
business if infringed. A good design is always remembered.

6
---Internal Use---
4.What is IP Audit?

Intellectual property audits : An intellectual property (IP) audit is a tool for identifying your potential IP
assets. Ideally an audit should be carried out by professional IP auditors, but often a preliminary audit
can be done in-house, within your company.

Through an IP audit you can make an inventory of your potential IP assets. This helps you to:

 Uncover unused or under-utilized assets

 Determine ownership of these assets
 Identify any related threats, i.e. IP infringement from your side or by others

Types of IP Audit:

There are three main types of IP audit:1. General Purpose 2. Event driven 3.Limited Purpose

1. General Purpose: This is broadest type of IP audit, used by new companies or those considering
implementing new IP policies, standards or procedures. It is also suitable for companies implementing
new marketing approaches, directions, or major reorganizations.

2. Event driven : This type of IP audit is also known as "IP due diligence". It is used to assess the
value and risk of a company's IP assets. The event-driven audit is often utilized:
 in the context of mergers/acquisitions and joint ventures.
 before entering into a financial transaction involving IP, such as an initial public offering.
 when launching a new product or service;
 when considering IP licensing; and
 in cases of bankruptcy and layoffs.

3.Limited Purpose

This is the IP audit with the narrowest scope. It is situational in nature and typically used to justify a
legal position or the valuation of a particular IP asset. It can also be applied in the context of:

 personnel turnover;
 foreign IP filings;
 before engaging in e-commerce;
 changes in IP law and practice;
 "clean room" procedures (seeking to avoid the infringement of third-party copyright material);
and
 preparing for litigation.

Added value of an audit

Carrying out an IP audit can add value to the following:

 Cost reduction efforts – A well-managed list of IP assets can help you identify obsolete
assets. Decisions can then be taken to stop paying maintenance costs for obsolete assets,
resulting in significant cost reductions.
 Licensing – An IP audit is vital to know which IP assets are core to your business and which
are not. Licensing decisions can then be made accordingly. For example, you may decide to
license a non-core IP asset in order to create an additional revenue stream.

7
---Internal Use---
  Mergers and acquisitions – IP assets will play an important role in a third party deciding
whether to merge with or acquire your business. Anti-infringement actions – Knowing the
value of your IP assets makes it easier to take decisions on whether it is cost-effective to take
action against infringement and in what way this could be done

5.What is the framework for Legal Protection of databases?

Legal Protection of the database: Copyright Act, 1957 and Database Protection -

In 1994, the Indian Copyright Act, 1957 was revised to provide more efficient protection to copyright
owners by recognizing the distinct class of computer programs as a form of literary works and allowed
for the protection of such computer-generated works.

With the growing dependence on technology and e-commerce the problem relating to same is
growing by leaps and bounds. India being one of the preferred destinations for outsourcing industry
requires well formulated regulations for dealing with such cybercrimes. Data in the current scenario
have become largest corporate asset for the industry. Due to the importance of data in this new era,
its security has become a major issue with industry.

The primary legislation dealing with cyber security in Indian is the Information Technology Act, 2000
(“IT Act”). The nodal agency dealing with Cyber Security in India is Indian Computer Emergency
Response Team [CERT-In]. This is the national agency for responding to computer security incidents
as and when they require. However, since there isn’t any Data Protection Authority in India, the
system of courts is the main vector by which individuals can obtain a remedy.

A Brief Overview of Current Legislations

Constitution of India

One of the basic features of the Constitution of India is its supremacy and the overriding effect it
renders on all the rest of the statutes. It’s another significant feature is that it guarantees civil liberties
to the citizens of India in the form of certain rights which include Right to Privacy. Now, the horizon of
right to life in our Constitution encompasses two organs, i.e., right to livelihood and right to personal
liberty. Property in form of commercial database is covered in the means of livelihood and the same
cannot be taken away except due process of law. In case of its violation by any person, compensation
can be duly claimed. Besides, under the constitution one can also enforce his right on his property in
case of any conflict or dispute. It’s been stated that no person can be deprived of his/her property.

The State is not only under an obligation to respect the fundamental rights of the citizens, but also
equally under an obligation to ensure conditions under which the right can be meaningfully and
effectively be enjoyed by one and all. Thus, data protection rights may be pitted against freedom of
information in a given case and the facts and circumstances of each case will govern the position.

