IP in IT : Global Strategy
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IP in IT:Global Strategy
Prof. Anil B. Suraj
Intellecture SeminarSeries
Copyright, Brain League IP Services,
Non-commercial use is permitted
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Session Objectives
To recognize the importanceof TRIPs in ensuring globalstandards
To understand the prevalent
criteria to establish andenforce IPRs
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Interests inGlobalization
Rebuilding by developedeconomies UN, IBRD, IMF,GATT/ITO
Strategic incorporation ofdeveloping nation concerns UNCTAD & Part-IV GATT
Building of consensus in WTO
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IPRs General Bases
Economic (and technological)rationale aids overalldevelopment
Social benefits PublicDomain and Basic Research
Legal monopoly fairregulation 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 IntegratedCircuits Layout-Design Act, 2000
Geographical Indications Geographical Indications of
Goods (Registration andProtection) Act, 1999
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Forms of IPRs
Plant varieties Protection ofPlant Varieties and FarmersRights Act, 2001
Traditional Knowledge partlyby Biological Diversity Act, 2002
Trade Secrets Contractual no legislation in India
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COPYRIGHTS
Statutorily provided privilege toauthors, aiming towards: Creative and Intellectual enrichment of the
public
Progress of Scientific and useful Arts(literary, artistic, musical, dramatic,cinematographic films, sound recordingsand now performances & broadcasting)
Bundle of rights right to makecopies; 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 ofcolours
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 IPRprotection:
Originality uncommon product ofintellect
Not commercially exploited (formore than 2 years)
Inherently distinctive
Distinguishable from otherregistered designs
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IC Layout Designs
Use or sale of whole or original part ofregistered layout-design withoutpermission is an infringement
No violation if used for scientificevaluation, analysis, research or teaching
Creation of an independent originallayout-design from analysis can beseparately registered
l i f
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Evolution of IPRregime
Early 17th Century MonopoliesStatute Maximum flexibility to national
governments no global enforcement
Paris Convention (1883); BerneConvention (1886); MadridAgreement (1891)
Minimum obligations but with flexibilities National Treatment; and Reciprocal
obligations though not mandated
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TRIPs Regime
TRIPs (1995) commonminimum institutional framework what about flexibilities?
Scope of Patents
Patentability criteria
Enforcement mechanisms
TRIP R i
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TRIPs Regime Salient Features
Basic Principles
MFN status; National Treatment
Forms of IPRs and bases ofprotection
Aiming for uniformity
Multilateralism impact on national
laws
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TRIPs Features
Special Provisions forDeveloping nations
Accent on technology transfer &promotion Brazil & Koreacomparison
Enforcement Mechanisms
Civil and Criminal; Border measures
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Enforcement of IPRsKey lessons from Indiaand across the Globe
i
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Large expectations driven by small initiatives!!
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High stakes
IBM v. Amazon = dispute over 5e-commerce based patents valued more than $10 bn
Transmeta v. Intel = disputeover patents in power savingchips valued at about $100 bn
RIM v. NTP = Blackberrytechnology settled at over $600
mn
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High Stakes
Volkswagen take over of RollsRoyce - $712 mn but missedthe most important asset!!
Total value of IPRs owned by USis estimated at about $6 trillion
IPR valuations in M&As risingthe stakes further
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IP Litigation
If negotiations fail then litigate forcompensation Alcatel-Lucent matter record verdict of
compensation = $1.53 bn
Suing could estrange potential partners(IPTV venture) negotiate for licensing
EU enforcement mechanism variesamong member nations a commondirective 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
Liti ti R di
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Litigation Remedies
Copyrights & TMs registration is bestproof else, legal presumptions apply Passing off
Civil remedy enforceable by a DistrictCourt compensatory and injunctions NASSCOM matter
Criminal remedy law provides forminimum imprisonment and fines offenceis 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 morethan $40 mn on counter-measures
Software piracy: Global = 35%; India =73%; China = >90%
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Online infringements
Online auctions, sales or passingoff of proprietary software eBay; iOffer
Monumental task of monitoring
China has 5 auction sites, 8 lakhwebsites and about 2 lakhregistered cyber cafes!!
Online counter
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Online counter-measures
New breed of Cyber investigators set a thief to catch a thief!!
Fictitious impersonations in chatrooms and internet message boards
Counter attacks through hacking
Privacy concerns and fraudulent acts
M i F t f th IT
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Main Features of the ITAct
Information Technology Act, 2000
Allows for admissibility of electronicevidence in general procedure
Defines essential terms computer,network/resource/system, electronic
record, data, information, securesystem, etc.
C b C i d
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Cyber Crimes andPenalties
Section 43 damage tocomputer or computer system destroy, alter, delete, add,
modify or rearrange anycomputer resource Fines up toRs. 1 Crore !!
Factual factors = unfairadvantage; amount of losscaused; the repetitive nature
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Cyber Offences
Tampering/copying computer sourcecode or related documents 3 yrs + 2lakhs
Hacking into computer resource 3 yrs+ 2 lakhs
Breaching confidentiality of electronicdocuments 2 yrs + 1 lakh
Publishing or transmitting obscenematerial in electronic form = 5 yrs + 1lakh
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 exemptedfrom liability if lack of knowledgedespite due diligence
Comprehensive Search & SeizurePowers given to the Police
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Principles of
Patentability
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What is a Patent?
Patent a monopoly right to aninventor
20 year period of monopoly grantedfor inventions that satisfy:
Novelty
Inventive Step or Non-obviousness
Utility or industrial application
What can you do with
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What can you do witha Patent?
Section 48 of the Patents Act,1970: Make Use Sell Distribute Import
the invention within India
Effect of Patents only territorial
Subject Matter of
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Subject Matter ofPatents
Must relate to any new processand/or a new product improvements also considered
across any field of technology(TRIPs)
Any process, machine,manufacture, composition ofmatter or material
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Non-patentability
Section 3 of the Patents Act, 1970enlists:
Frivolous or opposed to natural laws;
Mere discovery or an abstractformulation;
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 oralgorithms;
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US Case Studies
Gottschalk v. Benson (1972) NO unless there is a physical effect
Diamond v. Diehr (1981) YES ifpart of an otherwise patentableprocess with a tangible result
State Street Bank (1998) YES useful computation is in itself atangible result
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EU Case Studies
EPO Board In re Vicom Systems (1987) YES mathematical method must bedirected to technical process Digital processing of images
Though not tangible or concrete, its utility wasof technological character
In re Sohei (1996) YES despite mix oftechnical and non-technical elements iffor an ultimate technical solution
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Patentability Novelty
Prior art (not just documents) i.e., open to public before thepriority date (first filing ofprovisional application)
Known, used, published,patented elsewhere, offered forsale, abandoned, in priority
elsewhere
Prior disclosure must havebeen clear (and inevitable)
Patentability:
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Patentability:Non-Obviousness
Not State of the art notpreviously known or used publicly
Obvious as to a personordinarily skilled in the art ahypothetical construction
Identify inventive step; comparecombined prior knowledge;establish similarities; evaluate if itis obvious to skilled person
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Patentability: Utility
Current contemporaryrequirement
Substantial and significant value
Credible to be made and to beused