Impact of Intellectual Property Rights on International Trade and relations. Indian Economy and new innovations. Patents. Copyrights. Geographical Indicators. Evolution of IPR

1. IPR Evolution and Impact of
Intellectual Property Rights on
International Trade and Relations
Speaker-
Dr Vikash Pawariya
Assistant Professor
(Agricultural Economics)
College of Agriculture, Nagaur
Agriculture University, Jodhpur
Email id- vikashpawariya@gmail.com

3. INTELLECTUAL PROPERTY
 Creations of Human mind
 Knowledge Assets created through manifestation of ideas
 Conferred on creators as exclusive statutory rights for Intangible
Knowledge Assets
 Tradable Commodities like any other right
 IPR- enforceable by law
 IPR play more important role as assets for an enterprise than
physical assets
 Tool for business Competitiveness
 IPR - “New wealth of Nations”

4. National And International Dimension of IPR
IPRs are governed by national laws and rules of a
given country,
International conventions ensure minimum rights
and provide certain measures for enforcement of
rights by the contracting states.

5. PATENT-
Patent is a statutory right granted for an invention to the
inventor or his assignee for a limited period of time,
excluding others from making, using, offering for sale,
selling or importing any product covered by a patent or, if
a patent is for a process, then from using the process or a
product obtained by that process, for the above actions.
For this purpose, an invention is defined as a new
product or process , involving an Inventive Step and
capable of Industrial application

6.  Criteria for Patentable invention :
 Novelty - An invention should not form a part of the state of the art
 Inventive Step – Feature(s) of the invention that involves technical advance as
compared to existing knowledge or has economic significance or both and that
makes the invention not obvious to a person skilled in the art
 Capable of industrial application – The invention is capable of being made or
used in any kind of industry.
 Valid for 20 years from the date of filing or priority date

7. Designs
 Design means only the features of shape, configuration, pattern or ornament
or composition of lines or colour or combination thereof applied to any
article, whether two dimensional or three dimensional or in both forms, by
any industrial process or means, whether manual, mechanical or chemical,
separate or combined, which in the finished article appeal to and are
judged solely by the eye.
 Design does not include any mode or principle or construction or anything
which is in substance a mere mechanical device, and does not include any
trade mark, as defined in Section 2 (v) of the Trade and Merchandise Marks
Act, 1958, property mark or artistic works as defined under Section 2(c) of the
Copyright Act, 1957.
 Valid for 10 years, extendable by 5 more years.
 Industrial Designs are of great commercial value because shape or
configuration of the article can often be a great selling point

8. Trade Marks
Trademark means a mark capable of being represented graphically and
which is capable of distinguishing the goods or services of one person
from those of others and may include shape of goods, their packaging
and combination of colours.
Trademark can be sign, words, letters, numbers, drawings, pictures,
emblem, colours or combination of colours, shape of goods, packaging or
sound or any combination of the above as applied to goods or services.
Valid for 10 years; thereafter renewable perpetually for term of 10 years
each

9. Geographical Indications
 Geographical Indication: Identifies agricultural or natural or
manufactured goods,
 -as originating or manufactured in the territory of a country
 or region or locality in that territory,
 -where a given quality, reputation or other characteristics of such
goods is essentially attributable to its geographical origin.
Prevents unauthorized use of a Registered Geographical Indication
by others.
Promotes economic prosperity of local producers of goods in a
geographical territory

10. Copyright
 Exclusive Right given to the owner/author for an original work that he has created.
 Types of “Original” works that are protected under Copyright:
 Literary
 Dramatic
 Musical
 Artistic Works
 Cinematograph films; and
 Sound Recording ;
 Bundle of rights including rights of reproduction, communication to the public, adaptation and
translation of the work.
 Copyright does not ordinarily protect titles, names, short word combinations, slogans, short
phrases, methods, plots or factual information.

11. Duration :
 The scope and duration of protection provided under copyright law varies with
the nature of the protected work.
 Original literary, dramatic, musical and artistic works :
 Duration is the lifetime of the author or artist, and 60 years counted from the
year following the death of the authour
 Cinematograph films, sound recordings, photographs, posthumous
publications, anonymous and pseudonymous publications, works of
government and works of international organizations:
 Sixty years which is counted from the year following the date of publication.

12.  Broadcast reproduction right
 A special right Broadcasting organisation in respect of its broadcasts
for twenty- five years from the beginning of the calendar year next
following the year in which the broadcast is made.
 Performer’s right-
 Right to any performer who appears or engages in any performance,
in relation to such performance, for fifty years from the beginning
of the calendar year next following the year in which the
performance is made.

13. Historical Perspective of IPR

14.  Early use of Marks
 The Chinese pots exhibit two types of marks: the name of the
period’s Emperor and/or the name of the maker or place of origin
(2700 B.C.).
 The usage of stamps on bricks by the Roman brick maker for the
purpose of identification began as early as the 2nd Century BC.
 ‘Potters mark’ of Greek and Roman times appeared on vessels to
indicate the origin, destination along with the identification of the
maker.