The continuous demand on the part of multinational corporations (MNCs) has made it essential to
assure that a proper mechanism for protection of their valuable data exists in India. An indifferent
attitude towards this demand may cost valuable foreign exchange and numerous job opportunities.

Indian Penal Code, 1860

The Indian Penal Code, 1860 (IPC) can be used as an effective means to prevent data theft. The IPC
gives an inclusive definition of the term ‘movable property’ which includes all the corporal properties.
The word ‘include’ indicates that information stored in the form of data on papers and in the computer
can be conveniently and safely regarded as movable property, since it is capable of moving from one
place to another. Thus, there is nothing that excludes the data property from the definition of property
under IPC. Therefore, offences such as misappropriation of property, theft or criminal breach of trust
attract imprisonment and fine under IPC.

8
---Internal Use---
Information Technology Act, 2000

The Information Technology Act, 2000 (IT Act) was enacted primarily for facilitating the development
of a secure regulatory environment for electronic commerce by providing a legal infrastructure
governing electronic contracting, security and integrity of electronic transactions and to showcase

Section 43 A of the Information technology Act explicitly provides that “Where a body corporate,
possessing, dealing or handling any sensitive personal data or information in a computer resource
which it owns, controls or operates, is negligent in implementing and maintaining reasonable security
practices and procedures and thereby causes wrongful loss or wrongful gain to any person, such
body corporate shall be liable to pay damages by way of compensation to the person so affected”

Further Section 72 A provides that “Punishment for disclosure of information in breach of lawful
contract. -Save as otherwise provided in this Act or any other law for the time being in force, any
person including an intermediary who, while providing services under the terms of lawful contract, has
secured access to any material containing personal information about another person, with the intent
to cause or knowing that he is likely to cause wrongful loss or wrongful gain discloses, without the
consent of the person concerned, or in breach of a lawful contract, such material to any other person,
shall be punished with imprisonment for a term which may extend to three years, or with fine which
may extend to five lakh rupees, or with both”

India’s growing IT prowess and the role of Government in safeguarding and promoting IT sector.
Though, it is pertinent to note that the subject Act do not supply us with any concept of ‘personal data’.
It is defined as a representation of information, knowledge, facts, concepts or instructions which are
being prepared or have been prepared in a formalized manner, and is intended to be processed or
has been processed in a computer system or computer network, and may be in any form or stored in
the memory of the computer.

Some of the sections of this Act are viewed in India as the ‘backbone’ of the data protection despite of
which it runs short of appropriate remedies sometimes. Any misappropriation of the computer
network, system, resources, database is termed as cyber contraventions and the person indulging in
the same is heavily penalized.

9
---Internal Use---
6.What is Patent system measurement?

Patent System:

The patent system grants and enforces temporal exclusive, transferrable, and licensable private rights
on inventions – that provide solutions to (mostly) technical problems in the area of products and
processes – in exchange for disclosure of the invention to the public at a level that can be understood
by a person.

The patent quality can be. measured from four aspects: quality for invention, quality for application
document, quality under examination, and quality for commercialization. To express each aspect,
several secondary indicators and third-level indicators are developed.

Evaluation Criterion of the patent system:

Criteria for evaluating the patent system in terms of its impact on innovation rather than addressing its
competitive or overall welfare effects. These criteria, although requiring judgments, can in varying
degrees be assessed empirically and tracked over time to observe significant changes. In most cases
they relate to factors widely thought to be important if not necessary and sufficient conditions for
innovation.

First criterion: The patent system should accommodate new technologies. A system granting even
temporary monopoly rights to developers of one technology but providing no incentives to developers
of other, including substitute, technologies obviously would be hostile to innovation over the long run.

Second criterion: The system should reward only those inventions that meet the statutory tests of
novelty and utility, that would not at the time they were made be obvious to people skilled in the
respective technologies, and that are adequately disclosed. In the extreme case where an invention is
already accessible to the public, or the full scope of what is patented cannot be carried out in practice,
there is nothing to be gained and potentially a great deal to be lost by granting a monopoly.

Third criterion: The patent system should serve its second function of disseminating technical
information. That means that descriptions of patented inventions should be as complete, clear, and
accessible as possible and disclosed in a reasonably timely manner, and there should not be
deterrents to consulting the patent or any other technical literature.

