Unit -I

Introduction to Intellectual Property

Intellectual property rights (IPR) refers to the legal rights given to the inventor to protect his invention for
a certain period. These legal rights confer an exclusive right to the inventor/creator or his assignee to fully
utilize his invention/creation for a given time.
IPR is a strong tool, to protect investments, time, money, and effort invested by the inventor/creator of an
IP. Since it grants the inventor/creator an exclusive right for a certain period for use of his
invention/creation. Thus IPR, in this way aids the economic development of a country by promoting
healthy competition and encouraging industrial development and economic growth.

Types of Intellectual Property:

The term intellectual property is usually comprising four separate legal fields:

1. Trademarks
2. Copyrights
3. Patents
4. Trade Secrets
Trademarks play a valuable role in our economy. They serve to differentiate one merchant’s goods or
services from those of another and provide assurances of quality and consistency to consumers. Trademarks
relate to any mark, name, or logo under which trade is conducted for any product or service and by which the
manufacturer or the service provider is identified. Trademarks can be bought, sold, and licensed. Trademark
has no existence apart from the goodwill of the product or service it symbolizes.
There are four different types of marks:---
Trademarks  Used for goods
Service marks  Used for services
Certification marks  Used to certify the quality of a good or service
Collective marks  Used to show membership in an association.

Copyrights relate to the expression of ideas in material form. A copyright gives the creator of an original
work, or another right holder, the exclusive and legally secured right to copy, distribute, adapt, display, and
perform a creative work, usually for a limited time. To be more precise copyright means ‘right to copy’,
wherein only the creator or his authorized person has a right to reproduce a work. In simple words, a legal
right which is possessed by the owner of Intellectual property is a copyright.
Further, a copyright is a safeguard that protects an original work from getting duplicated. When any work is
exclusively created by the independent intellect of a creator without any duplication is called Original Work
of Authorship (OWA). Anyone who is the original creator of any work automatically has a right over it and
also can prevent anyone else to use it or copy it or replicate it for his use.
Patents are the legal rights granted by the federal government that permit its owner to prevent others from
making, using, selling, or importing an invention. There are three types of patents.
1) Utility patents
2) Design patents
3) Plant patents.
The great majority of patents are utility patents, granted for useful objects or processes.
Trade Secrets consist of any valuable business information that, if known by a competitor, would afford the
competitor some benefit or competitive advantage. To be protected, trade secrets must be protected by their
owner from unauthorized discovery. If properly protected, trade secrets may last forever.
Trade secrets represent a distinctive category of intellectual property, offering legal protection to confidential
information that holds commercial value. To qualify as a trade secret, information must be safeguarded as a
closely held secret within a limited group, with the rightful owner taking reasonable steps to maintain its
confidentiality. Such protection extends to a broad spectrum of confidential business details, ranging from
technical data like manufacturing processes and software algorithms to commercial insights such as
distribution methods and advertising strategies.

International Organizations, Agencies, and Treaties:

Several international organizations and agencies promote the use and protection of intellectual property.
International Trademark Association (INTA) is a not-for-profit international association composed
chiefly of trademark owners and practitioners. More than 5,500 trademark owners and professionals in
more than 190 countries belong to INTA, together with others interested in promoting trademarks. INTA
offers a wide variety of educational seminars and publications, including many worthwhile materials
available at no cost on the Internet.

World Intellectual Property Organization (WIPO) was founded in 1970 and is a specialized agency of
the United Nations whose purposes are to promote intellectual property throughout the world and to
administer 24 treaties dealing with intellectual property, including the Paris Convention, Madrid Protocol,
the Trademark Law Treaty, the Patent Cooperation Treaty, and the Berne Convention. More than 180
nations are members of WIPO.
The World Trade Organization (WTO) was organized in 1995 and deals with rules of trade among its
more than 150 member nations. It resolves trade disputes and administers various agreements, including
those relating to intellectual property. It is headquartered in Geneva, Switzerland.

Several international agreements and treaties affect intellectual property. Among them are the following:
Berne Convention for the Protection of Literary and Artistic Works (the Berne Convention).
The Berne Convention was created in 1886 under the leadership of Victor Hugo to protect literary and
artistic works. It has more than 160 member nations. The United States became a party to the Berne
Convention in 1989. The Berne Convention is administered by WIPO and is based on the precept that
each member nation must treat nationals of other member countries like its own nationals for purposes of
copyright.

Madrid Protocol. The Madrid Protocol came into existence in 1996 and allows trademark protection
for more than 80 countries, including all 27 countries of the European Union, using a centralized,
trademark-filing procedure. The United States implemented the terms of the Protocol in late 2003. This
treaty facilitates a one-stop, low-cost, efficient system for the international registration of trademarks by
permitting U.S. trademark owners to file for international registration in any number of member countries
by filing a single, standardized application form with the USPTO, in English, with a single set of fees.

Paris Convention. One of the first treaties or “conventions” designed to address trademark protection in
foreign countries was the Paris Convention of 1883, adopted to facilitate international patent and
trademark protection. The Paris Convention is based on the principle of reciprocity, so that foreign
trademark and patent owners may obtain in a member country the same legal protection for their marks
and patents as citizens of those member countries. Perhaps the most significant benefit provided by the
Paris Convention is that of priority. An applicant for a trademark has six months after applying to any of
the more than 170 member nations to file a corresponding application in any of the other member countries
of the Paris Convention and obtain the benefits of the first filing date. Simi- lar priority is afforded for
utility patent applications, although the priority period is one year rather than six months. The Paris
Convention is administered by WIPO.

North American Free Trade Agreement (NAFTA). The NAFTA came into effect on January 1, 1994,
and is adhered to by the United States, Canada, and Mexico. The NAFTA resulted in some changes to U.S.
trademark law, primarily about marks that include geographical terms.
Agreement on Trade-Related Aspects of Intellectual Property (TRIPS). Negotiated from 1986–1994,
TRIPS is administered by the World Trade Organization and establishes minimum levels of protection that
member countries must give to fellow WTO members. Computer pro-grams must be protected as
copyrightable literary works, and countries must prevent the misuse of geographical names such as
Roquefort or Champagne.

The Increasing Importance of Intellectual Property Rights:

Although people have always realized the importance of protecting intellectual property rights, the rapidly
developing pace of technology has led to increased awareness of the importance of intellectual property
assets. Some individuals and companies offer only knowledge. Thus, computer consultants, advertising
agencies, Internet companies, and software implementers sell only brainpower. Similarly, some forms of
intellectual property, such as domain names and moving images shown on a company’s Web page, did not
even exist until relatively. Internet domain names such as “www.ibm.com” are valuable assets that must
be protected against infringement.
The International Intellectual Property Alliance estimates that total copyright industries accounted for 11
percent of the U.S. gross domestic product in 2007 and that more than 11 million workers are employed
by these industries. Additionally, nearly $126 billion of U.S. exports now depend on some form of
intellectual property protection, including pharmaceuticals, motor vehicles, and aircraft and associated
equipment. Moreover, the rapidity with which information can be communicated through the Internet has
led to increasing challenges in the field of intellectual property.

Compliance and liability issues of Intellectual Property Rights

Intellectual Property Rights (IPR) encompass a range of legal rights granted to individuals or entities over
creations of the mind, such as inventions, literary and artistic works, designs, symbols, and names used in
commerce. Compliance with and liability issues related to IPR are crucial considerations for businesses,
creators, and innovators. Here's an overview:

1. Compliance with Laws and Regulations: Different jurisdictions have varying laws and
regulations governing intellectual property. Businesses and individuals must ensure they comply
with these laws to avoid legal repercussions. For instance, this could involve obtaining patents for
inventions, registering trademarks for branding, or copyrighting creative works.

2. Protection of Intellectual Property: To safeguard their intellectual property, individuals and

organizations must take appropriate measures such as obtaining patents, trademarks, or copyrights.
Failure to adequately protect intellectual property can lead to infringement by others, resulting in
loss of revenue and reputation.

3. Liability for Infringement: Infringement occurs when someone violates the rights of the
intellectual property owner without authorization. This could include using patented technology,
copying copyrighted material, or using a trademark without permission. The consequences of
infringement can be severe, including legal action, financial penalties, and damage to reputation.

4. Enforcement of Rights: Intellectual property owners have the responsibility to monitor and
enforce their rights. This may involve sending cease and desist letters, filing lawsuits, or pursuing
alternative dispute resolution mechanisms. Failure to enforce rights can weaken the owner's
position and may lead to loss of exclusivity.
 5. International Considerations: In today's global economy, intellectual property issues often extend
beyond national borders. Businesses operating internationally must navigate a complex landscape
of laws and treaties governing intellectual property. This includes considerations such as cross-
border enforcement, jurisdictional issues, and differences in legal standards.

6. Compliance in Innovation and Research: Companies engaged in research and development must
ensure they respect the intellectual property rights of others. This includes conducting thorough
searches to avoid infringing existing patents, licensing technologies when necessary, and
establishing clear policies for intellectual property management.

7. Risk Management: Intellectual property compliance is a critical aspect of risk management for
businesses. Failure to adequately address intellectual property issues can expose companies to
significant financial, legal, and reputational risks. Therefore, robust policies, procedures, and
training are essential to mitigate these risks.

Overall, compliance with intellectual property laws and regulations is essential for businesses and
individuals to protect their rights, avoid liability, and foster innovation in a global marketplace. Effective
management of intellectual property requires a comprehensive understanding of legal requirements,
proactive measures to protect rights, and diligent enforcement when necessary.