15.  One of the finest examples of both ancient and modern trademark
use was the Barber’s pole which was used to indicate the location
of business.
 During the 10th Century, ‘merchants mark’ also referred to as
‘proprietary mark’ was used to prove ownership rights of goods.
 In 1266, the English Parliament enacted a law stating that every
baker shall have a mark of his own for each sort of bread in order
that, would-be customers should know what kind of bread they were
being offered.

16. As early as the 13th century, copying of valuable marks
became so common and injurious that infringement was
made a misdemeanor, in some cases even a felony.
As 14th and 15th centuries observed dramatic emergence
of merchant and craft guilds, trademark-like symbols and
logos began to appear as identification of goods and
services.

17.  Southern v How, 1617:
 In this landmark case, the dictum ‘nobody has any right to represent his goods
as the goods of somebody else’ and ‘nobody has the right to pass off his goods
as the goods of somebody else’, when a clothier’s mark (who had gained great
reputation by putting his marks on clothes made by him) was used by another to
deceive and make profits.
 The British Trademark Act of 1875 provided for a formal registration of
trademark based on the fulfillment of criterion whether the Trademark
distinguished the goods of the trader or not. Thus, Registration was considered
prima facie evidence of ownership of a Trademark.

18.  Early Patent System
 “patent” originally meaning “open.” and noun form comes
from “letters patent,” meaning “ official documents” or “
open letters”
 by “ letters patent” certain privileges, rights, ranks, or titles were
conferred and publicly announced
 The sovereign would grant to the individual (usually foreign) the
exclusive privilege of supplying in the territory with a certain product.


19. Earliest Example of “Patent System
 In the ancient Greek city of Sybaris (destroyed in 510 BC), leaders decreed:
 "If a cook invents a delicious new dish, no other cook is to be
 permitted to prepare that dish for one year .
 During this time, only the inventor shall reap the commercial profits from his dish.
This will motivate others to work hard and compete in such inventions.“
 [ Ref: EPO Publication-Protect your ideas Patent teaching kit – Protect your ideas]
 The aim of this patent on recipes for delicious meals appears to encourage cooks to
work hard and compete with each other in "culinary innovation“ i.e. to motivate
people to innovate. This goal is very similar to the main objective of today's patent
system.

20. Venetian Patent Act of 1474
The first account of a formal patent law dates back to 1474
AD, when the senate of Venetian republic of Italy introduced
a patent law.
The aim of this patent law was to promote innovation and
protect the honour of inventors. Venice is believed to have
issued about 600 patents (approximately 5 patents per year)
from 1474 to 1594.
It provided that an inventor might be entitled to an exclusive
license for a certain period and that a patent would be cancelled
if it were not actively exploited.

21. Galeleo Galilei patent request
 Under Venetian Patent Act of 1474 , Galeleo Galilei obtained a patent for irrigation
pump in 1594. His request for the patent coincides with the theme of modern
patent laws.
 “ That by the authority of this Council is granted to Mr. Galileo Galilei that for the
space of the next twenty years others than him or his agents are not allowed in the city
or any place in our state to make, have made, or, if made elsewhere, to use the device
invented by him for raising water and irrigating fields, by which with the motion of
only one horse twenty buckets of water that are contained in it run out continuously;
under pains of losing the devices which will go to the supplicant, and 300 ducats, a
third of which will be for the accuser, a third for the magistrate who undertakes the
prosecution, and a third for our Arsenal; the supplicant being obligated, however, to
have made known this new type of device within one year, and that it has not been
invented or recorded by others, and that a patent has not been granted [on the same
device] to others; otherwise the present grant will be void.”-Patent Granted

22. Copyrights : early history
 In 557 AD, in Ireland, St. Columba, while on a visit to his former teacher Abbot Finian,
borrowed the manuscript from Finian--possibly without permission--and secretly copied
it.
 Finian demanded the return of the copy and, getting no satisfaction ,referred the dispute to
the King Diarmait, who ruled in his favour famously saying; "to every cow her calf and
consequently to every book its copy “.
 After the invention of printing press in 1440 , making multiple copies of a work became
easy . The King assumed a prerogative of granting printing privileges and the earliest
copyright protection took the form of printers' licenses granted by the sovereign.

23.  Under this system, specific Guild members held monopoly rights in a
particular work that were treated as being perpetual. Authors could not
become members of the Guild and were not entitled to any royalties or
additional payments after purchase.
 These early copyright privileges were "monopolies," which continued until the
Statute of Monopolies was enacted in 1623, ending most monopolies, with
certain exceptions, such as patents;
 The republic of Venice granted its first privilege for a particular book in 1486.
It was for a book on history of the city itself.

24. Statute of Anne 1710
 Statute of Anne 1710 was the first real Copyright Act, that gave the author in the
Britain rights for a fixed period, after which the copyright expired.
 The statute's full title was,
 “An Act for the Encouragement of Learning, by vesting the Copies of Printed
Books in the Authors or purchasers of such Copies, during the Times therein
mentioned.”
 This statute is credited to first accord exclusive rights to authors (i.e., creators)
rather than publishers, and it included protections for consumers of printed work
ensuring that publishers could not control their use after sale.

