Chapter 7IPR

01-09-2017
Chapter 7
Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Entrepreneurship and Intellectual
Property Rights
Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar
Learning Objectives
• To understand the importance of patents in entrepreneurial

ventures.
• To understand link between research and development, and
intellectual property rights.
• To learn about university system and its linkage with
entrepreneurship through IPRs.
• To understand importance of IPRs.
• To learn and understand the implication of importance of IP
for startups.
• To know basics of intellectual property rights.
• To learn about patents, criteria for getting patents and
procedure to file patent applications.
Contd…
1
01-09-2017
Learning Objectives
• To understand difference between utility, design and plant

patents.
• To understand the mechanism to file international patent
applications.
• To know about trademarks, their filing and the advantages
that accrues from trademarks.
• To learn about copyrights, their relevance and how to file
application for copyrights.
• To know about geographical indicators and biological diversity
IPRs, and their relevance in present context.
• To learn about plant varieties as IPRs, and what it takes to
protect the same.
Quotation
“The patents add fuel of interest to the

fire of genius”
Abraham Lincoln
US President
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01-09-2017
Changing Scenario of Wealth Creation

in 20th and 21st Century
• 20th century have transformed the majority of wealth-

creating work from physically-based to knowledge-based
enterprises.
• Technology and knowledge are the key factors of production
in 21st century.
• Only comparative advantage a company can perpetually take
benefit of, will be its ability to continuously innovate and
protect such innovation leading technology developments
through intellectual property rights.
• Major challenge before budding entrepreneurs would be to
create a culture for IPRs regime, so that creative work and
innovations get duly protected.
Importance of Patents
• Patents help in focusing research and development efforts to

come out with commercially viable innovations.
• Study conducted annually by Institute for Prospective

Technological Studies (IPTS) reveals that the 2,000 leading
and largest global companies had invested more than 430
billion Euros in 2008 in their R&D departments.
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01-09-2017
Encouragement to Patent Regime in

India
• In the post-liberalization era, a number of initiatives were

taken to simplify the administration of the process of granting
patents.
• Office of the Development Commissioner (MSME) provides a
wide ranging services to focus on building a culture for
patenting.
• India ratified the agreement establishing the World Trade
Organisation (WTO) that inter-alia, contains an agreement on
Trade Related Aspects of Intellectual Property Rights (TRIPS)
which came into force from 1 January 1995.
• Need for creating an ecosystem for promotion of particularly
knowledge-driven entrepreneurship with emphasis on
protection of Intellectual Property.
Link Between University R&D and

Entrepreneurial Ventures
Technology
Disclosure Transfer
Entrepr
of Office to Associate
University eneurial
Innovation Patenting Spin-off Venture
R&D Venture
to Technology Capitalists
s
University or Spin out
Ventures
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01-09-2017
Need for Integration Between

University R&D and Business

Value to Business
University Collaborative Research

Research Licensing of IPR
& Consultancy Business
Development New Venture Creation
Value to University
Intellectual Property Rights
• Rights granted to creators and owners of works that are

creation of human intellectual creativity.

• Domains: Industrial, scientific, literary and artistic.
• Human intellectual creativity may be in the form of:
Invention
A manuscript
A suite of software, or
A business name
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01-09-2017
Intellectual Property Rights
• IPR is a general term covering:

Patents (Patents Act, 1970)
Copyright (Copyright Act, 1999 and Copyright Rule, 1958)
Trademark (Trademarks Act,1999)
Industrial designs (Designs Act 2000)
Trade secrets (covered under Contract Act, 1872)
Layout design of IC (The semiconductor IC layout design
Act, 2000—enforcement pending)
Geographical indications (Geographical Indication of Goods
Act, 1999—enforcement pending )
Others plants and farmer rights and biological diversity.
What is a Patent?
• Exclusive right granted by a country to owner of an invention

to make, use, manufacture and market the invention.
• Invention means a new product or process involving an

inventive step and capable of industrial application.
• Exclusivity of right implies that no one else can make, use,

manufacture or market the invention without patent holder’s
consent.
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01-09-2017
Features of a Patent
• Right is available only for a limited period of time.

