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RM - Intellectual Property Rights

MAHE MBA Semester 3 - Busienss Law

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15 views14 pages

RM - Intellectual Property Rights

MAHE MBA Semester 3 - Busienss Law

Uploaded by

raj.somarouthu
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

MBO616 / Segment 06

INTELLECTUAL
PROPERTY RIGHTS
INTELLECTUAL PROPERTY RIGHTS

Table of Contents

1. Introduction to Intellectual Property 4

1.1 Categories of Intellectual Property 5

2. Copyright 5

2.1 Importance of Copyright 5

2.2 Inclusions under Copyright 6

2.3 Exclusions under Copyright 6

2.4 Rights Protected by Copyright 7

2.5 Infringement of Copyright 8

3. Industrial Property 9

3.1 Invention 9

3.1.1 Patent 9

3.2 Trademark 11

3.2.1 Importance of Trademark 12

3.2.2 Trademark Registration Process 13

4. Summary 14

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INTELLECTUAL PROPERTY RIGHTS

Introduction

Intellectual property refers to the legal rights granted to individuals or organisations for their
creations and innovations. These rights are designed to protect original works of the mind,
such as inventions, literary and artistic works, symbols, names and images used in
commerce. By securing these rights, intellectual property encourages creativity and
innovation, allowing creators to control the use of their work and benefit financially from it.

The topic covers the two main categories of intellectual property. They are copyrights and
industrial property. Copyright is a legal framework that grants creators exclusive rights to
their original works, such as literature, music, films and artistic expressions. This protection
enables authors, artists and other creators to control the use of their creations, preventing
unauthorised reproduction, distribution, or modification.

Industrial property is a category of intellectual property that encompasses various forms of


protection for inventions, trademarks, industrial designs and geographical indications. This
area of intellectual property is crucial for fostering innovation and competition in the
marketplace.

Inventions include patents granted for new and useful processes, machines, or
compositions of matter, providing inventors with exclusive rights to exploit their inventions
for a specified period. Trademarks are signs, symbols, words, or phrases that distinguish
the goods or services of one enterprise from those of others, helping consumers identify the
source and quality of products.

Learning Objectives

At the end of this topic, you will be able to:

• Explain the concept of intellectual property rights


• Describe the various categories of intellectual property rights

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1. Introduction to Intellectual Property

Intellectual property is the result of a person’s mental activity, where individuality or


originality is a fundamental feature. When a person creates something original, they are
granted specific rights over that invention, written work, or any creation produced by them.

For example, the equation E = MC² is attributed to Sir Albert Einstein. This is known because
his work was copyrighted and published in a scientific paper under his name. Therefore,
whenever an individual produces original work, appropriate measures can be taken to
safeguard the creation and recognise the effort involved in its development.

Intellectual property, as the product of mental activity, can encompass ideas or inventions.
For example, when asked who invented the electric bulb, the answer is Thomas Alva Edison.
This is known because the invention was granted copyright and patent protection. Thus, an
invention or idea forms part of mental activity.

Similarly, literary or artistic works also fall under intellectual property. For instance, the
author of India’s national anthem is Rabindranath Tagore. This is known because the poem
is documented in the book Gitanjali, which holds copyright protection.

Symbols, names, images and designs used in trade and commerce can also be copyrighted.
Intellectual property is non-exclusive, meaning that a single individual cannot exclusively
own ideas. As a result, a person cannot prevent others from developing the same or similar
ideas. Since ideas are non-rivalrous, one person’s enjoyment or use of an idea does not
diminish the ability of others to do the same.

Intellectual property enables individuals to develop their ideas in different ways. For
example, a person may initially invent a car, and over time, the production of cars evolves
through various stages. Initially, it was purely an automobile, which later integrated
mechanical components, becoming a mechanical automobile.

At present, cars incorporate both mechanical and electronic elements, forming auto-
mechatronics. Thus, these continuous enhancements to a product contribute to
safeguarding and preserving intellectual rights.

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INTELLECTUAL PROPERTY RIGHTS

The primary feature of intellectual property is that the owner holds the right to use it as
desired and can prevent others from using it without permission. Once these rights are
registered and secured, the owner can prohibit any unauthorised use. However, the usage
of such rights must comply with legal frameworks. Any invention, process, or development
must align with public policy and legal provisions.

