INTELLECTUAL PROPERTY RIGHTS (IPR)

1. Meaning of Intellectual Property (IP)

• Intellectual Property means the creations of human intellect or mind.
• It includes inventions, literary works, artistic creations, designs, symbols, names,
images, software, trade secrets etc.
• The creator gets legal rights over such creations for a limited period.
• These rights allow the owner to use, sell, license, transfer and prevent
unauthorized use by others.

Definition

According to World Intellectual Property Organization (WIPO):

“Intellectual Property refers to creations of the mind such as inventions, literary

and artistic works, designs, symbols, names and images used in commerce.”

2. Need for Protection of Intellectual Property

A. Protection to Creator’s Effort

• Creator spends:
o time
o labour
o skill
o money
o research
• Protection ensures others do not copy unfairly.

B. Encourages Innovation

• Inventors and creators get reward.

• Motivates further inventions and creativity.
• Promotes scientific and technological development.
C. Economic Growth

• IPR increases:
o industrial growth
o investment
o employment
o trade opportunities
• Helps economic development of nation.

D. Prevents Unauthorized Copying

• Stops:
o piracy
o counterfeiting
o imitation
o plagiarism

E. Commercial Value

• IP can be:
o sold
o licensed
o franchised
o assigned
• Generates revenue for owner.

F. Consumer Protection

• Trademark protection helps consumers identify genuine goods.

• Prevents confusion in market.

G. Encourages Research & Development

• Companies invest more in R&D due to legal protection.

H. International Trade Protection

• Strong IPR system attracts foreign investment and global business.

3. Taxonomy of Intellectual Property
(IPR is broadly divided into categories)

I. INDUSTRIAL PROPERTY
Industrial property deals with protection relating to industry, commerce and business.

1. Patents
Meaning

• Patent protects new inventions.

Protection Given For

• product inventions
• process inventions

Conditions

• novelty
• inventive step
• industrial applicability

Rights of Patentee

• exclusive right to make

• use
• sell
• distribute invention

Duration

• 20 years
Example

• new medicine formula

• machine invention

Governing Law

• Patents Act, 1970

2. Trademarks
Meaning

• Trademark is a mark used to identify goods or services of one business from

another.

Includes

• name
• logo
• symbol
• slogan
• shape
• colour combination

Purpose

• distinguishes products in market

Rights

• exclusive use of mark

Duration

• 10 years (renewable indefinitely)

Example

• brand logos
Governing Law

• Trade Marks Act, 1999

3. Industrial Designs
Meaning

• Protects aesthetic appearance of article.

Covers

• shape
• pattern
• ornamentation
• configuration

Does Not Protect

• functional aspect

Duration

• 10 years + renewable 5 years

Governing Law

• Designs Act, 2000

4. Geographical Indications (GI)

Meaning

• Identifies goods originating from a specific geographical area.

Importance

• quality and reputation linked to place of origin

Examples

• Darjeeling Tea
• Kanchipuram Silk

Governing Law

• Geographical Indications of Goods (Registration and Protection) Act, 1999

5. Trade Secrets
Meaning

• Confidential business information giving commercial advantage.

Examples

• formulas
• manufacturing process
• customer lists

Protection

• maintained through secrecy and contracts

II. COPYRIGHT AND RELATED RIGHTS

Protects literary and artistic expressions.

1. Copyright
Meaning

• Protects original literary, artistic, musical and dramatic works.

Covers

• books
• songs
• films
• paintings
• software

Rights of Owner

• reproduction
• publication
• adaptation
• communication to public

Duration

• generally life of author + 60 years

Governing Law

• Copyright Act, 1957

2. Related Rights (Neighbouring Rights)

Given To

• performers
• broadcasters
• producers

Example

• singer’s performance rights

• broadcasting rights
ORIGIN AND FUNCTIONS OF WTO

(World Trade Organization)

INTRODUCTION

• International organization regulating global trade.

• Established on 1 January 1995.
• Successor of GATT (General Agreement on Tariffs and Trade).
• Headquarters – Geneva, Switzerland
• Objective:
o promote free and fair trade
o reduce trade barriers
o settle trade disputes
o protect intellectual property rights through TRIPS Agreement

ORIGIN OF WTO
1. Beginning of International Trade Regulation

• After World War II, countries wanted a stable international trade system.
• In 1944 Bretton Woods Conference, plans were made for:
o International Monetary Fund
o World Bank
o Proposed International Trade Organization (ITO)

2. Failure of ITO

• In 1948 Havana Charter, proposal for ITO was made.

• But the U.S. Senate did not approve it.
• Therefore, ITO failed.

