Fet501 - Fad501 - FSH501 - 08 - 02 Ipr

Module Code: FET501/FAD501/FSH501
Module:
Principles of Management and Soft Skills Development
Session_08_02: Intellectual Property Rights
Session Delivered By:
Prof. H.N. Nagesha

Email: hnagesha.ms.mc@msruas.ac.in
1
Faculty of Management and Commerce
M. S. Ramaiah University of Applied Sciences
Session Objectives
At the end of this session, students will be able to:
Explain concepts and importance of Intellectual Property Rights
(IPR)
Explain key features of Patents Act, Designs Act, Copyrights Act,

Trade marks Act and Geographical Indications
2
Session Contents
Intellectual Property Rights
Patents
Designs
Copyrights Act
Trademarks Act
Geographical Indications
3

Property: Works on the principle of exclusion
It allows the owner, enjoyment without interference
Owner can use it, gift it sell it or destroy it
Types of property: Moveable and Immovable property

Intellectual property is intangible
It can create useful and valuable things idea can be used to
create property
4
Intellectual property (IP): Refer to a number of distinct types

of creations of the mind for which a set of exclusive rights
are recognized and the corresponding fields of law
Owners are granted certain exclusive rights to a variety of

intangible assets
Ex: Musical, literary, and artistic works; discoveries and
inventions; and words, phrases, symbols, and designs
5

India is a signatory of Trade-Related aspects of Intellectual
Property rights (TRIPs) in the Uruguay Round agreement
of 1995
India is now bound to amend existing laws in order to
make it to make it TRIPs-compliant
The government has initiated action to bring in the

requisite changes
6
Intellectual Property Right
India has enacted fully TRIPs-compliant Trademarks Act,

Copyright Act, Designs Registration Act, Geographical
Indications Act and Protection of Layouts for Integrated
Circuits Act
A Novel Plant Varieties Protection and Farmers Rights Act
2001 and the Bio-diversity Act 2002 are also in Place
7

Common types of intellectual property rights are:
Patents
Industrial design rights
Copyrights
Trademarks
Trade secrets in some jurisdictions
8
9
For Most Products Every Form of Intellectual

Property Rights Can be obtained
CAMERA
PATENT For every individual improved mechanism
DESIGN For outer shape & Contour / Configuration

TRADE MARK Brand name or Logo for goods denoted as
COPY RIGHT For Instruction / manual booklet denoted as
10

Industrial design
protection for 3D
shape
Brand nameregistered under

trademark
CD Player
Music played on the CD

player is protected by
copyright
Technical parts &

mechanisms can be protected
under Patents
11

Pressure
Cooker
PATENT For every individual improved mechanism
DESIGN For outer shape & Contour/Configuration

TRADE MARK Brand name or Logo for goods denoted as
COPY RIGHT For Instruction/Manual booklet denoted as
12
Patents
13
Patents
Inventions are subject matter of patents
The Patents Act, 1970: Deals with the patenting
Patenting process:
A person applies to the controller of Patents
The Controller checks for claim with respect to novelty
and usefulness of ideas and other requirement of the
Law
The person gets a patent right for certain period
Exclusive right to use invention
14
Patent Grant Procedure

Filing of patent application
Publication after 18 months
Early Publication
Pre Grant Opposition /

Representation by any person
Request for examination

Examination: Grant or Refusal
Publication of Grant of patent
Post Grant Opposition to grant of patent (Constitution
of Opposition Board)
Decision By Controller
15
Anatomy of a Patent
Title, Inventors, Assignees, Date of filing, Date of Publication, Date of Grant,
International Classification, National Classification Application number, Patent
Number; Abstract
Background of The Invention
Description of The Prior Art
Summary of The Invention
Brief Description of The Drawings
Detailed Description
Preferred Embodiments
Claims
16
Organization Structure IP Offices

