INTELLECTUAL

PROPERTY
RIGHTS
A GLASS OF JUICE: HOW DO
YOU ADD PREMIUM TO THE
PRODUCT ?
WHAT ARE IPRS
 Intellectual property rights are the rights given to persons over the
creations of their minds.
 They usually give the creator an exclusive right over the use of his/her
creation for a certain period of time.
TRIPS
 Agreement on Trade Related Aspects of Intellectual
Property Rights
 Members are under obligation to
 Provide minimum IPR protection
 Ensure effective enforcement of these rights
 Agree to submit disputes to WTO dispute
settlement system
AREAS OF IPRS
 Intellectual property rights are customarily divided into two main areas:
 (i) Copyright and rights related to copyright.
 The rights of authors of literary and artistic works (such as books and other writings, musical compositions, paintings, sculpture,
computer programs and films) are protected by copyright, for a minimum period of 50 years after the death of the author.
 Also protected through copyright and related (sometimes referred to as “neighbouring”) rights are the rights of performers
(e.g. actors, singers and musicians), producers of phonograms (sound recordings) and broadcasting organizations. The main
social purpose of protection of copyright and related rights is to encourage and reward creative work.
 (ii) Industrial property.
 One area can be characterized as the protection of distinctive signs, in particular trademarks (which distinguish the goods or
services of one undertaking from those of other undertakings) and geographical indications (which identify a good as
originating in a place where a given characteristic of the good is essentially attributable to its geographical origin).

The protection of such distinctive signs aims to stimulate and ensure fair competition and to protect consumers, by enabling
them to make informed choices between various goods and services. The protection may last indefinitely, provided the sign in
question continues to be distinctive.
 Other types of industrial property are protected primarily to stimulate innovation, design and the creation of technology. In this
category fall inventions (protected by patents), industrial designs and trade secrets.
THREE ESSENTIAL FEATURES OF PROPERTY

 Possidendi: right to possess

 Utendi: right to use
 Dispodendi: right to dispose off
DIFFERENCE: TANGIBLE PROPERTY & IP

TANGIBLE PROPERTY
 Composed of atoms
 A physical thing
 Can occupy only one place at a given time
 Possession is “Exclusive”
 If ‘A’ has it, ‘B’ does not have it
 Excludability
TYPES OF IP
 Patents
 Copyright
 Trademarks
 Industrial Designs
 Trade secrets
 Geographical Indications
 Layout Design of integrated circuits
 Different Acts governing IP
assets
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

9
INTERNATIONAL INITIATIVE TO PROTECT IP

 1883: Paris Convention

 1886: Berne Convention
 1970: WIPO
 1980s: Demand to include IP in
GATT
 1995: WTO established (TRIPS)
 FOR MOST PRODUCTS EVERY FORM OF
INTELLECTUAL PROPERTY
RIGHTS CAN BE OBTAINED

CAMERA

“PATENT”  For every individual improved mechanism

“DESIGN”  For outer shape & Contour / Configuration

“TRADE MARK” Brand name or Logo for goods denoted as ®

“Copy right” For Instruction / manual booklet denoted as ©

11
 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 ?
 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.
  An invention to become patentable subject matter must meet
the following criteria -
i)  It should be novel.
ii) It should have inventive step or it must be non-obvious 
iii) It should be capable of Industrial application.
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.
 Separate patents should be obtained in each country where the applicant requires protection of his
invention in those countries.
 There is no patent valid worldwide.
 An invention relating either to a product or process that is new, involving inventive step and capable of
industrial application can be patented.
 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. 