25. INDIA- IPR Evolution and Developments

27. Evolution of IPR in India

28. Patents
YEAR HIGHLIGHTS
1856 British implemented the first patent statute in India “On Protections of Inventions,provided certain exclusive
privileges to inventors for a 14-year term.
1888
Inventions and Designs Act introduced to consolidate and amend previous legislations- 1872 Act for
designs and 1883 Act for patents in conformity withamendments in the UK law.
1911
Enactment of the Indian Patents and Designs Act, 1911 . Establishment of Patent Office & The
Controller of Patents; Increase in term of patent from 14 years to 16years; Product Patents in all fields
of technologies.
1970 Patents Act 1970; only Process patents for food, drugs, agrochemicals, alloys. 7 yearsterm for food, drug and
14 years term for others; Compulsory license provisions.
1999 TRIPS Obligations; Filing of application for Product Patents in areas of drugs, pharma
and agro-chemicals allowed as mailbox applications; EMR.
2002
Introduction of 18 months’ Publication; Examination of applications by request; Establishment of
Intellectual Property Appellate Board; Uniform term of 20 yearsirrespective of the field of invention.
2005 Product patents introduced in areas of drugs, pharmaceuticals and agrochemicals;Pre/Post- grant
Opposition system.
29

29. Till 1940 No specific legislation for Trademarks, Common Law to resolve
issues
Trademarks
1940 Trademarks Act & Registry 1958 Trade and Merchandise Act
1999 New Act in view of TRIPS agreement, new developments in trading
practices- service, well-known marks registered
2013 Introduced provisions of Madrid Protocol
1872 Patterns & Designs Act Design
1888 Consolidated as Inventions & Designs Act
1911 Renamed as Indian Patents & Designs Act
1970 Patents Act was separated from Designs Act
2001 Design Act 2000
1999 Geographical Indications of Goods (Registration & Protection) Act, 1999 GI

30. 1914 Indian Copyright Act was enacted for the first time in 1914
primarily based on the U.K. Copyright Act, 1911.
1957 After Independence the Comprehensive Copyright Act was enacted in theyear 1957 to
consolidate the laws related to copyrights in India.
1994 • definition of “Literary work” consistent with definition of “Computers”
and “Computer Programmes”.
• harmonizing with Rome Convention, 1961 by providing protection torights of
Performers. Producers of Phonograms and Broadcasting organizations.
• the concept of Registration of Copyright Societies for Collective
Management of the rights.
2012  The copy Right (amendment) Act 2012 notified on 8-6-2012.
 provisions in conformity with the WIPO Treaty and WIPO Performancesand
Phonograms Treaty.
 Definition of “Copyright” as Exclusive Right , author of a work is the first
owner of copyright.
Semiconductor Integrated Circuit Design Layout
2000 Semiconductor Integrated Circuits Layout Design Act was enacted in 2000 to
31
provide protection for semiconductor IC layout designs
COPYRIGHT

31. Patent- Post Independence Developments
 Feeling that the Indian Patents & Designs Act, 1911 was not fulfilling its objective, the
Government of India constituted a Patents Enquiry Committee (PEC) in 1949 under the
Chairmanship of Justice (Dr.) Bakshi Tek Chand, a retired Judge of Lahore High Court, to
review the patent law in India.
 Based on the recommendations of the Committee’s report dated 4th August, 1949, a bill was
introduced in the Parliament in 1953 . The bill lapsed on dissolution of the Lok Sabha.
 However,the 1911 Act was amended in relation to working of inventions and compulsory
licence/revocation in 1950 and, subsequently, for compulsory licence in relation to patents in
food , medicines, insecticides, germicides and fungicides, in 1952. Compulsory licence was also
made available on notification by the Central Government .

32. Patents Act 1970
 Justice N. Rajagopala Ayyangar Committee (1957):
 The Government appointed Justice N. Rajagopala Ayyangar Committee in 1957 to examine the
question of revision of the Patent Law and advise government.
 Report of the Committee ( September, 1959):
 The committee recommended retention of the patent system, despite its shortcomings, along with
major changes.
 The Patents Bill, 1965 was introduced in the Lok Sabha on 21-9-1965, which lapsed.
 In 1967, Amended Bill was introduced which was referred to a Joint Parliamentary Committee and
on the final recommendation of the Committee, the Patents Act, 1970 was passed.
 1970 Act repealed and replaced the 1911 Act, so far as the patents law was concerned. However,
the 1911 Act continued to be applicable to Designs. Most of the provisions of the 1970 Act were
brought into force on 20th April, 1972 with the publication of the Patents Rules, 1972.

