INTELLECTUAL PROPERTY RIGHTS Notes for Law Exams

September 12, 2017 | Author: amitrupani | Category: Patent, Trademark, Intellectual Property, Glossary Of Patent Law Terms, Copyright
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INTELLECTUAL PROPERTY RIGHTS Notes for Law Exams By Avinash B ([email protected]) you can find more on www.Hanuman...

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3/23/13

INTELLECTUAL PROPERTY RIGHTS

INTELLECTUAL PROPERTY RIGHTS By Avinash B ([email protected]) 1.What is intellectual property? 1.1Industrial Property 1.2Copyright 2.What are the conditions for assignments of trademark? 3.Write a note on deceptive similarity of trademark 3.1Definition 4.Explain assignment and transmission of trademarks 4.1.Meaning5.Explain the term license under the Copyright Act. 5.1.Definition 5.2.Form and contents of license 5.2.1.A license should contain the following particulars5.3Period of license 6.Write a note on Rights of Author 7.Explain compulsory licensing under Copyright Act. 7.1.Non-voluntary or Compulsory Licence 7.2.International Conventions and Non-voluntary Licensing 7.3.Compulsory licence of an Indian Work [S. 31] 7.4.Procedure 8.When can a license be terminated? 8.1.Termination of Licence Granted under sections 32(1 A) and 32A of non-Indian work [S. 32B] 9.How is infringement of copyright determined? 9.1.Infringement of Literary, Dramatic or Musical Works [S. 51 r/w S. 14(a)] 9.2.Infringement of Artistic Works [S. 51 r/w S. 14(c)] 10.What are the remedies available against infringement of copyright? 10.1.Authors' Special Rights [S. 57] 10.2.Civil Remedies 10.2.1.Procedure 10.2.2.The plaintiff has to establish the following: 10.2.3.The defendant may set-up one or more of the following defences: 10.3.Anton Piller Order 10.4.Interlocutory Injunction 10.5.Damages or Account of Profits 10.6.Criminal Proceedings [Ss. 63-70] 10.7.Threat of Legal Proceedings and Slander of Title [S. 60] 10.7.1.Threat action 10.7.2.Slander of Title www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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11.Write a note on copyright societies 12.Define ‘Patent’ and ‘invention’ 12.1. Patent 12.2.Invention 12.2.1.Definition13.Explain the various things which are excluded from patentability. 13.1.What is a Patent 13.2.Inventions not Patentable [Ss. 3-4] 14.How is infringement of patent determined? 14.1.In determining whether what the alleged infringer is doing amounts to an infringement of a particular patent three questions are involved: 14.2.What Constitutes Infringement 14.3.Who can Sue for Infringement 14.4.Defences for the Defendant 14.5.Reliefs 14.5.1.Interlocutory Injunction 14.5.2.Damages or Account of Profits 15.What is a trade mark? 15.1.Definition – 15.2.Function of a Trade Mark 16.Explain the evolution of Trade Mark Law 17.What are the marks that can be registered on Trademarks? 17.1.Definition – 17.2.Procedure for Registration of Trade Mark 17.2.1.Statutory Provisions 17.2.2.Who may apply to register? 17.2.3.Preliminary advise and search 17.2.4.Examination and Objections 17.3.Basic Principles of Registration of Trade Mark 17.4.Opposition to Registration 18.Explain the concept of Goodwill 19.Explain the concept of Industrial Designs 19.1.Definition of Design 19.2.Designs prohibited from registration 19.3.Registration of Designs 19.4.Rights conferred by Registration

1.What is intellectual property? Intellectual property, in its literal sense, means the things which emanate from the exercise of the human brain. It is the product emerging out of the intellectual labour of a human being. It involves the visible expression of a mental conception, the work of both brain and hand. Intellectual property refers to creations of the mind: inventions, literary and artistic works, and symbols, names www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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and images used in commerce. Intellectual property is divided into two categories. 1.1Industrial Property includes patent for inventions, trademarks, industrial designs and geographical indications. 1.2Copyright includes literary works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures and architectural designs. Rights related to copyright included those of performing artists in their performances, produces of phonograms and those of broadcasters in their radio and television programs. Intellectual property rights are like any other property rights-they allow the creator, or owner, of a patent, trademark, or copyright to benefit from his or her own work or investment. These rights are outlined in Article 27 of the Universal Declaration of Human Rights, which sets forth the right to benefit from the protection of moral and material interests resulting from authorship of any scientific, literary or artistic production. The importance of intellectual property was first recognized in the Paris Convention for the Protection of Industrial Property in 1883 and the Berne Convention for the protection of Literary and Artistic Works in 1886. Both treaties are administered by the World Intellectual Property Organization (WIPO).

2.What are the conditions for assignments of trademark? If an assignment of a registered or unregistered trademark is made without the good will of the business, then the assignment does not take effect, if the following conditions are not fulfilled1. The assignee must within six months from the date of assignment apply to the Registrar for directions for advertisement of assignments. 2. He must advertise in such prescribed form and manner and within the prescribed period as the Registrar may direct. In the following two cases, the assignment of trademark is deemed to be with the transfer of goodwill of the business1. If the assignment of trademark is in respect of only some of the goods and services. 2. If the assignment of trademark is in respect of goods exported from India or services for use outside India.

3.Write a note on deceptive similarity of trademark 3.1Definition-Section 2 (d) of the Act says a mark shall be deemed to be deceptively similar to another mark if it so nearly resembles that other mark to be likely to deceive or cause confusion. No trademark shall be identical or deceptively similar to a trademark which is already registered in the name of a different proprietor in respect of the same goods or description of goods. The earlier trademark may be registered or unregistered. The question of similarity between two trademarks or the likelihood of deception will depend upon the facts and circumstances The following factors must be considered to determine the deceptive similarity1. The nature of mark-surnames, letters, numerals, symbols, etc. 2. The degree of resemblance between the marks-phonetic, visual, etc 3. The nature of the goods in respect of which they are used or likely to be used as trademarks. 4. The purchaser’s level of education, intelligence and the degree of care they are likely to exercise in purchasing the goods. www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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4.Explain assignment and transmission of trademarks 4.1.Meaning-Assignment of trademarks means transfer of exclusive right in writing by an act of the parties concerned. A registered or unregistered trademark is a corporal property and it is assignable and transmissible under the law. Generally transfer of trademarks by assignments must be in writing but in case of unregistered trademark assigned without any goodwill of business, the assignee will not be able to protect the trademark and no action for passing off can be maintained. Further in the case of assignments without the goodwill of business, the assignment will take effect only after the assignee advertises the assignment in the newspaper in accordance with the directions of the Registrar. However in case of assignment of unused trademark, advertisement is not necessary as there would be no confusion with respect to the trademark in the minds of the public. Transmission of trademarks for the purpose of trademark can be understood as devolution of rights relating to a trademark on the personal representatives of a deceased proprietor of a trade mark upon his death. Transmission effects by operation of law upon the death of proprietor of the trademark whether register or unregistered but not an assignment. A trademark is part of the goodwill of business and transfer of goodwill of business will transfer the trademark also automatically. Transmission will not take place unless the assignee advertisers the assignment in newspapers in accordance with the directions of the Registrars.

5.Explain the term license under the Copyright Act. 5.1.Definition-Section 30 of the Copyright Act defines license as an authorization to do certain acts which without such authorization would be an infringement. The owner of a copyright may grant license to do any of the acts in respect of which he has an exclusive right to do. Licensing usually involves only some of the rights and not the whole. An author of a novel may license the right to reproduce the work in hardbook to one person and paper book to another, the serialization rights and dramatization rights in any language to yet another. License is different from assignment. In the case of a license the licensee gets the right to exercise particular rights subject to the conditions of the license but does not become the owner of that right whereas an assignee becomes the owner of the interest assigned. 5.2.Form and contents of license- There is no prescribed form for a license deed. But it should be in writing signed by the owner of the copyright or his duly authorized agent. A license can be granted not only in respect of an existing work, but also in respect of a future work. But in the case of a future work the license will take effect only when the work comes into existence. Where the licensee of a future work dies before the work comes into existence then his legal representatives will be entitled to the benefit of the license if there is no provision to the contrary in the license.