• Patents can be gifted, inherited, assigned, sold or licensed.
• Patents can be revoked by state under special circumstances.
• Separate patent applications have to be filed in different

countries of interest.
Importance of IPR
Encourage and
Provide spur for
safeguard
development
creativity/
innovation
Encourage creation IPRs Promote

investments in
of public pool of
data R&D
Strategic and focal Encourage

tool for planning transfer
R&D and economic of technology
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01-09-2017
Value of Start Ups in Knowledge-

driven Economy

Future
Value/
Worth of
IP assets a
Business
Start-ups
Number of
Patents
Extent
Would
IP
Result in
protection
Infringemen
in Different t of Third-
Markets party IP
Rights.
Conditionality for Getting Patents
Novelty Inventiveness Usefulness
Patents
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01-09-2017
Key Advantages that Start Ups Derive

by Patenting
• Restricting others from copying their products or services.

• Improved chances of getting seed funding and venture
funding.
• Getting benefit by way of obtaining licensing revenues.
• Improved chances of growth by way of acquisitions and initial
public offering in a shorter time span.
• Preventing patent infringement actions against the company.
• Helps in better negotiation terms for cross licensing or
takeover bids.
• Building company’s reputation/product image.
What are Intellectual Property Rights?
• Patents
• Copyrights and related rights
• Trade marks
• Geographical indications
• Industrial designs
• Layout designs of Integrated Circuits (ICs)
• Protection of undisclosed information (Trade secrets)
• Plant varieties
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01-09-2017
Conditionality for Getting Patents

Novelty Inventiveness Usefulness
Patents
• Novelty: An invention is said to be a novel, if it has not been disclosed in the

prior art, where prior art means everything that has been published,
presented or otherwise disclosed to the public on the date of patent.
• Inventiveness (Non-obviousness): It means that the proposed invention is
not obvious to a person skilled in the art i.e., skilled in the subject matter of
the patent application.
• Usefulness: An invention must possess utility for the grant of patent.
Patentable Inventions Under the

Patents Act, 1970 in India
• Process
• Method or manner of manufacture
• Machine
• Apparatus or other article
• Substances produced by manufacture, which include any new
and useful improvements of any of them and an alleged
invention.
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01-09-2017
What is Not Patentable?
• Frivolous invention.

• Inventions contrary to law, or morality, or injurious to public
health.
• The mere discovery of a scientific principle or formulation of
an abstract theory.
• Discovery of any new property or new use of known
substance of the mere use of known process, machine or
apparatus.
• A substance of admixture.
Contd…
What is Not Patentable?
• A method of agriculture or horticulture.

• A method or process of testing.
• Inventions relating to atomic energy.
• Any process for medical, surgical, creative, prophylactic or
other treatment of human beings, or any process for a similar
treatment of animals or plants.
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01-09-2017
Term of a Patent
• Five years from the date of sealing of the patent or seven

years from the date of the patent, whichever is shorter, for
an invention claiming the method of process of manufacture
of a substance (drug, medicine, or food).
• Twenty years from the date of patent in respect of any other

patentable invention.
Essential Patent Documents
1. Provisional specification Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.
• Disclosure of the invention.

• Includes the nature of an invention.
• It gives priority to the applicant over any other person who is
likely to file an application in respect of the same invention
being developed concurrently in some other part of the world.
2. Complete specification
• Submission of complete specification is necessary to obtain a
patent.
• It fully and particularly describes the invention and the best
method of performing it.
Contd…
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01-09-2017
Essential Patent Documents
• It must be submitted within 12 months of filing the

provisional specification. This period can be extended by

three months.
• Complete specification should contain the following in not
more than 30 pages:
A title
Field of invention
State of the art in field
Object of the invention
Statement of invention
Detailed description of the invention with reference to the
drawings
Scope and/or ambit of the invention
Claims
Criteria for Naming Inventors
Following persons should be named as inventors:

• All persons who contribute towards development of
patentable features of an invention.
• All persons who have made intellectual contribution in

achieving the final results of the research work leading to a
patent.
A person who has not contributed intellectually in the

development of an invention is not entitled to be included as an
inventor.
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01-09-2017
Where to Apply for Patent?
• Application for the patent has to be filed in the respective

patent office.
• The territorial jurisdiction is decided based on whether any of

the following occurrence falls within the territory:
Place of residence, domicile or business of the applicant.
Place from where the invention actually originated.
Address for service in India by the applicant when he has no
place of business or domicile in India.
Organization Chart
CGPDTM
Trade Marks Geographical Patent

Patent Office Indications Information
Registry
Registry System
Mumbai
Kolkata
Kolkata Chennai Nagpur
Delhi
Delhi
Mumbai Chennai
Chennai
Ahmedabad
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01-09-2017
How to Apply for Patent?

• Application for patent in duplicate should be accompanied by
the following documents:
Provisional or duplicate specification, and any drawings in
duplicate.
Statement and undertaking regarding foreign filing in
respect of the same invention.
Declaration as to inventorship.
Priority document.
Power of attorney.
Proof of right if the application is made by the assignee.
Requesting for No Request Deemed

Filing an Application Publication
Examination Withdrawn
Appeal to Appellate
Board.
Opportunity
Examination Objection Refused
for Hearing
Appeal to H.C.
Grant
Appeal to Appellate
Board.
Advertisement Opposition
in Journal if Any Allowed
High Court
No Opposition Opposition
Failed
Entry of
Patent in the Register
Patent certificate
Renewal Fee
issued
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01-09-2017
Broad Categories of Patents
Utility patents may be

granted to any inventor who A plant patent are

invents any new and useful granted to an inventor
process, article of who has invented by
manufacture, machine, or grafting or cutting an
composition of matter, or Utility asexually reproduced a
any new and useful distinct and new variety
improvement. of plant, other than a
tuber propagated plant
Patents or a plant found in an
uncultivated state.
Design Plant
Design patent basically covers the unique specific look,

shape, ornamental design, appearance of a product,
and related thing.
International Patents
• Indian patent does not grant rights outside India, nor does it
curtail infringing activities abroad.

• IPR protection outside the country requires inventor to get
patents in the foreign jurisdiction where protection is sought.
• Filing can be done directly with a national patent office or
under the Patent Cooperation Treaty (PCT). If protection is
sought only in Europe, one application can be filed before the
European Patent Office (EPO).
• Publication of patent application is done after 18 months from
the filing date or priority date. International application is
published by International Bureau at the World Intellectual
Property Organization (WIPO).
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01-09-2017
Trademark
• A trademark is a:

Word
Logo or other graphics
Phrase
• It uniquely identifies a product as distinct from others
products in the marketplace. Compulsory licensing of
trademarks is not permitted.
• Trademarks can last indefinitely.
• Nobody else can use registered trade marks for commercial
purposes.
• Examples: 501 tea and 555 cigarettes; symbols like those of
Mercedes Benz or Apple computers; 3M, IBM, NIIT; Special
sound, Goodyear Tyre, Modi Continental, etc.
Copyright
• A work will qualify for copyright protection if:

It is of a type protected under Copyright Act.

It is recorded in some form.
The work meets the requisite degree of originality.
• Works protected by copyright:

Original literary, dramatic, artistic or musical works,
Sound recordings, films or broadcasts, and
The typographical arrangement of published editions.
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01-09-2017
Rights Granted by Copyright
• The copyright owner can:

Copy the work.
Issue copies of 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.
Copyright
• Copyright ownership
It can arise automatically, or
By means of transfer of ownership through an assignment,

assignation or license.
• Copyright owner
Person who created the work.
Joint ownership may arise where more than one author is
involved in creating a work.
For computer-generated works, ownership is held by the
person who made necessary arrangement for the creation
of the work.
Copyright ownership in an employer–employee relationship
will be owned by the employer unless an agreement to the
contrary is in place.
In case of collaborative research, copyright ownership can
be held jointly.
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01-09-2017
Duration of Copyright Protection
• Literary, dramatic, musical and artistic work: Lifetime of

author + 70 years from the end of the year in which the
author dies.
• Computer generated work: 50 years from the date of
creation of the work.
• Sound recordings: 50 years from the end of year in which it
was made or published.
• Broadcasts: 50 years from the end of the year broadcast.
• Typographical arrangement of published editions: 25
years from the year of first publication.
How to File a Copyright Application?
• Classify work
• Determine ownership
• Identify appropriate form
• Complete registration form
• Comply with deposit requirements
• Payment of fee
Note: Copyright is said to be infringed when one of the

exclusive right of an author is performed by a party
without the consent or authorization of the author.
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01-09-2017
Geographical Indications (GI)

• It is an indication or appellation of origin.
• It is used to identify agricultural, natural or manufactured

goods, originating in the said area.
• It should have a special quality or characteristics or

reputation based upon the climatic or production
characteristics unique to the geographical location.
• Geographical Indications of Goods Act, 1999 protects GI.
Geographical Indications (GI)
Documents required:
• Application in prescribed forms must be submitted to the

Registrar of Geographical Indications.
• Also indicate:
The class of good.
The territory.
The particulars of appearance.
Textual description of proposed boundary.
Certified copies of the map.
Number of producers, etc.
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01-09-2017
Industrial Designs
• Under the TRIPS Agreement, minimum standards of protection

of industrial designs have been provided for.
• The essential purpose of design law is to promote and protect
the design element of industrial production.
• The existing legislation on industrial designs in India is
contained in the New Designs Act, 2000.
• The duration of protection is to be not less than 10 years.
Industrial Designs
Documents required:
• A signed power of attorney in front of 2 witnesses.

• Sets of figures or photographs.
• A certified copy of priority document, if priority is to be
claimed.
Steps involved:
Find out if
Registration Statement
Prepare Identify class Include
Already Of
Design of Design Disclaimer
exists Novelty
Claim Determine Attach

Priority Fee to all
Date be paid Enclosures
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01-09-2017
Layout Design of Integrated Circuit
• A product in its final or intermediate form in which the

elements, at least one of which is active, and some or all of
the interconnections are integrally formed in or on a piece of
material, and the purpose of this is to perform an electronic
function.
Plant Variety
• Right granted to plant breeders.

• Plant breeder is one who breeds, discovers or develops a new

plant variety.
• The TRIPS provides a protection for 25 years in case of trees
and vines, and 20 years for the protection of other plants.
• Indian Parliament has passed the plant variety protection and
Farmers Rights Act, 2001
22

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01-09-2017

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

• To understand the importance of patents in entrepreneurial

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

• To understand difference between utility, design and plant

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

“The patents add fuel of interest to the

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Changing Scenario of Wealth Creation

• 20th century have transformed the majority of wealth-

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

• Patents help in focusing research and development efforts to

come out with commercially viable innovations.

• Study conducted annually by Institute for Prospective

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Encouragement to Patent Regime in

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Link Between University R&D and

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Need for Integration Between

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

University Collaborative Research

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Intellectual Property Rights

• Rights granted to creators and owners of works that are

creation of human intellectual creativity.

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Intellectual Property Rights

• IPR is a general term covering:

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

• Exclusive right granted by a country to owner of an invention

to make, use, manufacture and market the invention.

• Invention means a new product or process involving an

• Exclusivity of right implies that no one else can make, use,

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

• Right is available only for a limited period of time.

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

• Patents can be revoked by state under special circumstances.

• Separate patent applications have to be filed in different

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Encourage creation IPRs Promote

Strategic and focal Encourage

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Value of Start Ups in Knowledge-

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Conditionality for Getting Patents

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Novelty Inventiveness Usefulness

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Key Advantages that Start Ups Derive

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

What are Intellectual Property Rights?

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.

Entrepreneurship: Creating and Leading an Entrepreneurial Organization Author: Arya Kumar

Conditionality for Getting Patents

Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd.