Understanding Intellectual Property Rights
Understanding Intellectual Property Rights
Intellectual property rights (IPR) are legal rights that give creators exclusive rights to their
work for a set period of time. IPRs protect the creative work of individuals and companies,
such as inventions, designs, and brands.
Purpose of IPRs
Encourage creativity: IPRs reward creators for their work, which can encourage
them to produce more creative work.
Protect creators' work: IPRs prevent others from using, selling, or modifying a
creator's work without their permission.
Promote fair trading: IPRs help ensure that creators are fairly compensated for their
work.
Types of IPRs
Industrial designs: Protects the visual appearance of a product, such as its shape,
color, or pattern
Protect creators: IPRs give creators sole ownership of their work, similar to owning
physical property.
Create new products and services: IPRs encourage the development of new
products and services based on inventions, designs, and creative content.
Generate income: IPRs can be used to generate income through licensing, selling, or
commercializing products and services.
Improve market share: IPRs can help businesses increase their market share and
profits.
Help businesses compete: IPRs give small businesses and startups tools to compete
with larger companies.
Create jobs: IPRs create industry and commerce, which can lead to job creation.
Examples of IPRs
Intangibility: IPRs are intangible rights that protect the creations of the human mind.
Territoriality: IPRs are protected by the laws of the land and are recognized within a
specific territory.
Subject to public policy: IPRs are subject to public policy and can be affected by
public policy.
Protection of creative works: IPRs protect creative works such as art, music, and
literature.
Protection of products: IPRs protect the appearance of products, such as the shape,
design, or logo.
Protection of confidential information: IPRs protect confidential information, such
as trade secrets.
IP is the protection given to inventors or creators of intellectual products with moral and
commercial value. The objectives of IP law are to provide incentives to create and serve the
interests of the public by promoting economic growth. It seeks to protect the rights of IP
owners to enable them to reap the rewards of their creativity.. Some examples of creations
that are regarded as IP include:
Literary works
Artistic works
Scientific works
Broadcasts
Scientific discoveries
Trademarks
Service marks
Commercial names
Industrial designs
Patents
Copyrights
Trademarks
Service marks
Trade secrets
IP has its own unique features to distinguish itself from other types of rights. These features
include:
Exclusive right to owners – This means that parties other than the owners do not have
the right to use the IP without permission.
Independence – In most cases, IP rights are embodied in objects, with different types
of IP rights subsisting in the same type of object.
Subject to Public Policy – IP rights need to comply with public policy. While owners
of IP seek to achieve adequate remuneration, they also have to make sure that
consumers can use their creations with minimal inconvenience.
Indivisible – Multiple parties can have interests in an original creation without having
an effect on the interests of other right holders on the same item. Due to its indivisible
nature, IP is a resource that cannot be exhausted.
Objectives of IP Law
In the internet age, IP rights are vital to the success of a business or brand. There are laws that
protect owners of IP, mostly in the form of patents, copyrights, and trademarks. However,
violation of the terms of these protections can lead to misappropriation and unfair
competition. It can jeopardize economic success by slowing down the production of new
ideas and content. Generally, the objectives of IP law include:
Providing recognition: IPRs recognize the person or authority who created the
intellectual property.
Providing financial benefits: IPRs allow the owner to financially benefit from their
creation.
Improving financial status: IPRs can improve the financial status of the individual
and the country's economy.
Driving economic growth: IPRs can help countries realize the potential of
intellectual property as a driver for economic growth.
Promoting social and cultural well-being: IPRs can help countries promote social
and cultural well-being.
IPR laws protect the rights of creators and innovators. They include laws for trademarks,
copyrights, patents, and designs.
Examples of IPRs
ADVANTAGES OF IPRs
Intellectual property (IP) rights have many advantages for businesses, creators, and society.
For businesses
Protect assets
Generate revenue
IP rights can generate revenue through licensing, selling, or commercializing products and
services.
