An Overview of Intellectual Property.ppt

An Overview of Intellectual
Property Rights
T.C. James
Director
National Intellectual Property Organisation
E-mail: tcjames@nipo.in

Objective and Plan of Presentation
Objective
• To give a general introduction to the concept
of Intellectual Property Rights and Their Role
in Technology Transfer
Plan of Presentation
• Rationale of Protection
• Different kinds of IPRs
• IPRs and Licensing/Technology Agreements
2
CUTS Training Programme 14 Jul 11

INTRODUCTION
3

Kinds of Property
• Movable Property
Car, Pen, Furniture, Dress
• Immovable Property
Land, Building
• Intellectual Property
Literary works, inventions
4

Nature of Intellectual Property
• Creation of human mind (Intellect)
• Intangible property
• Exclusive rights given by statutes
• Attended with limitations and exceptions
• Time-bound
• Territorial
5

Definition of Intellectual Property
“Intellectual Property shall include the rights relating to
– literary, artistic and scientific works,
– performances of performing artists, phonograms, and
broadcasts,
– inventions in all fields of human endeavour
– scientific discoveries
– Industrial designs
– trademarks, service marks and commercial names
and designations
– protection against unfair competition
and all other rights resulting from intellectual activity in
the industrial, scientific, literary or artistic fields.”
(WIPO Convention)
6

International Treaties
• Paris Convention for the Protection of Industrial
Property 1883
• Berne Convention for the Protection of Literary and
Artistic Works 1886
• International Union for New Varieties of Plants
(UPOV) 1961, 1972, 1978 and 1991
• Convention on Biodiversity, 1992
• Agreement on Trade Related Aspects of Intellectual
Property Rights 1994
• Internet Treaties 1996
7

Basic Principle
• Contract between creator and sovereign state
Protection for revelation
• Balance between rights of creator and public
interest
Rights and limitations and exceptions
8

Major Intellectual Properties
• Copyright and Related Rights
• Industrial Property
 Patents
 Industrial Designs
 Trade Marks
 Geographical Indications
 Layout Designs/Topographies Integrated Circuits
 Trade Secrets
 Protection of New Plant Varieties
9

IP Laws of India
Act Ministry/Department
The Copyright Act, 1957 Higher Education
The Patents Act, 1970 Industrial Policy & Promotion
The Designs Act, 2000 Industrial Policy & Promotion
The Trade Marks Act, 1999 Industrial Policy & Promotion
The Geographical Indications of Goods
(Registration and Protection) Act, 1999
Industrial Policy & Promotion
The Semiconductor Integrated Circuits Layout-
Design Act, 2000
Information Technology
The Protection of Plant Varieties and Farmers’
Rights Act, 2001
Agriculture and Cooperation
10

COPYRIGHT AND RELATED RIGHTS
11

12
Scope of Copyright
• Original Literary, Dramatic, Musical and
Artistic Works
Work: Ideas expressed in material form
No copyright in ideas or facts
• Cinematograph Films
• Sound Recordings
12

13
Rights
• Two Kinds of Rights
Moral Rights
To protect personality of author
Economic Rights
To bring economic benefits
13

14
Moral Rights
• Right of Authorship
• Right of Integrity
– Digital Manipulation
– No Right for Display
• Inalienable Rights
14

15
Economic Rights -1
• Right of Reproduction
– Making copies e.g. an edition of a novel
– Storage in computer memory
• Right of Distribution/Issuing Copies
– Digital Distribution
• Right of Communication to the Public
– Public Performance
– Internet Communication
15

16
Economic Rights 2
• Adaptation Rights
– Conversion into another form e.g. literary to
drama
– Abridgement
– Picturizations, comic formats
• Right to make a cinematograph film or sound
recording
• Translation Rights
• Rental Rights
• Resale Rights for original artistic works.
16

