Batch 2023-26

Intellectual Property Rights

Assignment – 3rd

Harshvardhan Parmar, Lakshya Agrawal, Tanshq Rathod

Business Law
Prof. Harish Bapat

Paper Due Date

Jan 15, 2025
 Intellectual Property Rights

DEFINITION
Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic
works; designs; and symbols, names and images used in commerce.

Intellectual property is protected in law by, for example, patents, copyright and trademarks,
which enable people to earn recognition or financial benefit from what they invent or create.
By striking the right balance between the interests of innovators and the wider public interest,
the IP system aims to foster an environment in which creativity and innovation can flourish.

Supporters of intellectual property laws often describe their main purpose as encouraging the
creation of a wide variety of intellectual goods. To achieve this, the law gives people and
businesses property rights to certain information and intellectual goods they create, usually for
a limited period of time. Supporters argue that because IP laws allow people to protect their
original ideas and prevent unauthorized copying, creators derive greater individual economic
benefit from the information and intellectual goods they create, and thus have more economic
incentives to create them in the first place. Advocates of IP believe that these economic
incentives and legal protections stimulate innovation and contribute to technological progress
of certain kinds.

The intangible nature of intellectual property presents difficulties when compared with
traditional property like land or goods. Unlike traditional property, intellectual property is
"indivisible", since an unlimited number of people can in theory "consume" an intellectual
good without its being depleted. Additionally, investments in intellectual goods suffer from
appropriation problems: Landowners can surround their land with a robust fence and hire
armed guards to protect it, but producers of information or literature can usually do little to
stop their first buyer from replicating it and selling it at a lower price. Balancing rights so that
they are strong enough to encourage the creation of intellectual goods but not so strong that
they prevent the goods' wide use is the primary focus of modern intellectual property law.
Importance of Intellectual Property Rights

Incentivizing Innovation and Creativity: IPR provide creators, inventors, and innovators with
the assurance that they will be rewarded for their efforts.

Driving Economic Growth and Competitiveness: IPR protection enables businesses to leverage
their innovations, develop market advantage, and gain a competitive edge in domestic and
global markets.

Encouraging Technology Transfer and Collaboration: IPR facilitate the transfer of technology
and encourage collaborations between different entities.

Protecting Consumers and Society: IPR safeguards consumers by ensuring the quality, safety,
and authenticity of products and services.

Promoting Cultural Diversity and Development: IPR strike a balance between rewarding
creators and promoting the dissemination of knowledge and cultural expression

Kinds of Intellectual Property Rights:

Patents: Patents grant inventors exclusive rights to their inventions, and provide the right to
prevent others from making, using, selling, or importing the patented invention without the
inventor’s permission. They are granted for a limited period, usually 20 years from the date of
filing.

Copyrights: Copyrights protect original artistic and literary works, such as books, music,
films, paintings, computer software, and architectural designs, and grants the creator exclusive
rights to reproduce, distribute, display, perform, and modify their works. Copyright protection
lasts for the lifetime of the author plus a certain number of years after their death (60 years).

Trademarks: Trademarks protect distinctive signs, symbols, logos, names, or phrases used to
identify and distinguish goods or services of one business from those of others. Trademark
owners have exclusive rights to use and protect their marks, and they can prevent others from
using similar marks that may cause confusion among consumers.

Geographical Indications: Geographical indications (GIs) identify products originating from

a specific geographical region, which possess qualities, reputation, or characteristics
attributable to that location, and they protect the reputation and distinctiveness of regional
products, such as wines, cheeses, textiles, or handicrafts, by preventing unauthorized use of the
geographical indication by others.
Case Study Starbucks Coffee Vs Sardarbuksh Coffee

The Plaintiff, Starbucks, registered their word mark ‘STARBUCKS’ and corresponding logo as
a trademark in the year 2001 in India. The Defendants started their company in 2015 with the
name ‘Sardarbuksh Coffee & Co''. Sardarbuksh’s logo comprised the face of a turban
commander with wavy lines on the sides surrounded by a circular black band. In 2017, the
Plaintiff asked the Defendants to change this logo through a letter of demand. In response to
this, the Defendant only changed the colour scheme to black and yellow and resumed business.
In May 2018, the Defendant commenced operations under the same name. The goods and
services provided by the Defendant and the Plaintiff are similar. The entire previous sequence
of events culminated in the plaintiff filing a suit against Sardarbuksh in the Hon’ble High
Court of Delhi. The Plaintiffs filed a suit against the defendants for infringing their trademark
by having a deceptively similar mark.

Issues:

Whether the Defendant’s mark is deceptively similar to that of the Plaintiff’s?

Laws:

Section 2(1)(h) of Section 11 of the Trademarks Act, 1999.

Analysis:

After referring to judgements in the past, the Court set forth various tests to prove deceptive
similarity, like the test of likelihood and confusion, goodwill and so on. They relied on the case
of National Sewing Thread Co. Ltd. vs. James Chadwick and Bros AIR 1953 SC 357, where it
was held that deceptive similarity could only be determined by stepping into the customer’s
shoes under the presumption that he is a man with ordinary intelligence. If the customer feels
confusion while differentiating the two brands, they can be deemed deceptively similar.

The Court gave the decision in the plaintiff’s favour. It ordered the defendants to change the
name of the business from “Sardarbuksh Coffee & Co.” to “Sardarji-Bakhsh Coffee & Co.”.
The order was enforced upon twenty of the defendant’s stores in total, all of which had not
been opened as of then. The Court, however, permitted the use of the name “Sardarbuksh
Coffee & Co.” for two stores that were already operating.

