INSITUTE OF BUSINESS AND INFORMATION TECHNOLOGY

THE UNIVERSITY OF THE PUNJAB

Business Law Assignment

Topic: Discuss Types of Intellectual Property Rights while
elaborating existing related laws of Pakistan also discuss how IP
laws can contribute in boosting the business and economy.

Submitted to: Mam Hafiza Amina

Section: Morning-A

Group Members:
Faiza Idrees

F11BA042

Maheen Chaudhry

F11BA043

Shumaila Arshad

F11BA062

Aiman Khalid

F11BA026

Aqsa Mansoor

F11BA020

Intellectual Property:
Intellectual property is the area of law that deals with protecting the rights of those who create
original works. It covers everything from original plays and novels to inventions and company
identification marks. The purpose of intellectual property laws is to encourage new technologies,
artistic expressions and inventions while promoting economic growth. When individuals know
that their creative work will be protected and that they can benefit from their labor, they are more
likely to continue to produce things that create jobs, develop new technology, make processes
more efficient, and create beauty in the world around us. Intellectual property rights are like any
other property right. They allow creators, or owners, of patents, trademarks or copyrighted works
to benefit from their own work or investment in a creation. These rights are outlined in Article 27
of the Universal Declaration of Human Rights, which provides for the right to benefit from the
protection of moral and material interests resulting from authorship of scientific, literary or
artistic productions

Types of Intellectual Property rights for Businesses:

Entrepreneurs and business owners need to understand the basics of intellectual property law to
best protect their hard-earned creations and ideas from unfair competition.
1. Copyrights
Copyrights protect original works of authorship, such as literature, music, artistic works, and
computer software. As the holder of a copyright, you have the exclusive right to reproduce,
adapt, and distribute the work. A copyright exists from the moment the work is created, so
registration is voluntary.
2. Patents
A patent grants property rights on inventions, allowing the patent holder to exclude others from
making, selling or using the invention.
There are 3 types of patents: utility, design and plant. A utility patent is the most common type,
and it covers any process, machine, article of manufacture, or composition of matter, or any new
and useful improvements thereof.
To qualify for a utility patent, the invention must be novel, non-obvious, and have some
usefulness.
A design patent covers any new, original, and ornamental design for an article of manufacture,
while a plant patent covers any new variety of asexually-produced plant. A design patent lasts 14
years, and a utility or plant patent lasts 20 years.

3. Trademarks
A trademark is a word, phrase, symbol, or design that distinguishes the source of the goods of
one business from its competitors. For example, the Nike "swoosh" design identifies shoes that
are made by Nike.
Before registering your trademark, you should conduct a search of federal and state databases to
ensure a similar trademark doesn't already exist. To apply, you must have a clear representation
of the mark, as well as an identification of the class of goods or services to which the mark will
apply.
4. Trade Secrets
A trade secret is a formula, process, device, or other business information that companies keep
secret to give them an advantage over their competitors.
Examples of trade secrets are: soda formulas, customer lists, survey results, and computer
algorithms. Unlike the other types of intellectual property, you can't obtain protection by
registering your trade secret. Instead, protection lasts only as long as you take the necessary steps
to control disclosure and use of the information.
Businesses use non-disclosure agreements, restricted access to confidential information, postemployment restrictive covenants, and other security practices to maintain trade secrets.
5. Industrial designs
An industrial design constitutes the ornamental or aesthetic aspect of an article. A design may
consist of three-dimensional features, such as the shape or surface of an article, or of twodimensional features, such as patterns, lines or color.
6. Geographical indications
Geographical indications and appellations of origin are signs used on goods that have a specific
geographical origin and possess qualities, a reputation or characteristics that are essentially
attributable to that place of origin. Most commonly, a geographical indication includes the name
of the place of origin of the goods.
7. Data Base
Database right prevents copying of substantial parts of a database. The protection is not over the
form of expression of information but of the information itself, but in many other aspects
database right is similar to copyright.

IP LAWS IN PAKISTAN:
TRADEMARK LAW:
TRADE MARK LAWS IN PROTECTION OF INTELLECTUAL PROPERTY
RIGHTS
Trade Marks Ordinance 2001
Trade Marks Ordinance 2001 deals with the remedies regarding protection of Intellectual
Property Rights in case of violation of any registered trade mark.

Infringement of Trade Marks:

Section 39 and 40 of the Trade Marks Ordinance 2001 deal with the situations where an
infringement of a registered trademark has been occurred. Section 39 says that a registered
trademark deems to be a personal property of the proprietor. If any person other than the
proprietor uses that mark for the trade which is similar to the goods or services for which that
mark has been registered, it shall be deemed to be the infringement of the registered trademark
under Section 40. If the words registered goods have been displayed on their packaging or on
their container, it is a notice to prohibition of certain acts relating to those goods under Section
41.

No infringement in certain cases:

Section 42 of the Trade Marks Ordinance 2001 describes certain conditions in which trade mark
has not been infringed:
Where the persons name or persons place of business, so long as such use doesnt result
in a likelihood of confusion or otherwise interfere with an existing trade mark or other
property right;
The name of the predecessor in business of the person or the name of the predecessors
place of business;
The person uses the mark in a good faith to indicate the kind, quality, quantity, intended
purpose, value, geographical origin, or some other characteristics of goods or service; or
The person uses the mark for the purposes of comparative advertising.

Action for Infringement:

Section 46 says that the action for infringement of the trade mark can be taken by the proprietor
of the trade mark.

Remedies for Infringement

Damages;
Injunctions;
Accounts
Any other remedies which are available to the person having some other property rights
.
Place where the suit has to be instituted:

According to Section 117 of the Trade Marks Ordinance 2001, any suit for the infringement of
any trade mark shall be instituted before District Court.
PENALTIES IN PAKSITAN PENAL CODE DESIGNED AGAINST INFRINGEMENT OF
TRADE, PROPERTY AND OTHER MARKS:
Trademark has been defined in Section 478 of the Pakistan Penal Code and Property Mark has
been explained in Section 779 ibid. Section 480 defines the false trademark and 481 deals with
the using of false property mark.
The text of Section 478 to 489 of the Pakistan Penal Code 1860, provide penalties against
infringement of Trade, Property and other Marks which is given below:

Punishment for using a false Trademark or Property Mark

Section 482 says that whoever uses any false trademark or any false property mark shall be
punished with:
imprisonment of for a term which may extend to one year; or
with fine
With both.

Punishment for counterfeiting a Trademark or Property Mark

According to Section 483 the punishment for counterfeiting any trademark or property mark is
two years with fine or confinement only or fine only.

Punishment for counterfeiting a mark used by a public servant

The offence under Section 484 is an aggravated form of the offence described in the preceding
one. An enhanced punishment is, therefore, given where a mark used by a public servant is
counterfeited. A three years punishment has been described for counterfeiting a property mark or
any other mark used by a public servant.

Punishment for making or possessing any instrument for counterfeiting a

Trademark or Property Mark

According to Section 485 whoever makes or has in his possession any die, plate or other
instrument for the purpose of counterfeiting a trademark or property mark shall be punished with
imprisonment for three years with or without fine or fine only.

Making a false mark upon any receptacle containing goods

Section 487 furnished the false marking of case, package, or receptacle containing goods in a
manner reasonable calculated to deceive a public servant or any other person. It is not required
that the mark should be a trade mark or property mark. A person making a false mark upon any
receptacle containing goods can escape punishment under this section only if he proves that he
acted without intent to defraud.

Punishment for making use of any such false mark

According to Section 488 whoever makes use of any such false mark in any manner prohibited
by Section 487 be punished as if he has committed an offence against Section 487 unless he
proves that he acted in good faith.

Punishment for tempering with Property Mark

Section 489 says whoever removes, destroys, defaces or adds to any property mark with
intention to cause injury to any person shall be punished with one year imprisonment with fine or
without fine or fine only.
PROTECTION UNDER CUSTOMS ACT 1969:
Section 15 specified certain goods which are not allowed to brought into Pakistan, whether by
air, or by sea or by land. It includes:
goods having applied a counterfeit trade mark;
goods having applied a false trade description;
goods made or produced outside Pakistan and having applied any name or trade mark of
any proprietor, dealer or trader in Pakistan unless:
o the name or trade mark is as to every application, accompanied by a definite
indication of the goods that these are made or produced in a place outside
Pakistan;
o The country in which that place is situated is in that indication shown in letters as
large and conspicuous as any letter in the name or trade mark.
Goods made or produced outside Pakistan and intended for sale and having applied a
design in which copy right exists under the Patents and Designs Act.

PATENT & DESIGN LAW:

PROTECTION OF INTELLECTUAL PROPERTY UNDER PATENTS ORDINANCE

2000:

Suit for infringement of a patent

A patentee may institute a suit under section 60 in the District Court which have the jurisdiction
to try the suit against any person who during the continuance of the patent acquired by him under
this law, in respect of an invention, makes, sells or uses the invention without his license, or
counterfeits it, or imitates it.