 
INDUSTRIAL DESIGNS
 ‘Design’ means only the features of shape, configuration, pattern or
ornament or composition of lines or colour or combination thereof applied
to any article whether two dimensional or three dimensional or in both
forms, by any industrial process or means, whether manual, mechanical or
chemical, separate or combined, which in the finished article appeal to and
are judged solely by the eye, but does not include any mode or principle or
construction or any thing which is in substance a mere mechanical device,
 It does not include any trade mark, as define in clause (v) of sub-section of
Section 2 of the Trade and Merchandise Marks Act, 1958, property mark or
artistic works as defined under Section 2(c) of the Copyright Act, 1957.
 Under the Designs Act, 2000 the "article" means any article of manufacture
and any substance, artificial, or partly artificial and partly natural; and
includes any part of an article capable of being made and sold separately
 Object of the Designs Act is to protect new or original designs so created to
be applied or applicable to particular article to be manufactured by
Industrial Process or means.
 Sometimes purchase of articles for use is influenced not only by their
practical efficiency but also by their appearance.
 The important purpose of design Registration is to see that the artisan,
creator, originator of a design having aesthetic look is not deprived of his
bonafide reward by others applying it to their goods.
(1) The design should be new or original, not previously published
or used in any country before the date of application for
registration. The novelty may reside in the application of a known
shape or pattern to new subject matter.
The known shape of "Kutub Minar" when applied to a cigarette
holder the same can be registered.
However, if the design for which application is made does not
involve any real mental activity for conception, then registration
may not be considered.
(2) The design should relate to features of shape, configuration,
pattern or ornamentation applied or applicable to an article. Thus,
designs of industrial plans, layouts and installations can not be
registered under the Act.
(3) The design should be applied or applicable to any article by any
industrial process. Normally, designs of artistic nature like painting,
sculptures and the like which are not produced in bulk by any
industrial process are excluded from registration under the Act.
(4) The features of the design in the finished article should
appeal to and are judged solely by the eye. This implies that the
design must appear and should be visible on the finished article,
for which it is meant. Thus, any design in the inside
arrangement of a box, money purse or almirah may not be
considered for showing such articles in the open state, as those
articles are generally put in the market in the closed state.
(5) Any mode or principle of construction or operation or any
thing which is in substance a mere mechanical device, would
not be registrable design. For instance a key having its novelty
only in the shape of its corrugation or bend at the portion
intended to engage with levers inside the lock associated with,
cannot be registered as a design under the Act.
However, when any design suggests any mode or principle of
construction or mechanical or other action of a mechanism, a
suitable disclaimer in respect there of is required to be
inserted on its representation, provided there are other
registrable features in the design.
(6) The design should not include any Trade Mark or property
mark or artistic works as define under the Copyright Act, 1957.
 When an application for registration of a Design is in order, it is accepted
and registered and then a certificate of registration is issued to the
applicant.
 However, a separate request should be made to the Controller for
obtaining a certified copy of the certificate for legal proceeding with
requisite fee.
 The registration of a design confers upon the registered proprietor
‘Copyright’ in the design for the period of registration.
 ‘Copyright’ means the exclusive right to apply a design to the article
belonging to the class in which it is registered.
 The duration of the registration of a design is initially ten years from the
date of registration, but in cases where claim to priority has been allowed
the duration is ten years from the priority date.
 This initial period of registration may be extended by further period of 5
years on an application made in Form-3 accompanied by a fee of Rs.
2,000/- to the Controller before the expiry of the said initial period of
Copyright.
 The proprietor of a design may make application for such extension even
as soon as the design is registered.
 It is not mandatory to make the article by industrial process or
means before making an application for registration of design as
design means a conception or suggestion or idea of a shape or pattern
which can be applied to an article or intended to be applied by industrial
process or means.
 Example- a new shape which can be applied to a pen thus capable of
producing a new appearance of a pen on the visual appearance. It is not
mandatory to produce the pen first and then make an application.
TRADEMARKS
 A trade mark (popularly known as brand name) in laymans language is a visual
symbol which may be a word signature, name, device, label, numerals or
combination of colours used by one undertaking on goods or services or other
articles of commerce to distinguish it from other similar goods or services
originating from a different undertaking.
 The legal requirements to register a trade mark under the Act are:
The selected mark should be capable of being represented graphically (that is in the
paper form).
It should be capable of distinguishing the goods or services of one undertaking from
those of others.
It should be used or proposed to be used mark in relation to goods or services for
the purpose of indicating or so as to indicate a connection in the course of trade
between the goods or services and some person have the right to use the mark
with or without identity of that person.
CLASSES OF TRADEMARKS
 Trademark application is made under 45 different classes as per the NICE classification for
trademark.
 Each of the trademark class represents a distinct set of goods and services. While filing a
trademark application, the class of goods and services to which the trademark pertain must
be mentioned in the application.
 It is important to choose the right class of trademark while filing the application as wrong
classification of trademark could hamper the trademark registration process and/or
diminish the legal protection for the mark under the Trademark Act.
 Trademark application can be filed in more than one class, if the activity of the business
involves diverse goods or services falling under different trademark classifications. Further,
even if a registered trademark exists under one class, another entity can file a trademark
application for the same mark under a different class.
 Hence, filing of trademark application under one class does not provide complete
exclusivity over use of the mark. Trademark only provides exclusivity for use of the mark
with respect to the class of goods or services for which the trademark is registered.
GOOD TRADEMARKS
 If it is a word it should be easy to speak, spell and remember.
 The best trade marks are invented words or coined words.
 Please avoid selection of a geographical name. No one can have monopoly
right on it.
 Avoid adopting laudatory word or words that describe the quality of goods
(such as best, perfect, super etc)
 It is advisable to conduct a market survey to ascertain if same/similar mark
is used in market.
FUNCTIONS OF
TRADEMARKS
 Under modern business condition a trade mark performs four functions

 It identifies the goods / or services and its origin.