33. TRIPS Era –Salient Features

34. Protection of IPR in various countries
Different laws different countries
Filing in one country eroded novelty in all other
countries
1873 (Vienna) – The Empire of Austria-Hungary
invited other countries to-
participate in an international exhibition of inventions
Inventors Refused – temporary protection granted for
exhibition period

35.  The Paris Convention is an international convention devised to facilitate
protection of industrial property simultaneously in the member countries
without any loss in the priority date.
 1880 (Paris) -Diplomatic conference in Paris in 1880
 Paris Convention signed in 1883 by 11 countries
 From 1900 to 1979 the treaty saw many revisions
 Final amendment made on September 28, 1979 many provisions applicable today.
 During second world war number of signatories increased
 Today there are 174 convention countries

36. National Treatment under the Paris
convention:
 Provide equal treatment to applicants from member
countries, and not to differentiate between the nationals of
member countries, for the purpose of grant and protection of
industrial property
 Similarly, the applicants from member countries shall have the
same protection after grant and identical legal remedies
against any infringement.
 No requirement as to domicile or establishment in the
country where protection is claimed, may be imposed.

37. WTO and TRIPS Agreement
 After 1994 Uruguay Round of the General Agreement on Tariffs and Trade, the
World Trade Organization (WTO) was created . TRIPS (Trade Related Aspects of
Intellectual Property Rights) Agreement was adopted along with WTO agreement
in 1994 and entered into force on January 1, 1995.
 India became a member and became obligated to amend its domestic intellectual
property laws in order to come into compliance with the TRIPS Agreement.

38.  Need for TRIPs
 1) To reward creativity and inventiveness by protecting intellectual property
adequately and efficiently.
 2) There was a pressing need to regulate and discipline the intellectual property
right.
 3) There was a need to provide standards and principles of trade related
intellectual property rights.
 4) To facilitate settlement of disputes between governments regarding trade-
related aspects of intellectual property rights.
 5) The least developed countries needs flexibility regarding domestic
implementation of such laws.
 6) There has always been a persistent need to smoothen the relationship
between various international organizations, including the WTO and WIPO.

39. Trade-Related Aspects of Intellectual
Property Rights (TRIPS)
 TRIPS applies basic international trade principles to member states regarding
intellectual property, including national treatment and most-favoured-nation
treatment.
 TRIPS establishes minimum standards for the availability, scope, and use of
seven forms of intellectual property: copyrights, trademarks, geographical
indications, industrial designs, patents, layout designs for integrated circuits, and
undisclosed information (trade secrets).
 It spells out permissible limitations and exceptions in order to balance the
interests of intellectual property with interests in other areas, such as public health
and economic development.

40. Relationship between the Paris Convention
and the TRIPS Agreement
 TRIPS Agreement is an offshoot of a series of negotiations going
on around the world since the inception of the Paris Convention in
the year 1883.
 It has been made mandatory for the member countries of the TRIPS
Agreement to comply with the Article 1 to 12 and Article 19 of the
Paris Convention.

41. TRIPS Agreement
 Part I:General Provisions and Basic Principles
 Part II: Standards Concerning the Availability, Scope and Use of IntellectualProperty Rights
 Part III: Enforcement of Intellectual Property Rights
 General Obligations
 Civil and Administrative Procedures and Remedies
 Provisional Measures
 Special Requirements Related to Border
 Measures
 Criminal Procedures
 Part IV: Acquisition and Maintenance of Intellectual Property Rights and Related Inter-Partes
Procedures
 Part V: Dispute Prevention and Settlement
 Part VI: Transitional Arrangements
 Part VII: Institutional Arrangements; Final Provisions

42. Significance of TRIPS Agreemen
Pre- TRIPS :
 Patent issues like, Patentability criteria, Scope of protection, Process and/or product
patents, Exceptions and exemptions, Checks and balances vs. abuse of IPRs, were treated
differently in each country.
 Post- TRIPS:
 Establishes minimum standards of protection for 7 forms of intellectual property for all
member countries
 Mandates detailed civil, criminal, and border enforcement
 provisions;
 Provides Dispute Settlement Mechanism
 Uses national treatment (treating nationals and foreigners equally), and MFN (most
favored nation-equal treatment for nationals of all trading partners in WTO),
 Includes administration, enforcement, transition periods

43. Patents and the TRIPS Agreement
 Minimum standards for patent protection and enforcement of with a
view to reducing distortions and impediments to international trade.
Framework for national implementation but not a uniform
international law or uniform legal requirements
Patents to protect inventions, in all fields of technology
Patentability criteria: novelty, inventive step, industrial application
(TRIPS Art.27)
Patents for both products and processes
Patent Term – minimum 20 years
Patents and the promotion of public interest

44. TRIPS Article- 30 Exceptions to rights
conferred
 Limited exceptions to the exclusive rights conferred by a patent
 provided that such exceptions do not unreasonably conflict with normal
exploitation of the patent and do not unreasonably prejudice the legitimate
interests of the patent owner, taking account of the legitimate interests of third
parties.
 Specified and limited use of patent permitted
 "Bolar" Provision: Use of patent prior to expiry for approval for generic product
for report to the regulatory authority,
 Other uses: research, experimental,
 Not defined, Automatically applicable if provided for in legislation, no further
conditions

