World Trade Organization

The World Trade Organization (WTO) is an intergovernmental organization which

regulates international trade. The WTO officially commenced on 1 January 1995 under
the Marrakesh Agreement, signed by 123 nations on 15 April 1994, replacing the General
Agreement on Tariffs and Trade(GATT), which commenced in 1948.As an organization it has vast
powers and functions than what its predecessor GATT (General Agreement on Tariffs and Trade)
had, the objectives and goals of both being broadly the same.The World Trade Organization is a
Multi-lateral organization which facilitates the free flow of goods and services across the world and
encourages fair trade among nations. The result is that the global income increases due to
increased trade and there is supposed to be overall enhancement in the prosperity levels of the
member nations.

Features of WTO
1. It is an international organization to promote multilateral trade.
2. It has replaced GATT.
3. It promotes free trade by removing tariff and non-tariff barriers in international trade.
4. It has fixed set of rules and regulations and it has a legal status. Its rules and regulations are mutually
designed and agreed upon by member nations.
5. Agreements agreed by member-countries are binding on all members of WTO and if any member
does not follow such agreements, then its complaint can be lodged with the Dispute Settlement Body
of WTO.
6. It includes trade in goods, trade in services, protection of intellectual property right rights, foreign
investment etc.
7. Unlike International Monetary Fund(IMF) and the World Bank.WTO is not an agent of United
Nations.
8. Unlike IMF and World Bank, there is no weighted voting (on the basis capital). Rather all the WTO
members have equal voting rights (One Country, One Vote).
9. WTO has large Secretariat and huge organizational set up.
Objectives of WTO
1. The primary aim of WTO is to implement the new world trade agreements.
2. To promote multilateral trade i.e. trade among many nations.
3. To promote free trade by abolishing tariff and non tariff barriers.
4. To promote world trade in a manner that benefits every member country.
5. To ensure that developing countries get a better share in the advantages resulting from the expansion
of international trade corresponding to their development needs.
6. To remove all hurdles to an open world trading system and use world trade as an effective instrument
to boost economic growth.
7. To enhance competitiveness among all trading partners so as to benefit consumers.
8. To expand and utilize world resources in the most optimum manner.
9. To improve the level of living for the global population and speed up economic development of the
member nations.
10. To take special steps for the development of poorest nations.
Functions of WTO
1. Laying down code of conduct aiming at reducing tariff and non-tariff barriers in international trade.
2. Implementing WTO agreements and administering the international trade.
 3. Cooperating with IMF and World Bank and its associates for establishing coordination in Global
Trade Policy-Making
4. Settling trade related disputes among member nations with help of its Dispute Settlement Body
(DSB).
5. Reviewing trade related economic policies of member countries with the help of its Trade Policy
Review Body (TPRB).
6. Providing technical assistance and guidance related to management of foreign trade and fiscal policy
to its member nations.
7. Acting as form for trade liberalization.

GATS
 

The General Agreement on Trade in Services (GATS) is a treaty of the World Trade

Organisation (WTO) that entered into force in January 1995 as a result of the Uruguay
Round negotiations. The treaty was created to extend the multilateral trading system to service
sector, in the same way The General Agreements on Tariffs and Trade (GATT) provides such a
system for merchandise trade.

All members of the WTO are signatories to the GATS. The basic WTO principle of Most Favoured
Nation (MFN) applies to GATS as well. However, upon accession, Members may introduce
temporary exemptions to this rule.

The overall aim of GATS is to liberalize trade in services. The agreement covers four different
modes (modes 1-4 trade in services)

Mode1: Cross-border trade

Mode2: Consumption abroad

Mode3: Commercial presence

Mode4: Presence of natural persons

 Mode1
Cross-border trade corresponds with the normal form of trade in goods and maintains a clear
geographical separation between seller and buyer. In this case services flow from the territory of one
member into the territory of another member crossing national frontiers. (E.g. banking or
architectural services transmitted via telecommunications or mail).