5.2.1.A license should contain the following particulars1. Identification of the work 2. Duration of license 3. The rights of licensee www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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4. Territorial extent of license 5. The quantum of royalty payable 6. The terms regarding revision, extension and termination 5.3Period of license-if the licensee does not exercise his right licensed to him within one year from the date of license in respect of such rights it will be deemed to have lapsed after the expiry of one year. If the period of license is not stated it will be deemed to be 5 years from the date of granting license.

6.Write a note on Rights of Author The author of a work may relinquish all or any of the rights in the copyright in the work by giving notice in the prescribed form to the Register of Copyrights and there upon, such rights cease to exist from the date of the notice. On receipt of the above notice, the Registrar of copyrights shall cause it be published in the official Gazette and in such other necessary manner. The relinquishment of all or any of the rights in the copyright in a work does not affect any rights subsisting in favour of any person on the date of the above notice.

7.Explain compulsory licensing under Copyright Act. 7.1.Non-voluntary or Compulsory Licence Many countries have provided in their copyright legislation for compulsory licenses particularly in those fields of copyright where modern technology has created new uses for works giving new rights which can only be exercised effectively by bulk licencing through a collecting society or under a compulsory licence system. These provisions have been found necessary because new technology which has posed problems for the enforcement of copyright which could only be solved in a practical way by compulsory licence schemes.

7.2.International Conventions and Non-voluntary Licensing The Berne Convention, Paris Acts (1971) and the UCC have made special provisions for non-voluntary licences for the benefit of developing countries. Under these provisions such licences are (a) confined to the exercise of two rights - the translation right and the reproduction right; (b) confined to countries recognized as developing countries; (c) only permitted if all the prior conditions stipulated in the Annex and Protocol are fulfilled; (d) temporary in the sense that they are permissible under the conventions only as long as the country concerned ranks as a developing country. The Berne Convention contains compulsory licence provisions relating to the broadcasting right and recording right. Subject to the conditions that: (1) the moral rights of authors are safeguarded. (2) equitable remuneration is provided for and the amount of which to be fixed either by agreement or by ‘competent authority’ which is usually a Government agency or a special tribunal; and (3) the compulsory licence must be applicable only in the country which has provided for it.

7.3.Compulsory licence of an Indian Work [S. 31] www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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The Copyright Board is empowered to grant compulsory licences under certain circumstances on suitable terms and condition in respect of an ‘Indian work.’ The circumstances necessary for grant of such compulsory licences are the following: (a) the work must have been published or performed in public, (b) the author must have refused to republish or allow republication of the work or must have refused to allow the performance of the work in public. (c) that by reason of such refusal the work is withheld from public, or (d) the author must have refused to allow communication to the public of such work by broadcast, or in the case of a sound recording the work recorded in such record on reasonable terms.

7.4.Procedure On a complaint being made to the Copyright Board, the Board, after giving the owner of the copyright an opportunity of being heard and after holding necessary enquiries, may direct the Registrar of Copyright to grant to the complainant a licence to republish the work, perform the work in public or communicate the work to the public by broadcast, as the case may be, subject to payment to the owner of the copyright reasonable compensation and subject to other terms and conditions, if necessary. The Registrar will then grant the licence on payment of such fee as may be prescribed.

8.When can a license be terminated? 8.1.Termination of Licence Granted under sections 32(1 A) and 32A of non-Indian work [S. 32B] Where the Copyright Board has granted a licence to any person to produce and publish a translation of a nonIndian work any language under S. 32(1A); if at any time after granting the licence the owner of the work or a person authorized by him has published a translation of the work in the same language which is substantially the same in content at a price reasonably related to the price charged in India for the translation of works of the same standard on the same or similar subject the licence granted will be terminated. The termination will not take effect until after the expiry of three months from the date of service of a notice in the prescribed manner on the person holding the licence by the owner of the right of translation intimating the publication. The licence-holder will be permitted to sell or distribute copies of the translation produced before the termination of the licence takes effect until they are exhausted. A licence granted by the Copyright Board under S. 32A to produce and publish the reproduction or translation of any work will be terminated if at any time after the granting of licence the owner of the right of reproduction sells or distributes copies of such work or its translation in the same language and which is substantially the same in content at a price reasonably related to the price normally charged in India for works of the same standard on similar subject. The termination will not take effect until after the expiry of three months from the date of service of a notice on the holder of the licence by the owner of the right of reproduction or translation intimating the sale and distribution of copies of the edition of the work. The licence holder can, however, continue to sell the copies already reproduced before the termination takes effect until such copies are exhausted.

9.How is infringement of copyright determined? www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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9.1.Infringement of Literary, Dramatic or Musical Works [S. 51 r/w S. 14(a)] If a person without the consent or licence of the owner of the copyright does or authorize the doing of any of the following acts, he will be guilty of infringement of the copyright in the work. (1) to reproduce the work in any material form including the storing of it in any medium by electronic means; (2) to issue copies of the work to the public not being copies already in circulation; (3) to perform the work in public or communicating it to the public; (4) to make any cinematograph film or sound recording in respect of the work; (5) to make any translation of the work; (6) to make any adaptation of the work; (7) to do in relation to a translation or an adaptation of the work, any of the acts specified in relation to the work in cls. (1) to (6); (8) to permit for profit any place to be used for the communication of the work to the public where such communication constitutes an infringement or copyright in the work, unless he was not aware and had no reasonable ground for believing that such communication to the public would be an infringement of the copyright; (9) to make infringing copies of the work for sale or for hire or sells or lets for hire or display or offers for sale or hire infringing copies or; (10) to distribute infringing copies either for the purpose of trade or to such an extent as to effect prejudicially the owner of the copyright; (11) to exhibit infringing copies by way of trade to the public; (12) to import into India infringing copies. However the import of one copy of the work for the private and domestic use of the importer is permitted. (13) In respect of a computer programme which is a form of literary work; i. to do any of the acts specified above and ii. to sell or give on hire, or offer for sale or hire, any copy of the computer programme, regardless of whether such copy has been sold or given on hire on earlier occasions. Infringing copy means reproduction of the work made or imported in contravention of the provisions of the Act [S. 2 (m)]. The reproduction of the work in the form of a cinematograph film is deemed to be an infringing copy.

9.2.Infringement of Artistic Works [S. 51 r/w S. 14(c)] In respect of an artistic work infringement of the copyright consists in doing or authorizing the doing of any of the following acts without the consent or licence of the copyright owner: (1) reproducing the work in any material form, including the depiction in three dimension of a two dimensional work or in two dimensions of a three dimensional work, (2) communicating the work to the public, (3) issuing copies of the work to the public not being copies already in circulation, (4) including the work in a cinematographic film, (5) making any adaptation of the work, (6) in relation to an adaptation of the work any of the acts referred to above, (7) making for sale or hire, or selling or letting for hire, offering for sale etc., infringing copies of the work (8) distributing, exhibiting in public for trade, infringing copies of the work, (9) importing infringing copies of the work except one copy for private use. In order to constitute infringement, a substantial part of the plaintiffs' work must have been taken and the defendant must have made use of the plaintiffs' work. What is substantial may depend upon how important that part, is to the recognition and appreciation of the artistic work. It is relevant to consider whether the feeling and artistic character have been taken. www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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Infringement of painting or a picture can be detected by a close comparison of the two works to see whether minute details in original work have been reproduced in the alleged infringing copy. If a painter uses a copyright photograph only as a source of inspiration or for reference purposes only there may be infringement. If, however, the ultimate painting is a copy of photograph, there would be infringement, especially if the photograph is an original one. If a person gets his photograph taken by a photographer on payment the copyright in the photograph belongs to the person. Accordingly the publication of the photograph or its exhibition at any place including the photographic shop window constitutes infringement of that copyright.