Ministry of Industry &
Commerce
Office of the Controller
General of Patents, Designs
And Trademarks
Designs wing
(Kolkata)
Patent office
( Kolkata, Delhi,
Mumbai,
Chennai)
Trade Marks
Registry
( Kolkata, Delhi,
Mumbai,
Ahmadabad
Chennai)
Geographical
Indications
Registry
( Chennai)
Patent
Information
Service
( Nagpur)
17
Patents
Patentee: A person in whose favour a patent is granted
A patentee can use, sell to another person, or grant a

license to use the patent to others
Any use without license or authorisation from patentee is

an infringement
The patentee can move the court to restrain the violator

and claim damages
18
Patents
What can be Patented?
An invention can be patented
For an idea to qualify as an invention, it has to fulfill the
requisites of:
Novelty or inventiveness
Non-obviousness
Usefulness
19
Product V/s Process Patents
An invention can be either a process or of a product
Product: a watch, cycle, car, a television, or a new

antibiotic
Process: The process of making a chemical/medicine can

be an invention
20
Product V/s Process Patents
Section 5 of Act, do not permit patents in case of certain

products
i.
Substances intended to use, or capable of being used, as food or

medicine or drug
ii.
Relating to substance prepared or produced by chemical

processes
A person cannot apply for patents of substance, but apply

for the methods or process of manufacturing
21
Options Available to the IPR Holder

Exploit the IPR himself/herself
License the IPR to another party or Barter Rights
Cross License for mutually independent working and / or
collaborative working
Assign the IPR to another party (s) for an appropriate return
Establish a franchise system involving other parties
Take action against those who infringe his rights
Let the rights selectively lapse in certain countries
22

Hello Kitty New Jewellery Collection by Kimora Lee Simmons and
Judith Leiber
Hello Kitty's parent company, Sanrio, signed a licensing deal with powerhouses
Judith Leiber and Kimora Lee Simmons to produce a luxury accessory collection
of the girls' icon
Calvin Klein Expands Bridge Business
Calvin Klein Inc. signed a licensing deal with an affiliate of Italian manufacturer
Fingen SpA to reintroduce CK Calvin Klein clothing line and accessories in Europe
and the Middle East starting next spring.
Source: fashiongates.com
23

PLH Plans Worldwide Expansion of Porsche Design
German luxury automaker Porsche and its licensing and trading
company Porsche Lizenz- und Handelsgesellschaft mbH & Co KG
(PLH) intend to push the worldwide expansion of the Porsche
Design brand and to introduce a new store concept along with
new licenses, including mens sportswear line
Expectations High for Beyonce`s Ready-to-Wear Line

International film and recording star, Beyonce Knowles, entered into a
joint venture with Arthur and Jason Rabin to provide the infrastructure
for licensing and brand management to the new Beyonce fashion label
Source: fashiongates.com
24
Patents Not Only For Major Technological

Breakthrough
Even for any small incremental inventions
LAZLO biros - ball point pen
Ring pull for cans of beverages
Individuals OR Companies-normally do not clearly recognize the TRUE

MARKET VALUE for a particular Invention
Anti theft device for motor cars-wheel clamp
Tetra pack style of cartons for milk & fruit juice
25
Compulsory Licensing
Company could get a patent right in India and do not produce
or give license to anyone to produce in India
Result: India may have to import at high cost
Indias industrial development would be slowed down, result
in draining of the foreign exchange
Company could curtail availability, control price and earn huge
profits
After three years, any person could make an application for
compulsory licensing
26
Compulsory Licensing
Applicant has to establish that reasonable requirement of
the public have not been satisfied or the prices charges are
unreasonable
Inventions deemed for Licenses to Right after 3 years are:
Substances used as food/ medicines/ drug
The manufacturing methods/ processes
27
Designs
28
Designs
The existing legislation on industrial designs in India is
contained in the New Designs Act, 2000
India had achieved a mature status in the field of industrial
designs
The present legislation is aligned in view of the changed
technical and commercial scenario and made to conform to
international trends in design administration
29
Designs
The protection is only for the appearance of the
article and not how it works
Design registration is intended to protect designs
which have an industrial or commercial use
Duration of protection is initially for 10 years and

extendable for another term of 5 years
Designs of stamps, labels, tokens, cards, cartoons,
or parts of an article not sold separately, cannot be
registered
30
Copyrights
31
Copyrights
India has a very strong and comprehensive copyright law Indian Copyright Act, 1957
The amendment in 1994 were a response to technological
changes
Major Areas:
Communications (broadcasting and telecasting)
The emergence of new technology (computer software)
32
Copyrights
The Act list wide areas of expressions art, literature, music,
and film which can be copyrighted
The copyrighting is in favour of author/creator
The Act provides mechanism to registering work with the

government for extended protection
The Act prohibits the copying or reproduction of copyrighted
material
Unauthorized user can be prosecuted
33
Copyrights
The 1999 amendments have made the Copyright Act fully
compatible with TRIPS
The amended law has provisions to protect performers rights
as envisaged in the Rome Convention

The Indian Copyright law is one of the most modern copyright
laws in the world
34
Copyrights
Important requirement is that the work must be original
Without copyright protection, any one could copy anothers
work and become owner of the work
The copyright is not related to not ideas, but to their

expressions
Expressed in a tangible form
Expressed in sentences, paragraphs or a novel literary work
to be written or musical work recorded
35
Copyrights
Author: is a person who creates the work and owns it
Employer: Have the ownership on a work produced by an
author under a contract of service or apprenticeship
A person who commissions another to take a photo, draw a

painting will be the owner
Musical work: composer is the owner
Film and sound recording: producer is the author
36
Copyrights
Territorial limitations
A copyright arises in the following cases:
i.
The work is first published in India
ii.
The work is first published outside India, but the author is a citizen of India
iii.
In case of unpublished work, the author is, at the date of making work, a
citizen of India or domiciled in India
iv.
In case of an architectural work of art, the work is located in India
37
Copyrights
Rights of Owner
The Act lists certain activities which cannot be done in relation to
copyrighted work:
i.
To reproduce the work in any material form, including its storing in an

electronic medium
ii.
To publish work
iii.
To perform the work in public,
iv.
To make any cinematographic film or record
v.
To make any translation or adaptation of the work

38
Copyrights
Rights of Owner
The Act grants exclusive rights to the owner of a copyright in a

cinematograph film:
i.
To make copies of the film
ii.
To communicate the film to the public, by broadcasting or other

means
Records: similar rights have been granted
Computer softwares: are covered under the head literary, dramatic and
musical work. Author can sell or give on commercial rental
39
Copyrights
Activities which are not Copyright Violations
i.
A fair deal for the purposes of private use, research, criticism or review
ii.
A fair deal for the purposes of reporting current events in a newspaper,

magazine or periodicals
iii.
For the purposes of state or functioning of law, judicial proceedings
iv.
Reading or reciting in public
v.
Publication of short passages, for educational purposes
vi.
By teacher or pupil in the course of instruction
40
Copyrights
Activities which are not Copyright Violations
vii. Making upto three copies of book for a public library, if such book is not
available for sale in India
viii. Reproduction or publication of any matter published in official gazettes, Acts
enacted by the Parliament or State Legislatures

ix.
Reproduction or publication of any committee, commission, council

appointed by the legislatures, unless the government has prohibited it
x.
Reproduction or publication of any judgment or order of a court, tribunal, or

other judicial authority, unless it has been prohibited by the court
41
Copyrights
Duration of Copyright Protection
Literary, dramatic, musical or artistic work: when published during life time
of the author, copyright subsists during the lifetime of the author + for the
next sixty years from the death of the author
Joint authors: 60 years to be counted after the death of author who dies
last
Work which is anonymous or pseudonymous copyright: 60 years from the
date of publications
Photographs and films: for a period of sixty years from the date its
publications
42
Copyrights
Broadcast Reproduction Rights
No person can re-broadcast a broadcast
Ex- If a television channel is broadcasting a sport event, no other

broadcaster can, without licence from the owner, can record or take the
feed and broadcast it
No person can make a recording of a broadcast
No person is to sell or hire a broadcast without licence from the owner
Exceptions: private use, reporting in current events, or for the review,

teaching and research
43
Copyrights
Registration of Copyrights
A person becomes owner once it is created, no need to register

to become owner
Registration is useful if a dispute arises in case of an

infringement of a copyright
Certificate of registration is a prima-facie evidence before court
The office of the Registrar of Copyright is created
44
Copyrights
Registration of Copyrights
While applying for registration details required are - All the

details of the work, as contained in the rules
To submit a copy of work
The Registrar receives application, also receives objections on

the applications, examines correctness of the information
Upon satisfaction, work is registered and certificate issued
45
Copyrights
Copyright Infringement
Infringement include a person:
i.
Copying or reproducing a work
ii. Who commercially deals in, by selling, hiring or importing a

pirated CD
iii. Permits for profit, the use of place for communication of the
copyright work to the public
46
Copyrights
Copyright Infringement
The Act provides for civil and criminal liability
The court can stop the infringer and award gains made by the
infringer + damages
All the infringed copies will become the property of the owner
of the copyright
Infringer is punishable with imprisonment (between 6 months

3 years) and fine (Rs. 50,000 2,00,000)
47
Fryetts Fabrics Settles Hathi Design Infringement Claim Against

Natural World
Tessitura A R Export SRL manufactured for Fryetts, as exclusive distributor,

a distinctive cushion panel design known as Hathi, marketed by Fryetts
within its Porter & Stone collection from June 2000
By mid 2002 Fryetts had sold over 45,000 metres of Hathi
Natural World then began to sell a similar design marketed as Festival

Elephant at prices which undercut the Hathi product
Fryetts filed suit against Natural World alleging infringement of copyright

and seeking an Injunction and damages
48
Fryetts Fabrics Settles Hathi Design Infringement Claim Against

Natural World
Natural Worlds
Festival Elephant
Fryetts Hathi
Decision in Favour of Fryett: Payment of 55,000, together with undertakings from Natural
World to withdraw its Festival Elephant cushion and to deliver up all residual stocks of that
design to Fryetts.
49
Yves Saint Laurent vs Ralph Lauren
In 1970, the French designer Yves Saint Laurent (YSL) created and
successfully marketed a long black sleeveless tuxedo-like evening dress,
which the YSL fashion house reintroduced in their 1992 collection.
Ralph Lauren was selling a similar version of the dress in their 1992
collection.
YSL brought suit against Ralph Lauren under copyright infringement,
design infringement and unfair competition.
50
Yves Saint Laurent vs Ralph Lauren
In May 1994, the court in Paris decided in favor of YSL
Court concluded that YSL owned the 1970 dress design under the law on
Designs and Models and also considered the dress design an original
copyrighted creation
YSL was awarded damages of FFr 2 million.
50% for copyright infringement and 50% for damages resulting from unfair
competition
51
Trade Marks
52
Trademarks
A Trademark is any sign which can distinguish the goods of one
trader from those of another
Sign includes, words, logos, pictures, or a combination of these
53
Trademarks
A trade mark is used as a marketing tool so that customers can

recognize the product of a particular trader
To register a trade mark, the mark must be: Distinctive, and, not deceptive, or contrary to law or
morality, and, not identical or similar to any earlier marks
for the same or similar goods
54
Selecting a Trademark
1. A word, letter or any combination thereof and simple in
design
2. If it is a word it should be easy to speak, spell and remember
3. The ideal word for a trade mark is an invented or coined word
4. Words which are laudatory or which directly describes the
character or quality of the goods should not be adopted
5. Geographical names connected with the reputation or quality
of the goods for which registration is sought should not be
adopted
.
55
Registration of a Trademark
Not possible to register a mark which is confusing with a trade
mark of another trader or a trade mark which describes the
character or quality of the goods
The mark should not conflict with a trade mark already
registered or pending registration in respect of similar goods
56
Trademarks
A merchant who affixed a mark on his goods obtained a
property right in the mark which he so fixed and the
property thus acquired like all other property, was under
the protection of law and for the invasion of the right of
the owner of such property
57
Trademarks
A trader acquired a right of property in a distinctive mark
merely by using it upon or in connection with his goods,
irrespective of the length of such user and of the extent of his
trade and that such right of property would be protected by an

injunction restraining any other person from using the mark
58
The Act of 1958

Individuals and firms could get their trade marks registered for
goods
The Act provides detailed grounds for the registration or
refusal to register a mark

Key Requirement: Mark should be distinctive of the origin of
the goods
Mark should be registered only in relation to specific goods,

falling in specific class of goods
59
The Act of 1999

The Act has 34 classes of goods and 7 classes of services
The services covered banking, communication, education,
financing, insurance, chit funds, real estate, transport, storage,
material treatment, processing, supply of electrical or other

energy, boarding, lodging, entertainment, construction,
amusement, repair, conveying of news or information and
adverting
60
The Act of 1999

The duration of validity of trade mark is 10 years
A single application can be made for registration in more
than one class
The definition of a trade mark may include the shape of

the goods, their packaging, and the combination of colors,
so long as the mark is capable of distinguishing the goods
and services of one from the goods and services of another
61
The Act of 1999

An association can get a mark distinguishing the goods and
services of its members, registered as a collective mark
Expansion of the meaning of Trademarks Infringement:
Protection is applicable for similar goods, dissimilar goods, and

business name of the firm
Protection is applicable to existing foreign trademarks and well
known trademarks
62
Tommy Hilfiger Licensing Inc. vs. Nature Labs LLC

The US District Court in New York dismissed Tommy Hilfiger Licensing Inc's suit
finding that "Timmy Holedigger", Nature Labs perfume for dogs, does not
infringe on the fashion designer and cologne maker's trademark.
Nature Labs sells its perfumes in pet and novelty stores,
packaged in batches of three similar bottles,
bearing slogans like "strong enough for a man,
but made for a chihuahua." `
63
Tommy Hilfiger Licensing Inc. vs. Nature Labs LLC
The Court ruled that the perfume, called Timmy Holedigger, could not under
any circumstance be confused with Tommy Hilfiger cologne, nor could it be seen
as a competing product trading on the designer's good will.
Besides, Nature Labs LLC, sells numerous other parody fragrances for pets,
including Pucci (Gucci), Bono Sports (Ralph Lauren's Polo Sports) and Miss
Claybone (Liz Claiborne).
The Court observed that the other trademark holders have accepted the parody
and not challenged Nature Lab's Trademarks.
64
Trademarks Infringement
Consumption Daily 6/29/2004
Beijing 50,000 Counterfeit LV Bags Destroyed
The local Technical Supervision Bureau (TSB) in Beijing destroyed 50,000 Louis
Vuitton bags, worth RMB5 million
LVs agent in China witnessed the destruction of the seized bags
China Intellectual Property News 7/3/2004
Guangdong Biggest Trademark Infringing Case
Guangdong AIC recently released information on a trademark infringing case
with an estimated total value of RMB11 million
The infringing products seized were mainly sportswear labeled NIKE,
Adidas, and other brands
Some of the infringing shoes included NIKE designs that are scheduled to be
launched in 2005.
65
Gillette
Manufacturers of male and female grooming products,
writing instruments and correction products, tooth
brushes, oral care appliances, and alkaline batteries
Products include blades, razors, shaving preparations and

hair epilating devices among others
66
Gillette
Internationally recognised brand names such as BRAUN, PARKER
PEN, WATERMAN, LIQUID PAPER, ORAL B, DURACEL,...
Flagship Brand .. GILLETTE
Products protected and nurtured by Trademarks in various parts
of the world
67
Gillette
Gillette Company Asset Values (US $ million)
Working Capital
Fixed/Other Assets
Intangible Assets
(est. 10% of TIC)
Intellectual Property
Total Invested Capital
(TIC)
Value ($
m)
Total (%)
2,850
5,131
5,854
4.9
8.8
10.0
44,700
76.3
58,535
100.0
Source: PRICEWATERHOUSE COOPERS publication Valuation of Intellectual Property

68
69
An indication used to identify agricultural, natural or
manufactured goods originating from a definite territory in
India
It should have a special quality or characteristics or reputation

based upon the climatic or production characteristics unique to
the geographical location.
Ex: Darjeeling Tea, Kanchipuram Silk Saree, Alphonso Mango,

Nagpur Orange, Kolhapuri Chappal, Bikaneri Bhujia, ..
70
TRIPS provisions - For reciprocal protection; protection in the
country of origin is must

Cases like Turmeric, Neem and Basmati
India enacted the Geographical Indications of Goods

(Registration & Protection) Act, 1999 (with effect from 15th
September 2003)
71
Any association of persons, producers, organization established

by or under the law can apply representing & protecting the
interests of the producers
The registration of a GI: Ten years
Renewal is possible: Further periods of 10 years each
72
Trade mark:
A sign used in the course of trade
Distinguishes goods or services of one enterprise from
those of other enterprises
Geographical Indication:
Used to identify goods having special characteristics
originating from a definite geographical territory
73
Summary
Intellectual property (IP): Owners have certain exclusive

rights to a variety of intangible assets - Ex: Musical, literary,
and artistic works,.
Common types of intellectual property rights are: Copyrights,

Trademarks, Patents, Industrial design rights,
Inventions are subject matter of patents
74
Summary
Options available for parent holder: Exploit the IPR

himself/herself, License the IPR to another party or Barter
Rights, Cross License for mutually independent
Design: The protection is only for the appearance of the

article and not how it works
Wide areas of expressions art, literature, music, and film

which can be copyrighted
75
Summary
A Trademark is any sign which can distinguish the goods of one
trader from those of another
Geographical indication: used to identify agricultural, natural or
manufactured goods originating from a definite territory in

India
GI should have a special geographical location quality or
characteristics or reputation - Darjeeling Tea, Kanchipuram Silk

Saree, Alphonso Mango, Kolhapuri Chappal, Bikaneri Bhujia, ..
76

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Module Code: FET501/FAD501/FSH501

Prof. H.N. Nagesha

M. S. Ramaiah University of Applied Sciences

Explain key features of Patents Act, Designs Act, Copyrights Act,

M. S. Ramaiah University of Applied Sciences

M. S. Ramaiah University of Applied Sciences

Intellectual Property Rights

Types of property: Moveable and Immovable property

M. S. Ramaiah University of Applied Sciences

Intellectual Property Rights

Intellectual property (IP): Refer to a number of distinct types

Owners are granted certain exclusive rights to a variety of

M. S. Ramaiah University of Applied Sciences

Intellectual Property Rights

The government has initiated action to bring in the

M. S. Ramaiah University of Applied Sciences

Intellectual Property Right

India has enacted fully TRIPs-compliant Trademarks Act,

2001 and the Bio-diversity Act 2002 are also in Place

M. S. Ramaiah University of Applied Sciences

Intellectual Property Rights

Industrial design rights

Trade secrets in some jurisdictions

M. S. Ramaiah University of Applied Sciences

M. S. Ramaiah University of Applied Sciences

For Most Products Every Form of Intellectual

PATENT For every individual improved mechanism

DESIGN For outer shape & Contour / Configuration

M. S. Ramaiah University of Applied Sciences

For Most Products Every Form of Intellectual

Brand nameregistered under

Music played on the CD

Technical parts &

M. S. Ramaiah University of Applied Sciences

For Most Products Every Form of Intellectual

DESIGN For outer shape & Contour/Configuration

M. S. Ramaiah University of Applied Sciences

M. S. Ramaiah University of Applied Sciences

Inventions are subject matter of patents

The Patents Act, 1970: Deals with the patenting

M. S. Ramaiah University of Applied Sciences

Patent Grant Procedure

Publication after 18 months

Pre Grant Opposition /

Request for examination

M. S. Ramaiah University of Applied Sciences

M. S. Ramaiah University of Applied Sciences

Organization Structure IP Offices

M. S. Ramaiah University of Applied Sciences

Patentee: A person in whose favour a patent is granted

A patentee can use, sell to another person, or grant a

Any use without license or authorisation from patentee is

The patentee can move the court to restrain the violator

M. S. Ramaiah University of Applied Sciences

What can be Patented?

An invention can be patented

For an idea to qualify as an invention, it has to fulfill the

M. S. Ramaiah University of Applied Sciences

Product V/s Process Patents

An invention can be either a process or of a product

Product: a watch, cycle, car, a television, or a new

Process: The process of making a chemical/medicine can

M. S. Ramaiah University of Applied Sciences