On the 27th of September, 2018, the defendant conceded and changed all of its outlets’ names
to "Sardarji-Bakhsh Coffee & Co." It was also held that if a third party were to use the term
“Bakhsh”, the defendant would be granted the right to file a suit against such infringement.
The suit at hand was thus settled.

Conclusion:

In this case, the understanding and the essence of a trademark was reiterated, that it is a unique
factor of identification and distinguishment to a consumer and the business in question. The
most significant characteristic of a trademark is the goodwill it garners over its period of usage.
‘Starbucks Coffee v. Sardarbuksh Coffee’ laid down essential guidelines as to when it can be
claimed that one trademark is deceptively similar to another and the effect that it can have on
the business whose trademark has been infringed.
 Legal frameworks, penalties, and the role of redressal agencies.

Fines and Penalties

The consequences of patent infringement, trademark infringement, and copyright infringement

can be severe. Fines and penalties vary depending on the type of infringement and the
jurisdiction but can include:

 Statutory Damages: Predetermined amounts set by law, which can be substantial,

especially for willful infringement.
 Actual Damages: Compensation for the actual loss suffered by the IP owner, including
lost profits and damages due to market dilution.
 Attorney’s Fees: In many cases, the infringer may be required to pay the legal fees of the
IP owner.

Legal Process

1. Cease and Desist: The initial step often involves sending a cease and desist letter to the
infringer, demanding they stop the infringing activity.
2. Litigation: If the infringer does not comply, the IP owner may file a lawsuit. Litigation
can be lengthy and costly, but it serves as a powerful deterrent against IP infringement.
3. Settlements: Many IP infringement cases are settled out of court, with the infringer
agreeing to pay damages and cease the infringing activities.
Examples of IP Infringements

Counterfeiting

Counterfeit goods are fake copies of branded products. This can range from manufactured items, fake designer
handbags and watches to counterfeit pharmaceuticals, which not only violate trademark laws but also pose
significant health and safety risks.

Piracy

Piracy is the unauthorized use or reproduction of another’s work, commonly associated with the illegal
distribution of movies, music, software, and books. This not only deprives creators of rightful revenue but also
undermines the value of their work.

Theft of Trade Secrets

Trade secret theft involves the unauthorized acquisition or disclosure of confidential information, such as
formulas, processes, or methods, that provide a competitive edge. This can result in severe financial loss and
damage to a company or companies.

Patent Infringement

Using, making, or selling a patented invention without the patent holder’s permission constitutes patent
infringements. This could include producing goods based on a patented product, design, or incorporating
patented technology into a product without authorization.

Design Infringement

Design infringement happens when a product copies or closely mimics the protected look and feel of another
product. This type of infringement often occurs in industries like fashion, where unique designs are critical to a
brand’s identity.

Each example highlights the diverse ways in which intellectual property can be infringed upon and underscores
the importance of stringent IP protection measures to safeguard creative and innovative works.

Right Area Legal provision Subject Term of Protection

Patent Patent Act, 1970 Must qualify requirements 20 years
& Patent Rules, 2003 of being novel, Inventive and having
amended in industrial utility
2014, 2016, 2017,
2019, 2020 and
2021.

Trademarks Trademark Act Protects brand name, 10 years; renewed

1999 & logo, design for a business or commercial for 10 years on payment of
enterprise additional fees
Trademark Rules 2017

Designs Designs Act 2000 New or original designs 10 + 5 years

& Designs (ornamental / visual appearance discernible
(Amendment) Rules to the human eye) which can be replicated
2021 industrially

Copyrights Copyrights Act 1957 & Creative, artistic, literary, Authors -Lifetime+
Copyrights Rules 2013 Musical and audio-visual works 60 years;
amended in
Producers – 60 years
2021.
Performers – 50 years;

Geographical Geographical Indications Act Goods bearing unique 10 years, Renewed

Indications
1999 & GI Rules 2002 characteristics due to for 10 years on
amended in
geographical linkage - agricultural goods, payment of additional fees
2020. natural goods, manufactured goods,
handicrafts and foodstuff

Let’s Understand with Table

How Businesses Can Protect Intellectual Properties?

There are several methods that businesses can use to protect their IP rights and prevent IP
infringement.

 Registration

The first method to protect your IP is to register it with the appropriate authorities in your
country or region. Registration will grant you legal recognition and protection for your IP and
allow you to enforce your rights against infringers. Registration will also help you avoid
conflicts with other IP owners and prevent others from registering similar or identical IPs.

 Monitoring

The second method to protect your IP is to monitor it regularly and keep track of its use and
status. Monitoring helps you detect any unauthorized or improper use of your IP by others and
take timely action to stop it. Monitoring also helps you maintain and renew your IP rights and
avoid losing them due to non-use or expiration.

 Enforcement

You can also protect your IP by enforcing it against infringers and violators. Through
Enforcement, you defend your IP rights and interests and deter others from infringing them.
Enforcement can be done through various means, such as sending cease and desist letters,
filing complaints, initiating lawsuits, seeking injunctions, claiming damages, or requesting
customs seizures.

 Management
Intellectual Property Management is to help you maximize the value and potential of your IP
and leverage it for your business goals and objectives. Management can involve various
activities, such as licensing, franchising, transferring, selling, or donating your IP to others.

IP is one of the most critical assets of a business. It can give it a competitive edge, enhance its
reputation, and generate revenue. However, it is also vulnerable to theft, copying, or misuse by
others, which can harm the business and its owners. Therefore, it is essential for businesses to
protect their IP rights and prevent IP infringement. This can be done by registering,
monitoring, enforcing, and managing their IP effectively and strategically.
Thankyou