 Mode 2
Consumption abroad refers to situations where a service consumer moves into another Member’s
territory to obtain a service (e.g. consumer travelling for tourism, medical treatment, to attend
educational establishment).

 Mode 3
Commercial presence is the supply of a service through the commercial presence of the foreign
supplier in the territory of another WTO member. In this case a service supplier of one member
establishes a territorial presence, including through ownership or lease of premises, in another
member’s territory to provide a service. (E.g. the establishment of branch offices or agencies to
deliver such services as banking, legal advice or communications)

 Mode 4
Presence of natural persons involves the admission of foreign nationals to another country to
provide services there. An Annex to the GATS makes it clear, however, that the agreement has
nothing to do with individuals looking for employment in another country, or with citizenship,
residence or employment requirements. The members still has a right to regulate the entry and stay
of the persons concerned, for instance by requiring visas.

General Principles
These are basic rules that apply to all members and to all services.

1.MFN Treatment
 Under Article II of the GATS, “Each Member shall accord immediately and unconditionally to
services and service suppliers of any other Member treatment no less favorable than it accords to
like services and service suppliers of any other country”. However, a member is permitted to
maintain a measure inconsistent with the general MFN requirement if it has established an
exception. However, all exemptions are subject to review and they should in principle, not last longer
than 10 years.
2.Transparency
 The GATS requires each member to publish promptly “all relevant measures of general application”
that affect operation of the agreement. Members must also notify the Council for Trade in Services of
new or changed laws, regulations or administrative guidelines that affect trade in services covered
by their specific commitments under the agreement. Each member is required to establish an
enquiry point, to respond to requests from other members for information.
3.Specific Obligations
  Obligations, which apply on the basis of commitments, laid down in individual country schedules
concerning market access and national treatment in specifically designated sectors. These
requirements apply only to scheduled sectors.
4.Market Access
Market access is a negotiated commitment in specified sectors. The GATS also sets out different
forms of measure affecting free market access that should not be applied to the Foreign Service or
its supplier unless their use is clearly provided for in the schedule. They are:

 Limitations on the number of service suppliers.

 Limitations on the total value of services transactions or assets
 Limitations on the total number of service operations or the total quantity of service output.
 Limitations on the number of persons that may be employed in a particular sector or by a particular
supplier
 Measures that restrict or require supply of the service through specific types of legal entity or joint
venture
 Percentage limitations on the participation of foreign capital, or limitations on the total value of
foreign investment.
 
 National Treatment
A commitment to national treatment means that in the sectors covered by its schedule, subjected to
any conditions and qualifications set out in the schedule, each member shall give treatment to
foreign services and service suppliers treatment, in measures affecting supply of services, no less
favorable than it gives to its own services and suppliers. Again, the extension of national treatment in
any particular sector may be made subject to conditions and qualifications. Members are free to
tailor the sector coverage and substantive content of such commitments as they see fit. The
commitments thus tend to reflect national policy objectives and constraints, overall and in individual
sectors. While some Members have scheduled less than a handful of services, others have
assumed market access and national treatment disciplines in over 120 out of a total of 160- odd
services.

Exemptions
Members in specified circumstances are allowed to introduce or maintain measures in contravention
of their obligations under the Agreement, including the MFN requirement or specific commitments.
These circumstance cover measures necessary to protect public morals or maintain public order,
protect human, animal or plant life or health or secure compliance with laws or regulations not
inconsistent with the – Agreement including, among others, measures necessary to prevent
deceptive or fraudulent practices. Also, in the event of serious balance-of-payments difficulties,
members are allowed to temporarily restrict trade, on a non-discriminatory basis, despite the
existence of specific commitments.

TRIPS

TRIMS-Trade Related Investment Measures

 

The Agreement on Trade-Related Investment Measures (TRIMs) are rules that apply to the domestic
regulations a country applies to foreign investors, often as part of an industrial policy. The agreement
was agreed upon by all members of the World Trade Organisation. The agreement was concluded in
1994 and came into force in 1995. The WTO was not established at that time, it was its predecessor,
the GATT (General Agreement on Trade and Tariffs. The WTO came about in 1994-1995.)

Policies such as local content requirements and trade balancing rules that have traditionally been
used to both promote the interests of domestic industries and combat restrictive business practices
are now banned.Trade-Related Investment Measures is the name of one of the four principal legal
agreements of the WTO trade treaty. TRIMs are rules that restrict preference of domestic firms and
thereby enable international firms to operate more easily within foreign markets.

Features of TRIMs
1. Abolition of restriction imposed on foreign capital
2.  Offering equal rights to the foreign investor on par with the domestic investor
3. No restrictions on any area of investment
4. No limitation or ceiling on the quantum of foreign investment
5. Granting of permission of without restrictions to import raw material and other components
 6. No force on the foreign investors to use the total products and or material.
7.  Export of the part of the final product will not be mandatory
8. Restriction on repatriation of dividend interest and royalty will be removed
9. Phased manufacturing programming will be introduced to increase the domestic content of
manufacturer
India’s notified TRIMs
As per the provisions of Art. 5.1 of the TRIMs Agreement India had notified three trade   related
investment measures as inconsistent with the provisions of the Agreement:

 Local content (mixing) requirements in the production of News Print,

 Local content requirement in the production of Rifampicin and Penicillin – G, and
 Dividend balancing requirement in the case of investment in 22 categories consumer goods.
Such notified TRIMs were due to be eliminated by 31st December, 1999. None of these measures is
in force at present. Therefore, India does not have any outstanding obligations under the TRIMs
agreement as far as notified TRIMs are concerned.

Economic Implications
Some governments view TRIMs as a way to protect and foster domestic industry. TRIMs are also
mistakenly seen as an effective remedy for a deteriorating balance of payments. These perceived
benefits account for their frequent use in developing countries. In the long run, however, TRIMs may
well retard economic development and weaken the economies of the countries that impose them by
stifling the free flow of investment. Local content requirements, for example, illustrate this distinction
between short-term advantage and long-term disadvantage. Local content requirements may force a
foreign affiliated producer to use locally produced parts. Although this requirement results in
immediate sales for the domestic parts industry, it also means that this industry is shielded from the
salutary effects of competition. In the end, this industry will fail to improve its international
competitiveness. Moreover, the industry using these parts is unable to procure high-quality, low-
priced parts and components from other countries, and will be less able to produce internationally
competitive finished products. The best the domestic industry can hope to achieve import
substitution, but the likelihood of further development is poor. The consumer in the host country also
suffers as a result of TRIMs. The consumer has no choice but to spend much more on a finished
product than would be necessary under a system of liberalized imports. Since consumers placed in
such a position must pay a higher price, growth of domestic demand will stagnate. This lack of
demand also hinders the long-term economic development of domestic industries.

PR-Intellectual Property Rights

 

Introduction
Intellectual property (IP) is a legal field that refers to creations of the mind such as musical, literary,
and artistic works; inventions; and symbols, names, images, and designs used in commerce,
including copyrights, trademarks, patents, and related rights. Under intellectual property law, the
holder of one of these abstract “properties” has certain exclusive rights to the creative work,
commercial symbol, or invention by which it is covered.

Intellectual property rights are a bundle of exclusive rights over creations of the mind, both artistic
and commercial. The former is covered by copyright laws, which protect creative works such as
books, movies, music, paintings, photographs, and software and gives the copyright holder exclusive
right to control reproduction or adaptation of such works for a certain period of time.

The second category is collectively known as “industrial properties”, as they are typically created and
used for industrial or commercial purposes. A patent may be granted for a new, useful, and non-
obvious invention, and gives the patent holder a right to prevent others from practising the invention
without a license from the inventor for a certain period of time. A trademark is a distinctive sign which
is used to prevent confusion among products in the marketplace.

An industrial design right protects the form of appearance, style or design of an industrial object from
infringement. A trade secret is an item of non-public information concerning the commercial
practices or proprietary knowledge of a business. Public disclosure of trade secrets may sometimes
be illegal.