Fourth criterion: Administrative and judicial decisions entailed in the patent system should be timely,
and the costs associated with them should be reasonable and proportionate. Protracted uncertainty
about whether a patent on an application will issue or about whether a patent that is challenged in an
infringement dispute will be upheld or found not infringed is not conducive to the investments
necessary to innovate. In the same vein, high transaction costs entailed in obtaining or defending a
patent are likely to discourage innovation. Such costs tend to escalate the longer the resolution of the
issue, whether patentability or infringement, is delayed.

Fifth criterion: In scientific research and in the development of complex or cumulative technologies,
where one advance builds upon one or more previous discoveries or inventions and full exploitation of
the technology is beyond the capacity of any single entity, reasonably broad access to patented
inventions is important

Sixth criterion: In an economy where a significant share of its technology-intensive products are
bought and sold internationally, the compatibility of national patent systems can be a facilitator of

10
---Internal Use---
trade and investment and therefore innovation. Indeed, there is an efficiency argument for the
integration of the U.S., European, and Japanese patent systems to reduce public and private
transaction costs.

Seventh criterion: There should be a level field, with intellectual property rights holders who are
similarly situated (e.g., state and private institutions performing research) enjoying the same benefits,
while being subject to the same obligations.

7.Define the classification of Geographical Indications?

What is a Geographical Indication?

A geographical indication (GI) is a sign used on products that have a specific geographical origin and
possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must
identify a product as originating in a given place.

GI tags may be obtained for agricultural products, handicrafts, textiles, manufactured goods,
foodstuffs etc. The given GI tag may be in the form of a geographical name or a figurative
representation or a combination of these two. The tag assigned to a product should convey its
geographical origin. GI plays an important role in promoting the conservation of biodiversity among
the rural populations.

In addition, the qualities, characteristics or reputation of the product should be essentially due to the
place of origin. Since the qualities depend on the geographical place of production, there is a clear
link between the product and its original place of production.

A geographical indication right enables those who have the right to use the indication to prevent its
use by a third party whose product does not conform to the applicable standards. For example, in the
jurisdictions in which the Darjeeling geographical indication is protected, producers of Darjeeling tea
can exclude use of the term “Darjeeling” for tea not grown in their tea gardens or not produced
according to the standards set out in the code of practice for the geographical indication.

However, a protected geographical indication does not enable the holder to prevent someone from
making a product using the same techniques as those set out in the standards for that indication.
Protection for a geographical indication is usually obtained by acquiring a right over the sign that
constitutes the indication.

Geographical indications are typically used for agricultural products, foodstuffs, wine and spirit drinks,
handicrafts, and industrial products.

How are Geographical Indications are protected?

There are four main ways to protect a geographical indication:

 so-called sui generis systems (i.e. special regimes of protection);

 using collective or certification marks;
 methods focusing on business practices, including administrative product approval schemes;
and
 through unfair competition laws.

These approaches involve differences with respect to important questions, such as the conditions for
protection or the scope of protection. On the other hand, two of the modes of protection — namely sui
generis systems and collective or certification mark systems — share some common features, such
as the fact that they set up rights for collective use by those who comply with defined standards.

11
---Internal Use---
Broadly speaking geographical indications are protected in different countries and regional systems
through a wide variety of approaches and often using a combination of two or more of the approaches
outlined above. These approaches have been developed in accordance with different legal traditions
and within a framework of individual historical and economic conditions.

Geographical Indications of Goods are defined as that aspect of industrial property which refer to the
geographical indication referring to a country or to a place situated therein as being the country or
place of origin of that product. Typically, such a name conveys an assurance of quality and
distinctiveness which is essentially attributable to the fact of its origin in that defined geographical
locality, region or country. Under Articles 1 (2) and 10 of the Paris Convention for the Protection of
Industrial Property, geographical indications are covered as an element of IPRs. They are also
covered under Articles 22 to 24 of the Trade Related Aspects of Intellectual Property Rights (TRIPS)
Agreement, which was part of the Agreements concluding the Uruguay Round of GATT negotiations.

India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of
Goods (Registration & Protection)Act, 1999 has come into force with effect from 15th September
2003.

8.What is Patent Licencing?

When a patent is licensed, an agreement is made between the patent owner (or the licensor) and the
person or company that wants to use and benefit from the patent (the licensee).

It permits the licensee to make or sell the product, design, or technology in the patent. The patent
then creates income for both the licensee and the licensor through revenue and royalties for the
duration of the licensing period.

