Professional Documents
Culture Documents
• Market
01/26/10 place born & survived out of ideas
Do we need ideas ?
Consumer World - market place dominated by needs & wants
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Idea and ideation
Most commonly used expression!
• What is an idea?
Ingenious intellectual activity
Labor of mind
Different from manual and physical labor
Original, inspired, influenced or even pirated
Born out of imagination & knowledge
• Products
• Expressions
• Marks
• Designs
• Computer programs
• Local arts & crafts
• Trade Secrets
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Intellectual Property Rights
Umbrella term
Legally protected rights & assets created out of the
exercise of the human intellect
Bundle of exclusive rights of two kinds:
Privileges
Exclusions
Claims & entitlements
Enjoyment only for a limited period of time
Protected since 500BC but actively from the 15th cent
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Constitution of IP
Ownership
Valuable Assets Intangibles
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The world is Flat
Jobs went, jobs were created. Skills went out of
use, new skills were required. Regions
changed, people changed. Mill towns saw
their mills close, shoe towns saw their shoe
industry move elsewhere, towns that were
textiles power houses buy their linen now
from China.
Change is hard but change is natural!
- David Schlesinger- The world is Flat
In Trade
• Ancient trade & ancient times, post industrial revolution
• Industrial productions - most countries are R&T oriented
• Exports, depend on IPR protection in the host country
• Technology made reproduction & replication cheap and
easy.
• Manufacturers keen to protect patents to justify R&D
expenses
• Counterfeiting, piracy, theft of technological know how
became impediments to free trade
• Fake drugs account for almost 15% medicines sold-saw a
24% in 2007-$3billion-Pfizer loss of $2 billion a year in
Viagra.
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World Trade Organization
• Created Jan1995- outcome of the Uruguay
round and successor of GATT
• So GATT has become part of the WTO
• WTO based in Geneva has 153 members
including India a founding member
• Serves as a major rule making body for trade
liberalization
• Accounts for approx 97% of the world trade- In
2000 its trade volume was 25 times its 1950
volume
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Objectives of WTO
• Marrakesh declaration of 1994- The objective of the
Uruguay Round was to strengthen the world economy
and to lead to more trade, investment, employment
and income growth throughout the world.
• Open Trade- system of rules for open, fair and
undistorted competition-laissez faire philosophy
• Non-Discrimination- Principles of MFN and National
Treatment
• Dispute resolution- better designed, stronger
mechanism
• Comparative advantage- to help countries prosper by
taking advantage of their assets
• Helping LDCs, Environment protection, raise standards
of living, employment, etc.
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Important Provisions of
WTO
• Contains 29 legal texts covering everything from
agriculture to textiles to services and IPRs
• Trading policies-Agriculture, Health and safety measures-
Textiles and clothing-
• GATS-General Agreement on Trade in Services- Uruguay
round- covers 12 service sectors like business
communications, distributions, education, financial, etc
• Anti-dumping Measures-This agreement recognizes the
need to apply such measures ONLY when dumped product
causes injury to the domestic industry.
• TRIPS-This agreement acknowledges the need to protect
and enforce IPRs to ease relations between nations
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TRIPs
• “Trade Related Aspects of Intellectual Property Rights”
• Agreement in Jan 1995- negotiated Uruguay 1994
• 1st Multilateral treaty - countries to protect 7 types of IPRs
• Annexed to WTO- marriage of trade law with IP law
• Sets forth minimum standards of IP protection in domestic
laws
• Different time lines for compliance given
• Protection systems include evaluation of applications,
enforcement mechanisms, redress for violations etc.
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Objectives of TRIPS
• To reduce distortions and impediments to trade
• To promote effective and adequate protection of IPRs
• To ensure that IPR enforcement measures and
procedures do not become barriers to trade
• To promote technological innovation and transfer and
dissemination of technology- encourage flows of
technology & fair play
• To preserve a balance of rights and obligations
Industrial Property
IPR
Patents Broadcasting
Copyright Music
Trademarks Dramatics Works
Literature
Industrial Design Sound Recording
Works of Art
Geographical Computer Programs
Indications
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Rationale for protecting
IPRs
• Dramatic shift in trade- formerly dominated by
commodities like iron ore, unprocessed cotton,
coffee etc. – moving towards knowledge intensive
goods.