IP rights can help a business differentiate itself from competitors and increase its market
share.
IP rights can increase a business's value, especially when it's being sold, merged, or acquired.
Access financing
For creators
Economic reward: IP rights allow creators to earn an economic reward for their
work.
For society
Promote culture
IP rights allow the public to use patented inventions, even if the company or institution that
created them doesn't intend to.
IP rights create a fair environment for businesses to compete based on their ideas and talents.
Stimulate innovation
Provides services to help creators, innovators, and entrepreneurs protect and promote
their IP
WIPO's history:
The WIPO Convention was signed in 1967 and entered into force in 1970
WIPO was established in 1893 as the United International Bureaux for the Protection
of Intellectual Property (BIRPI)
The Cook Islands, Holy See, and Niue are also member states
GCC: Patent Office of the Cooperation Council for the Arab States of the Gulf.
EPO: European Patent Office. It is the European body in charge of European patent
applications and examination, enabling inventors, researchers and companies from
around the world to obtain protection for their inventions in up to 44 countries
through a centralised and uniform procedure that requires just one application. Offers
a large number of open tools for technology monitoring.
EAPO: Eurasian Patent Organization. The main objective of the Organization and its
Patent Office is to provide legal protection for inventions in the Contracting States on
the basis of the single Eurasian patent.
GCC: Patent Office of the Cooperation Council for the Arab States of the Gulf.
Regarding the national sphere, each country has a national office responsible for regulation
and management of intellectual property rights (IPR). The WIPO provides an up-to-date
directory.
Agencies that protect intellectual property rights include government agencies, private sector
coalitions, and international organizations.
U.S. Patent and Trademark Office: A government agency that grants patents, which
give inventors exclusive rights to their inventions
Other organizations that protect intellectual property rights include: International Trademark
Association, IP Federation, and Intellectual Property Owners Association.
Intellectual property rights are important for businesses that trade across borders. They
protect brands, creative content, and innovations.
Types of intellectual property rights:
Copyright
Gives the owner the legal right to copy, distribute, adapt, display, and perform their creative
work
Trademark
Geographical indications
A subset of trademarks that identify a good's quality, reputation, or other characteristic based
on its origin
Industrial design
The appearance of a product or object, including its blueprint and how it gets to market
Patent
Trade secret
Commercially relevant data that is defined and concealed, and protected by non-disclosure
agreements (NDAs)
Circuit layouts
IPRs protect intellectual creations and innovations, and ensure that creators receive
recognition and reward for their contributions
What is a patent?
Copyright
Copyright is a legal term used to describe the rights that creators have over their literary and
artistic works. Works covered by copyright range from books, music, paintings, sculpture and
films, to computer programs, databases, advertisements, maps and technical drawings.
Trademark
A trademark is a sign capable of distinguishing the goods or services of one enterprise from
those of other enterprises. Trademarks date back to ancient times when artisans used to put
their signature or "mark" on their products.
Industrial design
An industrial design constitutes the ornamental or aesthetic aspect of an article. A design may
consist of three-dimensional features, such as the shape or surface of an article, or of two-
dimensional features, such as patterns, lines or color.
Geographical indications
Geographical indications (GIs) are signs that identify products that come from a specific
location. They are a type of intellectual property right (IPR).
Examples of possible Indian Geographical Indications are Basmati Rice, Alphanso Mango,
Nagpur Orange, Kolhapuri Chappal, Bikaneri Bhujia, Agra Petha, Paithani and Banaras
Saree, Feni (Liquor from Goa), Lonavala Chikki, Tirunelveli Halwa, Mysore Rasam, etc.
Geographical indications and appellations of origin are signs used on goods that have a
specific geographical origin and possess qualities, a reputation or characteristics that are
essentially attributable to that place of origin. Most commonly, a geographical indication
includes the name of the place of origin of the goods.