10.What are the remedies available against infringement of copyright? 10.1.Authors' Special Rights [S. 57] An author of a copyright work has the following special rights (a) to claim authorship of the work, (b) to restrain or claim damages in respect of any distortion, mutilation, modification or other act in relation to the said work which is done before the expiration of the term of copyright, if such distortion, mutilation, modification or other act would be prejudicial to his honour or reputation. However, this right is not available in respect of any adaptation of a computer programme to which certain acts do not constitute infringement of the copyright in the work [S. 52(1)(aa)]. This section provides that making of copies of adaptation of acomputer programme for certain purposes or to make back up copies for protection against loss, destruction or damage will not amount to infringement of copyright in the work. The author's special rights can be exercised even after the assignment of the copyright. They can be enforced by an action for breach of contract or confidence, a suit for defamation or passing off as the case may be. In respect of works of architecture where the construction of a building or other structure which would infringe the copyright in some other work has been commenced the owner of the work will not be entitled to obtain an injunction to restrain the construction of such building or structure or to order demolition. He cannot also claim damages for conversion. In appropriate cases a declaratory order may be obtained as to whether what the defendant is doing or proposes to do is an infringement of the copyright in a work.

10.2.Civil Remedies 10.2.1.Procedure The procedure before the court in a suit for infringement copyright is governed by the Code of Civil Procedure.

10.2.2.The plaintiff has to establish the following: (1) he is the owner of the copyright, (2) copyright subsisted in the work infringed at the time the defendant committed the infringement, (3) particulars of the alleged infringement, (4) what the defendant has done constitutes infringement of the copyright, (5) the nature of damage if any suffered by him or likely to suffer.

10.2.3.The defendant may set-up one or more of the following defences: (1) no copyright subsists in the work alleged to be infringed, www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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(2) the plaintiff is not entitled to sue (not the owner of copyright), (3) the alleged copyright work is not original, (4) the alleged copyright is not entitled to protection being immoral, seditious or otherwise against public policy, (5) the defendants' work is independent and is not copied from the plaintiffs' work, (6) the defendants' action does not constitute infringement of the plaintiffs' work and is permitted under one or more of the exceptions to infringement, (7) the suit is barred by limitation, (8) the plaintiff is guilty of estoppel, laches and acquiescence or consent, (9) the infringement is innocent and the plaintiff is only entitled to the profits made by the defendants on the sale of the infringing copies. Innocent infringement is not a defence against infringement as such. But if the defendant proves that at the date of infringement he was not aware and had no reasonable ground for believing that copyright sub-sisted in the work, the plaintiff will be entitled to only an injunction and a decree for the whole or part of the infringing copies. Plaintiff will not be entitled to any remedy in respect of conversion of infringing copies.

10.3.Anton Piller Order In appropriate cases the court may on an application by the plaintiff pass an ex parte order requiring the defendant to permit the plaintiff accompanied by solicitor or attorney to enter his premises and take inspection of relevant documents and articles and take copies thereof or remove them for safe custody. The necessity for such an order arises where there is a grave danger of relevant documents and infringing articles being removed or destroyed so that the ends of justice will be defeated. Such an order is called in the United Kingdom as an Anton Piller Order (named after a plaintiff in a case where such an order was first passed). It is similar to an ex parte interlocutory order to inspect the premises of the defendant and take inventory of the offending articles etc., passed in an ordinary suit in India. In passing an order of this nature the basic safeguards of equity must be strictly enforced. The plaintiff in his application must make the fullest possible disclosure of all material facts within his knowledge, and if he fails to discharge this obligation he will not be entitled to any advantage from the proceedings and he will be deprived of any advantage already obtained by the order.

10.4.Interlocutory Injunction In order to secure immediate protection from a threatened infringement or from the continuance of an infringement, a plaintiff may apply for an interlocutory injunction pending the trial of the action or further orders. An application for such relief is made along with the plaint supported by affidavit evidence. Very often an ex parte injunction is also sought, i.e. a temporary injunction granted for a short period, for a week or so,before the defendant has notice of the suit or is heard. For obtaining an interlocutory injunction the plaintiff has to establish a prima facie case and that the balance of convenience is in his favour and that if the interim order is not granted it will cause irreparable injury to the plaintiff. The defendant if injured as a result of the injunction, will be entitled to compensation by virtue of an undertaking as to damages by the plaintiff which is an invariable condition of the granting of such an injunction. An interlocutory injunction will not be granted where the defendant might suffer irreparable injury from an injunction pending trial and the plaintiff can be protected by the defendant being ordered to keep an account, nor will it normally be granted where a bona fide defence of fair dealing has been pleaded, or if the plaintiff has been guilty of undue drill coming to the court or his conduct amounted to acquiescence in the infringement or if there is any substantial doubt as to the plaintiff's right to succeed. It has been held that in considering whether to grant an www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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interlocutory injunction the court must look at the whole case. It must have regard not only to the strength of the claim, but also to the strength of the defence and then decide what is best to be done. The remedy by way of interlocutory injunction must not be made the subject of strict rules.

10.5.Damages or Account of Profits There are two types of damages available to a successful plaintiff, one under S. 55 for infringement and the other under S. 58 for conversion. The copyright owner is entitled to treat all infringing copies of his work as if they were his own property. He will have to take civil proceedings for the recovery of possession thereof or in respect of conversion thereof. The plaintiff may also claim special damages for the flagrancy of infringement. As an alternative to damages a successful plaintiff may claim account of profits.

10.6.Criminal Proceedings [Ss. 63-70] In addition to civil remedies the Copyright Act enables the owner of the copyright to take criminal proceedings against an infringer. Knowledge or mens rea is an essential ingredient of the offence. These two remedies are distinct and independent and can be availed of simultaneously. The offence of infringement of copyright is punishable with imprisonment which may extend from a minimum period of six months to a maximum of three years and with a fine of the order of Rs. 50,000 to Rs. 2.00 lakhs. A Police Officer of the rank of Sub-inspector and above is given the power to seize without warrant, all infringing copies of the work and accessories for making infringing copies wherever found, to be produced before a Magistrate. All infringing copies of the work in which copyright subsists and all plates used for the production of such copies are deemed to be the property of the owner of the copyright in the work. The court trying the offence may order that all copies of the work appearing to be infringing copies or plates for making infringing copies in the possession of the alleged offender be delivered up to the owner of the copyright without any further proceedings. This is so whether the accused is convicted or not. However, for compensation in respect of conversion of infringing copies the owner of the copyright will have to take civil proceedings. No court inferior to that of a presidency magistrate or a magistrate of the first class can try an offence under the Act. Any person can make a criminal complaint and a magistrate will be competent to take cognizance of any offence upon receiving a complaint of facts which constitutes such offence irrespective of the qualifications or eligibility of the complainant to file a complaint. Ordinarily, however, it is the owner of the copyright or any person who has an interest in the copyright, e.g the licensee, who files a complaint. A joint author can also file a complaint. The conduct of the criminal proceeding is governed by the Criminal Procedure Code.

10.7.Threat of Legal Proceedings and Slander of Title [S. 60] 10.7.1.Threat action When the owner of the copyright in a work comes to know that his copyright is being infringed by a person he normally sends a notice to that person requesting him to forthwith discontinue the act which constitutes infringement of the copyright. If the person complies with the request the matter ends there subject to the question of compensation for damages and conversion, if any, being settled by mutual agreement. This procedure is adopted only where the nature of the infringement involved is such that it is not likely to be repeated, e.g. the performance in public of a dramatic or musical work where the damages involved will be negligible. But where the infringement involves the reproduction of a copyright work in large numbers and the damages involved might be heavy the owner of the copyright sends notices to the persons involved in the infringing acts, threatening them with legal proceedings. The threat may be direct or indirect. It may be addressed www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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to particular persons or generally and it may be made through circulars, advertisements or otherwise.

10.7.2.Slander of Title If a publisher publishes the work of A under the name of B with the approval of B and without the consent of A, A may, in the absence of any express or implied contract, sue the publisher and B for malicious falsehood or slander of title. Copyright Act provides that the author of a work has the right to claim the authorship of the work. The Berne Copyright Convention also recognizes this right. If this right is infringed the author can take proceedings against the persons concerned for the relief of injunction and damages. The right to claim authorship exists even after the assignment of the copyright in the work and can be exercised by the legal representatives of the author. The plaintiff has to prove that the statement or representations complained of were false or untrue; that they were made maliciously, that is, without just cause or excuse, and that the plaintiff has suffered special damage thereby. Malice in the law of slander of title and other forms of injurious falsehood means some dishonest or otherwise improper motive. An intent to injure without just cause or excuse is sufficient.

11.Write a note on copyright societies Section 33 to 36 deals with Performing Rights Societies which carry on the business of issuing or granting licenses for the performance in India of any work in which copyright is subsisted. A owner of copyright shall in his individual capacity, continue to have the right to grant licenses in respect of his own works consistent with his obligation as a member of the registered copyright society. Copyright Societies are formed to license the works of owners of copyright to those interested in the reproduction, performance or communication to public of the works. They are authorized to do this service by the owners on payment of suitable fees. The Societies are also authorized to watch out for infringement of the copyright and take appropriate legal action against the infringers. Section 33(3) says the Central Government will not register more than one copyright society to do business in respect of the same class of work. If a copyright society is managed in a manner detrimental to the interest of owners of the rights conferred the Central Government may cancel its registration

12.Define ‘Patent’ and ‘invention’ The law of patents in India is governed by the Patents Act 1970 as amended by the Patents (Amendment) Act 1999. A bill named Patents (Second Amendment) Bill 1999 which had proposed substantial changes in the law was introduced in the Parliament in December 1999, and was passed as the Patents (Amendment) Act 2002. This Act was further amended by the Patents (Amendment) Act 2005.

12.1. Patent A patent is an exclusive right granted to a person who has invented a new and useful article or an improvement of an existing article or a new process of making an article. It consists of an exclusive right to manufacture the new article invented or manufacture an article according to the invented process for a limited period. After the expiry of the duration of patent, anybody can make use of the invention. The concept of patent and its essential ingredients like novelty, inventive step, lack of obviousness and sufficiency of description have remained the same ever since it was conceived over four hundred years ago. A patent is a form of industrial property or as it is now called intellectual property. The owner of the patent can sell this property. He can also grant licences to others to exploit the patent. The property in a patent is similar in www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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many respects to other forms of property. A patent being a creation of statute is territorial in extent. A patent granted in one state cannot be enforced in another state unless the invention concerned is also patented in that state. A patent is not granted for an idea or principle as such, but for some article or the process of making some article applying the idea.

12.2.Invention To invent literally means to find out something, to discover something not found or discovered by anyone before. It is the production or introduction of a new thing for the first time by exercising one’s own mind, skill and labour. It must not be known to the public prior to the claim made by the inventor. 12.2.1.Definition-Under S. 1(1)(j) of the Patents Act, 1970 (as amended in 2002) an invention is defined as follows: ‘Invention means a new product or process involving an inventive step and capable of industrial application. The Patent (Amendment) Act 2005 defines ‘new invention’ to mean any invention or technology which has not been anticipated by publication in any document or used in the country or elsewhere in the world before the date of filing patent application with complete specification i.e. the subject matter has not fallen in the public domain or that it does not form part of the state of the art. Patent can be granted for either products or processes. In the case of product patent, the product itself is patented by the inventor. For example, say if the inventor invents a new drug which can itself prevent the occurrence of influenza he would get a patent over the product i.e. the drug itself. This means that the exclusive right to manufacture that drug vests with the inventor. Consequently, none apart from the one who holds the patent in the product can manufacture the product irrespective of the fact that the new manufacturer uses a process completely different from the patent holder. It has been held that a method or process is a manufacture if it • results in the production of some vendible product, or • improves, or restores to its former condition a vendible product or • has the effect of preserving from deterioration some vendible products to which it is applied. A patent can be obtained only for an invention which is new and useful. The invention must relate to a machine, article or substance produced by manufacture, or the process of manufacture of an article. A patent may also be obtained for an improvement of an article or of a process of manufacture. In regard to medicine or drug and certain classes of chemicals no patent is granted for the substance itself even if new, but a process of manufacturing the substance is patentable. The applicant for a patent must be the true and first inventor or a person who has derived title from him, the right to apply for a patent being assignable. He must give a full and sufficient disclosure of the invention and specify the precise limits of the monopoly claimed. The invention claimed must be novel and must not be obvious to those who are skilled in the art to which it relates. The three essential requirements of a patentable invention are novelty, inventiveness (i.e. inventive step or lack of obviousness) and utility. There are some inventions which may satisfy the above criteria but are still not patentable.

13.Explain the various things which are excluded from patentability. 13.1.What is a Patent A patent is an exclusive right granted to a person who has invented a new and useful article or an improvement of www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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an existing article or a new process of making an article. It consists of an exclusive right to manufacture the new article invented or manufacture an article according to the invented process for a limited period. After the expiry of the duration of patent, anybody can make use of the invention. The concept of patent and its essential ingredients like novelty, inventive step, lack of obviousness and sufficiency of description have remained the same ever since it was conceived over four hundred years ago. A patent is a form of industrial property or as it is now called intellectual property. The owner of the patent can sell this property. He can also grant licences to others to exploit the patent. The property in a patent is similar in many respects to other forms of property. A patent being a creation of statute is territorial in extent. A patent granted in one state cannot be enforced in another state unless the invention concerned is also patented in that state. A patent is not granted for an idea or principle as such, but for some article or the process of making some article applying the idea.

13.2.Inventions not Patentable [Ss. 3-4] The following inventions are not patentable: 1. An invention which is frivolous or which claims anything obviously or contrary to well-established natural laws. 2. An invention the primary or intended use of which would be contrary to law or morality or injurious to public health. 3. The mere discovery of a scientific principle or the formulation of an abstract theory or discovery of any living or non -living substances occurring in nature(for example, the theory of relativity is not patentable). 4. The mere discovery of any new from of a known substance which does not result in the enhancement of the known efficacy of that substance or the mare discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus unless such process result in a new product or employs at least one new reactant. 5. A substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof or a process for producing such substance. 6. The mere arrangement or rearrangement or duplication of known devices each functioning independently of one another in a known way. 7. A method of agriculture or horticulture. 8. A process for the medical, surgical, curative, prophylactic diagnostic, therapeutic or other treatment of human beings or any process for a similar treatment of animals to render them free of disease or to increase their economic value or that of their products. 9. Plants and animals in whole or any part thereof other than micro-organisms but including seeds, varieties and species and essentially biological processes for production or propagation of plants and animals. 10. A mathematical or business method or a computer programe per se or algorithms. 11. A literary, dramatic, musical or artistic work or any other aesthetic creation whatsoever including cinematographic works and television productions. 12. A mere scheme or rule or method of performing mental act or method of playing game. 13. A presentation of information. 14. Topography of integrated circuits. 15. An invention which in effect, is traditional knowledge or which is an aggregation or duplication of known properties of traditionally known component or components. 16. An invention relating to atomic energy.

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14.How is infringement of patent determined? What constitutes infringement of Patent is not defined in the Patents Act. But obviously infringement of a patent is the violation of the monopoly rights conferred by the grant. The right conferred by the Patent is the exclusive right to make, use,exercise, sell or distribute the invention in India. Hence infringement consists in the violation of any of these rights. Where the invention claimed is not a process but a substance irrespective of the means by which it is produced, the rights of the patentee are infringed by anyone who makes or supplies that substance commercially for use by others even though he does not know that it is that substance he is making or supplying. In the case of a patent for a process the rights of the patentee are infringed by one who uses or exercises the method or process in India. Since the patentee's rights are subject to various condition under the Act, the scope of infringement must be considered in the background of these statutory conditions.

14.1.In determining whether what the alleged infringer is doing amounts to an infringement of a particular patent three questions are involved: 1. the extent of monopoly right conferred by the patent which has to be ascertained by a construction of the specification, particularly the claims. Construction 2. whether the alleged acts amount to making, using, exercising, selling or distributing a product or using or exercising a method or process in the case of a process patent, and 3. whether what the alleged infringer is doing amounts to an infringement of the monopoly conferred by the patent grant. First, in order to ascertain the scope of the claims made in the patentee’s specification, the court must ascertain the essential integers of the claim. This is a question of construction and no general rule can be laid down. The claim must be construed as a document without having in mind the alleged infringement. Secondly, the essential integers having been ascertained, the infringing article must be considered. To constitute infringement the article must take each and every one of the essential integers of the claim. Non-essential integers may be omitted or replaced by mechanical equivalents;there will still be infringement. Where the invention resides in a new combination of known integers, or merely in a new arrangement and interaction of ordinary working parts, it is not sufficient to show that the same result is reached; the working parts must act on one another in the way claimed in the claim of the patent. If the patentee has in his specification limited the essential features of his claim in a manner that may appear to be unnecessary, it may be that the copier can escape infringement by adopting some simple mechanical equivalents so that it cannot be said that every essential integer of the claim has been taken.

14.2.What Constitutes Infringement In order to constitute infringement the defendant must be shown to have taken the invention claimed in substance. As to what is the real substance of the invention, whether it be a combination or a process must be decided on the evidence, that is to say, it is a question of fact. It is seldom that an infringer takes the whole of the invention, he may omit some unessential part or step, and substitute another step or part. But if he takes all the essential features of the invention he cannot avoid infringement. This leads to the question what are the essential features of the invention claimed. The patentee himself specifies in his claims with particularity those elements or integers of his invention which he claims to be essential. If the language which the patentee has used in the claims specifies a number of elements or integers acting in a particular relation to one another as constituting the essential features of his claim, the monopoly which he obtains is for that specified combination of elements or integers so acting in relation to one www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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another and for nothing else. There is no infringement of his monopoly unless each and every one of such elements is present and such elements also act in relation to one another in the manner claimed. Non-essential integers may be omitted or replaced by mechanical equivalents; there will still be infringement. The question whether the infringing apparatus is substantially the same means ‘in all essential respects the same.’ Where the infringer has taken all the essential features claimed in the patent but has altered one or more unessential feature or has added some additional feature which may or may not itself involves a new inventive step, it is called a ‘colourable imitation’. A process or an article which makes use of the same principle as the patented invention or achieves the same result or makes use of some only of the essential features is not a ‘colourable imitation’ in any sense relevant to patent law unless it does adopt all the essential features which the patentee has specified in his claim. Copying the ‘essential features’ of the invention is sometimes referred to as taking the ‘pith and marrow’ of the invention. A person is guilty of infringement if he makes what is in substance the equivalent of the patented article. He cannot get out of it by some trifling or unessential variation. One cannot avoid infringement by substituting an obvious equivalent for an unessential integer. On the other hand, one cannot be held to have taken the substance of an invention if one omits some essential integer or substitutes something else for an essential integer.

14.3.Who can Sue for Infringement The right to sue for infringement belongs to the patentee. The exclusive licensee, if the licence is registered, may file a suit. If the patentee is not joined as a plaintiff he must be added as a defendant to the suit. A compulsory licensee may also file a suit for infringement under certain circumstances. An assignee is entitled to file a suit if the application for registration of the assignment has been filed before the date of filing the suit. A co-owner may also bring a suit for infringement. Any person who infringes the patent, that is to say, who exercises without authority any of the monopoly rights conferred by the grant may be sued for infringement. Thus manufacturers, importers and dealers, their servants and agents and sometimes even users of the patented articles may be made defendants in a suit for infringement. A person who threatens to infringe may also be sued. The consignees of the alleged infringing articles could be made a party to the action, but mere carrier or warehouseman is not an infringer. The directors of a company cannot be personally sued for infringement unless they had authorized the wrongful acts or unless the evidence established the relationship of principal and agent between the directors and the company. Action may also be taken against agents and servants of the infringer either individually or collectively and with their employer or principal.

14.4.Defences for the Defendant The defendant in a suit for infringement of a patent may plead one or more of the following defences: 1. plaintiff not entitled to sue for infringement, 2. denial of infringement or of any threat or intention to infringe, 3. leave or licence express or implied to use the invention, 4. estoppel or res judicata, 5. claims alleged to be infringed are invalid on certain grounds, 6. the acts complained of are in accordance with the conditions specified in S. 47(Government use, experiment, research and education), 7. existence of a restrictive contract declared unlawful, 8. Acts complained of come within the scope of innocent infringement, or done after failure to pay renewal fee, or done before the date of amendment of the specification (available only against a claim for damages or account of profits, www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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9. alleged infringement not novel or is obvious (Lord Moulton's defence or Gillette defence). Counter - claim for revocation may be made by the defendant in his written statement instead of a separate petition for revocation.

14.5.Reliefs The reliefs available to a successful plaintiff in a suit for infringement include: 1. an injunction, and 2. either damages or account of profits. The power to grant reliefs is subject to certain restrictions. Thus where the patent is endorsed ‘licences of right’, and the infringing defendant is ready and willing to take a compulsory licence no injunction will be granted. In the case of innocent infringement no, damages or account of profits will be granted. Damages or account of profits may be refused in respect of infringement committed after a failure to pay the renewal fee within the prescribed period. In certain circumstances damn or account of profits will not be granted in respect of the use of the invention before the date of amendment where the specification has been amended after its publication. If the patent is held to be only partially valid, reliefs may be granted in respect of the valid claims which is infringed,provided the plaintiff proves that the invalid claim was framed in good faith and with reasonable skill and knowledge.

14.5.1.Interlocutory Injunction The plaintiff may at the commencement of the action move for an interim injunction to restrain the defendant from committing the acts complained of until the hearing of the action or further orders. The principles upon which an interlocutory injunction may be granted in a patent action are the same as in any other action, namely, that the plaintiff should make out a prima facie case and also that the balance of convenience lies in his favour. In patent actions it may frequently happen that the defendant is able to show that there are substantial grounds for disputing the validity of the patent and often also that there are good reasons for saying that his apparatus does not infringe the plaintiff's claim. If either of those circumstances are shown to be present, the court may not grant an interlocutory injunction. The onus of showing a prima facie case which lies on the plaintiff is a heavy one and that it is comparatively easy for the defendant to establish a defence sufficient to prevent the grant of such an injunction. The remedy by interlocutory injunction is kept flexible and discretionary and is not made the subject of strict rules.The object of an interlocutory injunction is to protect the plaintiff against injury by violation of his rights for which he could not be adequately compensated in damages recoverable in the action if he succeeds at the trial. The court must weigh one need against another and determine where the balance of convenience lies. In granting the injunction the court must be satisfied that the claim is not frivolous or vexatious; in other words, that there is a serious question to be tried. Various factors are taken into consideration in deciding the balance of convenience, such as whether the patent is a new one or an old one, whether the defendant's trade is a new one or an old established one and so on. If a patent is a new one, challenging its validity may be sufficient for a refusal of an injunction, but if the patent is sufficiently old and has been worked, the court would, for the purpose of temporary injunction presume the patent to be a valid one. Even if a likelihood of infringement is established, interlocutory injunction will be refused if there is a serious attack on the validity of the patent. If the patent relied on will expire before the action can be heard, the balance of convenience can be considered against the grant of an interlocutory injunction.

14.5.2.Damages or Account of Profits A successful plaintiff in a suit for infringement is entitled to the relief of damages or an account of profits with certain exceptions. The exceptions are: www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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1. infringement was innocent, 2. the infringement was committed after a failure to pay the renewal fee within the prescribed time and before any extension of the period 3. where the specification has been amended, the infringement was committed before the date of amendment unless it was shown that the original specification was framed in good faith and with reasonable skill and knowledge, and 4. where the patent was held partially valid, damages or account of profits in respect of the valid claims will be granted only under certain circumstances.

14.5.3.Assessment of damages In assessing damages the sole question is what is the loss sustained by the patentee by reason of the unlawful sale of the defendant’s goods. The loss must be the natural and direct consequence of the defendants' acts. The object of damages is to compensate for loss or injury. The general rule is that the measure of damages is to be, so far as possible, that sum of money which will put the injured party in the same position as he would have been in, if he had not sustained the wrong. There are two essential principles in valuing the damages, first, that the plaintiffs have the burden of proving their loss; second, that defendants being wrongdoers, damages should be liberally assessed but the object of this is to compensate the plaintiffs and not to punish the defendants. The measure of damages may be estimated by applying the following principles: 1. Where the patentee manufactures the product and does not grant licences, the measure of damages will be the profit which would have been realized by the owner of the patent if the sales of the infringing articles had been made by him. 2. Where the patent is exploited through the granting of licences for royalty payments, the measure of damages which the infringer must pay will be the sums which he would have paid by way of royalty, if instead of acting illegally, he had acted legally. The solution to this problem will depend upon the evidence as the rates of royalty may vary from time to time. 3. The pecuniary equivalent of the injury resulting from the natural consequences of the acts done by the defendants. An estimate should be made of the number of articles the plaintiff did sell less by reason of the acts of the defendants. Then find the profit that they would have made upon each article. 4. Where only a part of a complex machine is protected by a patent the importance of the patented part to the whole machine should be considered. If it forms the very essence of the machine damages may be measured by the profit on the whole machine; otherwise account should be taken only of the patented part.

15.What is a trade mark? A trade mark is a visual symbol in the form of a word, a device, or a lapel applied to articles of commerce with a view to indicate to the purchasing public that they are the goods manufactured or otherwise dealt in by a particular person as distinguished from similar goods manufactured or dealt in by other persons. A person who sells his goods under a particular trade mark acquires a sort of limited exclusive right to the use of the mark in relation to those goods. Such a right acquired by use is recognized as a form of property in the trade mark, and protected under common law. A person can also acquire a similar right over a trade mark, not so far used but only proposed to be used, by registering it under the Trade Marks Act 1999. The law of trade marks is based mainly the concepts of distinctiveness similarity of marks and similarity of goods. 15.1.Definition – 2(1)(zb) (1) Trade mark must be a mark which includes a device, brand, heading, label, ticket, name, signature, word, letter, numeral, shape of goods, packaging or combination of colours or combination thereof [S. 2(1)(m)] www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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(2) The mark must be capable of being represented graphically (3) It must be capable of distinguishing the goods or services of one person from those of others. (4) It may include shape of goods, their packaging and combination of colours. (5) It must be used or proposed to be used in relation to goods or services. (6) The use must be for the purpose of indicating a connection in the course of trade between the goods or services and some persons having the right as proprietor to use the mark. (7) The right to proprietorship of a trade mark may be acquired by registration under the Act or by use in relation to particular goods or services. (8) The right of proprietorship acquired by registration is a statutory right which requires no actual user but only an intention to use the mark. On the other hand the right acquired by actual user in relation to particular goods or services, is a common law right which is attached to the goodwill of the business concerned. A registered trade mark can be protected against unauthorized use by others by an action for infringement. This is a statutory remedy. An unregistered trade mark can be protected against unauthorized use by others by an auction for passing off which is a common law remedy.

15.2.Function of a Trade Mark The function of a trade mark is to give an indication to the purchaser or possible purchaser as to the manufacture or quality of the goods, to give an indication to his eye of the trade source from which the goods come, or the trade hands through which they pass on their way to the market. It tells the person who is about to buy that what is presented to him is either what he has known before under the similar name as coming from a source with which he is acquainted, or that it is what he has heard of before as coming from that similar source. It gives the purchaser a satisfactory assurance of the make and quality of the article he is buying, the particular quality being not discernible by the eye. It is on the faith of the mark being genuine and representing a quality equal to that which he has previously found a similar mark to indicate that the purchaser makes his purchase.A trade mark may be used to indicate not only that the goods are of a particular maker but are goods of that maker of a particular kind or quality. Under modern business conditions a trade mark performs four functions: (1) it identifies the product and its origin, (2) it guarantees its unchanged quality, (3) it advertises the product, and (4) it creates an image for the product. The function of a service mark in relation to services is similar to that of a trade mark in relation to goods.

16.Explain the evolution of Trade Mark Law The concept of identifying the source of manufacture by a mark is an ancient one. But its importance in commerce and trade was recognized only after the industrial revolution which enabled large scale production and distribution of goods and publicity through the printing media. Trade mark is essentially a product of competitive economy where more than one person competed for the manufacture of the same product which necessitated the marking of each manufacturers’ goods by a symbol which distinguished similar goods made by others. The growth of big companies dealing in various kinds of goods manufactured by itself or through other companies but marketed by it led to the use of its own trade mark on goods manufactured by others but marketed by it or otherwise dealt by it. To cope with this situation, the original concept of a trade mark indicating a source of manufacture was extended to include any connection in the course of trade. Thus under the present www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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law a trade mark is defined as a mark used or proposed to be used in relation to goods for the purpose of indicating or so as to indicate a connection in the course of trade between the goods and the proprietor with or without any indication of the identity of that person. It is not necessary that the proprietor of the mark must himself manufacture the goods. He may get the goods manufactured by others. By virtue of extensive use and advertisement a trade mark began to acquire goodwill and reputation among the customers of the goods. This tempted competitors to copy well known trade marks or choose marks which bore deceptive resemblance to reputed trade marks so that ordinary purchasers would be led to believe that the goods bearing such marks are the same goods which they were hitherto accustomed to buy and consequently the competitor could reap profits by trading on the reputation of another trade mark. Thus arose the necessity for protecting the goodwill and reputation of a trade mark. Prior to the statutory registration of trade marks, the only way in which copying of a trade mark could be prevented was by bringing an action for passing off, which required proof of use and reputation of the mark each time an action is launched against an infringer. This process was cumbersome, time consuming and the outcome uncertain. Hence a system of registration of trade mark was evolved which gave statutory recognition to ownership of trade marks, and defined the rights conferred by registration and prescribed remedies in respect of infringement of those rights. The statutory law relating to trade marks was codified in the Trade and Merchandise Mark, 1958 and the Trade and Merchandise Marks Rules 1959. The also provides for criminal action against infringers fraudulently copying another’s trade mark. The law relating to passing off is still based on case law. The statutory law of trade marks is now based on the Trade Marks Act 1999 and the Rules framed thereunder.

17.What are the marks that can be registered on Trademarks? A trade mark is a visual symbol in the form of a word, a device, or a lapel applied to articles of commerce with a view to indicate to the purchasing public that they are the goods manufactured or otherwise dealt in by a particular person as distinguished from similar goods manufactured or dealt in by other persons. A person who sells his goods under a particular trade mark acquires a sort of limited exclusive right to the use of the mark in relation to those goods. Such a right acquired by use is recognized as a form of property in the trade mark, and protected under common law. A person can also acquire a similar right over a trade mark, not so far used but only proposed to be used, by registering it under the Trade Marks Act 1999. The law of trade marks is based mainly the concepts of distinctiveness similarity of marks and similarity of goods. 17.1.Definition – 2(1)(zb) (1) Trade mark must be a mark which includes a device, brand, heading, label, ticket, name, signature, word, letter, numeral, shape of goods, packaging or combination of colours or combination thereof [S. 2(1)(m)] (2) The mark must be capable of being represented graphically (3) It must be capable of distinguishing the goods or services of one person from those of others. (4) It may include shape of goods, their packaging and combination of colours. (5) It must be used or proposed to be used in relation to goods or services. (6) The use must be for the purpose of indicating a connection in the course of trade between the goods or services and some persons having the right as proprietor to use the mark. (7) The right to proprietorship of a trade mark may be acquired by registration under the Act or by use in relation to particular goods or services. (8) The right of proprietorship acquired by registration is a statutory right which requires no actual user but only an intention to use the mark. On the other hand the right acquired by actual user in relation to particular goods or services, is a common law right which is attached to the goodwill of the business concerned. www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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A registered trade mark can be protected against unauthorized use by others by an action for infringement. This is a statutory remedy. An unregistered trade mark can be protected against unauthorized use by others by an auction for passing off which is a common law remedy.

17.2.Procedure for Registration of Trade Mark 17.2.1.Statutory Provisions The procedure for registration of trade marks is contained in Ss. 18 – 24 of the Trade Marks Act 1999.

17.2.2.Who may apply to register? Any person claiming to be the proprietor of the trade mark used or proposed to be used by him can apply. The application may be made in the name of an individual, partners of a firm, a Corporation, any Governmental Department, a Trust or joint applicants. The proposal to use the trade mark may be by a Company to be formed or by a registered user.

17.2.3.Preliminary advise and search Before or after applying for registration the applicant may apply for a report as to whether the mark or one similar to it has already been registered or applied for. He may also request for the Registrar’s opinion as to the distinctive character of the mark. The Registrar's search report or opinion is not, however, binding on him.

17.2.4.Examination and Objections The Registrar will cause the application to be examined and communicate to the applicant any objection to the mark which mainly relates to distinctive character and similarity with already registered marks. The applicant can put forward his case either in writing or at a hearing. If the application is accepted, it will be advertised in the Trade Marks Journal. If refused, the applicant may go on appeal to the Appellate Board, which is seldom worthwhile unless the applicant has built up goodwill by extensive use in which case of course the application will seldom be refused. If the application is refused on the ground of lack of distinctive character, the applicant may, after some years of use, make a fresh application. If it is refused on the ground of conflict with any registered trade mark and the mark is proposed to be used it is better to go for a fresh mark. If, however, the similarity is doubtful the applicant may use the mark and make a fresh application after some years of use. He will have to take the risk of being sued for infringement by the owner of the conflicting mark.

17.3.Basic Principles of Registration of Trade Mark The purpose of the Act, as stated in the preamble, is to provide for the registration and better protection of trade marks and to prevent the use of fraudulent marks. In consonance with this object the following fundamental principles of trade mark law are embodied in the various provisions of the Act: (a) Since registration confers on the proprietor a kind of monopoly right over the use of the mark, which may consist of a word or symbol legitimately required by other traders for bona fide trading or business purposes, certain restrictions are necessary on the class of words or symbols over which such, monopoly right may be granted.Thus descriptive words, surnames and geographical names are not considered prima facie registrable. [S. 9] (b) Registration of a trade mark should not interfere with the bona fide use by any person of his own name or that of his place of business, or the use of any bona fide description of the character or quality of the goods. [S. 35] www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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(c) Property rights in a trade mark acquired by use are superior to similar rights obtained by registration under the Act. It, therefore, follows that prior users of trade marks should be protected against any monopoly rights granted under the Statute. [S. 34] (d) There are obviously two main interests to be protected when a mark is presented for registration. There is first the interest of the public. A trade mark ought not to be registered if its use will be apt to mislead the public as to the origin of the goods they are purchasing. There is also the interests of other traders who are entitled to object if the use of the trade mark proposed for registration will be calculated to enable the applicant's goods to be passed off on the public as such other traders' goods. Thus a mark which is similar to a mark already registered or used for similar goods will not be allowed registration. [S. 11] (e) It may so happen that a trader honestly used a trade mark for a number of years although an identical or similar mark has been registered or used by another. It will obviously cause hardship to such a trader if he is deprived of the benefits of registration. There is therefore provision for registration of such marks subject to suitable conditions and limitations. [S. 12] (f) Broadly speaking, the life of a trade mark depends on its use; and continued non-use may lead to its eventual death. There is, therefore, no equitable or logical basis for the continuance of the protection afforded by registration where the mark is no longer in use for a sufficiently long period. This principle is recognized in the Act by providing for removal of a mark from the register on the ground of non-use. [S. 47] (g) A trade mark is recognized as a form of property. The term ‘proprietor of a trademark’ is used in the definition of a trade mark and also in various other provisions of the Act. It should, therefore, be assignable and transmissible as in the case of other forms of property. Having regard to the peculiar nature of this property, the Act has taken care to impose various restrictions and conditions for the assignment or transmission of property rights in a trade mark, whether registered or unregistered. [Ss. 40-45] (h) Granting the benefits of registration under the Statute is not only a matter of interest to the applicant seeking registration, but is a matter in which the public is also interested. It is, therefore, necessary that any member of the public who wants to object to the registration should be permitted to do so. The Act accordingly provides for advertisement of the application and opposition thereto by any person. [Ss. 20 &21] These principles are substantially the same in all countries administering trade mark law. 17.4.Opposition to Registration [S. 21] Every application accepted will be advertised in the Trade Marks Journal (an official publication). Any person may object to the registration by following the procedure prescribed for the purpose. Since registration of marks which have a descriptive significance or which are surnames or geographical names registrable under certain circumstances it is necessary to give notice to the trading public whose existing or future rights or interests might be adversely affected by such registration to object to the registration if they so desire. The usual grounds of opposition are, that the mark is not capable of distinguishing that it is similar to another trade mark already registered or in use, that the applicant's claim to proprietorship is not justified or that the adoption of the mark is dishonest and so on. The Registrar considers the objections and the evidence filed in support of the contentions and decides the case after giving an opportunity for hearing to the parties. The Registrar may either accept the application with or without condition or limitations or refuse the application. Conditions are in the form of disclaimer of certain parts of the mark or as to mode of use. Limitations may be in the form of amendment of the goods or as to area of the use of the mark or as to mode of use. An appeal against the registrar's order lies to the Appellate Board.The onus of establishing a case for registration is on the applicant.

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18.Explain the concept of Goodwill The goodwill of a business is recognized as a form of property. It can be bought and sold like any other property. It can be protected against infringement by others by process of law. What is goodwill is very difficult to define though it can be described. It is the benefit and advantage of the good name, reputation, and connection of a business. It is the attractive force which brings in custom. It is the one thing which distinguishes an old established business from a new business at its first start. The goodwill of business must emanate from a particular centre or source. It has power of attraction sufficient to bring customers home to the source from which it emanates. Goodwill is composed of a variety of elements. It differs in its composition in different trades and in different businesses in the same trade. One attribute common to all cases of goodwill is the attribute of locality. It has no independent existence; it must always be attached to a business. Goodwill regarded as property has no meaning except in connection with some trade, business or calling. It includes whatever adds value to a business by reason of situation, name and reputation, connection, introduction to old customers, and agreed absence from competition. Goodwill is the whole advantage,whatever it may be, of the reputation and connection of the firm, which may have been built up by years of honest work or gained by lavish expenditure of money. As stated in the case of Commissioners v Miller, goodwill is inseparable from the business to which it adds value. In some cases goodwill may be considered as having a distinct locality, the goodwill of a retail shop for instance. The goodwill of a business adds value to the land or house in which it is carried on if sold with the business. If the business is carried on in different territories or countries, a separate goodwill attaches to it in each. Under modern business conditions a business, particularly of the manufacture and sale of a product, is carried on all over the country. In such a case it will be difficult to localise goodwill. The owner of a trade mark or business name may have goodwill in a country without having any place of business there. Goodwill is a species of intangible property capable of being sold or charged or bequeathed by will. It is invariably symbolizes or identified by a trade mark or trade name. Goodwill forms part of the assets of a firm. Trade mark, trade name and get-up form part of the goodwill of business. The name of a firm is a very important part of the goodwill of the business carried by the firm. The transfer of goodwill of a business confers on the transferee the exclusive right to carry on the business transferred, the exclusive right to represent himself as carrying on such business, and as against the transferor the exclusive right to use the name under which the business has been carried on, but such name must not be used so as to expose the transferor to a risk of personal liability owing to his being held out as the owner of or a partner in the business. The sale of the business and goodwill carries with it the right to use the old firm’s name. The sale of the business is a sale of the goodwill, whether the word ‘goodwill’ is mentioned or not. Any unregistered mark vested in a company would pass with an assignment of its goodwill by the company. In the absence of any express restrictive covenant, the vendor of a business is at liberty to set up a competing business, but he may not solicit the customers of the business of which he has sold the goodwill and so deprive the purchaser of the benefit of that which he has bought. Thus where the goodwill of a firm is sold after dissolution, a partner may carry on a business competing with that of the buyer and he may advertise such business, but, subject to agreement between him and the buyer, he may not: • use the firm's name, • represent himself as carrying on the business of the firm, or • solicit the custom of persons who were dealing with the firm before its dissolution. Goodwill is territorial in nature. www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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19.Explain the concept of Industrial Designs Those who wish to purchase an article for use are often influenced in their choice not only by practical utility and efficiency but also by its appearance. Some look for artistic merit. Some are attracted by a design which is strange or bizarre. Many simply choose the article which catches their eye. Whatever the reason may be, one article with a particular design may sell better than one without it. It would, therefore, be profitable to use a design which will attract customers. Much thought, time and expense may have been incurred in finding a design which will increase sales. The object of design registration is to see that the originator of a profitable design is not deprived of his reward by others applying it to their goods without his permission. The law protecting designs was governed by the Designs Act 1911, which has now been replaced by the Designs Act 2000. The Designs Act 2000 was brought into force with effect from 11th May 2001. 19.1.Definition of Design [Ss 2(d) and 4] ‘Design’ means only the features of shape configuration, pattern, ornament or composition of lines or colours applied to any article whether in two dimensional or in 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 but does not include any mode or principle of construction or anything which is in substance a mere mechanical device. It does not include a trade mark or property mark or an artistic work. A design in order to be registrable must be new or original not previously published in India or anywhere in the world. A design may be incorporated in the article itself as in the case of a shape or configuration which is three dimensional in nature or it may be represented two dimensionally on a piece of paper in such a way that the article to which it is applied could be visualised. Shape and configuration are three dimensional, e.g. the shape of a bottle, vase and so on; while patterns or ornaments are two dimensional as in the case of patterns for textiles, wallpaper, etc., which serves the purpose of decoration. A design may be the shape of a wash basin, a motor car, a locomotive engine or any material object, it may be the shape embodied in a sculptured or a plastic figure, which is to serve as a model for commercial production, or it may be a drawing in the flat or a complex pattern to be used for the manufacture of things such as linoleum or wallpaper. A design must have individuality of appearance, which makes it not merely visible but noticed although it need not possess any artistic merit. A design not distinguishable from known designs or which consists of scandalous or obscene matter is not registrable. An industrial design is different from a trade mark. If after the expiry of the monopoly period, the design is not used by other traders it might in course of time become distinctive of the goods of the original proprietor and acquire significance as a trade mark (get-up). In such circumstance it can be protected from copying by others by a passing off action. 19.2.Designs prohibited from registration [Ss 4 and 5] The following designs are prohibited from registration: 1. A design which is not new or original. 2. A design which has been disclosed to the public anywhere in the world prior to the filing date or the priority date of application. 3. A design which is not significantly distinguishable from known design or combination of known design. 4. A design which comprises or contains scandalous or obscene matter. 5. A design which is contrary to public order or morality.

19.3.Registration of Designs Registration of designs is done by the Patent Office at Calcutta. The procedure for registration is contained in Ss. www.hanumant.com/articles/AvinashB-Inellectual Property Rights IPR Notes.html

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5-10 of the Designs Act and Rules prescribed. Any person claiming to be the Proprietor of any new and original design not previously published in any country may apply for registration of the design. For the purpose of registration goods are classified into 32 classes under the Third Schedule the Designs Rules 2001. An application may endorse on the application a brief Statement of the novelty he claims for his design as for example, ‘novelty resides in the shape of the ash-tray as illustrated’,‘novelty resides in the shape or configuration in the bookshelf as illustrated’ and so on On receipt of an application the application will be examined by an examiner as to whether the design is registrable under the Act and the Rules and submit a report to the controller. If the application is in order and satisfies the requirements of the Act and the Rules . Controller will accept the application and register it. The design when registered will be registered of the date of the application for registration. There is no provision under the Act for advertisement of the application before registration or any opposition proceedings as in the Patent or Trade Marks Act. If the application due to any default on the applicant is not completed within the prescribed time it will be deemed to be abandoned. If the controller refuses an application any person aggrieved may appeal to the High Court. Certain emblems and seals like the emblem and seal of the United Nations Organisation, of the World Health Organisation, of the Government of India or any State and the Indian National Flag are not registrable as designs. Registration of the design in the first instance will be for a period of ten years which can be extended by five years. The controller has power to correct clerical errors in the register on a request made for the purpose in the prescribed form [S. 29]. 19.4.Rights conferred by Registration [Ss. 11 – 15] The registered proprietor of a design has the exclusive right to apply a design to any article in any class in which it is registered. This right is called a Copyright in the design. The nature of the Copyright is different from the Copyright under the Copyright Act. Copyright in a design can last for a maximum period of fifteen years. Thereafter it becomes public property and anybody can use it. The rights conferred by registration are subject to the following conditions: (1) If exact representations or specimens of the design are not supplied to the Controller by the registered proprietor as required the Controller may erase his name from the register. (2) The articles on which the design is applied should marked in the prescribed manner with the word ‘Registered’ or its abbreviation ‘Regd’ or ‘RD’ followed by the registration number. This requirement may waived in the case of certain articles subject to conditions. If the proprietor fails to apply the marking as above, he will not be entitled to recover any penalty or damages in respect of any infringement of copyright unless he shows that he has taken all precautions to ensure the marking of the article or that the infringer had knowledge of the existence of the Copyright in the design. Registration does not in fact give any exclusive right to the registered proprietor. What it gives is the right to stop others from infringing his registration by making, applying the design or importing articles bearing the design and so on. Registration is not a guarantee of its validity since the official novelty search is a very limited one.

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