WHAT IS INTELLECTUAL
• Someone who is responsible for a “creation of the
intellect” such as an inventor, Author or originator
creates intellectual property. Like tangible property ,
their creation has a value and, as with all property, it
needs to be protected. Intellectual property rights
give them this protection, as well as helping them
exploit and control Their IP. Such a person is
known as a „rights owner‟ or „rights holder‟.
Intellectual property refers to creations of the mind ;
inventions, Literary and artistic works and symbols,
names, images, design used in commerce.
Classification of IPR
Intellectual property can be characterised as the
property in ideas or their expression. Its a Creation
of the mind, For example, a technological
innovation, a poem, or a design. It protects the
rights of individuals and businesses who have
transformed their ideas into property by granting
rights to the owners of those properties.
Intellectual property can be classified into the
following four categories.
• According to Indian Patent Act 1970. A patent is the
form of a certificate granted by a government . Patent
gives the inventor the right to exclude others from
initiating, manufacturing, using or selling the
invention in question for commercial use during the
special period. Patent is an exclusive monopoly right.
It is granted by government. Inventor make use of
manufacture and market the invention. It is for a
limited period of time.
The procedure for granting patents, the requirements
placed on the patentee, and the extent of the exclusive
rights vary widely between countries according to
national laws and international agreements. Typically,
however, a patent application must include one or
more claims defining the invention which must meet
the relevant patentability requirements such
as novelty and non-obviousness. The exclusive right
granted to a patentee in most countries is the right to
prevent others from making, using, selling, or
distributing the patented invention without
Who can apply for Patent?
• An inventor.
• Person/company legally assigned by the
• legal representative of any inventor.
• Either alone or jointly by above persons.
Making, using or selling a patented invention
(product or process) without permission from
the patent owner is Infringement.
• Infringement suit can be filed only after patent
is issued (granted).
• Relief includes fine or account of profit.
• Use for research purpose is not act of
• According to Indian Trademark Act 1999. A
trademark is a brand or a part of brand that
give legal protection because it is capable of
exclusive appropriation. A trademark protects
the sellers rights to use the brand name and/or
brand mark. TM is an exclusive mark intended
to differentiate the product of one seller with
others. Word or symbol used by manufacturers
to identify goods. It is a distinctive sign which
is used to prevent confusion among products in
the market place.
• Trademarks are commercial source indicators
distinctive signs that identify certain goods or
services produced or provided by a specific
person or enterprise. Trademarks are especially
important when consumers and producers are
far away from one another.
Importance of Trademark
• Exclusive rights registered trademarks owners
have exclusive right to use their marks in trading.
They also have the rights to take legal action for
infringement under the Trade Mark Law against
others who use their marks without consent.
• Legal Evidence registration certificate issued by
registrar office is a prime evidence of trademark
ownership. A certificate of registration serves as
an important document to establish the ownership
of goods exported to other countries.
• Duration of Registration is valid for ten
years from the date of application and may be
renewed every ten years.
Trademark infringement is a violation of the
exclusive rights attaching to a trademark
without the authorization of the trademark
owner or any licensees.
• Infringement may occur when one party the
“infringer” uses a trademark which is identical
to a trademark owned by another party.
• An owner of a trademark may commence legal
proceedings against a party which infringes its
According to Indian Copyright Act 1957
.Copyright is a legal term describing the
economic rights given to creators of literary
and artistic works, including the right to
reproduce the work, to make copies and to
perform or display the work publicly.
• Exclusive privilege to authors to
reproduce, distribute, perform, or display their
• It is usually associated with civil law.
• In the Copyright Act, there are provisions to
treat all forms of infringement of copyright as
• copyright protects arrangements of facts, but it
does not cover newly collected facts as such.
Moreover, copyright does not protect new
ideas and processes, they may be protected if
at all by patents.
Copyright infringement is the unauthorized use
of works under copyright . It often refers to
copying intellectual property without written
permission from the copyright holder, which is
typically a publisher assigned by the work‟s
• Infringing the copyright holder‟s exclusive rights
such as the right to reproduce, distribute, display
the copyrighted work.
• Information are spread within copyrighted work.
• Copyright registration is not necessary.
• Copyright exists from the moment the work is
• However, registration can be beneficial.
• Among other things, registration is necessary
before you can bring a lawsuit for
GOODWILL• Goodwill is an accounting concept meaning the value
of an asset owned that is intangible but has a
quantifiable "prudent value" in a business for
example a reputation the firm enjoyed with its clients.
Goodwill is not acquired until such time as a trader
commences to use his trade name or unregistered
trade mark in association with the wares or services
that he is marketing. The value of goodwill is tied to
the fortunes of the business in terms of its
profitability and cashflow and the value of the net
tangible assets utilized in the business. The value of
goodwill will therefore fluctuate with the
performance of the business.
Goodwill is classified as commercial
• Commercial Goodwill:
Commercial goodwill refers to goodwill
which is sellable and which will provide the
investor/purchaser with future economic
benefits. Since the economic benefit
supporting the calculation of commercial
goodwill is transferable to third parties,
commercial goodwill is a valid consideration
in the determination of value.
• Personal Goodwill:
Personal goodwill pertains to the favorable
attitudes of customers, suppliers, etc., which are
derived from the efforts of a particular individual
in the business. In many cases, personal goodwill
can be transferred to a potential purchaser through
client introductions, and so on. In some cases,
goodwill associated with a particular individual
may also be secured using non-compete contracts,
management contracts or other prudent business
arrangements. In these cases, personal goodwill as
it is transferable would be commercial goodwill.
• Legal problems :
A variety of legal problems arises in prosecuting
internet fraud, These relate to the multiplicity of rules
that exist in the various jurisdictions and the fact that
many of the rules are complex, Nuclear and
• Court processes :
There are also numerous problems associated with
conducting criminal trials in cases involving
electronic fraud. The principal difficulties relate to the
presentation of computerised business and accounting
records to a court.
• Criminal proceedings undertaken :
Little information is available publicly
concerning the judicial outcomes of cases
involving interest fraud in the region as
police and courts generally do not maintain
records in such a way as to isolate the precise
manner in which fraud offences are
committed. As such, reliance has to be placed
on anecdotal accounts, such as those
described in the earlier review of the types of
internet fraud incidents.
• A penalty is the punishment a person gets for
committing an offence
• The Act sets out the maximum penalties for
each offence in section (24).
• But the court can use its discretion about what
an appropriate penalty is.
• First conviction:
– Category 1: Fine, prison up to 2 years or both.
– Category 2: Fine, prison up to 1 years or both.
– Category 3: Fine, community service, both
(community service should benefit the
environment if possible).
• Second conviction:
– Category 1: No change.
– Category 2: Fine, prison up to 2 years or both.
– Category 3: Fine, prison up to 1 year or both.
• The maximum amount of the fine may be put into the
Government Gazette and changed from time to time
to take account of inflation.
• When a court orders an offender to pay a fine, a part
of the fine (no more than 1/4) may go to any person
who helped to bring the offender to justice.
• But anyone who is in the service of the State cannot
get this reward.
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