45. TRIPS and Amendments to Indian
Patents Act-
 India became a member of the TRIPS effective January 1, 1995 and became obligated
to amend its domestic IPR laws in compliance with TRIPS Agreement.
 India got grace period (10 yrs) till 2005 to amend its laws to be TRIPs compatible
 Accordingly, Amendment of Patents Act 1970 was done in 3 stages: 1999, 2002 and
2005 amendments.
 Patents (Amendment) Act, 1999 was brought into force from 1st January, 1995. The
Amended Act provided for filing of applications for product patents in the areas of
drugs, pharmaceuticals and agro-chemicals as Mail-box applications, though product
patents were not allowed. Such applications were to be examined only after 31-12-
2004.
 Meanwhile, the applicants could be allowed Exclusive Marketing Rights (EMR) to sell
or distribute these products in India, subject to fulfilment of certain conditions.

46. Copyrights convention
 Berne Convention (Protection of Literary and Artistic
Works) 1886-
The Berne Convention, adopted in 1886, deals with the
protection of works and the rights of their authors. It
provides creators such as authors, musicians, poets,
painters etc. with the means to control how their works are
used, by whom, and on what terms.

47. c) Madrid Agreement Concerning the
International Registration of Marks
 Having dealt with some form of international protection for patents as well as copyright,
there was felt a need for the protection of trademarks at the global level as well.
Accordingly, the Madrid Agreement dealing with trademarks was concluded five years
after the Berne Convention.
 These three agreements even today can be said to cover the major principles of protection
of the principal categories of intellectual property.

48. d) The Bureaux Internationaux Réunis pour la
Protection de la Propriété Intellectuelle (BIRPI)
 This was a larger umbrella organization, which encompassed within itself the three
Conventions as mentioned above. Eventually In the year 1893; in the post-World War II era
this evolved into World Intellectual Property Organization (WIPO), based in Geneva.
 e) World Intellectual Property Organization (WIPO)
 WIPO is the modern day international body dealing with the regulation of intellectual
property. It became a formal part of the United Nations system in 1974.

49. National IPR Policy
“Creative India; Innovative India: रचनात्मक भारत; अभभनव
भारत
 VISION STATEMENT
 An India where creativity and innovation are stimulated by Intellectual Property for the
benefit of all; an India where intellectual property promotes advancement in science
and technology, arts and culture, traditional knowledge and biodiversity resources; an
India where knowledge is the main driver of development, and knowledge owned is
transformed into knowledge shared.
 MISSION STATEMENT
 Stimulate a dynamic, vibrant and balanced intellectual property rights system in India
to:
 foster creativity and innovation and thereby, promote entrepreneurship
 and enhance socio-economic and cultural development, and
 focus on enhancing access to healthcare, food security and environmental protection,
among other sectors of vital social, economic and technological importance.

50. 7 Objectives of IPR Policy
 The Policy laysdown seven Objectives with steps to be
undertaken by the identified nodal Ministry/ department
 IPR Awareness: Outreach and Promotion
 Generation of IPRs
 Legal and Legislative Framework
 IPR Administration and Management
 Commercialization of IPR
 Enforcement and Adjudication.
 Human Capital Development

51.  India being a growing country, has taken massive steps to be in conformity
with Trade Related Intellectual Property Rights (TRIPS) Agreement and in
fulfillment of US and European intellectual property right arrangements.
The nation's capacity to absorb the existing knowledge and create new one
will be the indicators of its future prosperity.
 Thus, efforts have been made by mankind to generate knowledge which
leads to prosperity. The subjects of production, assessment, fortification and
utilization of IP would become significantly essential all over the world.

52.  The relation between IPR and trade is very significant as it has
received an increasing attention in the arena of international
economic policy.
 International trade in goods embodying IPR’s has increased
substantially in recent decades as the allocation of manufactures and
share of high technology goods in total merchandise has increased.
 As a result, developing nations like India argue that expansion of
IPR’s would damage their self-developed technical advancement
and they should continue to be free to opt out partial system of
international IPR’s provided by current conventions.

53. Patent related commodities 1996-97 2007-08 2013-14 2019-
20
Aerospace 0.004 0.007 0.073 2.416
Computer office machines 1.515 0.231 0.237 0.181
Electronic telecommunications 0.154 0.566 0.782 2.389
Pharmacy 0.315 0.518 1.413 1.544
Scientific instruments 0.045 0.252 0.415 0.294
Chemistry 1.076 0.949 1.046 1.621
Electrical machinery 0.03 0.491 0.041 0.092
Non-electrical machinery 0.091 0.156 0.166 0.051
Armament 0.003 0.017 0.002 0.007
Total 3.229 3.18 4.102 6.179
Copyright related commodities
Printed books, newspapers, journals, periodicals 0.079 0.069 0.121 0.065
Sound recording or reproducing operators operated 0.000 0.000 0.000 0.000
by coins, bankcards, etc.
Video operators 0.004 0.005 0.002 0.001
Total 0.083 0.074 0.123 0.066
Trademark related commodities
Alcoholic beverages 0.012 0.010 0.048 0.069
Perfumes and cosmetics 0.208 0.332 0.261 0.206
Glassware 0.016 0.041 0.173 0.144
Motor vehicles parts 0.463 0.620 1.330 1.349
Furniture 0.023 0.094 0.448 0.316
Travel goods and handbags 0.649 0.625 0.601 0.394
Watches 0.044 0.112 0.019 0.013
Toys 0.106 0.084 0.095 0.084
Clothes 4.578 3.354 8.516 8.490
Total 6.099 5.272 11.491 11.065
Table 1 — Percentage share of export of IPR related commodities