Reliefs in suits for infringement

If a patent is infringed by infringer and a suit for infringement has been field against him then the
remedies can be availed by the patentee. The Court can order to:
desist form infringement
infringer to pay the right holder damages adequate to compensate for the injury he has
suffered because of infringement;
pay the right holder expenses which may include appropriate attorneys fee;
the recovery of profits, damages and pre-established damages;
dispose off the goods (which found to be the infringing) outside the channels of
commerce without giving any compensation to the infringer;
dispose off the material, implements and predominant, use of which has been in
infringing goods, outside the channels of commerce to minimize the risk of more
infringement without giving any compensation to the infringer;
infringer to inform the right holder of the identity of third parties involved in production
and distribution of the infringing goods and their channel of commerce in case of serious
infringement;
adequate compensation to the party who has been wrongfully restrained by the party on
whose request measures has been taken;
The applicant to pay the defendants expenses including attorneys fee.
prevent an infringement, if there are imported goods the court can order to prevent its
customs clearance;
preserve its relevant evidence in the alleged infringement; and
Provisional measures to prevent the delay which cause harm to the right holder or where
there is a demonstrable risk of evidence being destroyed.
PROTECTION UNDER REGISTERED DESIGNS ORDINANCE 2000

Remedies under Section 8

If any person infringes a registered proprietors right, the proprietor may:

Bring a suit against him for the recovery of damages; and

 Bring a suit for an injunction for the continuance of the infringement.

COPYRIGHT LAW:
COPYRIGHT PROTECTION UNDER COPYRIGHT ORDINANCE 1962

Duration of Copyright

The period of copyright of a literary, dramatic, musical or artistic work (other than a photograph)
is the life of the author and 50 years thereafter. In the case of a cinematographic work and a
photograph, copyright subsists until 50 years from the beginning of the calendar year from
publication of the work.

Infringement of Copyright

The act of copying of work, which is entitled to copyright protection, by any method, either
directly or with the aid of a machine or device constitutes an infringement of the copyright in the
work. Section 56 of the Ordinance provides that copyright in a work shall be deemed to be
infringed in the following cases:
when any person without the consent of the owner of the copyright or without a license granted
by such owner or the Registrar under the Ordinance or in contravention of the conditions of a
license so granted or of any condition imposed by a competent authority under the Ordinance:
does anything the exclusive right to do which is by this Ordinance conferred upon the
owner of the copyright; or
permits for profit any place to be used for the performance of the work in public where
such performance constitutes an infringement of the copyright in the work unless he was
not aware and had no reasonable ground for suspecting, that such performance would be
an infringement of the copyright, or
When any person:
makes for sale or hire or sells or lets for hire, or by way of trade displays or offers for sale
or hire, or
distributes either for the purpose of trade to such as extent as to affect prejudicially the
owner of the copyright, or
by way of trade exhibits in public, or
Imports into Pakistan, any infringing copies of the work.

Infringement of Computer Program:

Pursuant to the restrictions imposed under Section 56 of the Ordinance, even the purchasers of
computer program may not copy, adapt or make copies of adaption of the program in connection
with their use by themselves or their employees. The unauthorized use of a computer program in
a computer is also infringement of the copyright. Accordingly, if a duplicate of a computer
program is acquired by someone who has no license to use it, the copyright owner has the right
to prevent him using it. Section 56 also restricts rental of computer program to un-authorized
users. Intention to copy computer program is not an essential ingredient of infringement; nor is it
essential that the copying be in the same medium. Thus, a computer program stored on diskettes
(or any other magnetic media) can be infringed by copying the same on paper, or taking a printout of the same.

Liability for Infringement

In the event of infringement, liability of infringement falls upon the person who, without the
consent of the owner of the computer program does any of the restricted acts; or authorizes any
other person to do any such acts; or commits any acts of infringement.