In essence, intellectual property must not conflict with societal norms, promote anti-social
behaviour, oppose national interests, or involve any illegal activities.

1.1 Categories of Intellectual Property

• Copyright: Copyright covers artistic and literary works, including novels, books,
poems, songs, plays, films, musical compositions, dance and other forms of creative
expression. All such works can be protected through the appropriate copyright
registration process.
• Industrial Property: This category includes inventions, patents, trademarks, industrial
designs and geographical indications of origin.

2. Copyright

It is a legal term describing the rights granted to creators for their literary and artistic works.
For example, a book, novel, or story might be adapted into a film or play. Although the story
is narrated differently in the movie, the original rights of the book remain with the author.
The writer retains recognition as the original creator of the content.

This right provides a statutory privilege to creators for works that are expressed in a tangible
medium. The content must be fixed in a tangible form to be eligible for copyright protection.
Intangible ideas, in contrast, cannot be copyrighted under the legal framework of intellectual
property rights.

2.1 Importance of Copyright

It respects the intellectual property rights of the creators of specific information. A mere
collection of items cannot be considered intellectual property or be copyrighted. For

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INTELLECTUAL PROPERTY RIGHTS

example, a telephone directory, which compiles numbers from various sources, does not
qualify for copyright protection.

Copyright rewards the creativity of authors, artists, musicians and others who invest effort
and dedication into producing original works. Additionally, it serves as a legal mandate to
safeguard these rights from misuse or any form of illegal exploitation.

It serves as a behavioural model for students, teachers and other members of the
educational community. Copyrighted books, such as textbooks, can be reused within the
bounds of the law. For example, textbooks involve collaboration between publishers and
authors, with the publisher distributing the book and the authors retaining the copyright.

These textbooks are used to create educational content and teach various concepts and
theories, but the copyright ownership remains with the original creators, primarily the
authors.

2.2 Inclusions under Copyright

Copyright covers a wide range of literary works, including poems, plays, reference books,
newspapers, computer programs and databases. Any of these works can be protected
under copyright law. Additionally, it encompasses musical compositions, films and
choreography. For instance, Michael Jackson's "Moonwalk" has been copyrighted, often
referred to as the "MJ Step”. Many other similar creative works have also been copyrighted
by their original creators.

Artistic works such as paintings, drawings, photographs, sculptures, architecture,


advertisements, maps and technical drawings are also eligible for copyright protection. All
these creations, produced through individual creativity and thought, can be copyrighted,
allowing creators to enjoy their rights and control the use of their work.

2.3 Exclusions under Copyright

The limitation of copyright is that a simple idea itself cannot be copyrighted. Ideas are
intangible. While anyone can conceive of an idea, it must be articulated or manifested in a

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INTELLECTUAL PROPERTY RIGHTS

way that others can understand. Until an idea is expressed in a tangible form, it remains
uncopyrighted.

Additionally, facts, such as historical events, are not subject to copyright protection. For
example, India's political independence from British rule on August 15, 1947, is a historical
fact and cannot be copyrighted.

Recipes also fall outside the realm of copyright protection. Although a recipe may involve a
unique combination of ingredients that results in a new taste or dish, the recipe itself cannot
be copyrighted. Furthermore, any work that lacks originality, such as a copy of someone
else's work, cannot be copyrighted.

Originality is essential for obtaining intellectual property rights under copyright law. Even
simple names, titles, or short phrases do not qualify for copyright protection. Therefore, it is
crucial to understand that copyright applies only to substantial, creative works that are
tangible.

Works produced by the Federal or State Government, including those from the Union
Government in India or any other country, are not eligible for copyright protection. According
to intellectual property laws, materials such as gazettes, circulars, notices and similar
documents cannot be copyrighted.

2.4 Rights Protected by Copyright

• Exclusive Right: The copyright owner possesses the exclusive authority to use their
work and to grant permission to others for its use. This right signifies ownership over
the work.
• Economic Right: The copyright owner can earn financial rewards from their work. For
instance, if an individual creates a model that effectively manages personnel within
an organisation, any entity wishing to implement this model can obtain the rights
through payment. Consequently, the creator receives financial compensation for their
intellectual contribution.
• Moral Rights: The author retains the right to preserve their connection to the work.
These rights aim to protect the author's integrity and ensure that the work is not

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INTELLECTUAL PROPERTY RIGHTS

associated with unsocial, illegal, or anti-national activities. Therefore, it is the moral


right of an individual to maintain an appropriate personal link with their work.
• Rights of Reproduction: Copyright encompasses the right to create various copies of
a work, including printing books, photocopying and similar reproductions. An
individual can reproduce the work repeatedly once copyright is established.
Additionally, modifications or expansions to the original work are permissible, as
exemplified by the "Harry Potter" series, which has undergone various adaptations
and additional content over time.
• Right of Performance: This right enables the creator to perform and broadcast their
work at their discretion. The creator retains the authority to decide when and how
their work is presented to an audience.
• Translation and Adaption: Given the multitude of languages worldwide, many books
can be translated or adapted for broader accessibility. If a highly regarded work is
available, individuals or publishers seeking to translate or modify it must obtain
permission from the original creator. The permission or authorisation is essential for
translating the work into another language or making adaptions, ensuring that the
rights of the original author are respected.

2.5 Infringement of Copyright

Misuse of copyright is regarded as copyright infringement, which refers to any unauthorised


action that violates the rights of the copyright owner. Infringement may occur when copies
of a work are sold, rented, or displayed for trade without the permission of the original
creator.

Copyright violations can also happen if a work is distributed among individuals, exhibited in
public spaces, or imported from another country without appropriate authorisation, such as
when it has been translated without consent. All these actions constitute copyright
infringement and are subject to legal consequences as violations of intellectual property
rights.

When considering copyright infringement, it is important to note that certain exceptions


exist. For instance, when conducting research, referencing the work of a creator, such as

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INTELLECTUAL PROPERTY RIGHTS

Albert Einstein's equation E=mc², is permissible. A researcher can utilise this work by
appropriately citing it, which does not constitute copyright infringement.

Similarly, private study is exempt from being classified as infringement. Additionally,


engaging in criticism or critical reviews of a creative work—such as a novel or play—is also
not considered a violation of copyright.

3. Industrial Property

3.1 Invention

An invention is defined as any new and useful creation. For instance, Thomas Alva Edison
is renowned for inventing the electric bulb. Inventions can encompass various aspects,
including artistic processes, manufacturing methods, machines, or apparatuses designed
for specific activities.

Furthermore, any substance produced through a manufacturing process also qualifies as an


invention. Essentially, any form of product development inherently involves the concept of
invention.

3.1.1 Patent

An invention is protected by a patent, which grants a monopoly right to the individual who
has created a new and useful article. This could pertain to a machine or a specific model of
a manufacturing process. Patents can be classified into two main categories: product
patents and process patents.

A patent can also encompass improvements made to an existing article, machine, or


process, as well as new methods of producing a particular article. It provides the inventor
with exclusive rights to manufacture, use, or sell the invention for a limited duration.

For instance, consider a scenario in the automotive industry where a company, X


organisation, has developed a specific engine. Other companies, such as A, B, C and D,
involved in car manufacturing, would need to pay patent rights to X organisation for the use
of that particular engine or its components in their vehicles.

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This situation is similar to the mobile phone industry, where a single device may incorporate
over 10,000 patents from numerous companies. Each mobile phone sold reflects the
payment of royalties for the patents associated with various features and technologies. The
essence of patents lies in their ability to protect technological advancements, thereby
enabling individual creators to safeguard their rights.

Exclusions from a Patent Protection

• Human genes cannot be patented, as the natural existence of such elements falls
outside the scope of a patent.
• Entities that are already present in nature are not eligible for patent protection. A
notable instance of this principle occurred when a European nation sought to patent
the Tulsi plant, which is widely known and used in India. However, due to legal
provisions preventing the patenting of naturally existing entities, they were unable to
secure a patent for Tulsi.
• Inventions that contravene legal standards or moral principles cannot be patented,
as they are deemed detrimental or unsuitable for society.
• Any frivolous inventions that lack serious purpose or do not contribute meaningful
value to human development or society at large are also ineligible for patent
protection.
• Mathematical formulas and abstract theories, particularly those that remain
unproven, are not patentable or copyrightable.
• Methods of agriculture or horticulture are not eligible for patent protection.
• Substances derived from the mere admixture of different components cannot be
patented. This principle aligns with the understanding that recipes, which often
involve combining a few readily available ingredients, similarly do not qualify for
patent protection. Thus, attempts to secure a patent for a product resulting from the
simple combination of several substances without demonstrating a novel or
innovative process will be unsuccessful.
• Processes related to medical, surgical, or curative functions for both plants and
humans are not eligible for patent protection. This exclusion is based on the

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understanding that such processes are essential for the well-being and survival of
individuals.
o Granting patents in these areas could lead to potential misuse or the creation
of artificial demand, resulting in exorbitant pricing. Consequently, to safeguard
against exploitation and ensure equitable access, these processes are
deliberately excluded from patent protection.

Applying for Patent

To obtain a patent, an application must be submitted to the Patent Office, which will examine
the application to ensure it meets the necessary criteria for patenting. The decision to grant
the patent is generally awarded to the first person who files the application rather than the
person who invented the work. In cases where two individuals simultaneously apply for a
patent for the same invention, the patent will be granted to the first applicant who submitted
their application.

3.2 Trademark

For example, observing certain symbols on an individual's phone can indicate the brand
ownership of that device. Similarly, a logo displayed on clothing can signify a specific brand
of apparel. These identifiers are referred to as trademarks.

The Trademarks Act 1999 defines a trademark as a “Mark that includes a device, a brand,
heading, label, ticket, name, signature, word, letter, numeral, or any shape of goods,
packaging, as well as a combination of colours or any combination thereof.” By recognising
these trademarks, one can readily associate them with their respective companies or
products.

Trademarks serve as signs that identify and distinguish the goods or services of one
enterprise from those of its competitors. For instance, the phrase "Intel Inside" signifies the
presence of Intel Corporation's technology within a computer's motherboard. This illustrates
how companies develop their products, with product names reflecting the company behind
them.

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Thus, branding operates both at the company level and for individual products, reinforcing
their unique identities in the marketplace.

The phenomenon of using a brand name as a generic term is evident in the case of "Xerox,"
which refers to the photocopying process, regardless of the machine's actual brand, such
as Canon. This exemplifies how trademarks have become an integral part of daily life.

A trademark can encompass various elements, including words, logos, numbers, letters,
slogans, sounds, colours and even scents. The primary purpose of a trademark is to
safeguard the name and identity of a specific product.

Individuals or companies can own a trademark and must be registered with a governmental
agency to receive legal protection. It serves as the brand name for a specific product or
company.

3.2.1 Importance of Trademark

In a competitive environment, public interest is crucial, as it connects manufacturers or


suppliers of products with consumers, enabling informed choices. When individuals seek
high-quality products, they often rely on specific companies known for producing superior
goods. Consequently, trademarks play a vital role in guiding consumers' purchasing
decisions, as they associate quality and reliability with particular brands.

Another significant aspect of trademarks is their role as commercial certificates, which


verify the origin of goods and services. This verification fosters consumer confidence and
trust in specific products.

Trademarks also help prevent unjust enrichment and the misappropriation of a brand's
goodwill. For instance, the distinctive logo of a well-known company such as Nike can be
subject to imitation or fraud, making trademark protection essential.

Additionally, trademarks assure consumers of the quality and consistency of products. By


choosing trademarked goods, consumers can maintain their confidence in the items they
purchase. Furthermore, a trademarked logo, such as that of a car manufacturer, can signify
an individual's social status and reputation within the community.

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3.2.2 Trademark Registration Process

• Individuals or partners of a company claiming to be the proprietor may apply for


trademark registration.
• Upon application, the registrar conducts a preliminary search and offers advice and
suggestions regarding the trademark.
• The Registrar then examines the application for any objections and communicates
these to the applicant if any are found.
• After addressing any necessary corrections, the trademark is published in the
Trademark Journal.
• If no further objections arise, the trademark will be registered for 10 years. After this
period, it must be renewed, which incurs a fee for each renewal.

Trademark registration may be denied if a mark is deemed deceptive or likely to confuse


consumers. For instance, if a mark is presented in a mirrored or altered form that misleads
the public, such as a distorted version of Nike's logo, it would not be eligible for registration.

A trademark that offends religious sentiments, particularly in India and various European
and Asian nations, may also be refused. Marks containing scandalous or obscene content
or that are considered unsocial will similarly be denied registration to uphold societal norms
and values.

A mark that contravenes the Emblems and Names Act of 1950 in India will be denied
trademark registration. This includes the use of the national flag, the Indian tricolour, the
national anthem, or any other symbols protected by the Union Government. Such elements
cannot be employed in trademarks, and any application seeking to register a mark that
incorporates these prohibited items will be rejected.

A product shape that is essential for providing significant value will not be eligible for
trademark registration. For instance, if the shape of a product, such as a test tube, is crucial
for its function, it cannot be trademarked. Thus, only those shapes that contribute to
consumer understanding or perception of the product can be registered as trademarks.

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4. Summary

In this topic, we discussed:

• Intellectual property encompasses original creations of the mind that can be legally
protected to ensure that creators retain their rights.
• It includes industrial property, such as inventions, trademarks, industrial designs and
geographical indications, as well as copyright, which covers literary works and artistic
works, including novels, films, music and various visual compositions and visual arts.

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Common questions

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Intellectual property rights play a crucial role in encouraging innovation and creativity by providing legal recognition and protection to original ideas and inventions. For instance, a car initially invented with basic functionalities can evolve into a sophisticated auto-mechatronic device, thanks to continuous enhancements that are protected under intellectual property rights . This legal framework ensures that creators are recognized and can financially benefit from their inventions, which in turn motivates further advancements and cultural enrichment .

Excluding medical procedures from patent protection addresses ethical concerns about accessibility and affordability of essential health services. Patent protection could lead to monopolization and inflated prices, limiting access to necessary treatments . Legally, this exclusion helps maintain public welfare and ensures that life-saving techniques are available to healthcare providers without overly bureaucratic or costly constraints, promoting broader societal benefits and ethical medical practice .

Moral rights protect an author's personal and reputational interests in their work even if economic rights are transferred. These rights ensure that the work is not altered in a way that harms the author's reputation or used for unsocial or anti-national activities . For example, these rights allow authors to object to derogatory treatments of their work that could misrepresent their intentions or damage their personal integrity .

Trademarks significantly influence consumer behavior by creating brand recognition and fostering trust in product quality and reliability. By acting as commercial certificates, trademarks help consumers make informed purchasing decisions, associating certain qualities and reputations with specific brands . They also prevent unjust enrichment by guarding against imitation and ensure that consumers have a consistent experience with a brand .

Copyright laws protect only those works that are expressed in a tangible medium, meaning they must be fixed in a form that others can perceive, such as a book or a musical score. This distinction is significant because it ensures that only actual expressions of creativity are protected, not the mere ideas behind them . An idea without realization in a physical format cannot be copyrighted, which prevents the monopolization of unexpressed concepts and allows for free intellectual exploration .

Trademark registration involves applying to the Trademark Office, where the mark is examined for distinctiveness and non-deceptiveness. Successfully registered trademarks provide legal protection against the use of similar marks that could confuse consumers . This process is critical as it safeguards a brand's identity, preventing misuse or fraud, such as the use of mirrored versions of well-known logos, which could mislead consumers about product origins or quality .

Originality is a key requirement for copyright protection, ensuring that only unique and creative expressions of ideas are legally protected. This requirement prevents the copyrighting of mere compilations or copies of existing works, thereby encouraging new artistic and literary creations . For example, simple names or titles, which lack originality, are not eligible for copyright .

While copyright laws protect authors' rights, they also allow for educational usage under specific conditions. This balance enables textbooks, copyrighted by authors but used for teaching, to be shared legally within educational frameworks . However, conflicts arise when copyright restrictions limit access to educational materials, particularly in resource-constrained settings. Resolutions often involve fair use provisions that permit limited copying for educational purposes, ensuring that educational dissemination does not infringe on creators' rights while promoting learning .

The conceptualization of intellectual property as a safeguard for creators' rights incentivizes innovation by ensuring that ideas, once realized in tangible forms, are protected from unauthorized use. This assurance encourages individuals and companies to invest in research and development without fear of losing control over their inventions . By offering recognition and financial benefits, intellectual property laws stimulate continuous advancements and the exploration of new ideas, thereby accelerating industrial progress and cultural development .

This principle prevents the privatization of naturally occurring substances, thereby ensuring that essential resources remain accessible to the public. By excluding natural entities from patent protection, the legal system avoids monopolies that could restrict scientific research and innovation derived from natural sources . For instance, attempts to patent naturally existing plants like Tulsi have been rejected to uphold this principle .

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