54. Table 2 — Percentage share of import of IPR related commodities
Patent related commodities 1996-97 2007-08 2013-14 2019-20
Aerospace 1.080 0.300 7.560 0.930
Computer office machines 1.610 4.080 3.130 3.830
Electronics telecommunications 1.190 6.270 2.510 3.060
Pharmacy 0.070 0.110 0.520 0.810
Scientific instruments 0.550 0.530 0.920 1.330
Chemistry 0.170 0.160 0.200 0.480
Electrical machinery 0.360 0.150 0.350 0.490
Non-electrical machinery 0.430 0.360 0.530 0.560
Armaments 0.000 0.000 0.000 0.010
Total 5.460 11.960 15.720 11.500
Copyright related commodities
Printed books, newspapers, journals, periodicals 0.060 0.040 0.020 0.020
Sound recording or reproducing operators operated by 0.000 0.000 0.000 0.000
coins, bank cards, etc.
Video operators 0.000 0.010 0.060 0.020
Total 0.06 0.05 0.08 0.04
Trademark related commodities
Alcoholic beverages 0.000 0.010 0.060 0.110
Perfumes and cosmetics 0.020 0.120 0.060 0.130
Glassware 1.620 1.310 0.060 0.090
Motor vehicles parts 1.940 0.480 0.730 1.330
Furniture 0.840 0.670 0.180 0.280
Travel goods and handbags 0.000 0.010 0.030 0.090
Watches 0.000 0.010 0.040 0.090
Toys 0.880 0.660 0.040 0.170
Clothes 0.010 0.040 0.070 0.200
Total 10.630 6.600 2.540 4.980

55.  Intellectual property rights are defined as those rights that allow
intellectual property owners alone to benefit from their inventions. When
it comes to an invention, it is essential to adhere to the due procedures
regarding patent, copyright or trademark to stop others from seeking, more
than anything else, monetary benefits from the invention. Simultaneously,
it also gives a competitive edge on the business front.
 The whole process of filing for intellectual property rights also involves
checking if a similar product has been patented, copyrighted or
trademarked internationally as well. As such, it is crucial for all inventors
to understand the benefits of intellectual property rights and international
trade.

56. What happens if an IP for inventions isn’t
filed internationally?
 When a product is popular, both, buyers and sellers try to get their hands
on it. But some products are completely out of the budget of most buyers,
whereas sellers may not have the funds to enter into franchising
agreements or business models with inventors. This gives birth to ideas
such as first copies and imitations, through which sellers can create
‘duplicate’ products and buyers can purchase the same by paying a
fraction of the cost of the original product.

57.  If IP rights are filed internationally, the inventor can take legal action against such
imitators. Copyright infringement isn’t the only thing they are charged with. The
inventor can file for monetary damages and stop the imitator from monetarily benefiting
from their inventions.
 The impact of IPR on global trade cannot be underestimated. One should not make the
mistake of assuming that IP protection is universal and that laws and procedures to
protect IP are the same worldwide. It is essential to take great care while filing an IP;
follow the IP registration process diligently. Don’t miss deadlines and avoid disclosing
information about your inventions. File for non-disclosure agreements. Ensure that the
IP right and ownership is defined when it is sent out for manufacture and sales.

58. Benefits of filing for IP before embarking on
international trade
 Inventions are marketed or sold both domestically and
internationally. Before releasing an invention, however, intellectual
property is required to be filed. Also, it is necessary to know the
relation between international trade and intellectual property.
 With this knowledge, come the following benefits:
 Exclusive rights to market the inventions internationally, while
simultaneously preventing imitators from benefiting from the
invention.
 Saves the trouble of infringing intellectual property rights of other
inventors

59. Accessing new, untapped markets through means such as
licensing inventions or even entering into joint ventures
and franchise arrangements.
Gaining the right to negotiate the price of your invention
when entering into a business deal with importers,
distributors and other business partners, both domestically
and internationally.

60.  Filing for intellectual property rights and international trade allows
you to protect your inventions while providing you with the sole
right to adapt or improve upon your inventions or create newer,
improved versions of the original inventions. You need to file for IP,
each time you modify your invention.
 Deciding the accurate time to enter your inventions in different
kinds of exhibitions and business fairs in order to make the most of
your inventions.
 Having the right to determine the price of the product invented and
adjust the profit margin accordingly.

