Business Studies · Ch 9 — MSME and Business Entrepreneurship
Types of IPs
9.9.2
Types of IPs
IPRs are essential for fostering creativity and contribute to a nation's economic growth. They let creators and inventors control their creations, and they create incentives for artists, entrepreneurs and inventors to commit resources to research, develop and market new technology and creative works. In a changing global economy where geographical borders present no barrier and consumers can access almost anything, understanding IPRs and how they affect daily life is critical. The individual types of IP are explained below.
Copyright
- Copyright is the right to 'not copy'. It arises when an original idea is expressed by its creator or author.
- It is conferred on the creators of literary, artistic, musical, sound-recording and cinematographic works, giving them the exclusive right to prohibit unauthorised use — including reproducing and distributing copies.
- Its unique feature is that protection arises automatically as soon as the work comes into existence. Registration is not mandatory, but it is essential for exercising exclusive rights in case of infringement.
- What is protected: Literary work (pamphlets, brochures, novels, books, poems, song lyrics, computer programmes); Artistic work (drawings, paintings, sculpture, architectural and technical drawings, maps, logos); Dramatic work (including dance or mime, screenplay, musical works, sound recordings, cinematographic films).
Trademark
- A trademark is any word, name or symbol (or a combination) that lets us identify the goods of a particular individual, company or organisation and distinguish them from another's. A single brand or logo can convey a company's reputation, goodwill, products and services.
- A competitor cannot use the same or a similar trademark, as that falls under deceptive similarity — phonetic, structural or visual similarity.
- Two categories: (i) Conventional trademark — words, colour combinations, label, logo, packaging, shape of goods, etc.; (ii) Non-conventional trademark — marks that gained recognition over time, such as sound marks and dynamic marks. (Smell and taste are protected as trademarks in some parts of the world but not recognised in India.)
- Registration is not mandatory under the Trademark Act, 1999, but it helps establish exclusive rights. Marks can be registered via the Indian Trademark Registry (ipindia.nic.in).
Geographical Indication (GI)
- A GI identifies agricultural, natural or manufactured products (handicrafts, industrial goods, foodstuffs) originating from a definite geographical territory, where a given quality, reputation or characteristic is essentially attributable to that origin.
- GIs are part of our collective intellectual heritage and represent the collective goodwill of a region built over centuries.
- Examples: Naga Mircha, Mizo Chilli, Shaphee Lanphee, Moirangphee, Chakhesang Shawl, Bastar Dhokra, Warli Paintings, Darjeeling Tea, Kangra Painting, Nagpur Orange, Banaras Brocades and Sarees, and Kashmir Pashmina.
- Consumers increasingly value a product's geographical origin. There can be a difference between mere 'place of origin' and a 'geographical indication', which signals to consumers a particular quality or characteristic they may value.
Patent
- A patent protects scientific inventions (products or processes) that show technical advancement over already-known products. It is an exclusive right granted by the government — the 'right to exclude' all others from making, using, offering for sale, selling or importing the invention.
- Conditions for patentability: (i) New — it must not already exist in current knowledge anywhere in the world; (ii) Non-obvious — not obvious to a person reasonably skilled in the relevant field (the 'inventive step'); (iii) Industrially applicable — capable of being used or manufactured in industry.
- Invention vs discovery: A patent covers an invention, not a discovery. Newton discovering gravity from a falling apple is a discovery; Alexander Graham Bell inventing the telephone is an invention. Creating something novel is invention; highlighting something that already exists is discovery.
- What cannot be patented: scientific principles, anything contrary to well-established natural laws, abstract theory, frivolous inventions, anything prejudicial to morality or injurious to public health, methods of agriculture or horticulture, methods of treatment, admixtures, traditional knowledge, incremental inventions without increased efficacy, and inventions related to atomic energy — as listed under Sections 3 and 4 of the Patents Act, 1970.
- Term and purpose: A patent grants exclusive rights for 20 years, encouraging innovation in science. During this period, anyone wishing to use the patented subject-matter must seek the patentee's permission and pay for commercial use — a process called Licensing. A patent is a temporary monopoly; once its term expires the invention enters the public domain, free for all to use, which prevents anti-competitive practices.
Design
- A 'design' includes the shape, pattern, and arrangement of lines or colour combination applied to an article. It protects the aesthetic, eye-catching appearance of a product.
- Protection is valid for 10 years, renewable for a further 5 years. During the term a registered design can be used by others only under a licence from the owner; after validity ends, the design enters the public domain.
Plant Variety
- This means grouping plants into categories based on their botanical characteristics — a variety bred and developed by farmers (for example, hybrid varieties of potatoes).
- It helps conserve, improve and make available plant genetic resources, promotes investment in R&D, recognises Indian farmers as cultivators, conservers and breeders, and facilitates high-quality seeds and planting material — supporting growth of the seed industry. …