Approaches to Patent Licensing

There are two main approaches to patent licensing — the carrot approach and the stick approach.

Carrot Approach

In this “friendlier” approach, the patent owner (and potential licensor) must persuade the potential
licensee to license the patent. In this case, the potential licensee has not infringed the patent at issue,
and they can simply refuse to license the patent. So, it is up to the patent owner to convince the
potential licensee that the product, design, or technology covered by their patent will benefit the
potential licensee in some way, usually by helping them to make money.

Stick Approach

In this more “serious” approach, it has already been determined that the potential licensee has
infringed the patent at issue and is using the technology in the patent in some way. The “stick” in this
approach is litigation, and the basic message is that the potential licensee must license the patent or
face a lawsuit.

Types of Patent Licenses

There are basically three types of patent licenses — exclusive, non-exclusive, and partially-exclusive
licenses.

 Exclusive Licenses
An exclusive license allows only one licensee to benefit from the licensing agreement. In this
type of license, the licensor remains the owner of the patent. It should be noted that some
exclusive licenses also include the enforcement rights (all substantial rights) of the patent.
Simply stated, the licensee holds all rights to the patent, except for ownership, meaning that
the licensee can sue infringers.

12
---Internal Use---
  Non-Exclusive Licenses
This type of license permits multiple licensees to produce the invention, design, or technology,
without any exclusive rights.
 Partially Exclusive Licenses
Partially exclusive licenses grant exclusivity to certain applications of a patent, geographic
limitations, or a term period. For example, a partially exclusive license for an infrared sensor
patent is limited to medical use and cannot be used for military or surveillance applications.

The types of license agreements are not limited to the three listed above. Others may include the co-
exclusive license where the licensor only licenses to a limited number of licensees or where licensees
must meet certain criteria. Another type of license would be a sole license in which the licensor only
licenses a patent to a single licensee but still keeps the rights to exploit the patent. There is even the
compulsory license where the patent owner is forced by the government to allow others to use their
patent for a set fee, mostly seen in the pharmaceutical industry.

Also, sub-licenses are often mentioned in licensing agreements. The right to sub-license technology
to a third party will be stipulated in the original license agreement. Exclusive license agreements are
more likely to include sub-licensing rights.

Locating potential licensees can be time-consuming and negotiating the best terms for a patent
license is not always easy. This may include requiring the licensee to meet specific milestones and
prepare periodic performance reports after licensing, all of which need to be negotiated before signing
the agreement. We strongly advised that due diligence be conducted thoroughly.

Maintaining clear channels of communication with the licensee is also important, as disputes may lead
to legal fees and hassles in the future.

When it comes down to it, every patent owner’s situation is unique, and the question of whether to
license one’s patent to others must be considered carefully.

9. What are the economic rights of authors under copyright Law?

Copyright protects two types of rights. Economic rights allow right owners to derive financial reward
from the use of their works by others. Moral rights allow authors and creators to take certain actions to
preserve and protect their link with their work. The author or creator may be the owner of the
economic rights or those rights may be transferred to one or more copyright owners. Many countries
do not allow the transfer of moral rights.

Economic Rights:

Economic rights allow right owners to derive financial reward from the use of their works by others.
Moral rights allow authors and creators to take certain actions to preserve and protect their link with
their work.

With any kind of property, its owner may decide how it is to be used, and others can use it lawfully
only if they have the owner’s permission, often through a license. The owner’s use of the property
must, however, respect the legally recognized rights and interests of other members of society. So the
owner of a copyright-protected work may decide how to use the work, and may prevent others from
using it without permission. National laws usually grant copyright owners exclusive rights to allow third
parties to use their works, subject to the legally recognized rights and interests of others.

Most copyright laws state that authors or other right owners have the right to authorize or prevent
certain acts in relation to a work.

Right owners can authorize or prohibit

- Reproduction of the work in various forms, such as printed publications or sound recordings.

13
---Internal Use---
-Distribution of copies of the work.

-public performance of the work;

• broadcasting or other communication of the work to the public;

• translation of the work into other languages; and

• adaptation of the work, such as turning a novel into a screenplay.

Rights of reproduction, distribution, rental and importation

The right of copyright owners to prevent others from making copies of their works without permission
is the most basic right protected by copyright legislation. The right to control the act of reproduction –
be it the reproduction of books by a publisher or the manufacture by a record producer of compact
discs containing recorded performances of musical works – is the legal basis for many forms of
exploitation of protected works.

Rights of public performance, broadcasting, communication to the public and making

available to the public

A public performance is considered under many national laws to include any performance of a work at
a place where the public is or can be present, or at a place not open to the public but where a
substantial number of persons outside the normal circle of a family and its close acquaintances are
present. The right of public performance entitles the author or other copyright owner to authorize live
performances of a work, such as a play in a theatre or an orchestra performance of a symphony in a
concert hall. Public performance also includes performance by means of a recording. Thus a musical
work is considered publicly performed when a sound recording of that work, or phonogram, is played
over amplification equipment, for example in a discotheque, airplane or shopping mall.

Translation and adaptation rights:

Translating or adapting a work protected by copyright also requires permission from the right owner.
Translation means the expression of a work in a language other than that of the original version.
Adaptation is generally understood as the modification of a work to create another work, for example
adapting a novel to make a film, or the modification of a work for different conditions of exploitation,
e.g., by adapting a textbook originally written for university students to make it suitable for a lower
level.

Limitations and exceptions to the rights

There are several types of limitations and exceptions to copyright protection. First, certain categories
of works are excluded from copyright protection. In some countries, works are excluded from
protection if they are not fixed in a tangible form. For example, a work of choreography would only be
protected once the movements were written down in dance notation or recorded on videotape. In
some countries, the texts of laws as well as court and administrative decisions are excluded from
copyright protection. Second, certain particular acts of exploitation that usually require the right
owner’s permission may, under circumstances specified in the law, be carried out without the owner’s
permission. The two basic types of limitations and exceptions in this category are: (a) free use, which
carries no obligation to compensate the right owner for the use of the work without permission; and (b)
non-voluntary (or compulsory) licenses, which require that compensation be paid to the right owner for
non-authorized exploitation.

14
---Internal Use---
10.What is the concept of protecting Peformers Rights?

Introduction:

When the copyright law was introduced during the British rule then at that time there was no
recognition given to the performer’s rights. When post-independence, the Copyright Act, 1957 was
introduced then also there was no mention of performer’s rights. In the case of Fortune Films v. Dev
Anand in 1979, the Bombay High Court held that performer’s rights do not have any copyright as their
rights are not recognized under the Copyright Act.

However, in case of sports, the players cannot be termed as performers as sports is competitive and
its outcome is not certain and also sportsmen are bound to play within the rules and creativity is not
allowed. Hence sports persons cannot come under the ambit of performers. 

Origin and Development of Performer’s Rights

Earlier the work of the individual, who helped the creators of intellectual property in communicating
their work to the public, was not recognized. When any song is written by a lyricist then unless it is
sung by the singer, it has no value or the play script written by the author is of no use unless it is
performed by the actor. So, in case, the author or lyricist wants to enhance the value of their work
then they need the help of the performers. The International Convention for the protection of
performers, producers of phonograms and broadcasting organizations generally known as Rome
Convention, 1961, was the first convention recognizing the rights of performers. International Labour
Organization (ILO), United Nations Educational, Scientific and Cultural Organization (UNESCO) and
World Intellectual Property Organization (WIPO) are together responsible for the administration of the
Rome Convention. 

The intergovernmental committee secretariat consists of members from 12 contracting states

constituted by these three organizations. This committee is concerned with questions that are
considered in Rome convention. In this convention, the duration of the performer’s rights was
protected for at least 20 years from the end of the year in which the performance took place. Article 19
of the Rome Convention states that when the performer has consented for the incorporation of his
performance in any audio-visual or visual mode then these provisions will not be applicable. In India,
protection is given to performer’s rights for the term of 50 years. Article 7 of the Rome Convention
gives protection to the rights of performers:

-Performers have the right to prevent others from broadcasting or communicating to the public by
means other than broadcasting without their consent.

-They have the right to prevent others from fixation of their unfixed live performance without taking
their consent.

-They have the right to prevent others from reproduction of their live performance without their
consent.

-They have the right to prevent the commercial exploitation of their performance for any other
purpose, for which the consent is not obtained.      

Rights of Performer under the Copyright Act?

15
---Internal Use---
1. Performer has right to make sound or visual recording

2. Performer has the right to produce the sound or visual recording

3. Performer has the right to broadcast performance

4.Performer has the right to communicate the work other than by broadcast

16
---Internal Use---