61. Theft of Intellectual Property
 Infringement-IPR infringement is the misappropriation or violation of the IPR. In
the case of patents, infringement of a patent owner’s exclusive rights involves a
third party’s unauthorized use, sale, or importation of the patented invention.
Copyright infringement occurs when a third party engages in reproducing,
performing, or distributing a copyrighted work without the consent of the
copyright owner. , The greatest challenge to the patent right in the context of
international trade is infringement in foreign countries, or non-observance by WTO
member states of the minimum standards of the TRIPS Agreement. In addition to
the term infringement, other terms are used to describe certain violations of IPR

62. Piracy
The term “piracy” generally refers to copyrights and generally
refers to widespread, intentional infringement. The major
challenge facing copyright protection is piracy, either through
physical duplication of the work, illegal dissemination of
copyrighted material (such as computer software, music, or
movies) over the Internet, and/or participation in commercial
transactions of copyrighted materials without the consent of the
copyright owner. Piracy can also mean the registration or use
of a famous foreign trademark that is not registered in the
country or is invalid because the trademark has not been used.

63. Counterfeiting
 An imitation of a product is referred to as a “counterfeit” or a “fake.” Counterfeit products are
manufactured, marketed, and distributed with the appearance of being the genuine good and
originating from the genuine manufacturer.
 The purpose of counterfeit goods is to deceive consumers about their origin and nature, harming
both the trademark owner and consumers.
 Counterfeiting and copying of original goods are major challenges for trademarked products.
Popular examples of counterfeit products include fake fashionwear (e.g., counterfeits of brand-
name bags and watches) or fake pharmaceutical products (e.g., counterfeits of brand-name
prescription medicines).

64. Trade Secret Theft
Misappropriation of trade secrets is a civil violation under
federal and state laws. Theft of trade secrets may also be a
federal crime in some circumstances.

65. Cyber theft
Criminal activity, including IP theft, increasingly
occurs in the online environment. Internet- related
crimes are often referred to as cybercrime, though
no one definition appears to exist for it within the
government.

66.  While assessments of the overall global economic costs of
infringement on copyrights, trademarks, and patents are limited,
available evidence indicates that the adverse economic effects of
global IPR infringement stand in the hundreds of billions of dollars,
and are increasing. Customs data on seizures of counterfeit and
pirated goods may offer some idea of the magnitudes involved in
terms of impact on producers and exporters.

67. •Developing countries such as India depend heavily on research and innovation to
improve human development indices and to find contemporary solutions to everyday
problems.
•While data suggests a direct link between IPR and economic growth, there are other
factors that may influence this relationship. For example, in a developed economy,
research and innovation is focussed on solving problems faced by developed
countries.
•This leaves developing countries to fend for themselves and look for solutions faced
by these countries, albeit with limited resources. In a nutshell, the relationship
between IPR and economic growth in a developed country is different from that of a
developing country.

68. Drawback and Misuse of IPR on Economic
Development
 The biggest drawback of IPR is it sometimes it restricts the technology to be used
in the best suitable way. The person who is holding rights sometimes misuses their
rights. They can charge according to their will and because of protection under
IPR that innovation cannot be used by the competitors. Competition is the most
important factor for the development of an economy. The spirit of competition
keeps check and balance on price and as well as on the quality of the product. But
IPR laws are against the principle of competition.

69.  IPRs laws create a monopoly in the market. It supports monopoly, Law like
copyright, trademark, and patents are creating barriers for the competitor to use the
innovation. Competition makes sure that producer must think about the benefit and
satisfaction of the consumer, because if the consumer is not satisfying then he or she
can shift to other competitors in the market.
 The producer can charge any price and it can directly affect the consumer and the
market. This is the law of demand that if the price is high then the demand will be
low. But this law does not apply when there is a monopoly in the market. The
consumer will get no other options and have to buy the product at the price
determined by the producer. Due to competition, the producer is forced to charge
not much more than the marginal cost.

70.  The law is made for society, not vice versa. All the laws are made for the benefit and
betterment of society. Every law has its positive as well as negative effects on society.
Article 31 of the TRIPS Agreement provides for the grant of compulsory licenses, under
the following situation:
 In the interest of public health in case of national emergency Anti-competitive practice. So,
in India, the Intellectual Property Right law doesn’t make the market rigid at the same time
dynamic in nature.

71. Trips In Economic Development
The TRIPS Agreement, as one of the WTO's main multilateral trade accords, plays a new and vital function
in worldwide economic development. The Agreement was meant to bring an end to the period of global
intellectual property management under the auspices of the World Intellectual Property Organization
(WIPO), which promotes Economic Cooperation and Development (OECD).
The US, like many other industrialized countries, is a strong supporter of IPR and TRIPS, citing the
agreement's capacity to promote long-term economic growth and development. Industrialized countries
benefit from increased trade, foreign direct investment (FDI), and technology generation and dissemination,
while developing countries benefit from increased trade, FDI, and technology creation and diffusion. As a
result, TRIPS benefits all members.

