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Š 2025 JayantiRajdevendra Pande | ProNotesJRP. For educational purposes only. Unauthorized use or misuse is not the creatorâs responsibility.
BBA Sem 2 NEP
Business Law
Unit 3: Basics of IPR
Introduction to Intellectual Property Rights
(IPR)
Intellectual Property Rights (IPR) refer to
the legal protections granted to creators
for their inventions, artistic works, designs,
symbols, and trade secrets. These rights
encourage innovation by ensuring that
creators can benefit from their work.
IPR is governed by various national and
international laws, with significant
agreements like the Trade-Related Aspects
of Intellectual Property Rights (TRIPS)
Agreement, 1995, under the World Trade
Organization (WTO). In India, IPR is
regulated through several laws, including:
ďˇ The Patents Act, 1970 (Protects
inventions)
ďˇ The Copyright Act, 1957 (Protects
literary, artistic, and musical works)
ďˇ The Trademarks Act, 1999 (Protects
brand names, logos, and symbols)
ďˇ The Designs Act, 2000 (Protects
industrial designs)
ďˇ The Geographical Indications of Goods
Act, 1999 (Protects products linked to a
specific location, like Darjeeling Tea)
Salient Features of Intellectual Property
Rights (IPR)
1. Subject to Public Policy: IPR laws are
framed considering public interest,
ensuring that rights are balanced with
societal needs.
2. Exclusive Right to Owner: The creator
or inventor has sole authority over the
use, production, and distribution of
their intellectual property.
3. Time-Bound Protection: IPR is granted
for a specific period (e.g., patents for
20 years, copyrights for the lifetime of
the author + 60 years).
4. Territorial Nature: IPR protection is
generally limited to the country where
it is registered unless covered by
international agreements.
5. Encourages Innovation & Creativity: It
provides incentives to inventors and
creators by granting them control over
their work, motivating further
advancements.
Importance of Intellectual Property Rights
(IPR)
1. Encourages Innovation: Protects the
rights of inventors and creators,
motivating them to develop new ideas,
technologies, and products.
2. Economic Growth: Helps businesses
and economies thrive by promoting
research, development, and
investment in new technologies.
3. Legal Protection: Prevents
unauthorized use, duplication, or
exploitation of original work, ensuring
fair rewards for creators.
4. Brand Value & Competitiveness:
Strengthens businesses by
safeguarding trademarks and patents,
enhancing market reputation and
consumer trust.
5. Global Trade & Expansion: Facilitates
international business by protecting
intellectual assets and fostering
collaborations across borders.
Forms of IPR
1. Patents: Grant exclusive rights to
inventors for 20 years, protecting new,
useful, and novel inventions from
unauthorized use.
2. Trademarks: Safeguard brand names,
logos, and slogans to establish brand
identity and prevent imitation.
3. Copyrights: Protect original creative
works like books, music, and digital
content, giving creators exclusive
rights over their use.
4. Geographical Indications (GI): Ensure
region-specific products (e.g.,
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Š 2025 JayantiRajdevendra Pande | ProNotesJRP. For educational purposes only. Unauthorized use or misuse is not the creatorâs responsibility.
Darjeeling Tea) retain authenticity by
restricting their name usage.
5. Trade Secrets: Secure confidential
business information (e.g., formulas,
processes) that provide a competitive
edge, as long as secrecy is maintained.
Patent Law (1970)
Patent law grants inventors exclusive
rights to their inventions, preventing
unauthorized use. In India, it is governed
by the Patent Act, 1970, amended in 2005
to align with TRIPS. A patent is valid for 20
years, after which the invention becomes
public. It encourages innovation, attracts
investment, and supports technological
growth.
A patent is an exclusive legal right granted
to an inventor for a new and useful
invention, preventing others from making,
using, or selling it without permission for
20 years.
Rights of a Patent Holder
1. Exploitation of the Patent â The patent
holder has the exclusive right to
manufacture, use, sell, or
commercialize the invention for profit.
2. Licensing the Patent to Others â The
owner can grant licenses to individuals
or companies, allowing legal use of the
invention in exchange for royalties.
3. Assigning a Patent to Others â The
patent holder can transfer ownership
to another entity through a formal
agreement, permanently giving up
their rights.
4. Surrendering the Patent â If the
inventor no longer wishes to hold the
patent, they can voluntarily give up
their rights, making the invention
available for public use.
5. Suing for Infringement of the Patent â If
someone uses, sells, or manufactures
the invention without permission, the
patent holder can take legal action and
claim damages.
Patentability
Patentability refers to the criteria an
invention must meet to be granted a
patent, ensuring it is new, non-obvious,
and useful.
Requirements for Patentability
1. Novelty â The invention must be new
and not publicly known before the
patent application.
2. Non-Obviousness â It must involve an
inventive step that is not obvious to
someone skilled in the field.
3. Usefulness and Industrial Applicability â
The invention should have practical
utility and be applicable in an industry.
What is Not Patentable?
1. Laws of Nature & Scientific Theories â
Natural principles and mathematical
formulas (e.g., Newtonâs Laws).
2. Abstract Ideas & Algorithms â Pure
mental processes or non-technical
business methods.
3. Inventions Against Public Morality â
Harmful inventions like bioweapons or
illegal drugs.
4. Traditional Knowledge â Long-
established practices like Ayurvedic
remedies.
5. Medical Treatment Methods â Surgical
and therapeutic techniques (medical
devices can be patented).
Patent Registration Process (5 Steps)
1. Patent Search â Conduct a search to
check if the invention is novel and not
already patented. This helps avoid
rejection.
2. Drafting the Patent Application â
Prepare a detailed application,
including claims, specifications, and
drawings explaining the invention.
3. Filing the Application â Submit the
patent application to the respective
patent office (provisional or complete).
A provisional application secures an
early filing date.
4. Examination & Publication â The patent
office examines the application for
novelty, inventive step, and industrial
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applicability. The application is
published after 18 months unless an
early publication request is made.
5. Grant of Patent â If no objections
remain after examination and
opposition periods, the patent is
granted, giving exclusive rights for 20
years.
Patent Infringement & Remedies
Patent Infringement happens when
someone uses, sells, or copies a patented
invention without permission. Since
patents give exclusive rights for 20 years,
using the invention without approval is
illegal.
Types of Infringement:
ďˇ Direct Infringement â When someone
directly copies or uses the patented
invention without permission.
ďˇ Indirect Infringement â When someone
helps or encourages another person to
violate a patent or makes a similar
product.
Remedies for Infringement:
ďˇ Injunction â A legal order to stop
further misuse of the invention.
ďˇ Compensation â The infringer may
have to pay money for the losses
caused.
ďˇ Seizure of Goods â Unauthorized
products may be taken away or
destroyed.
ďˇ Compulsory Licensing â The
government may allow others to use
the invention if it benefits the public,
like medicines.
ďˇ Legal Punishment â In serious cases,
the infringer may be fined or jailed.
Trademark Act 1999
Trademark Act 1999 protects brand
names, logos, symbols, and slogans from
unauthorized use. It gives businesses
exclusive rights over their trademarks,
preventing confusion among consumers. A
registered trademark is valid for 10 years
and can be renewed indefinitely. This law
helps businesses build brand identity and
trust while preventing unfair competition.
It also allows trademark owners to take
legal action against infringement.
Types of Trademarks:
1. Non-Conventional Trademark â These
include trademarks that are not just
words or logos, such as colors, scents,
holograms, or sounds. Example:
Cadburyâs purple color is trademarked.
2. Motion Trademark â A moving logo or
animation that identifies a brand.
Example: The Microsoft Windows logo
animation.
3. Service Trademark â Used for services
rather than physical products.
Example: McDonaldâs trademark is
registered for restaurant services.
4. Collective Trademark â A mark used by
a group or association rather than a
single company. Example: The CA
(Chartered Accountant) logo is used by
certified accountants.
5. Certification Trademark â A mark that
shows a product meets certain
standards of quality. Example: The ISI
mark ensures industrial products meet
safety standards.
Essential Attributes of a Trademark:
To be registered, a trademark must meet
these criteria:
ďˇ Uniqueness â It must be distinctive and
recognizable in the market.
ďˇ Non-Descriptive â A trademark should
not simply describe the product (e.g.,
âTasty Biscuitsâ cannot be
trademarked).
ďˇ Not a Geographical Name â Place
names cannot be trademarked unless
they gain special recognition (e.g.,
Darjeeling Tea is a trademark due to its
special identity).
ďˇ Non-Deceptive â A trademark should
not mislead consumers about the
productâs nature, quality, or origin.
Rights of a Trademark Holder:
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1. Exclusive Right to Use â The trademark
owner has the sole right to use it for
business. Example: Nikeâs Swoosh logo
is exclusive to Nike, and no sports
brand can use a similar symbol.
2. Right to License or Assign â The
trademark owner can license or sell
their brand name to others for a fee.
Example: McDonald's gives franchise
licenses, allowing others to run outlets
under its brand.
3. Right to Sue for Infringement â If
someone copies or misuses the
trademark, the owner can file a lawsuit
and seek compensation. Example:
Apple sues companies that create
logos similar to its iconic apple logo.
4. Right to Use the Trademark in Branding
â The registered trademark can be
used in marketing, packaging, and
advertisements to establish trust with
customers. Example: Coca-Cola always
uses its red-and-white logo in its
branding.
5. Right to Renew the Trademark â A
trademark is valid for 10 years and can
be renewed indefinitely if it is still in
use. Example: PepsiCo renews its
trademark regularly to maintain its
brand protection.
Trademark Registration Process
1. Trademark Search â A thorough search
is conducted to check if the desired
trademark is already in use. This helps
avoid legal disputes.
2. Filing the Application â The applicant
submits a trademark application,
including details like the brand name,
logo, and type of trademark.
3. Examination & Approval â The
government authority (e.g., Trademark
Registry in India) reviews the
application to check if it meets legal
requirements. If issues are found, the
applicant is asked to respond.
4. Publication & Opposition Period â The
trademark is published in the official
Trademark Journal, allowing the public
to raise objections. If no one opposes,
the process moves forward.
5. Trademark Registration & Certificate â
If no objections are raised, the
trademark is officially registered, and
the owner receives a registration
certificate. The trademark is now
legally protected for 10 years and can
be renewed forever.
Trademark Infringement â
Trademark infringement occurs when
someone uses a registered trademark or a
similar mark without permission, causing
confusion among consumers. It harms the
brandâs reputation, sales, and trust. Legal
action can be taken to protect the
trademark ownerâs rights.
Types of Infringement
1. Counterfeiting â Creating and selling
fake products using an identical or
nearly identical trademark. Example:
Fake Nike shoes.
2. Passing Off â Using a similar brand
name, logo, or packaging to mislead
consumers into believing itâs the
original brand. Example: "Adibas"
instead of Adidas.
3. Trade Dress Infringement â Copying a
productâs unique look, shape,
packaging, or color pattern. Example:
Coca-Colaâs curved bottle shape.
4. Domain Name Infringement â
Registering a domain similar to a well-
known trademark to mislead users.
Example: "amazone.com" instead of
"amazon.com".
5. Trademark Dilution â Using a well-
known trademark for unrelated
products, weakening its uniqueness.
Example: Selling cheap perfumes
under the name "Gucci".
Legal Remedies
1. Injunction â A court order stopping the
infringer from using the trademark.
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Š 2025 JayantiRajdevendra Pande | ProNotesJRP. For educational purposes only. Unauthorized use or misuse is not the creatorâs responsibility.
2. Monetary Compensation â The
infringer must pay for damages, lost
profits, and legal expenses.
3. Seizure of Infringing Goods â Fake or
unauthorized products are confiscated
and destroyed.
4. Criminal Action â In severe cases, fines
or imprisonment may be imposed,
especially for counterfeiting and fraud.
Passing Off
Passing off is a type of trademark
infringement where a business misleads
consumers by using a similar brand name,
logo, or packaging to resemble an
established brand. The intention is to
benefit from the goodwill of the original
brand without legal rights. It commonly
occurs in industries like fashion, food, and
electronics. For example, selling shoes
under the name "Adibas" instead of Adidas
misleads customers into believing they are
buying the original product. Legal action
can be taken to stop passing off and
protect brand identity.
Copyright Act, 1957
The Copyright Act, 1957 protects the rights
of creators over their original literary,
artistic, musical, and cinematic works. It
grants exclusive rights to reproduce,
distribute, and publicly display the work.
This law ensures that creators receive
credit and financial benefits for their
creations. Copyright prevents
unauthorized copying and misuse of
creative content. The protection lasts for
the creatorâs lifetime plus 60 years after
their death. Violating copyright laws can
lead to legal action, including fines and
imprisonment.
Subject Matter of Copyright
It refers to the types of creative works
protected under copyright, such as books,
music, films, and artistic works.
ďˇ Literary Works â Includes books,
articles, essays, scripts, and computer
programs. Example: J.K. Rowling holds
the copyright for the Harry Potter
series.
ďˇ Musical Works â Covers songs,
compositions, and lyrics. A musician
controls performances, recordings, and
distributions. Example: Songwriters
earn royalties when their songs are
used in movies.
ďˇ Artistic Works â Includes paintings,
sculptures, photographs, and
architectural designs. Example: Artists
copyright their work to prevent
unauthorized copies.
ďˇ Cinematographic Films & Audiovisual
Works â Protects movies,
documentaries, and videos. Example:
Marvel Studios holds the copyright for
Avengers movies.
ďˇ Dramatic and Performing Arts â Covers
plays, ballet, and choreography.
Example: A playwright copyrights a
script to prevent unauthorized
performances.
ďˇ Sound Recordings and Broadcasts â
Protects recorded music and TV/radio
broadcasts. Example: A record label
owns the copyright to a singerâs album
recordings.
Rights of a Copyright Holder
These are the exclusive legal rights granted
to the creator, allowing them to control
the use and distribution of their work.
ďˇ Right to Reproduce the Work â Only
the owner can copy or duplicate their
work. Example: A novelist can prevent
unauthorized printing of their book.
ďˇ Right to Distribute Copies â The creator
decides how their work is sold, rented,
or licensed. Example: A musician sells
their album on streaming platforms.
ďˇ Right to Create Adaptations â The
owner can modify, translate, or adapt
their work. Example: Harry Potter
books were turned into movies with
the author's permission.
ďˇ Right to Publicly Perform the Work â
The owner controls public
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Š 2025 JayantiRajdevendra Pande | ProNotesJRP. For educational purposes only. Unauthorized use or misuse is not the creatorâs responsibility.
performances. Example: A musician
decides who can perform their song in
concerts.
ďˇ Right to Display the Work Publicly â The
owner decides how and where their
work is displayed. Example: An artist
allows their painting in a gallery but
restricts online copies.
ďˇ Right to License or Sell the Work â The
owner can sell or license their work
while retaining copyright. Example: A
filmmaker sells rights to Netflix but
keeps ownership.
ďˇ Right to Take Legal Action Against
Infringement â The owner can sue for
unauthorized use. Example: A YouTube
video using copyrighted music can be
taken down.
Copyright Registration Process
A formal procedure to register a work
under copyright law, ensuring legal
protection against unauthorized use.
1. Filing an Application â The creator
submits an application with work
details to the copyright office.
2. Examination Process â The copyright
office reviews the application for
originality and validity.
3. Objections & Hearings â If objections
arise, hearings are conducted to
resolve disputes.
4. Grant of Copyright â If approved, the
work is officially registered, and the
creator receives a certificate.
5. Legal Protection Begins â The copyright
holder can now take legal action
against infringement.
Infringement of Copyright
It occurs when someone copies,
distributes, or uses a copyrighted work
without the ownerâs permission.
1. Unauthorized Copying â Reproducing
copyrighted material without consent.
Example: Printing and selling pirated
books.
2. Distribution Without Permission â
Selling, renting, or sharing copyrighted
content illegally. Example: Sharing
movies on illegal streaming sites.
3. Plagiarism â Claiming someone else's
copyrighted work as oneâs own.
Example: Copying an article and
publishing it without credit.
4. Public Performance Without Consent â
Using copyrighted music or films
publicly without approval. Example:
Playing copyrighted music at an event
without a license.
5. Illegal Adaptations â Modifying or
adapting copyrighted work without
permission. Example: Turning a novel
into a film without the authorâs
approval.
Remedies for Copyright Infringement
Legal actions available to copyright
holders, including injunctions,
compensation, and criminal penalties, to
stop and penalize infringement.
1. Injunction â A court order stopping the
infringer from using the copyrighted
work.
2. Monetary Compensation â The
infringer must pay for damages, lost
profits, and legal fees.
3. Seizure of Infringing Goods â
Confiscation and destruction of
unauthorized copies.
4. Criminal Action â Heavy fines or
imprisonment for serious offenses like
piracy.
5. Legal Ownership Enforcement â The
court confirms the original creatorâs
rights and restores ownership.