The term “intellectual property” denotes the specific legal rights described above, and not the
intellectual work itself.

The importance of intellectual property in India is well established at all levels- statutory,
administrative and judicial. India ratified the agreement establishing the World Trade Organization
(WTO). This Agreement, inter-alia, contains an Agreement on Trade Related Aspects of Intellectual
Property Rights (TRIPS) which came into force from 1st January 1995. It lays down minimum
standards for protection and enforcement of intellectual property rights in member countries which
are required to promote effective and adequate protection of intellectual property rights with a view
to reducing distortions and impediments to international trade. The obligations under the TRIPS
Agreement relate to provision of minimum standard of protection within the member countries legal
systems and practices.
The Agreement provides for norms and standards in respect of following areas of intellectual property:
 Copyrights and related rights
 Trade Marks
 Geographical Indications
 Industrial Designs
 Lay out Designs of Integrated Circuits
 Protection of Undisclosed Information (Trade Secrets)
 Patents
 Plant varieties
Essential Elements of Intellectual Property Rights
IPR is a broad term for covering –
1) Patents for inventions

2) Copyrights for material

3) Trademarks for broad identity and

4) Trade secrets

In general these properties are termed as “Intellectual Property”.  Intellectual Property is an asset
that can be bought or sold, licensed and exchanged.  But of course unlike other properties,
intellectual property is intangible; rather it cannot be identified by its specific parameters.  These
properties are protected on a national basis.
 

1) PATENTS
 A patent  is a set of exclusive rights granted by a sovereign state to an inventor or assignee for a
limited period of time in exchange for detailed public disclosure of an invention. An invention is a
solution to a specific technological problem and is a product or a process.
 A government authority or license conferring a right or title for a set period, especially the sole right to
exclude others from making, using, or selling an invention.
This refers to innovations – new or improved product and processes which are meant for industrial
applications.  This is a territorial right which requires registration for a limited time.  Patent is a
contract between an inventor as an individual and the society as a whole.  The inventor has
exclusive right to prevent anybody making use of and/or selling a patented invention.  Of course, this
is only for a specific duration till the inventor discloses the details of invention to the public.

The legal authority in this patent right is the World Trade Organization (WTO) agreement with
respect to Trade Related Aspects of Intellectual Property Right (TRIPS).  This offers the international
standard for the required duration of 20 years from the date of filing the patent.  Once this period is
over, people are free to make use of this invention as they like.  However, though the member has a
right to prevent others making use of his patented invention, the owner has no right to make use or
sell the invention itself.  Patents are granted under national laws and these rights are enforceable by
civil laws rather than criminal proceedings.

Conditions to be satisfied by an invention to be Patentable:

1. Novelty
2. Inventiveness(Non-obviousness)
3. Usefulness
1. Novelty

A novel invention is one,which has not been disclosed,in prior art where prior art means everything
that has been published,presented or otherwise disclosed to the public on the date of patent.

2. Inventiveness(Non-Obviousness)

A patent application involves an inventive step if the proposed invention is not obvious to a person
skilled in the art i.e skilled in the subject matter of the patent application.

3. Usefulness

An invention must posses utility for the grant of patent.No valid patent can be granted for an
invention devoid of utility.

Patentable Inventions under the Patents Act,1970

a) Art,process,method or manner of manufacture.

b) Machine,apparatus or other article,Substances produced by manufacture,which include any new

and useful improvements of any of them and an alleged invention.
c) Inventions claiming substance intended for use,or capable of being used,as food or as medicine
or drug or relating to substances prepared or produced by chemical processes(including
alloys,optical glass,semiconductors and inter-metallic compounds) are not patentable.

Types of Inventions which are not Patentable in India

An invention may satisfy the conditions of novelty,inventiveness and usefulness but it may not
qualify for a patent under the following situations:

a) An invention which is frivolous or which claims anything obviously contrary to well established
natural laws e.g. different of perpetual motion machines.

b) An invention the primary or intended use of which would be contrary to law or morality or injurious
to public health e.g a process for the preparation of a beverage which involves use of a carcinogenic
substance,although the beverage may have higher nourishment value.

c) The mere discovery of a scientific principle or formation of an abstract theory e.g Raman Effect.

d) The mere discovery of any new property or ne use of known substance or the mere use of known
process,machine or apparatus unless such a known process results in a new product or employs at
least one new reactant.

e) 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.

f) The mere arrangement of rearrangement or duplication of features of known devices each

functioning independently of one another in a known way.

g) A method or process of testing applicable during the process of manufacture for rendering the
machine,apparatus or other equipment more efficient.

h) A method of agriculture or horticulture.

i) Any process for medical,surgical,curative,prophylactic or other treatment of human beings,or any

process fo a similar treatment of animals or plants.

j) Inventions relating to atomic energy.

Types of patents
i) Utility patents

ii) Design patents

iii) Plant patents

i) Utility patents
A utility patent may be available for inventions which are novel, useful, and non-obvious. Utility
patents can be obtained for the utilitarian or functional aspects of an invention. Utility patents have a
term of twenty years from the date of filling the patent application with the patent and trademark
office, although term extensions are available in certain specific situations. During the term of a utility
patent, maintenance fees must be paid in order to sustain the patent.

ii) Design patents

It can be granted to any one who invents a new, original ornamental design for an article of
manufacture.  A design patent protects the ornamental design (i.e. appearance) of the article.  A
design patent has duration of 14 years from the date of filing. Design patents are not subject to
maintenance fee payments.

iii) Plant patents

Plant patent can be granted to any one who invents or discovers and reproduces a new variety of
plant. A plant patent may be issued for the invention or discovery of a distinct and new variety of
plants, which may be asexually reproduced. To qualify for this type of patent, the discovery or
invention must be novel, distinct, and non-obvious. A plant patent has a term of 20 years from the
date of filing.

Term of a Patent in the Indian System

a) Five years from the date of selling of the patent or seven years from the date of the patent (i.e the
date of filing the complete specification) whichever period is shorter,for an invention claiming the
method or process of manufacture of a substance,where the substance is intended or capable of
being used as a drug,medicine or food.

b) Twenty years from the date of patent in respect of any other patentable invention.

Essential Patent documents to be submitted

There are two types of patent documents usually known as patent specification,namely

1. Provisional specification
2. Complete Specificaion
1. Provisional Specification

A provisional specification is usually filled to establish priority of the invention in case the disclosed
invention is at a conceptual stage and a delay is expected in submitting full and specific description
of the invention.Although,a patent application accompanied with provisional specification does not
confer any legal patent rights to the applicants,it is however a very important document to establish
the earliest ownership of an invention.Complete specification must be submitted within 12 months of
filing the provisional specification.This period can be extended by 3 months.

2. Complete Specification

Submission of complete specification is necessary to obtain a patent.The contents of a complete

specification would include the following:
Title of the invention

 Field to which invention belongs.

 Background of the invention including prior art giving drawbacks of the known inventions practices.
 Complete description of the invention along with experimental results.
 Drawings etc. essential for understanding the invention.
 Claims,which are statements,related to the invention on which legal proprietorship is being
sought.Therefore the claims have to be drafted very carefully.
Criteria for Naming inventors in an Application for Patent
The name of inventors is normally decided on the basis of the following criteria:

1. All persons who contribute towards development of patentable features of an invention should be
named as inventors.
2. All persons,who have made intellectual contribution in achieving the final results of the research work
leading to a patent,should be named as inventor(s)
3. A person who has not contributed intellectually in the development of an invention is not entitled to be
included as an inventor.
A person who provided ideas needed to produce the ‘germs of the invention’ need not
himself/herself carry out the experiments,construct the apparatus with his/her own hands or make
the drawings himself/herself.The person may take the help of others.Such persons who have helped
in conducting the experiments,constructing apparatus or making the drawing or models without
providing any intellectual inputs are not entitled to be named as inventors.

Where to apply?
Application for the patent has to be filled in the respective patent office as mentioned below.The
territorial jurisdiction is decided based on whether any of the following occurrences falls within the
territory.

1. Place of residence,domicile or business of the applicant(first mentioned applicant in the case of joint
applicants)
2. Place from where the invention actually originated.
3. Address for services in India given by the applicant when he has no place of business or domicile in
India.
A foreign applicant should give an address for service in India and the jurisdiction will be decided
upon that.An applicant (Indian or foreigner) also can his Patent Agent’s address as address for
serving documents,if he/she so wishes.

How to apply?
Steps involved in obtaining a Patent

 To file an application for patent accompanied with either a provisional specification or a complete
specification
 To file complete specification,if provisional application was submitted earlier.
 Examination of the application by patent office.
 Acceptance of applications and publication in the gazette of accepted applications.
 Responding and satisfactory overcoming the opposition/objections,if any to the grant of patent.
 Sealing of patent
Application for patent(Form 1) in duplicate should be accompanied by the documents as indicated
below. The fee(Rs./- for natural citizen of India or Rs./- for other than a citizen) can be paid within
one month.

2) COPY RIGHTS
A copyright is a very particular and exclusive right even for reproduction of an original work. This is
for material, aesthetic material, literacy, music, film, sound recording, broad casting, software and
multimedia.  This offers automatic right for safeguarding any original creation, which is not in need of
registration but with limited time.  It does not require the lawyer’s help for settlement.

Protection to copy right does not give any procedure, principle, concept or method or operation,
irrespective of the format in which it is explained.  In other words protection of copyright is limited to
an inventor’s particular expression of an idea, concepts or process in a tangible medium.  Copyright
is sanctioned to prevent others from:

a) Copying the work

b) Publishing and selling copies commercially

c) Renting or lending the work in a free market

d) Doing or demonstrating the work in public

Works protected by Copyright

The types of copyright works are broadly categorized into:

a) Original literary,dramatic,artistic or musical works.

b) Sound recordings,films or broadcasts and

c) The typographical arrangement of published editions.

Literary work also includes:

 A table or compilation other than a database

 A computer program
 Preparatory design material for a computer program
 A database
Rights granted by Copyright
Copyright grants certain rights that are exclusive to its owner. Based on these rights, the copyright
owner.

 Can copy the work

 Issue copies of the work to the public
  Rent or lend the work to the public
 Perform,show or play the work in public
 Communicate the work to the public-this includes broadcasting of a work and also electronic
transmission and make an adaptation of the work or do an y of the above in relation to an adaptation.
The TRIPS agreement offers a minimum duration of copyright protection to the tune of the life of the
inventor or author plus fifty years.  Anyhow rights granted exclusively to the copy right owner may
allow others in making fair use of the owner’s work, like for the purpose of review, comment,
reporting, teaching, researches, etc.  Of course, the impact of copying an inventor’s work’s
commercial value is considered to find out whether the copying is for “fair use”.  In order to secure
protection for copy right, the particular work must be an original work made or written in a tangible
medium of expression.  The test for such originality consists of two conditions –

(1) work must originate from the inventor and not a copy from others’ works.

(2) the invention or work must have adequate amount of creativity.

c) TRADE MARKS
Trademark is for broad identity of specific goods and services allowing differences to be made
among different trades.  This is a territorial right, which requires registration, but without any time
limit.  Lawyers are needed for guidelines.

A trademark is an identification symbol which is used in the course of trade to enable the purchasing
people (buyers) to distinguish one trader’s goods from the similar goods of other traders. These
marks also symbolize distinctly the quality of the products.  These marks are in the form of certain
‘wordings’ or can be in the format of logos, designs, sounds, etc. Examples: NIIT, Kodak.

The TRIPS agreement offers the same type of protection for trademarks.  Registration of trademark
is issued for definite period of time.  However, in order to avoid confusion, encourage competitions
and protect the inventor’s good will, the registration may be renewed.  With reference to intellectual
property area, trademarks are national in origin and should comply with provision of TRIPS
agreement.

TYPES OF TRADEMARKS
Generic Trademarks

Words, symbols or devices that are not so distinctly distinguishing the goods from others are at the
weakest ends, as they are common terms used to identify the goods themselves.  These are termed
as generic terms and are not protectable as trademarks.

Descriptive Trademarks

Descriptive trademarks clearly denote or inform the specific purpose, functions, physical
characteristic and end use of the product.

Suggestive Trademarks
Suggestive trademarks do not at a glance describe the goods for which the mark is used; yet they
rather require some imagination or perception to arrive at a conclusion about the nature of the
goods.

The other types of trademarks include arbitrary marks and fanciful marks which are inherently
distinctive.

d) TRADE SECRETS
A trade secret means information, which is kept confidential as a secret.  This is generally not known
in the relevant industry, offering an advantage to its owner over other competitors.  Unlike other
types of Intellectual property, this trade secret is fundamentally a “do-it-yourself’ type of protection. 
For engineers, inventors, and designers, the trade secrets are to be maintained secretly.  Such trade
secrets include some formulae, programmes, methods, progresses or data collections etc.   If there
is any improper disclosure or use of the trade secret by another person, the inventor may claim and
recover damages resulting from illegal use.

TRIPS agreements offer the protection for trade secrets under the heading ‘protection of undisclosed
information’.  The engineer in competitive field should feel their responsibility and status when they
make use of such trade secrets till its disclosure.  If the information of a trade secret is available
through any legitimate means and if any inventor is responsible illegally for such leaking, then the
trade secret may become ineligible for protection.

Enforcement of Intellectual Property Rights is definitely private rights.  If anybody uses the material
without the inventors’ permission, the Intellectual Property right owners can use any remedies
available under the civil law.

NEED FOR PROTECTION TO IPR

The protection of intellectual property rights is an essential element of economic policy for any
country.  Only such protection can stimulate research, creativity and technological innovations by
giving freedom to individual inventors and companies to gain the benefits of their creative efforts.

It is a very important issue to plan to protect the intellectual property rights.  The major needs are to:

 Prevent plagiarism.
 Prevent others using it.
 Prevent using it for financial gains.
 Fulfill obligation to funding agency.
 Support income generation strategy.
IMPORTANCE OF IPR
a) Give the inventors exclusive rights of dealing.

b) Permit avoiding of competitors and increase entry barriers.

c) Allow entry to a technical market

d) Generate steady income by issuing license.

e) A registered intellectual property right is property, just like your capital assets. However, it is an
asset that can be leveraged through licensing and can therefore be highly valuable. It can also
greatly enhance the value of a business when it is sold.

f)Benefits the economy

Sectors that rely on IPR represent a significant part of developed and developing economies, in
terms of GDP, employment, tax revenues and strategic importance. IPR also promotes foreign direct
investment (FDI) and technology transfers in developed and developing countries.

g)Promotes innovation
Effective IPR increases funding for research and development and other innovation, including by
helping firms realize more value from innovations that are protected by IPR than those that are not.
IPR underpins development of cultural expression and diversity, and promotes broader
dissemination of innovations through publication and licensing.
h) “Open source” relies on IPR

Open source mechanisms are becoming popular in certain sectors such as software (cf. GPL
licences, etc.). While the common perception is that such mechanisms are characterized by the
absence of any IP protection, it is worth noting that a typical GPL (General Public) licence actually
relies on IP rights as it is typically a copyright license which remains valid as long as certain
conditions are complied with (e.g. freedoms received by the licensee must be passed on to
subsequent users, even where the software is modified).

i) Providing guarantees regarding the quality and safety of products

Many counterfeit products place our children’s and citizens’ safety or health at risk, for instance
where vehicle spare parts or drugs are concerned. Enforcing IP rights in respect of such products
guarantees at least that the products’ origin is known and that the products are genuine, whereas
counterfeit products often do not comply with the applicable safety standards. This is especially true
for trade marks, but patent licensing contracts, for instance, may also include quality insurance
clauses.