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IP in IT:Global Strategy
Prof. Anil B. SurajIntellecture Seminar
Series
Copyright, Brain League IP Services, Now BananaIP Non-commercial use is permitted
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Session Objectives To recognize the importance
of TRIPs in ensuring global standards
To understand the prevalent criteria to establish and enforce IPRs
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“Interests” in Globalization Rebuilding by “developed”
economies – UN, IBRD, IMF, GATT/ITO
Strategic incorporation of “developing” nation concerns – UNCTAD & Part-IV GATT
Building of “consensus” in WTO
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IPRs – General Bases Economic (and technological)
rationale – aids overall development
Social benefits – Public Domain and Basic Research
Legal monopoly – fair regulation within territory
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Forms of IPRs Patents – Patents Act, 1970
Copyrights – Copyright Act, 1957
Trade Marks – Trade Marks Act, 1999
Industrial Designs – Designs Act, 2000
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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
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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
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COPYRIGHTS Statutorily provided privilege to
authors, aiming towards: Creative and Intellectual enrichment of the
public Progress of Scientific and useful Arts
(literary, artistic, musical, dramatic, cinematographic films, sound recordings and now performances & broadcasting)
Bundle of rights – right to make copies; communicate to the public; make adaptations and allow translations
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“Mark” Includes – a device, brand, heading,
label, ticket, name, signature, word, letter, numeral
Also – packaging, combination of colours
Or any combination thereof
Sound = inherently distinctive and to be graphically represented
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“Trade mark” Any Mark capable of:
Being represented graphically; and Distinguishing goods/services of
one person from those of others
3 objectives: to identify origin; to advertise the brand; and to indicate quality
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IC Layout-Designs Layout Designs eligible for IPR
protection:
Originality – uncommon product of intellect
Not commercially exploited (for more than 2 years)
Inherently distinctive Distinguishable from other
registered designs
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IC Layout Designs …
Use or sale of whole or original part of registered layout-design without permission is an infringement
No violation – if used for scientific evaluation, analysis, research or teaching
Creation of an independent original layout-design from analysis – can be separately registered
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Evolution of IPR regime
Early 17th Century Monopolies Statute Maximum flexibility to national
governments – no global enforcement Paris Convention (1883); Berne
Convention (1886); Madrid Agreement (1891) Minimum obligations but with
flexibilities National Treatment; and Reciprocal
obligations – though not mandated
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TRIPs Regime TRIPs (1995) – common
minimum institutional framework – what about flexibilities?
Scope of Patents
Patentability criteria
Enforcement mechanisms
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TRIPs Regime – Salient Features
Basic Principles
MFN status; National Treatment
Forms of IPRs and bases of protection
Aiming for uniformity Multilateralism – impact on national
laws
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TRIPs – Features … Special Provisions for
Developing nations
Accent on technology transfer & promotion – Brazil & Korea comparison
Enforcement Mechanisms
Civil and Criminal; Border measures
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Enforcement of IPRsKey lessons from India and across the Globe
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Large expectations – driven by small initiatives!!
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High stakes IBM v. Amazon = dispute over 5
e-commerce based patents – valued more than $10 bn
Transmeta v. Intel = dispute over patents in power saving chips – valued at about $100 bn
RIM v. NTP = Blackberry technology – settled at over $600 mn
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High Stakes … Volkswagen take over of Rolls
Royce - $712 mn – but missed the most important asset!!
Total value of IPRs owned by US is estimated at about $6 trillion
IPR valuations in M&As – rising the stakes further
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IP Litigation If negotiations fail then litigate for
compensation Alcatel-Lucent matter – record verdict of
compensation = $1.53 bn
Suing could estrange potential partners (IPTV venture) – negotiate for licensing
EU – enforcement mechanism varies among member nations – a common directive for software patents failed
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Litigation – Remedies Injunctions – temporary
(immediate) and permanent (final)
Damages or compensation – based on account on profits Actuals; Loss of Goodwill; Deterrent Microsoft cases in India - > Rs.1 crore
Legal and other costs Police and Court Commissioners
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Litigation – Remedies …
Copyrights & TMs – registration is best proof – else, legal presumptions apply “Passing off”
Civil remedy – enforceable by a District Court – compensatory and injunctions NASSCOM matter
Criminal remedy –– law provides for minimum imprisonment and fines – offence is cognizable and non-bailable
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Prevalence of Piracy Total counterfeit trade = $624 bn
Total online piracy = $84 bn
Top Hollywood studios spend more than $40 mn on counter-measures
Software piracy: Global = 35%; India = 73%; China = >90%
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Online infringements Online auctions, sales or passing
off of proprietary software eBay; iOffer
Monumental task of monitoring China has 5 auction sites, 8 lakh
websites and about 2 lakh registered cyber cafes!!
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Online counter-measures
New breed of Cyber investigators – set a thief to catch a thief!!
Fictitious impersonations in chat rooms and internet message boards
Counter attacks through hacking
Privacy concerns and fraudulent acts
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Main Features of the IT Act
Information Technology Act, 2000
Allows for admissibility of electronic evidence in general procedure
Defines essential terms – computer, network/resource/system, electronic record, data, information, secure system, etc.
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Cyber Crimes and Penalties
Section 43 – “damage” to computer or computer system – destroy, alter, delete, add, modify or rearrange any computer resource – Fines up to Rs. 1 Crore !!
Factual factors = unfair advantage; amount of loss caused; the repetitive nature
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Cyber Offences Tampering/copying computer source
code or related documents – 3 yrs + 2 lakhs
Hacking into computer resource – 3 yrs + 2 lakhs
Breaching confidentiality of electronic documents – 2 yrs + 1 lakh
Publishing or transmitting obscene material in electronic form = 5 yrs + 1 lakh
Extra-territoriality application of the law – if Indian computer is affected
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Liability in Cyberspace “Deep pocket” strategy – ISPs;
Credit Card agencies
Service Providers are exempted from liability if lack of knowledge despite “due diligence”
Comprehensive Search & Seizure Powers given to the Police
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Principles of Patentability
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What is a Patent? Patent – a monopoly right to an
inventor
20 year period of monopoly granted for inventions that satisfy:
Novelty Inventive Step or Non-
obviousness Utility or industrial application
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What can you do with a Patent? Section 48 of the Patents Act,
1970: Make Use Sell Distribute Import
the invention within India
Effect of Patents – only territorial
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Subject Matter of Patents
Must relate to any new process and/or a new product – improvements also considered – across any field of technology (TRIPs)
Any process, machine, manufacture, composition of matter or material
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Non-patentability Section 3 of the Patents Act, 1970
enlists:
Frivolous or opposed to natural laws; Mere discovery or an abstract
formulation; No new product or reactant; Mere admixture or aggregation; Mere arrangement of known
devices;
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Non-patentability … Section 3 enlists … :
Mere method of a mental act or game;
Mere presentation of information;
Mathematical or Business methods;
Computer programs per se or algorithms;
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US Case Studies Gottschalk v. Benson (1972) – NO
– unless there is a physical effect
Diamond v. Diehr (1981) – YES – if part of an otherwise patentable process with a tangible result
State Street Bank (1998) – YES – useful computation is in itself a tangible result
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EU Case Studies EPO Board – In re Vicom Systems (1987)
– YES – mathematical method must be directed to “technical process” Digital processing of images Though not tangible or concrete, its utility
was of “technological character”
In re Sohei (1996) – YES – despite “mix of technical and non-technical elements” – if for an ultimate technical solution
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Patentability – Novelty Prior art (not just documents) –
i.e., open to public before the “priority date” (first filing of provisional application)
Known, used, published, patented elsewhere, offered for sale, abandoned, in priority elsewhere
Prior disclosure – must have been clear (and inevitable)
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Patentability: Non-Obviousness
Not State of the art – not previously known or used publicly
Obvious – as to a person ordinarily skilled in the art – a hypothetical construction
Identify inventive step; compare combined prior knowledge; establish similarities; evaluate if it is obvious to skilled person
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Patentability: Utility
Current – contemporary requirement
Substantial and significant value
Credible – to be made and to be used