 It guarantees its unchanged quality
 It advertises the goods/services
 It creates an image for the goods/ services.
 Any person claiming to be the proprietor of a trade mark used or proposed
to be used by him may apply in writing in prescribed manner for
registration.
 The application should contain the trade mark, the goods/services, name
and address of applicant and agent (if any) with power of attorney , period
of use of the mark and signature.
 The application should be in English or Hindi. It should be filed at the
appropriate office.
 The goods and services are classified according to the International
Classification of goods and services.
 Currently schedule IV of the Act provides a summary of list of such goods
and services falling in different classes which is merely indicative.
 The Registrar is the final authority in the determination of the class in
which particular goods or services fall.
 The Schedule IV of the Act is annexed at the end of this questionnaire on
trade marks.
DIFFERENT TYPES OF TRADE
MARKS AVAILABLE FOR ADOPTION
 Any name (including personal or surname of the applicant or predecessor in business or
the signature of the person), which is not unusual for trade to adopt as a mark.
 An invented word or any arbitrary dictionary word or words, not being directly descriptive
of the character or quality of the goods/service.
 Letters or numerals or any combination thereof.
 The right to proprietorship of a trade mark may be acquired by either registration under
the Act or by use in relation to particular goods or service.
 Devices, including fancy devices or symbols

 Monograms
 Combination of colors or even a single color in combination with a word or device

 Shape of goods or their packaging

 Marks constituting a 3- dimensional sign.

 Sound marks when represented in conventional notation or described in words by being

graphically represented.
 SALIENT POINTS ON
TRADEMARKS
 The registration of a trade mark confers upon the owner the exclusive
right to the use of the registered trade mark and indicate so by using the
symbol (R) in relation to the goods or services in respect of which the mark is
registered and seek the relief of infringement in appropriate courts in the
country.
 The exclusive right is however subject to any conditions entered on the
register such as limitation of area of use etc.
 Also, where two or more persons have registered identical or nearly similar
mark due to special circumstances such exclusive right does not operate
against each other.
GEOGRAPHICAL INDICATION
 Geographical Indication
It is an indication
 It originates from a definite geographical territory.
It is used to identify agricultural, natural or manufactured goods
 The manufactured goods should be produced or processed or prepared in that
territory.
It should have a special quality or reputation or other characteristics
  
EXAMPLES OF INDIAN GEOGRAPHICAL
INDICATIONS.


    Kanchipuram Silk Saree

    Alphanso Mango

   Nagpur Orange

   Kolhapuri Chappal

   Bikaneri Bhujia

    Agra Petha
Basmati Rice
Darjeeling Tea
THE BENEFIT OF REGISTRATION
OF GEOGRAPHICAL INDICATIONS
It confers legal protection to Geographical indications in India

Prevents unauthorised use of a Registered Geographical Indication by
  

others

It provides legal protection to Indian Geographical Indications which in
   

turn boost exports.


It promotes economic prosperity of producers of goods produced in a
   

geographical territory.
PRODUCER IN RELATION TO A
GEOGRAPHICAL INDICATION

The persons dealing with three categories of goods are covered under the term
   

Producer:

Agricultural Goods includes the production, processing, trading or dealing
   


Natural Goods includes exploiting, trading or dealing
   


Handicrafts or Industrial goods includes making, manufacturing, trading or
   

dealing.
 The registration of a geographical indication is valid for a period of 10 years
   It can be renewed from time to time for further period of 10 years each.
 If a registered geographical indication is not renewed it is liable to be
removed from the register.
 REGISTERED GEOGRAPHICAL INDICATION
IS SAID TO BE INFRINGED WHEN
•
When an unauthorised user uses a geographical indication that indicates or suggests that
   

such goods originate in a geographical area other than the true place of origin of such goods
in a manner which mislead the public as to the geographical origin of such goods.
•
When the use of geographical indication result in an unfair competition including passing
    

off in respect of registered geographical indication.

•
When the use of another geographical indication results in false representation to the
   

public that goods originate in a territory in respect of which a registered geographical

indication relates.
COPYRIGHT LAWS
 The Copyright Act, 1957 came into effect from January 1958.
 This Act has been amended five times since then, i.e., in 1983, 1984, 1992,
1994 and 1999, with the amendment of 1994 being the most substantial.
 Prior to the Act of 1957, the Law of Copyrights in the country was
governed by the Copyright Act of 1914.
 This Act was essentially the extension of the British Copyright Act, 1911 to
India.
 Copyright is a right given by the law to creators of literary,
dramatic, musical and artistic works and producers of
cinematograph films and sound recordings.
 These are bundle of rights including, inter alia, rights of
reproduction, communication to the public, adaptation and
translation of the work.
 There could be slight variations in the composition of the rights
depending on the work.
 Copyright ensures certain minimum safeguards of the rights of authors
over their creations, thereby protecting and rewarding creativity.
 Creativity being the keystone of progress, no civilized society can
afford to ignore the basic requirement of encouraging the same.
 Economic and social development of a society is dependent on
creativity.
 The protection provided by copyright to the efforts of writers, artists,
designers, dramatists, musicians, architects and producers of sound
recordings, cinematograph films and computer software, creates an
atmosphere conducive to creativity, which induces them to create
more and motivates others to create.
 DOCTRINE OF FAIR USE
 Subject to certain conditions, a fair deal for research, study, criticism,
review and news reporting, as well as use of works in library and
schools and in the legislatures, is permitted without specific permission
of the copyright owners. In order to protect the interests of users,
some exemptions have been prescribed in respect of specific uses of
works enjoying copyright. Some of the exemptions are the uses of the
work
 for the purpose of research or private study,
 for criticism or review,
 for reporting current events,
 in connection with judicial proceeding,
 performance by an amateur club or society if the performance is given to a
non-paying audience, and
 the making of sound recordings of literary, dramatic or musical works under
certain conditions.
 Copyright does not ordinarily protect titles by themselves or names, short
word combinations, slogans, short phrases, methods, plots or factual
information. Copyright does not protect ideas or concepts. To get the
protection of copyright a work must be original.
 WORK-A work means any of the following , namely, a literary,
dramatic, musical or artistic work, a cinematograph film, or a
sound recording.
 Copyright subsists throughout India in the following classes of
works:
 Original literary, dramatic, musical and artistic works;
 Cinematograph films; and
 Sound recordings.
 An artistic work means-
 a painting, a sculpture, a drawing (including a diagram, map, chart or
plan), an engraving or a photograph, whether or not any such work
possesses artistic quality;
 a work of architecture; and
 any other work of artistic craftsmanship.
 Musical work" means a work consisting of music and includes any
graphical notation of such work but does not include any words or
any action intended to be sung, spoken or performed with the
music.
 A musical work need not be written down to enjoy copyright
protection.
 Sound recording" means a recording of sounds from which sounds
may be produced regardless of the medium on which such
recording is made or the method by which the sounds are
produced.
 A phonogram and a CD-ROM are sound recordings.
 "Cinematograph film" means any work of visual recording on any
medium produced through a process from which a moving image
may be produced by any means and includes a sound recording
accompanying such visual recording and "cinematograph" shall be
construed as including any work produced by any process
analogous to cinematography including video films.
 In the case of a literary or dramatic work the author, i.e., the
person who creates the work.
 In the case of a musical work, the composer.
 In the case of a cinematograph film, the producer.
 In the case of a sound recording, the producer.
 In the case of a photograph, the photographer.
 In the case of a computer generated work, the person who causes
the work to be created.
 In the case of a work made in the course of the author’s
employment under a contract of service or apprenticeship, the
employer shall, in the absence of any agreement to the contrary,
be the first owner of the copyright therein.
 The owner of the copyright in an existing work or the prospective
owner of the copyright in a future work may assign to any person
the copyright either wholly or partially and either generally or
subject to limitations and either for the whole term of the
copyright or any part thereof.
 Acquisition of copyright is automatic and it does not require any
formality.
 However, certificate of registration of copyright and the entries
made therein serve as prima facie evidence in a court of law with
reference to dispute relating to ownership of copyright.
 And facilities exist for having the work registered in the Register
of Copyrights maintained in the Copyright Office of the
Department of Education.
 The general rule is that copyright lasts for 60 years.
 In the case of original literary, dramatic, musical and artistic works
the 60-year period is 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 organisations, the 60-year period is counted from the
date of publication.
 Performer’s rights subsist for 25 years.
 The term of protection for broadcaster’s rights is 25 years.
 Copyright as provided by the Indian Copyright Act is valid only
within the borders of the country. To secure protection to Indian
works in foreign countries, India has become a member of the
following international conventions on copyright and neighbouring
(related) rights:
 Berne Convention for the Protection of Literary and Artistic works.
 Universal Copyright Convention.
 Convention for the Protection of Producers of Phonograms against
Unauthorised Duplication of their Phonograms.
 Multilateral Convention for the Avoidance of Double Taxation of
Copyright Royalties.
 Trade Related Aspects of Intellectual Property Rights (TRIPS)
Agreement.
 The following are some of the commonly known acts involving
infringement of copyright:
 Making infringing copies for sale or hire or selling or letting them for
hire;
 Permitting any place for the performance of works in public where such
performance constitutes infringement of copyright;
 Distributing infringing copies for the purpose of trade or to such an
extent so as to affect prejudicially the interest of the owner of copyright
;
 Public exhibition of infringing copies by way of trade; and
 Importation of infringing copies into India.
 A copyright owner can take legal action against any person who
infringes the copyright in the work.
 The copyright owner is entitled to remedies by way of injunctions,
damages and accounts.
 If any person who knowingly infringes or abets the infringement of
the copyright in any work commits criminal offence under Section
63 of the Copyright Act.
 The minimum punishment for infringement of copyright is
imprisonment for six months with the minimum fine of Rs.
50,000/-.
 In the case of a second and subsequent conviction the minimum
punishment is imprisonment for one year and fine of Rs. one lakh.
 Any police officer, not below the rank of a sub inspector, may, if he
is satisfied that an offence in respect of the infringement of
copyright in any work has been, is being, or is likely to be
committed, seize without warrant, all copies of the work and all
plates used for the purpose of making infringing copies of the
work, wherever found, and all copies and plates so seized shall, as
soon as practicable be produced before a magistrate.
COPYRIGHT OFFENCE
COMMITTED BY A COMPANY
 Every person who at the time the offence was committed was in
charge of, and was responsible to the company for, the conduct of
the business of the company, as well as the company shall be
deemed to be guilty of such offence and shall be liable to be
proceeded against.
IP RIGHTS DISTINGUISHED

Shape ?
Creative
layout ?

Brand?? Useful cap ?

Any IP ? 57
 IP RIGHTS DISTINGUISHED
And a Product may incorporate several forms of IP!

Design
Copyright

Trademark ? Patent

Any IP ? 58
 CD PLAYER
Music played on the
CD player is
protected by
Industrial design copyright
protection for 3D
shape

Various
technical parts
& mechanisms
are subject
Brand name- mater of
registered under protection
trademark under Patents
59
 FOR MOST PRODUCTS EVERY FORM OF
INTELLECTUAL PROPERTY
RIGHTS CAN BE OBTAINED

 Pressure Cooker

“PATENT”  For every individual improved mechanism

“DESIGN”  For outer shape & Contour / Configuration
“TRADE MARK” Brand name or Logo for goods denoted as ®

“Copy right” For Instruction / manual booklet denoted as ©

60
 IP Power – the Value Driver

SAKICHI TOYODA’S WEAVING MACHINE -

1929

What does this have to do with what is now a world

class Japanese Company!! 61
 SAKICHI TOYODA’S STORY

1929 Granted Patents on Automatic

Weaving
Machine

Earned huge royalties post 1929

Invested in R/D on Automobiles

Founded “TOYOTA Motor Company

62
IP POWER
 Polaroid Vs. KODAK - Instant Camera
Story
 Polaroid inventor of instant camera :
broad patents obtained in 60’s
 K started developing own technology to
beat P’s patents & introduced their
version of the instant camera
 P sued K. for infringement of 12 patents -
won the suit and awarded more than
US$ 1 Billion
 drove K out of instant picture business
for 15 years!

63
Case Studies

64
CASE STUDIES

65
PERFETTI

66
SMIRNOFF

67
TACO BELL

68
COKE

69
NESCAFE

70
MERCEDES BENZ

71
GLENFIDDICH

72
WHILRPOOL

73