Remedies for Infringement

There are two remedies for breach of copyright in Pakistan; civil proceedings and criminal
proceedings. Accordingly, a person whose copyright has been infringed is able to sue for
damages, claim an injunction, an account of the profits gained by the defendants as a result of the
infringement, delivery up of infringing articles etc. Recently added section 74(3) of the
Ordinance provides that all offences under the Ordinance are cognizable and non-bail able.
Section 59 of the Ordinance provides that an action may be brought by the original owner of the
copyright, which, inter alia, include the person to whom an exclusive license has been granted.
Amended Section 65 of the Ordinance provides that every suit or other civil proceedings
regarding infringement, at the discretion of the applicant, should be instituted and tried in the
Court of the District Judge.
Section 66 of the Ordinance, as amended by the Amendment Act, provides that any person who
knowingly infringes or abets the infringement of the copyright in a work (defined to include
computer program), or any other right conferred by the Ordinance shall be punishable with
imprisonment which may extend to 3 years, or with fine which may extent to one hundred
thousand rupees (one US dollars nearly equals twenty five rupees), or with both. Additionally,
Section 70B of the Ordinance provides that where any person convicted for an offence
punishable under, inter alia, Section 66 is again convicted for the same offence, he shall in such
event be imposed with a fine (beside the imprisonment which may extent to 3 years) upto rupees
two hundred thousand.
Recently amended Section 74(1) of the Ordinance now gives additional powers to police to seize
infringing copies of the work. The section empowers any police officer, if he is satisfied that an

offence in respect of infringement in any work has been, is being, or is likely to be committed, to
seize without warrant all copies of the work and all plates and recording equipments used for the
purposes of making infringed copies of the work, wherever found, and all copies, plates and
recording equipments so seized shall, as soon as possible, be produced before a Magistrate.

Offences by Companies

Section 71 of the Ordinance provides that where an offence under the Ordinance is committed by
a company, every person who at the time was in charge of, and was responsible to the company
for the conduct of the business of the company as well as the company is deemed to be guilty of
such offence and is liable to be proceeded against and punished accordingly. Except in the
circumstances, the accused proves that the offence was committed without his knowledge or that
he exercised due diligence to prevent the commission of such offence, he is deemed guilty.

INTELLECTUAL PROPERT CONTRIBUTING IN

BUSINESS AND ECONOMY:
A Power Tool for Economic Growth seeks to demystify intellectual property (IP) and to explain
the why and the how of the subject unlike many other IP texts that concentrate on the what. Its
message is that intellectual property is a power tool for economic development and wealth
creation that is not yet being used to optimal effect in all countries, particularly in the developing
world. It is a practical guide to using those intangible assets such as knowledge, information,
creativity and inventiveness that are rapidly replacing traditional and tangible assets such as
land, labor and capital as the driving forces of economic health and social well-being
Creativity and innovation
Imagination is more important than knowledge Albert Einstein Albert Einsteins preference for
imagination over knowledge is a starting point, because IP laws are based on the power of
imagination. Einstein understood that it is the ability to stand on an existing foundation of
accepted knowledge, and see beyond to the next frontier of discovery that is the source of
personal, cultural and economic advancement. This is how IP laws contribute in economic
development.
1. Intellectual property a power tool for economic growth.
2. The World Intellectual Property Organization (WIPO) believes that IP is native to all
nations and relevant in all cultures, and that it has contributed to the progress of societies. He
understood that the power of creativity and innovation applied to artistic expression or the
solving of practical problems is not the exclusive province of any country or people, but is a
resource of limitless potential available to everyone.

Amassed in the form of IP, it is a force that can be used to enrich the lives of individuals and the
future of nations materially, culturally and socially.
ECONOMICS AND INTELLECTUAL PROPERTY: For many years, economists have tried
to provide an explanation as to why some economies grow fast while others do not; in other
words, why some countries are rich and others are not. It is generally agreed that knowledge and
innovation have played an important role in recent economic growth.
One of the consequences of the emerging importance of IP and the new pattern of global trade
that started at the beginning of the 1990s was the forging of a deliberate connection between the
two. Some developed countries began to use trade measures to curb piracy of intellectual
property abroad. Among other things, this led to the Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS), one of the World Trade Organization (WTO) agreements
resulting from the multilateral trade negotiations under the Uruguay Round.
The Purposes and Mechanisms of Intellectual Property Rights in Business
There are two central economic objectives of any system of intellectual property protection.
First: The first is to promote investments in knowledge creation and business innovation by
establishing exclusive rights to use and sell newly developed technologies, goods, and services.
Absent such rights, economically valuable information could be appropriated without
compensation by competitive rivals. Firms would be less willing to incur the costs of investing
in research and commercialization activities. In economic terms, weak IPRS create a negative
dynamic externality. They fail to overcome the problems of uncertainty in R&D and risks in
competitive appropriation that are inherent in private markets for information.
Second goal: The second goal is to promote widespread dissemination of new knowledge by
encouraging (or requiring) rights holders to place their inventions and ideas on the market.
Information is a form of public good in that it is inherently non-rival and, moreover, developers
may find it difficult to exclude others from using it. In economic terms it is socially efficient to
provide wide access to new technologies and products, once they are developed, at marginal
production costs. Such costs could be quite low for they may entail simply copying a blueprint
or making another copy of a compact disk or video.
There is a fundamental tradeoff between these objectives. An overly protective system of IPRS
could limit the social gains from invention by reducing incentives to disseminate its fruits.
However, an excessively weak system could reduce innovation by failing to provide an adequate
return on investment. Thus, a policy balance needs to be found that is appropriate to market
conditions and conducive to growth.
Intellectual Property, the American Economy and Economic Growth Intellectual property:
Played an important role in the growth of the American economy from a primarily agrarian
society through an industrial economy to the current information age. One researcher notes that
even in the early part of the nineteenth century, the American patent system granted effective
intellectual property rights that led to the development and diffusion of new technologies that

fueled economic growth and prosperity. Today intellectual property protection plays an important
role in many industries in which the United States has a comparative advantage and contributes
to the size, growth, and exports of the American economy
Benefiting from Intellectual Property Rights in Business Perspective.
The adoption of stronger IPRS in developing countries is often defended by claims that
this reform will attract significant new inward flows of technology, a blossoming of local
innovation and cultural industries, and a faster closing of the technology gap between themselves
and developed countries. It must be recognized, however, that improved IPRS by themselves are
highly unlikely to produce such benefits
Positive Impacts of IPRS on Economic Development
Intellectual property rights could play a significant role in encouraging innovation, product
development, and technical change. Developing countries tend to have IPRS systems that favor
information diffusion through low-cost imitation of foreign products and technologies. This
policy stance suggests that prospects for domestic invention and innovation are insufficiently
developed to warrant protection. However, inadequate IPRS could stifle technical change even
at low levels of economic development. This is because much invention and product innovation
are aimed at local markets and could benefit from domestic protection of patents, utility models,
and trade secrets. In the vast majority of cases, invention involves minor adaptations of existing
technologies and products. The cumulative impacts of these small inventions can be critical for
growth in knowledge and productive activity. To become competitive, enterprises in developing
countries typically must adopt new management and organizational systems and techniques for
quality control, which can markedly raise productivity.
Implementing Pro-competitive IPRS Standards
Developing nations are overwhelmingly importers of technology, suggesting that they
should establish standards that encourage learning and follow-on innovation within their IPRS
system. For example, patent examiners could follow the highest reasonable standards for nonobviousness in invention patents, require early disclosure of technological information, limit
protection to narrow patent claims, and establish a narrow doctrine of equivalents. The last
approach, exemplified by an effective system of utility models, could be significant for
encouraging the development of local capacity to invent legitimately around patents. An
effective system of opposition to patent grants is important for interested parties to make
available information about prior art.
Enhance Capacities to Develop and Use IPRS
The dynamic benefits countries accrue from IPRS depend on their abilities to develop
and absorb technologies and new products. In this context, three issues are critical for
development purposes. First, it is clear that the ability to adapt new technologies to local
industrial uses is improved by strong levels of educational attainment and sizeable endowments
of human capital. Thus, there are important payoffs to providing access to technical training and
secondary or university education.

Promote Competitive Markets

Ultimately, perhaps the most important determinant of the success of an IPRS regime is the
competitive nature of the markets within which it operates. Put briefly, the dynamic gains from
IPRS are larger, and the costs of abuse are smaller, in economies with competitive market
structures.
Develop Competition Policies
Because intellectual property rights create market power, their use is potentially subject
to anticompetitive abuses. Such concerns are often overstated. Intellectual property rights
define the boundaries within which an inventor or creator has exclusive use rights. Such rights
rarely create strong monopoly positions unless they are combined with restrictions on
competitive entry by other firms. Indeed, IPRS are critical for promoting R&D that generates
dynamic competition.

References:
http://www.dmu.ac.uk/research/research-support/intellectual-property/types-ofintellectual-property-rights.aspx
http://www.ipos.gov.sg/AboutIP/TypesofIPWhatisIntellectualProperty.aspx
https://www.upcounsel.com/intellectual-property-protection
http://law.zafcointl.com/area_ip_law.html
http://www.ippakistan.net/iprlaws.php
http://usa.usembassy.de/etexts/econ/eop/2006/2006-10.pdf
http://www.alllaw.com/topics/intellectual_property
http://www.wipo.int/edocs/pubdocs/en/intproperty/888/wipo_pub_888_1.pdf
www.colorado.edu/economics/mcguire/workingpapers/cwrurev.doc