Trade Secrets
Trade secrets are IP rights on confidential information which may be sold or licensed. The
unauthorized acquisition, use or disclosure of such secret information in a manner contrary to
honest commercial practices by others is regarded as an unfair practice and a violation of the
trade secret protection.
Trade secrets are intellectual property (IP) rights on confidential information which may be
sold or licensed.
be subject to reasonable steps taken by the rightful holder of the information to keep
it secret, including the use of confidentiality agreements for business partners and
employees.
A trade secret may be also made up of a combination of elements, each of which by itself is
in the public domain, but where the combination, which is kept secret, provides a competitive
advantage.
Other examples of information that may be protected by trade secrets include financial
information, formulas and recipes and source codes.
Depending on the legal system, the legal protection of business secrets forms part of the
general concept of protection against unfair competition or is based on specific
provisions or case law on the protection of confidential information.
While a final determination of whether trade secret protection is violated or not depends on
the circumstances of each individual case, in general, unfair practices in respect of secret
information include industrial or commercial espionage, breach of contract and breach of
confidence.
A trade secret owner, however, cannot stop others from using the same technical or
commercial information, if they acquired or developed such information independently by
themselves through their own R&D, reverse engineering or marketing analysis, etc. Since
trade secrets are not made public, unlike patents, they do not provide “defensive” protection,
as being prior art. For example, if a specific process of producing Compound X has been
protected by a trade secret, someone else can obtain a patent or a utility model on the same
invention, if the inventor arrived at that invention independently.
Intellectual property rights are classified in a universal manner across the globe (with minor
jurisdiction-specific changes in terminology as well as requirements for registration).
In India specifically, the different forms of intellectual property rights are – Copyright;
Trademarks; Patents; Geographical Indications; Designs; Semiconductor integrated circuit
layouts and Plant varieties. Each of the aforementioned types of intellectual property rights
have been discussed in detail below:
Copyright protects the expression of an idea rather than the idea itself. Under section 13 of
the Copyright Act, a protection under copyright can be obtained for ‘original literary,
dramatic, musical and artistic works; cinematograph films; and sound recording’.
Interestingly, a copyright protection can also be obtained for computer programmes. A
copyright is an ‘exclusive right’ that is granted to a person to do or authorize to carry out
certain activities with regards the copyrighted work. For eg: in case of a literary, dramatic or
musical work, the owner (or any person authorized by the owner) is permitted to perform the
work; make translation(s) of such work; make adaptations of the work, etc.
The Copyright Act, under section 17, clearly states that the author of the original work (for
which protection under copyright has been obtained) shall be the first owner of the work.
Further, the owner has the right to license the copyright of their work to third-parties through
a written agreement.
The Trade Marks Act, under section 2(zb) defines a ‘trade mark’ as ‘a mark capable of being
represented graphically and which is capable of distinguishing the goods or services of one
person from those of others and may include shape of goods, their packaging and
combination of colours…’. In simpler words, a trademark provides protection for symbols,
colours, shapes, words, etc. representing and relating to a good or a service.
Interestingly, a trademark application need not be filed in respect of marks which are in use
(but can also be filed in respect of marks which are intended to be used in the future). The
primary requirements for registration of a trademark includes that it should consist of a mark
capable of distinguishing the goods/services from those of others and that it is capable of
graphical representation. The Trade Marks Act provides for absolute grounds of refusal of
registration such as – (a) the mark not having a distinctive character; (b) a mark being
deceptive and confusing to the public; (c) if a mark is hurtful to religious sentiments; (d) the
mark is offensive, scandalous, or obscure, etc. In addition to the absolute grounds of refusal,
the statute also provides for relative grounds of refusal of registration (viz. similarity with
pre-existing marks).
A ‘Patent’ is an intellectual property right which protects any new invention. It is an exclusive
right that protects the rights of the inventor and prevents other people to unauthorizedly use
and misappropriate the registered patent.
A patent is granted for a term of 20 (twenty) years from the date of filling of the application.
It is important to note that patent for a new invention is registered only if the invention is
‘novel’ and ‘original’ i.e. it has not been introduced in the public domain in India or anywhere
in the world; is ‘capable of industrial application’ which refers to the ability of the invention
to be used in an industry; and is an invention that requires to employ a process of ‘inventive
steps’, which is defined as ‘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’, under the Patents Act.
The Patents Act bestows each inventor, whose patent has been registered, with certain rights,
namely:
with respect to a patent for a product, the right to prevent third parties form using,
selling, making, importing, etc. the product without prior consent; and
with respect to a process for which a patent is obtained, the right to prevent third
parties from using, selling, offering, etc. a product obtained from that process, without
the prior consent of the original inventor.
A ‘design’ under the Designs Act [section 2(d)] means and includes ‘only the features of
shape, configuration, pattern, ornaments or composition of lines or colours, applied to any
article whether in 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 an are judged solely by the eye’.
Furthermore, once a design is registered, the registered proprietor is afforded protection for
an initial period of 10 (ten) years, which is extendable (upon filing an application for
extension) for a further period of 5 (five) years.
5. The Geographical Indications of Goods (Registration and Protection) Act, 1999 (“GI
Act”)
Many goods in India are widely popular owing to their place of origin. For instance,
‘Darjeeling tea’ is unique and popular owing to many factors including but not limited to its
origin, the skill set of the tea farmers of Darjeeling and the weather prevailing in that area.
Other such examples of products which have a bearing of the place of origin (or factors
specific to the place of origin includes Banarsi Saree; Basmati Rice, etc).
An application for registering a good under the GI Act requires a statement explaining how
the geographical indication affects to the origin of the good in terms of the quality,
characteristics, and reputation of the good; the class of goods; particulars with regards the
appearance of the geographical indication and the map of the territory/area/country where the
good has originated.
A registered geographical indication is awarded protection for a term of ten (10) years with
the option of renewing and extending such protection for further tenures of ten (10) years
from the date of expiration of the original registration.
6. The Protection of Plant Varieties and Farmer’s Rights Act, 2001 (“Plant Varieties
Act”)
The objective of the Protection of Plant Varieties and Farmer’s Right Act, 2007, is to
recognize rights of Indian farmers and to provide protection to plant varieties in order to
encourage the growth and development of more plant varieties.
In 1994, India became a member to the Trade Related Aspect of Intellectual Property Rights
Agreement (TRIPS) under which all members are required to accommodate and provide for
the protection of plant varieties [Article 27(3)(b) of TRIPS]. All plant varieties that have been
registered and awarded protection are entered and recorded into the National Register of
Plant Varieties.
The Plant Varieties Act permits any breeder, farmer and any person as authorized, to apply for
registration of a new plant variety. A new plant variety is registrable if it satisfies the
conditions of ‘novelty, distinctiveness, uniformity and stability’. To elaborate, the condition
of novelty requires that at the date of filing the application (for protection), the plant variety
must not be sold. Further, distinctiveness encompasses the requirement of having at least one
distinguishing factor from all other existing and protected plant varieties. The requirement of
uniformity means that all essential characteristics of the plant variety must be uniform.
Lastly, the plant variety being registered for is required to be ‘stable’, meaning that the
essential characteristics of the plant variety must remain unchanged after repeated
propagation of such plant variety.
The validity of registration for the protection of a plant variety is for a period of nine (9)
years in the case of trees and vines, and for a period of six (6) years in the case of crops, with
the option of renewal of such registrations.
7. The Semiconductor Integrated Circuits Layout- Design Act, 2000 (“SICLD Act”)
Under the SICLD Act, all layout-designs capable of being registered are required to be
original; commercially unexploited anywhere in India and in any convention countries;
inherently distinctive and inherently distinguishable from other registered layout- designs. An
application for registration of design layouts has to be in writing and is required to be filed
before the Registrar in the Semiconductor Integrated Circuits Layout-Design Registry present
in the territorial limits of the principal place of business of the applicant.
Legal Provisions
The legal provisions for various types of intellectual property rights are:
Indian Patents Act: The law that oversees patents in India is the Patents Act of 1970.
o The Indian Patent Act is administered by the Office of the Controller General
of Patents, Designs, and Trade Marks, or CGPDTM.
Design Act of 2000: The act's protections support innovation and serve to safeguard
both manufacturers' and consumers' interests.
Trademarks Act of 1999 and its amendment of 2010: It has unique clauses
associated with trade mark registration internationally. Within eighteen months, an
international application may be filed in India to extend protection to the specified
nations.
PURPOSE OF TRADEMARK
A trademark's purpose is to identify the origin of a product or service, and to protect
the brand's identity. Trademarks also help consumers differentiate between products
and services.
Functions of a trademark
Identification: A trademark identifies a product or service and its origin.
Quality assurance: A trademark suggests that the product is of a certain quality.
Advertising: A trademark promotes and markets a product or service.
Image creation: A trademark creates an image of a product in the minds of
consumers.
Legal protection: A trademark protects a brand from counterfeiting and unauthorized
use.
Product differentiation: A trademark helps consumers distinguish between similar
products or services.
Importance of trademarks
Trademarks help companies protect their brand identity.
Trademarks help consumers identify and purchase products or services.
Trademarks help maintain the integrity of a brand.
After finalizing the negotiations, the assignor and assignee sign the Trademark
Assignment Agreement. This document records the transfer of ownership and details
the rights and responsibilities of each party.
Benefits of trademark registration
Trademark registration gives the owner exclusive rights to use the trademark with
specific products or services.
It protects the brand and helps build brand loyalty and identity.
It prevents others from using a similar mark that could confuse consumers.
Trademark Registration process
The Trademark Registration process includes various steps i.e. classification of the
mark, preliminary trademark search and above all, application filing; prescribed under the
Trademark Act of 1999. The Act regulates the registration of trademarks in India.
A trademark is defined under Section 2(zb) of the Trademark Act, as a mark capable of being
graphically represented and distinguishing the goods and services of one business from those
of another. It may include the shape of goods, their packaging and also colors’ combination.
Any individual, business, or legal entity can own a [Link] are administered
by the Indian Trademark Department, which comes under the Ministry of Commerce and
Industry.
Trademark Types
1. Word Marks: These are the simplest form of trademarks, that consists of words,
letters, or numbers. Some wordmark examples include iconic brand names like Coca-
Cola or Google.
2. Design Marks: Visual elements, like logos, graphics, or any symbols, make up design
marks. Some top examples of design marks are the Nike swoosh and Apple’s bitten
apple.
3. Combined Marks: These combine both words and design elements. Famous
examples of combined marks include the McDonald’s golden arches with the brand
name.
4. Slogan Marks: Catchy and memorable phrases or slogans that uniquely identify a
brand come under this category of slogan marks. Think of Nike’s “Just Do It” or
McDonald’s “I’m Lovin’ It.”
5. Product Packages: This extends beyond traditional trademarks to cover the overall
appearance and feel of a product or its packaging. The distinctive shape of the Coca-
Cola bottle is a notable trade dress example.
6. Sound Marks: Recognizing that brands can be auditory experiences too, sound marks
protect distinctive sounds associated with a brand. The Intel jingle is a classic sound
mark.
7. Color Marks: Specific colors associated with a brand can be protected as trademarks.
Think of the distinctive Tiffany blue or UPS brown.
The procedure for trademark registration in India offers a wide range of benefits to its
owners, and therefore makes it a strategic move for almost all sizes of businesses.
Primarily, it grants the applicant the exclusive rights to use the mark in connection with their
intended goods or services, creating a legal presumption of ownership and validity. As a
result, it plays a role of a powerful deterrent against potential infringers and also gives you
legal right to take legal actions in case of any unauthorised use or infringement of your
trademark.
Above all, a registered trademark can prove to be a valuable asset, capable of being licensed,
sold, or even used as collateral.
Beyond the practical aspects, the registration process of trademark also increases brand
credibility that increases confidence among consumers as well as investors.
Right from the searching for a unique mark to the final issuance of the trademark registration
certificate, each step of trademark registration is important for securing exclusive rights and
fortifying the brand’s legal standing.
Here’s a detailed explanation of the step by step process for Trademark Registration to help
you understand better.
In the first step of the process of trademark registration, businesses need to classify their
Trademark into established categories predefined under the NICE Classification System. The
Nice Classification System comprises 45 classes of goods and services, where classes 1 to 34
represent goods and while the remaining ones represent services.
Trademarks are classified and registered into those classes for which they are intended to be
used. In other words, classification of a trademark determines the scope of protection and use
of a Trademark, thus laying a precise foundation for the registration process of trademark.
Another important step before getting into the process for trademark registration is to search
for the trademark comprehensively. This step involves searching local and international
databases to check if there are any similar or identical marks that could create a challenge
while registering your desired mark. A deep trademark search not only helps minimize the
risk of objections during the examination/review process but also helps businesses in making
informed decisions about the uniqueness and viability of their chosen mark.
Step 3: Trademark Application Filing
Once all the prerequisites have been fulfilled, the next step of the trademark registration
process is to file a trademark application. The application is submitted online to the relevant
intellectual property office, requesting an examination as well as approval of the mark. It
includes necessary details such as the applicant’s information, a representation of the mark,
and the specified class of products/services for which it is intended to be used.
Accuracy and completeness are above all at this crucial stage to enable a hassle-free
progression through the
Once the application is filed, the applicant needs to file the payment of requisite fees. These
fees cover the costs associated with processing the application, conducting examinations, and
other administrative functions. Applicants also need to be familiar with the fee structure
applicable to them as per the type of their business and number of classes their trademark is
to be registered.
Additionally this step helps to confirm whether the mark meets the criteria for distinctiveness,
Addressing objections raised during the examination stage is extremely crucial to take the
trade mark registration process further. The applicant must respond to the objections within
30 days from the date on which they were raised.
If the examiner is satisfied, they will proceed to the next stage. However, if unsatisfied, the
examiner may
summon a show cause hearing to resolve the issue.
Upon settlement of the objections, the approved trademark application moves to the
publication stage. The mark is published in the trademark journal, a publicly accessible
document inviting potential third-party oppositions. Third-party oppositions may arrive on
grounds like the similarity of the mark with other marks. These need to be settled before the
application is finally processed for Trademark Registration.
In instances where third parties raise objections or oppositions during the specified period,
resolution becomes a critical aspect of the trademark registration process. This step involves
negotiation, settlement, or legal proceedings to address the concerns raised by opposing
parties. Only after a successful resolution of all public oppositions, the department will
consider proceeding with the application.
The last milestone of the trade mark registration process step by step is achieved when the
applicant is granted a Trademark Certificate. This official document serves as tangible proof
of the exclusive rights conferred to him. Once issued, it remains valid for 10 years from the
date of application.
Throughout this period, the Trademark remains protected against unauthorised use and
plagiarism.
Trademark protection is not everlasting, and in the final step of the trademark registration
process, trademark owners must renew their trademarks to maintain their rights. Failing to the
trademark renewal before the deadline, may result in the loss of protection. The renewal
process is almost similar to the original registration process. There is no predefined limit on
how many times a trademark can be renewed.
Conclusion
Trademark registration process is a useful tool for the businesses that is beneficial in
protecting their brand identity. From selecting classifications to handling objections and
continuous renewals, each step adds a distinct layer of legal protection. The process can’t be
taken as a compliance only but it’s also a strategic investment beneficial in securing a brand’s
credibility and ownership in the competitive landscape.