72.  Different amendments to the various existing Acts- Patent Amendment Act (2005), Copy right
Amendment Act (2010), are made to strengthen domestic legal framework to fulfill the
harmonization with the WTO’s TRIPS agreement. Similarly, a number of fresh legislations are made
to upgrade the country’s intellectual property regime. The following are the main legislations made to
accommodate the TRIPs envisaged IPRs rights.
 1. Patents: Patent Amendments: Patent amendment Act 1999, 2002 and 2005
 2. Protection of Traditional Knowledge under Patent Amendment Act 2002
 3. Industrial Designs: the Design Act, 1999
 4. Trademarks: A new Trademarks Act 1999 has been enacted (The Trade and Merchandise Marks
Act, 1958).
 5. Copyrights: The Copyrights Act 1957 has been amended in 1983, 1984, 1992, 1994, 1999 and
2010. The latest amendment of 2010 became effective from 2012 onwards.
 6. Geographical indications: The Geographical Indications of Goods (Registration and Protection
Act) 1999.
 7. Layout design of integrated circuits: The Semiconductor Integrated Circuit Layout Design Act,
2000

73.  The TRIPs (Trade Related Intellectual Property) regime has emerged as the basic framework for
ensuring intellectual property rights across the world. It is not the universal Intellectual property
law. But it provides a basic framework. Every member of WTO should include TRIPs provisions
in their domestic intellectual property legislations.
 Intellectual property regime is anchored by legislations in the corresponding fields. With the
establishment of WTO and the international enforcement of its various provisions; India also has
made corresponding changes in the intellectual property regime.
 The intellectual property right regime of the country has been modified by a number of
legislation since 1995. For India, the WTO’s TRIPs agreement became binding from 2005
onwards as the country has got a ten-year transition period (1995-2005) to make the domestic
legislation compatible with TRIPs. Here, India has got additional five-year transition period
because of not having product patent regime in critical sector like pharmaceutical. Hence,
existing laws were amended and fresh legislations were introduced during this period.

74. Assessment of existing IPR
 While talking about the business estimation of IPR, there is one
thing that takes top-most need; organizations need to assess their
current IP in order to decide if it coordinates their business
destinations. At exactly that point would they be able to gather the
financial advantages of licensed innovation rights.

75.  Assessment of the current IPR assists organizations with
distinguishing new methods for utilizing their scholarly properties
through permitting open doors as referenced previously.
Organizations can likewise search for new roads and fields to extend
the items on offer, which further prompts an expansion in their
business income. It can likewise enable a brand to invade more up to
date showcases; both locally and globally.

76. India: International Regime Of Intellectual Property Laws And
Its Importance In Trade
 Protection of intellectual property protection is done by granting the inventors the
sole right to exploit their innovation, which includes the exclusion of others from
the use of their creations. Consequently, it is easy to see why intellectual property
rights (IPR) would have a direct and substantial impact on industry and trade –
the owner of an IPR may – while exercising his/her right – prevent the
manufacture, use or sale of a product which incorporates the IPR.

77.  Moreover, over the last two decades or so, there has been a generous shift
in intellectual property law and policy in nearly every country. A large
number of these changes that have taken place over these last few years,
can be attributed to a gradual intersection of intellectual property rights
with international trade. This increasing intersection can be witnessed by
merely looking at the international trade agreements brought into force
during this period. It can also be seen by the rapid increase in cross-border
exchanges of goods, services and capital.

78. Case study:
 A European company selling advanced knitting machinery to
manufacturers in China discovered that a local competitor was
selling a competing product not under the company's European
trademark. The dimensions, exterior covering, colors of the product
was the same. Even the brochures and website photos of the original
product was copied by this local product.

79.  Apart from this, even the product specifications of the original product were given
even though the local product did not meet those specifications. As an obvious result
of this, the customers were misled. However, the company did not have any patents
registered in China. It could only rely on claims of copyright infringement on their
brochure artwork and infringement of the Anti‐Unfair Competition Law in relation to
the false claims on the brochure.
 The company then engaged a local law firm to send a warning letter to the competitor
which led the competitor to change the photographs and some of contents of the
brochure. The company was left with but no legal basis to force them to change the
appearance of their product
 Therefore, we can clearly see that the importance of intellectual property when it
comes to trade cannot be undermined.

80.  India having a diverse culture is home to various arts and crafts mastered by many
generations over the years. Adding to the present collection of GIs, 09 new items from
various states of India such as Gamosa of Assam, Tandur Redgram of Telangana,
RaktseyKarpo Apricot of Ladakh, Alibag White Onion of Maharashtra etc. have been given
the coveted GI Tags. With this the total number of GI Tags of India comes to 432. The top
5 states holding maximum number of GIs are Karnataka, Tamil Nadu, Uttar Pradesh,
Karnataka and Kerala.
 Several initiatives have been undertaken by DPIIT in collaboration with various
stakeholders where exclusive GI products showcased Indian tradition, culture and
enterprising activities under a single umbrella: