The document outlines the objectives and elements of intellectual property rights (IPRs) discussed in a seminar led by Prof. A.B. Suraj in Bangalore in November 2009. It covers various forms of IPRs, their economic and social benefits, the challenges of enforcement, and the strategic management of intellectual assets. Key issues include the importance of brand equity, contracting models, and emerging trends in licensing and cybersecurity in relation to IPRs.

1. Prof. A. B. Suraj
Intellecture Seminar Series
Bangalore – November 2009

2. Session Objectives
 To understand the “intangibility” of IPRs
 To appreciate the value of protected IP
in gaining competitive advantage
 To gain an overview of the strategic
elements towards better leverage of IP

3. IPRs – General Bases
 Economic (and technological) rationale
– aids overall development
 Social benefits – enriches the Public
Domain and Basic Research
 Legal monopoly – towards fair regulation
within the territory

4. Forms of IPRs
 Patents – Patents Act, 1970
 Copyrights – Copyright Act, 1957
 Trade Marks – Trade Marks Act, 1999
 Industrial Designs – Designs Act, 2000

5. Forms of IPRs …
 Layout Designs of ICs
Semiconductor Integrated Circuits Layout-
Design Act, 2000
 Geographical Indications
Geographical Indications of Goods
(Registration and Protection) Act, 1999

6. Forms of IPRs …
 Plant varieties – Protection of Plant
Varieties and Farmers’ Rights Act, 2001
 Traditional Knowledge – partly by
Biological Diversity Act, 2002
 Trade Secrets – Contractual – no
legislation in India

7. The “Intangibles”
 Goodwill and reputation
 Consumer perception/identification
 Scientific and literary acclaim
 Advertising reach
 Traditional usage and “prominence” enjoyed
 Media fame
 One form of IPR leads to the other!One form of IPR leads to the other!

8. Pressures of
Enforcement
 IPRs = fiercely competitive usage;
justifies criminal remedies too
 IPRs and Global recognition
IPRs are territorial in nature
No single authority or uniform standards
National systems and interests continue to
preside

9. Principles of
Traditional Management
 Organizing towards:
Perfect replicability & standardization
Ever-increasing scale
Incremental process efficiency
 Efficiency + Productivity = Growth
 Role of IPRs – game-changer?
RoI = Return on Innovations
Maximizes interests; with minimal efforts

10. Intellectual assets
Key Principles:
 Visibility and full exploitation
 Internal and external – aggressive
pursuit of IP protection
 Role of Intellectual assets in business
alliances and joint ventures

11. Intellectual assets …
Key Issues:
 Identifying the key geographical areas –
for marketing and registration of IPRs
 Study the level of innovative behaviour
among the competitors; and suppliers
 Role of building brand equity

12. Offshore Collaboration
 Typically of three types:
Captive entity – wholly owned subsidiary – IP is
fully owned; but has other legal implications
Joint venture – a new combined company – IP is
based on the Shareholding Agreement
○ BOT Model – involves transition risks
Contracting - with a local Supplier – Enforcement
with due diligence – e.g., Confidentiality; Parent-
subsidiary relations
 Determining factors = cost, commitment,
control, flexibility and liability models

13. IP issues in Contracting
 Sharing regime + sustained ownership
 Disparities in applicable laws & IP rights
 Identify, define and document –
processes and products
 Due diligence & IP Valuation

14. IP issues …
 Enforcement – involves local issues too
 Employer-employee relations – framework
of trusteeship
 Data protection and security
 Dispute settlement and arbitral
enforcement

15. Emerging issues
 Licensing in IPRs
 Emerging trends in global supply chain
 Minimum level of “reasonable control” – as evidenced in
Contracts and practices
 Raises anti-trust and RTP claims as well
 Securitization of IPRs
 Methods of valuation and their accuracy
 Procedure of affirming “secured interest”
 Liability of Service Providers in E-Commerce
 Scope and content of “due diligence”
 Increasing burden on the ISPs to be “IP-Police”

16. If we do not use IP …