17
Ownership of Rights
• Literary – author
• Drama – Dramatist
• Music – Composer
• Artistic work – Artist e.g. Painter, sculptor,
architect
• Photograph – Photographer
• Author of Computer Programme – Person who
causes the work to be created
• Cinematograph film – producer
• Sound Recording - producer
17

18
Author as Owner of Rights:
Exceptions
• In the course of employment – employer
• Employment by newspaper, magazine –
employer has publishing right; other rights
with author
• Photograph, painting, cinema for valuable
consideration – person who pays money
18

19
Exceptions
• Lecture delivered in public – Person
delivering
• Government Work – Government
• Public Undertaking Work – public
undertaking
• Work of International Organization –
International Organization
19

20
Exceptions
• Work of apprentice – to Teacher
• If teacher writes a book then teacher because he
is employed to teach and not write
• Question Papers – Paper setter
• Encyclopedia, dictionary – editor for collection
• Music under contract by film producer – film
producer
20

21
Securing Copyright
• Formality free protection
• Voluntary Registration (S. 44 & 45)
• Registration does not as a matter of law
establish that what is registered is in fact
and in law copyrightable subject matter
21

22
Duration of Copyright
• Literary, dramatic, Musical and Artistic Works
published during life time of author: Life + 60
years
• All Other Works: 60 years from date of
publication
– Posthumous, Anonymous Works
– Works of Government and Organizations
– Cinema and Sound Recording
– Photograph
22

23
RELATED RIGHTS
• Rights granted by law to communicators of
works to the public
– Performers
– Broadcasting Organizations
23

24
Performer’s Rights
• Recording, broadcasting and
communicating to the public of a live
performance
• Presumption of transfer of performer’s
right to cinematographic film producer
• Duration: 50 years
24

25
Rights Of Broadcasting
Organisations
• Broadcast Reproduction Right
• Re-broadcasting, Recording and
Communicating to the Public of a
Broadcast
• Duration: 25 Years
25

PATENTS
26

What is a PATENT?
• A patent is an exclusive right granted for an
invention, which is a product or a process
that provides a new way of doing something,
or offers a new technical solution to a
problem
• The limited monopoly right granted by
the state enables an inventor to prohibit
another person from manufacturing, using or
selling the patented product or from using
the patented process, without permission.
• Period of Patents - 20 Years
27

WHAT CAN BE PATENTED?
Inventions in all fields of technology,
whether products or processes, if they
meet the criteria of
• Novelty;
• Non-obviousness (inventive step);
• Industrial application (utility).
28

Conditions of Patentability
• Novelty: Invention not known to public
prior to claim by inventor
• Inventive Step: Invention would not be
obvious to a person with ordinary skill in
the art
• Industrial Application: Invention can be
made or used in any useful, practical
activity as distinct from purely intellectual
or aesthetic one 29

Grant of Patent
• Patents are granted by national patent offices
after publication and substantial examination
of the applications
• In India provisions exist for pre-grant and post
grant opposition by others
• They are valid within the territorial limits of
the country
• Foreigners can also apply for patents
30

INVENTIONS – NOT PATENTABLE
An Invention Which is frivolous or
which claims anything obviously
contrary to the well established
Natural Laws e.g.
Machine giving more than 100% performance
Perpetual motion machine
Newton’s laws of gravitation
31

A machine whose primary or intended use or
commercial exploitation of which could be contrary
to Public order or morality or which causes serious
prejudice to human, animal or plant life or health
or to the environment :
 Gambling machine
 device for house-breaking
 Biological warfare material or device
 Terminator gene technology
 embryonic stem cell
32

Mere Discovery of a Scientific Principle
or Formulation of an Abstract Theory
or discovery of any living thing or non–living
substance occurring in nature
• Discovery adds to the human knowledge by
disclosing something ,not seen before, whereas,
• Invention adds to human knowledge by suggesting an
action resulting in a new product or new process
• e.g. Archimedes Principle, Superconducting
Phenomenon as such – not patentable , However,
• An apparatus /method for technological application may
be patentable 33

The mere discovery of a new form of a known
substance which does not result in the
enhancement of the known efficacy of that
substance OR
the mere discovery of any new property or new
use for a known substance OR
of the mere use of a known process, machine
or apparatus, unless such known process
results in a new product or employs at
least one new reactant. 34

A substance obtained by mere admixture resulting
only in the aggregation of the properties of the
components thereof or a process for producing
such substance, e.g.
Paracetamol (Antipyretic) +Brufen (analgesic) = A drug (antipyretic &
analgesic)
• A soft drink that is only a mixture of sugar and some colorants
in water
But, a mixture resulting in synergistic properties of
mixture of ingredients may be patentable e.g
Soap, Detergent, lubricant.
35

Mere arrangement or re-arrangement or
duplication of known devices,each functioning
independently of one another in a known way
for example -.
 A Bucket fitted with torch,
 An Umbrella with fan
 A Clock and radio in a single cabinet
 A flour-mill provided with sieving
36

Not patentable
Method of Agriculture or Horticulture
• e. g. Cultivation of algae ,
Producing new form of a known plant,
preparation of an improved soil
However, Agricultural Equipments
are patentable
37

Inventions - Not Patentable
Plants & animals in whole or any part
thereof other than micro- organisms,
but including seeds, varieties and species
and essentially biological process for
production or propagation of plants & animals
e.g.
– Clones and new varieties of plants:
– A process for production of plants or animals if it consists
entirely of natural phenomena such as crossing or selection
38

Inventions - Not Patentable
A mathematical method or a business
method or algorithms or
a computer programme per se
These are the outcomes of mental process only
and do not involve industrial process or product
For example-
• Computer programme claimed by itself or as a
record on a carrier
39

• Non-patentable
• A literary, dramatic, musical or artistic work or any
other aesthetic creation including cinematographic
work and television productions
These subject-matters fall under the copy-right
protection
A mere scheme or rule or method of performing
mental act or method of playing game
Examples –
• Scheme for learning a language , Method for solving a
crossword puzzle, Method of learning a language,
Method of teaching /learning - Not patentable
• Novel apparatus for playing game or carrying
out a scheme – patentable
40

Non-patentable
Presentation of information
Examples –
Any manner or method of expressing
information , whether by spoken words,
Visual display, symbols ,diagrams or information
recorded on a carrier
Topography of integrated circuits.
An invention which, in effect, is the
Traditional Knowledge or an aggregation
or duplication of known properties of
traditionally known component or
components
41

 Traditional Knowledge is already in public
domain, and hence, not patentable
 However, any value-addition using Traditional
Knowledge leading to a new process or product,
possessing novelty, inventive step and industrial
applicability, can be patentable
• Inventions relating to atomic energy – Not
patentable
42

INDUSTRIAL DESIGNS
43

What is an Industrial Design?
• ‘Design’ means only the features of shape,
configuration, pattern, ornament 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 and are judged solely by the eye.
44

Consumer Products
45

Pharmaceutical Product
46

Textile & Jewellery
47

Rights of the Registered Proprietor
• The proprietor of the registered design
has the exclusive right to apply the
design to any article in the class in
which the design is registered
• Period of protection is ten years
extendable by 5 years.
48

What is Excluded?
• Any mode or principle of construction or
anything which is in substance a mere
mechanical device
• Trade mark
• Property mark
• Artistic work
49

What is not registrable?
• A design which is not new or original
• A design which has been disclosed to the
public anywhere in the world prior to the filing
• A design which is not significantly
distinguishable from known designs or
combination of known designs
50

What is not registrable?
• A design which comprises or contains
scandalous or obscene matter
• A design which is contrary to public order or
morality
51

NOT REGISTRABLE ARTICLES
Calendar, certificates,forms, greeting cards,leaflets,
 Maps, building plan,medals
Labels,tokens,stamps
Religious symbols
Mere mechanical contrivance
Building and construction or real estate
Flags,emblems,or signs of any country, computer icons Parts
of articles not manufactured and soled separately
Layout designs of integrated circuits Basic shape, variations
commonly used in the trade
Mere workshop alteration
Mere change in size
Any principle or mode of construction of article 52
52

TRADE MARKS
53

TRADE MARK
• A name of an enterprise or a Mark capable of
being represented graphically, distinguishing the
goods or services of one person from those of others
e. g., LUX, Godrej, TVS ,Telco, 555, APPLE
• Trade Mark can be -
o sign , words, letters, numbers,
o drawings, pictures, emblem,
o colours or combination of colours,
o shape of goods,
o graphic representation or packaging or
o any combination of the above
as applied to an article or a product.
54

Registration of Trade Mark
• Trade Marks are registered by national trade
mark registries and are valid in that country
• Registration is made after examination and
publication
• Period of registration is for 10 years but can be
renewed indefinitely
55

Kinds of Trademarks
• Marks on goods
• Service Marks
• Certification trademark
• Collective Marks
• Well known marks
• Trade Names
56

TRADE MARK
• Service Marks include banking, education, finance, insurance,
real estate ,entertainment,repairs, transport, conveying news and
information, advertising etc
• Certification Trade marks: Certified by the Proprietor as having
characteristics like geographical origin, ingredients, quality
e.g.AGMARK,WOOLMARK Certification mark cannot be used as a trade
mark.
» Certifies that the goods on which it is applied are
made of 100% wool. It is registered in 140 countries
and licensed to the companies which assure that they
will comply with the strict standards set out by the
Woolmark company , the owner of the mark.
57

COLLECTIVE MARK
• COLLECTIVE MARK is a Mark that distinguishes
the goods -or services of members of association
from marks of other undertakings
• Who owns collective Mark ?
Association of persons
• It could be manufacturers, producers, suppliers,
traders or other profession bodies like institute of
chartered accountants, test cricketers association
etc.
58

WELLKNOWN MARKS
•Coca Cola for soft drink
•Toblerone (Triangular-
shaped chocolates)
Trade Names
•Godrej- Furniture, Refrigerators, Storewell, Compactor etc
•GE- Bulbs
59

Forms of TM
• Visual: Words, letters, numerals,
devices including drawings and
symbols or 2-D representations of
object or a combination of two or more
of these, colour combinations or colour
per se, 3-D sign as shape of goods or
packaging.
• Audio: Sounds, Musical Notes
• Olfactory: Smells
60

What is protected and
what’s not?
• Right to use TM in relation to goods/
services as registered are protected (If
TM consists of several parts, protection
is for TM as a whole)
• State Emblems, Official Hallmarks,
Emblems of Intergovernmental
Organizations cannot be used as TM.
61

GEOGRAPHICAL INDICATIONS OF
GOODS
62

What is a Geographical Indication?
Geographical Indication is an indication which
identifies goods as agricultural goods, natural
goods or manufactured goods as originating,
or manufactured in the territory of country, or
a region or locality in that territory, where a
given quality, reputation or other
characteristic of such goods is essentially
attributable to its geographical origin.
63

• Explanation clarifies that GI need not be a
geographical name
E.g. Alphonso, Basmati
• Goods include goods of handicraft or of
industry and also foodstuff.
64

Registration
• In India, geographical indications have to be
registered.
• Geographical Indications Registry examines
and publishes the application before
registration
• Registration is valid for 10 years but can be
renewed indefinitely
65

Rights
• Exclusive right to use the Geographical
Indication on the goods
• Right to obtain relief for infringement of the
Geographical Indication
66

SEMICONDUCTOR INTEGRATED
CIRCUITS LAYOUT-DESIGN
67

Protectable Layout Designs?
• Original and novel Layout-Designs of
semiconductor integrated circuits can
get protection through registration
• Registration is done after examination
and publication of the application
• Registration is valid for 10 years
68

Non-registrable Layout-Designs
• Not original
• Has been commercially exploited
anywhere in India or in a convention
country
• Not inherently distinctive
• Not inherently capable of being
distinguishable from any other
registered layout-design
69

TRADE SECRETS
70

Trade Secrets
• Some inventions, data, information
cannot be protected by any of the
available means of IPRs. Such
information is held confidential as a
trade secret.
• Trade secret can be an invention, idea,
survey method,manufacturing process,
experiment results, chemical formula,
recipe, financial strategy, client
database etc. 71

When Trade Secrets are
preferred?
• When invention is not patentable;
• Patent protection is limited to 20 years,
when secret can be kept beyond that
period;
• When cost of patent protection are
prohibitive;
• When it is difficult to reverse engineer
72

How to guard Trade Secret?
• Restricting number of people having access
to secret information
• Signing confidentiality agreements with
business partners and employees
• Using protective techniques like digital data
security tools and restricting entry into area
where trade secret is worked or held
• National legislations provide protection in
form of injunction and damages if secret
information is illegally acquired or used. 73

PLANT VARIETIES AND FARMER’S
RIGHTS
74

PROTECTION OF PLANT VARITIES
• Registrable varieties and criteria:
 New Varieties
 Novelty, Distinctiveness, uniformity and stability
 Extant varieties
 Distinctiveness, uniformity and stability
• Persons who can Register
 Breeders, farmers, universities, agricultural institutes
• Period of protection
 15 years for annual crops
 18 years for trees and vines
75

Rights of Breeders
• Production
• Sale
• Marketing
• Distribution
• Export
• Import
However, if the breeders’ variety is essentially derived
from a farmers’ variety, the breeder cannot give any
authorisation without the consent of the farmers or
communities from whose varieties the protected variety is
derived.
76

Farmers’ Rights
• To save, use, sow, re-sow, exchange, share or sell
his farm produce including seed in the same
manner as he was entitled earlier (Seeds for sale
should not be branded)
• To full disclosure of the expected performance of
the Seeds or planting material by the plant
breeder. Where these fail to perform in the
manner claimed by the breeder, the farmer may
claim compensation from the plant breeder.
77

Researchers’ Rights
Free and complete access to
protected materials for research
use in developing new varieties of
plants.
However, authorisation of the
breeder is required “whose repeated
use of such variety as parental line is
necessary for commercial production
of such other newly developed
variety”.
78

INTERNATIONAL ORGANISATIONS
79

International Organizations in IP
• World Intellectual Property Organisation
• World Trade Organisation
80

IPR LICENSING AND TECHNOLOGY
TRANSFER
81

Licensing of an IP
• Licence is a permission granted by an IP owner to
another person to use the IP on agreed terms and
conditions, while he continues to retain
ownership of the IP
• Licensing creates an income source
• It establishes a legal framework for transfer of
technology to a wider group of researchers and
engineers
• Creates market presence for the technology or
trademark
82

Licensing Conditions of IPRs
• Owners of IP prefer to transfer technology through
licensing agreements only
• All rights or limited rights can be licensed
• Can be exclusive or non-excusive or sole (owner and
licensee)
• Most such agreements provide for royalty payment and
non-transfer to a third party.
• Royalties can be upfront, part upfront and part % per
production/sale, only % per production/sale
• The particular uses for which the IP can be used are also
generally specified
• Needs to be careful about the Competition law
83

Is Licensing Profitable?
• IBM revenue from patent licensing $ 1.7 billion (2002)
• Texas Instruments generated $ 3 billion in licensing in
10 years
• US and Canadian Universities generated $ 1.1 billion in
royalties (2001)
• New York University $ 109 million (2004)
• Ohio University to get $52 M. From royalties on the
growth hormone drug SOMAVERT in 5 years (2011)
• CSIR $ 150 million in milestone payments + royalty
84

QUESTIONS?
For further information pl. contact at
E-mail: tcjames@nipo.in
85

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