3. Formation of GATT (1947)

• General Agreement on Tariffs and Trade (GATT) signed by 23 countries in Geneva.

• Came into force on 1 January 1948.
• Main aims:
o reduce tariffs
o remove import quotas
o promote free trade
4. Limitations of GATT

• Only a temporary agreement, not a permanent institution.

• Covered only trade in goods.
• Did not cover:
o services
o intellectual property rights
• Weak dispute settlement mechanism.

5. Uruguay Round (1986–1994)

• Important trade negotiations under GATT.

• Resulted in Marrakesh Agreement (1994).

6. Establishment of WTO

• WTO officially came into existence on 1 January 1995.

• WTO replaced GATT.
• GATT 1947 became GATT 1994 under WTO system.

FUNCTIONS OF WTO
1. Administration of Trade Agreements

• WTO administers international trade agreements between member countries.

• Important agreements:
o GATT – trade in goods
o GATS – trade in services
o TRIPS – intellectual property rights

2. Promotion of Free Trade

• Reduces tariffs and trade barriers.

• Encourages smooth flow of international trade.
• Promotes fair competition among nations.

3. Dispute Settlement Function

• WTO settles trade disputes between member countries through Dispute Settlement
Body (DSB).
 • Prevents trade wars.
• Ensures countries follow agreed rules.

4. Forum for Trade Negotiations

• Provides platform for member countries to negotiate trade matters.

• Example:
o Doha Round negotiations
o Ministerial Conferences

5. Monitoring Trade Policies

• WTO reviews trade policies of member nations through:

o Trade Policy Review Mechanism (TPRM)

6. Protection of Intellectual Property Rights

• Through TRIPS Agreement, WTO protects:

o patents
o copyrights
o trademarks
o geographical indications
• Ensures minimum standards for IPR protection.

7. Encouragement to Developing Countries

• Gives special treatment and support to developing and least developed countries.
• Helps them participate in global trade.

8. Technical Assistance and Training

• WTO provides training and technical support to developing nations regarding trade
laws and policies.

9. Promotes Economic Growth

• Increased trade leads to:

o employment generation
o economic development
o better living standards
10. Ensures Transparency in Trade

• Encourages clear and predictable trade policies.

• Reduces corruption and unfair practices.

IMPORTANT ORGANS OF WTO

1. Ministerial Conference

• Highest decision-making body.

• Meets every two years.

2. General Council

• Supervises day-to-day functioning of WTO.

3. Dispute Settlement Body (DSB)

• Settles disputes between member countries.

4. TRIPS Council

• Deals with intellectual property rights issues.

5. Council for Trade in Goods

• Handles trade in goods.

6. Council for Trade in Services

• Handles trade in services.

WTO AND INDIA

• India is a founding member of WTO.

• India supports:
o protection of food security
o protection of farmers
 o stronger protection for Geographical Indications like:
▪ Darjeeling tea
▪ Basmati rice
• India plays an important role in WTO negotiations.

TRIPS Agreement –

• Full form: Trade Related Aspects of Intellectual Property Rights (TRIPS)

• Administered by: WTO (World Trade Organization)
• Came into force: 1 January 1995 (Uruguay Round outcome)

1. Objective

• Harmonise global Intellectual Property Rights (IPR) protection

• Promote innovation, creativity, and fair trade
• Reduce IP-related trade disputes

2. Key Principles

• National Treatment (equal treatment of foreign and domestic IP holders)

• Most Favoured Nation (MFN) (equal benefit to all WTO members)
• Minimum standards of IP protection

3. Scope of Protection

• Copyrights
• Trademarks
• Patents
• Geographical Indications (GI)
• Industrial Designs
• Trade Secrets
• Layout designs of integrated circuits
4. Minimum Standards

• Copyright: minimum protection ~50 years

• Patents: minimum 20 years
• Clear rules on scope, validity, and rights

Importance of TRIPS Agreement in Harmonising IP Protection

1. Uniform Minimum Standards

• TRIPS prescribes minimum standards for protection of all IP forms (patents,

copyrights, trademarks, GI, etc.)
• Ensures all member countries provide basic level of IP protection
• Reduces differences between national IP laws

2. National Treatment Principle

• Foreign IP holders must be treated equal to domestic IP holders

• Prevents discrimination in IP protection across countries
• Promotes fairness in global IP system

3. Most-Favoured-Nation (MFN) Treatment

• Any advantage given to one WTO member must be extended to all

• Avoids selective or biased IP protection
• Creates equal global IP protection system

4. Standardisation of IP Rights

• Clearly defines scope, duration, and subject matter of IP rights

• Example:
o Patents → minimum 20 years
o Copyright → minimum 50 years
• Brings uniform structure across countries
5. Strong Enforcement Mechanism

• Requires member countries to adopt effective enforcement laws

• Includes:
o Civil remedies (injunctions, damages)
o Criminal penalties for piracy/counterfeiting
o Border control measures
• Reduces global IP infringement

6. Dispute Settlement System (WTO Framework)

• IP disputes resolved through WTO dispute settlement mechanism

• Ensures rule-based international resolution
• Prevents unilateral trade retaliation

7. Predictability in International Trade

• Businesses and inventors get legal certainty in IP protection

• Encourages cross-border innovation and investment
• Reduces legal ambiguity between countries

8. Promotion of Innovation and Creativity

• Strong and uniform IP protection encourages:

o Research & Development (R&D)
o Technological innovation
• Inventors feel secure in global markets

9. Facilitation of Technology Transfer

• Harmonised IP system improves licensing and technology sharing

• Encourages flow of knowledge across borders
• Helps developing countries access modern technology
10. Reduction of Trade Barriers Related to IP

• Prevents IP laws from becoming obstacles in international trade

• Creates smoother global trade environment
• Integrates IP into global economic system

11. Balance Between Rights and Public Interest

• Allows exceptions like compulsory licensing

• Ensures public health, education, and national interest are protected
• Maintains balance between monopoly rights and social welfare

12. Global Legal Framework for IP Protection

• TRIPS acts as a common legal backbone for all WTO members

• Aligns diverse national IP systems into a unified structure
• Strengthens global governance of intellectual property
Define Industrial Design (Sec. 2(d), Designs Act 2000)

• Industrial design means only the features of shape, configuration, pattern,

ornament or composition of lines or colours applied to any article
• It may be two-dimensional (pattern, lines, colour) or three-dimensional (shape,
structure, configuration)
• It is judged purely by visual appeal (eye appeal)
• It does NOT include functional aspects (function is covered under patents, not
design)
• Must be applied to an article by industrial process

SALIENT FEATURES OF DESIGNS ACT, 2000

1. Nature of the Act

• Enacted in 2000 (came into force on 25 May 2000)

• Governs protection of industrial designs in India
• Based on TRIPS compliance (WTO standard)

2. First-to-File Principle

• India follows “First to File, First to Get” rule

• Early registration is important to secure rights
• Priority is given to earliest registered applicant

3. Objective of the Act

• Protection of new and original designs

• Prevents piracy and imitation of designs
• Encourages industrial creativity and innovation
• Protects commercial value, goodwill, and market appeal
4. Subject Matter Covered

• Protects aesthetic features only

• Covers:
o Shape
o Configuration
o Pattern
o Ornamentation
o Composition of lines/colours
• Must be applied to an article by industrial process

5. Requirements for Registration

Design must satisfy:

• Novelty / Originality (not previously known)

• No prior publication anywhere in India or abroad
• Distinctiveness from existing designs
• Not contrary to public order or morality
• Must be applied to an article and visually appealing

6. Exclusions (Not Registrable)

• Designs not new or original

• Designs already published before filing
• Designs not significantly distinguishable
• Designs containing immoral or obscene matter
• Purely functional designs

7. Locarno Classification

• Adopted under the Act

• International system for classification of designs
• Based on nature and subject matter of articles
• Helps in systematic registration
8. Registration Procedure

• Application filed with Controller of Designs

• Examination of:
o Novelty
o Originality
o Compliance with law
• If accepted → Certificate of Registration issued
• Only registered designs get legal protection

9. Duration of Protection

• Initial protection: 10 years

• Extendable by 5 years (renewal)
• Maximum protection: 15 years

10. Restoration of Lapsed Design

• If renewal fee not paid → design lapses

• Can be restored within 1 year from lapse
• Application made to Controller with sufficient cause

11. Cancellation of Registered Design

• Any interested person may apply for cancellation

• Grounds:
o Not new or original
o Previously registered/published
o Not registrable under Act
• Controller may cancel registration if satisfied
12. Piracy of Registered Design

• Unauthorized copying or imitation is design piracy

• Includes:
o Applying similar design without permission
o Importing infringing goods
o Selling copied design products
• Remedies:
o Injunction
o Damages or compensation
• Statutory compensation: up to ₹50,000 per design

13. Powers of Controller

• Has powers of civil court, including:

o Receiving evidence
o Summoning witnesses
o Examining documents
o Issuing commissions
• Ensures proper enforcement of Act

14. Appeal Mechanism

• Appeal lies to High Court

• Must be filed within 3 months of Controller’s order
• Ensures judicial review of decisions

15. Importance of Registration

• Registration is mandatory for legal protection

• Without registration → no enforcement rights
• Provides exclusive commercial rights to owner