• Trade & Technology more knowledge driven in time
• Knowledge component predominant element in
differentiating enterprises from its competitors
• Export in high tech goods have multiplied many
times-11% in 1976-22% in 1996, primary products
dropped from 45%-22%
Role of IP in value creation
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Gillette: Creating a Patent Wall
• MACH3 protected by 65 patents blocking all
competition.
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Ring fencing
• Gillette patented one of its core technologies process
called “DLC” (Diamond Like Coating) - produced blades 10
times thinner and harder than those used in the sensor
razor.
• The R&D budget of US$ 750 million for MACH3 also
includes the cost of INVENTING 200 pieces of equipment
and technology needed in manufacturing process.
• Each of these manufacturing methods was patented
separately, among them is also a US$ 20 million vacuum
chamber in which the DLC blade coating is applied.
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Financial impact of Patents
created history by pioneering a unique “Build-
To-Order” direct sales model which enables buyers to
order a custom-configured PC via the internet on a toll free
number.
Dell cross licensed its patents in1999 for US$
16 billion in a deal that enabled each to plug key holes in
their respective business.
Dell gained access to IBM’s patented PC components,
and IBM access to Dell’s patented sales model.
Dell now has around 77 patents protecting different parts
of the building and testing process.
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&
The patent war between Kodak & Polaroid ran for 9 years
in court and another 5 years in settling the issue. Finally
Kodak was ordered to:
Pay Polaroid US$ 925 million in damages.
Lay off 700 workers.
Shut down its US$ 1.5 billion manufacturing plant.
Buy back nearly 16 million instant cameras which were
sold between 1976 and 1985 at the cost of approximately
US$ 500 million.
The legal fees for this 14 year battle for Kodak was
additional
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US$ 100 million.
Patent Infringement
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• In year 2004, Microsoft was ordered to pay $520 million
for violating the patent of one employee firm, Eolas, which
claimed to own the way users could get videos or songs
inside a web browser.
• Similarly we have Nokia vs Qualcomm and Novartis vs
Natco Pharma in India
• Qualcomm Incorporated has an extensive patent portfolio
which includes 4000 US Patents and more than 20,000
patents & patent applications around the globe. It has
entered more than 130 royalty bearing license
agreements with telecom equipment makers and
consumer electronics manufacturers.
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IP Wars
• Nokia Pays $253 Million to InterDigital
Communications Corp- patent licensing deal for 2G
wireless technology in December 2005.
• Medtronic awarded $51m in patent infringement case
against BrainLAB AG involving four patents related to
image-guided surgical techniques and devices.
• Microsoft, Autodesk ordered to cough up $133M ( 115
+ 18) to a small technology company Z4 in damages
in a patent battle over anti-piracy technology.
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Indian Tales
• Roshans paid Rs.2 crores to music director Ram Sampat as
settlement for copyright infringement of music from Krazzy 4.
• Ranbaxy & Pfizer settle patent lawsuit over Lipitor that could
generate over $1.5 billion in future revenues for the former
• TVS motor Co has been restrained by the Madras HC from
making & selling the 125cc Flame bike for infringement for IPR
on technology used for most of Bajaj’s bikes
• Chrysler and Indian Mahindra & Mahindra
are disputing over the design of Scorpio's front
grill. Chrysler has alleged that Mahindra &
Mahindra has ripped off one of its designs
for the front grill.
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Creations
MINISTRY OF COMMERCE
MINISTRY OF HUMAN RESOURSE
AND INDUSTRY
DEVELOPMENT
COPYRIGHT OFFICE
CONTROLLER GENERAL OF
PATENTS, DESIGNS & TRADE MARKS
Sr.JOINT GIR
CONTROLLER JOINT
01/26/10 OF PATENTS REGISTAR OF
AND DESIGNS TRADEMARKS