Property

Society(The Things which belongs to someone)

Importance of Property: It has been well established since development

of human civilization.
• It has been established with the help of a theory called Economic
theory.
• It has been explained with the help of a value of property , which
talks about the Demand and supply gap.
Intangible property:
• It is called as a Human Intellect
• The property generated with the help of human intellect is called
intellectual property.
• It can be a scientific inventions, books, artistic creations,
performances, shapes, word and pictures.

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Kinds of Property
 Movable Property
 Car, Pen, Furniture, Dress
 Immovable Property
 Land, Building
 Intellectual Property
 Literary works, inventions

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Continued..
• Intellectual property is important for society and organization.
• Intellectual property is legal sense and can be owned, sold,
leased, licensed.
• Rights enforced only by legal actions and not by taking
physical possession.
• The property can be classified as follows:
Real Property and Personal Property
• Real property can be classified into Tangible and Intangible.
Foreg:
• for tangible which is immovable property called land.
• For intangible it is easement.
• Personal property also classified into Tangible and Intangible.
• Foreg: for tangible it is car and many more, for intangible it is
cheque, shares etc.

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Nature of Intellectual Property
 Creation of human mind (Intellect)
 Intangible property
 Exclusive rights given by statutes
 Attended with limitations and exceptions
 Time-bound

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Definition of Intellectual Property
“Intellectual Property shall include the rights relating to
 literary, artistic and scientific works,
 performances of performing artists, phonograms,
and broadcasts,
 inventions in all fields of human endeavour
 scientific discoveries
 Industrial designs
 trademarks, service marks and commercial names
and designations
 protection against unfair competition

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Continued..
• Patent: It is a right granted for a device, substance,
method or process that you have invented.
• Awareness need to be crated
• Protection of IP
• Socio-Economic benefits through enhancement of
qualitative competitiveness in trade and
commerce.
• India after independence started promoting the
development of local industries.

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 Motivation to IP Development
• IP provides the balance between the creators and the
creators and the users of the technology
• Encouragement: Industries, Business, Government
Institution, Universities.
• It also helps in shifting the costs of generation of new
technology from government to private sectors where the
inflow of funds are more visible.
• Any organization it matters a lot of innovation which is
the fundamental to the success of enterprise irrespective
of the size.
• Promotion of such activities should be in a systematic
manner of the innovation process.

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Innovation Process..
The different stages involved in innovation process are
1. Stage of conception of new ideas.
2. Solving a technological problems.
3. Development of invention

Encouragement is very important for Small and Medium Enterprises

• IP is an Asset for any organization
• The various potentials required for IP Assets are
1. Dependable source of revenue
2. Formation of partnership or alliances
3. Enhance competitive position

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Continued..
• Transfer of Technology will lead to Job creation and
increases the geographic area of sales.
• Licensers and investors are investing in/interested in
investing in technology where they can complete their
project in specified time and more accurately which also
can be called as Grading economy.
• Knowledge sharing is highly influenced in innovation
pr0cess.
• Creative works has to be encouraged and safeguarded

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IP System Strategy
The global intellectual property system strategy is based on following
major components:
• Creative Leadership: collaboration of WIPO with member states
• Policy indicators: for promoting trade, health, culture and heritage,
investment, environment, food security, biotechnology, and
technological transformation.
• Forum: where legal implications of IP are considered but also
human, economic and cultural dimensions have to be considered.
• Relevance: IP system and organization is to be closer to the people
to reach out. IP awareness, Education and importance to the grass
roots levels is to be done.
• Governance: Domestic and Global agendas should be harmonized
through the proper IP system adopted by the country.

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Emerging Issues
• Innovation scattered to all fields/streams like
biotechnology, genetic, medicines, agriculture, food etc.
• Access to genetic resources and benefit-sharing
• Protection of traditional knowledge, whether or not
associated with those resources
• Establishment of a National Biological Authority(NBA)
with extensive powers to protect biological resources
found in all ecozones within the boundaries of the
country.
• Equitable benefit sharing
• Setting up of biodiversity funds and management
committees at national, state and local levels.

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IPR Governance
• Role in Policy making
• Effective enforcement of process in place
• To handle the IPR litigation-ADR-Alternative dispute
Resolution
• WIPO – Entered at GENEVA(Switzerland) – Aribitration
and medication center – offers dispute resolution service
mainly for crossing the borders.

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 Institutions for Administering the IP System
Both National and International Bodies are responsible for evolving IP policies
and their implementation.
National governments have IP offices for IP registration to legal protection.
International level Global organizations evolve the IP policies for their uniform
implementation and governance.
National Patent Officers:
• Every country with a patent system has this office.
• Before giving any rights they go for examination.
• Registration process is required
The world Intellectual property Organization(WIPO):
• Head quarters is in Geneva
• Serves as the secretariat for administration of most of the Global IP treaties.
• It is the principle forum

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 IP Rights and Marketing Regulations
I. * The government should regulate the marketing activities to contribute to
the development of an efficient system, for creation of product or services ,
communication and delivery to the consumers.
* It should establish an efficient structure for governance of marketing
activities, which involves the standardisation and refinement of marketing
tool and technology for consumer benefits.
II. * Role of government lies in reducing complexities in transactions and there
by reducing the transaction cost.
* The law makers has to do a tasks of both boosting IP development
through protection of innovators and also regulate the marketing activities
to protect the interest of the consumers.
* Innovations and New product Developments are the key success drivers
in almost all the industries.
* the innovations are legally protected under Patent, copy rights, Trade
marks , Designs.
* on the other hand, the marketing regulation enforced through market law
which ensure consumer protection, promotion of healthy competition and
environment protection.
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 Consumer Protection
The major area of legislation is
• To curb(check) the unfair trade practices in business to protect the early
deceivable consumers.
• The regulations keep checks on the false and fake advertisement, deceptive
packaging and marketing of unsafe goods.
Protecting Healthy competition:
• In free market economy, the competition is the fundamental strength for
achieving the growth.
• Firms in order to dominate the market may adopt the restrictive trade
practices.
• The legislation is to curb such business practices.
Environment protection:
• The regulation is aimed at holding the business responsible for social costs
incurred for manufacturing of products and the manufacturing process
adopted.
Environment Protection Act: 1994
• EP act seeks to achieve its objectives by setting out a program for the
identification and protection of important elements of the environment. 16
 Continued..
Controlling the activities of individual and the company are
• Environment management programs
• Environment protection orders
• Environment Evaluations
• Environment Restraining order.
Rights of Consumers:
• Right to safety
• Right to inform
• Right to choose
• Right to hear
• Right to seek redressal
• Right to consumer Evaluation
Where to file a complaint
• District Forum – (<20Lakhs)
• State Commission (>20Laksh - <1 Crore)
• National Commission (>1 Crore)
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 Continued..
Complaint should have
• Name , address, and description of the complaint
• Name, address, and description of the opposite party
• Facts relating to complaint ( when, where)
• Documents (supporting)
• The relief which the complaint is seeking
IPR Protection:
• Protecting patents
• Protecting Trademarks: symbols
• Protecting Designers : shapes, configuration, patterns or ornamentation
• Protecting the artistic works (drama, musical works, artistic, engineers
drawing)
Protecting consumer:
The consumer Protection Act – 1986
• Protecting the consumers from exploiting by the business and trading
community
• Establishment of consumer councils
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 Continued..
Salient Feature of the act:
• The act is passed for the interest of the consumers
• To promote the rights of consumers
• It covers private, public and co-operative sector.
• The provisions of act are compensatory in nature.
Consumer protection Act : 1986 – Prohibits marketers from adopting the
following unfair trade practices.
• False Representation of the quality, composition, style or model of goods
and services.
• Falsely alleging application and misleading the usefulness of goods and
services.
• Warranties or guarantees given without adequate tests or expressed in
misleading terms.
• Announcing bargain prices for goods, which are either put on sale or
offered in quantities which are not reasonable with respect to the nature of
the trade offering gifts, prizes.
• Sale of substandard and hazardous goods.
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 continued..
Restrictive trade practices:
• CPA defines the following trade practices as restrictive and regulates
conditions regarding any agreement arising between the seller and
purchaser in the course of business.
• Restriction on the sales of goods to certain person or class of persons.
• Restriction on purchase of goods on the conditions of purchase of other
types of goods.
• Restricting the purchase of goods on the conditions such as not to deal with
good other than those of seller. Eg: Tupper ware
• Restricting purchasing and selling of goods only at prices stipulated.
• Following the concession of benefits by way of discounts, rebate,
allowances, and terms in connection with dealing.
• Restrictions on rebate prices of the goods or otherwise stated.
• Restriction on the quantity, output and the area of disposal of goods.
• Restriction on employment in manufacture of goods.
• Restriction on resale prices with a result of competition.

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 Continued..
Protecting competition:
• Competition Act 2002 – Endeavours to shift the focus from restricting
monopoly to promote fair competition.
• The objective of competition act is to promote fair competition in the
market to protect consumers and firms from each other and the interest of
the society .
Highlights:
• the anti competitive practices such as price-fixing, output restrictions, bid
fixing and market restriction are prohibited.
• It regulates the mergers and acquisitions above threshold limits
• It emphasizes in competition advocacy.

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 IP- Management Framework
• IP management at micro level there is an increasing need for effective
management of IP.
• Concentrate more on core invention and peripheral inventions
• File early and file often – many countries is necessary to file a patent
application
• It is not just expensive to get patents but it is also expensive to maintain
them and there is no point in paying annuities to maintain a patent which is
not being exploited.
• Effective and efficient management of the firms IP portfolio. ie.patent,
trademarks, copyrights.
The framework o f IP management consist of following parameters:
• IP development
• IP market watch
• IP policy
• IP Exchange
• IP protection
• Organization structure.
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 Continued..
IP development:
• Firms developed IPs which are in different form like inventions, new product,
business model, copyrights etc.
• Firms should channel creative abilities of employees to transform their ideas
into physical forms where employee motivation give handsome rewards
• Firms have separate department for working on idea generation, proposal
scrutiny, commercial exploitation.
• IP development is not easy and routine
IP market watch:
• It covers finding new opportunities for new product development, availability of
appropriate tests with the 3rd party, and policing the infringement of your IPs by
others
IP Exchange:
• In hi-tech business, normally IP acquiring and selling is the most commonly
adopted strategy by large firm.
• Does joint R & D work
• Profit or loss can be shared
• The IP exchange can be deployed by hosting IP by seller and selecting an
appropriate IP for the buyer on the web. 23
 Continued..
IP protection:
• It can be done by combining both legal and market strategies. Legal
protection is must to guard IP against infringement by rivals
IP policy:
• Organization needs to have a clear cut policy framework for its IP
development and exploitation.
• This depends on the competency level of the firm
• Some organization may be excellent in IP development, but they may lack
in its commercialisation. In such case licensing may be the better option.
Organization Structure:
• IP development most suited organizations – shallow structure
• Change in work culture
• Keeps employee motivation level high
• Conductive for innovation
Some companies have a full fledged IP department to look after the following
IP development, IP registration and protection, Regulatory affairs, Drug testing.

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 IP strategies
The firms around the world, to keep their IP portfolio from being vulnerable are
adopting various strategies. They are as follows:
Evergreening:
• It occurs when the brand name manufacturer literally generates patent
protection by obtaining separate 20-year patents on multiple attributes of a
single product.
• Original patent holder to continue to hold the patent of a product by
applying for a new patent on the new product with slight variation.
• In this patent holder does not wait until the end of a product patent’s life to
begin the process.
• In order to maximise revenues from their products, management begins to
evolve “life-cycle management plans”
Out-licensing:
• 10-15 yrs for the innovation, cost factor, time factor
• Plan for out licensing strategy
Developing Technological lead:
• In a bid to protect its IP, companies like Intel use the strategy of killing its
own product and introducing more sophisticated or enhanced version of25
 Continued..
• For deploying this strategy, firm needs real financial muscles and excellent
R & D capability.
• ‘copycat’ by competitors, the firm comes out with its advanced version, so as
to enjoy monopoly in the market for another spell of a year or two.
• Novo Nordisk A/S, Denmark, developed a competitive edge with
technological lead over its rivals.
Exclusive control of Technology:
• Companies in high technology area adopt the long-term strategy for
protecting their core technology.
• Motorola used three stage strategy to protect its mobile telephony products.
Building product under joint branding:
• Many firms create protection for their products before the expiry date of
their of their product.
• To protect their inventions they does joint branding.
Creating switching barriers:
* To competitors away, smart companies create switching cost barriers to its
consumers. Eg: Novo Nordisk A/S, which developed unique insulin delivery
– NovoPen – system and obtained patent-trademark protection. 26
 Continued..
Patent and Trademark complementary strategy:
• Firms use both patent and trademark strategies to protect their Ips.
Foreg:Aspirin was developed in the beginning of the last century and its
patent expired long back.
• However, to protect it, Bayer AG created a strong brand image, which also
got trademark protection.
Strategic patenting or creating a patent wall:
• In FMCG market, it is easy to re-engineer and make copycats.
• Companies often create a patent wall, a barrier of multiple interlocking
patents to keep rival away from duplicating the product.
Patent sharing:
• Sharing patents is a more sensible approach to stay competitive in changing
markets.
• Sharing patents help companies to cut capital cost in order to develop
technology and eventually make their final products much affordable.
• Foreg: Microsoft has patent sharing agreement with Samsung. Samsung use
Microsoft’s patents for computers, television and printers, while Microsoft
will access Samsung patents for digital media.
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 Strategic Considerations
• When a patent is issued, all the processes and components of the
innovation become available to the public and it becomes easy for the
competitors to device a process or product around it.
• Foreg: in semiconductor industry, the manufacturer of a semiconductor
device has more than thousand processes of a production.
• Many of these processes are for producing specific outputs or features while
others are for common use.
• Commercialisation before applying for Patent
• Developing Associated Technology or Processes
• To Patent or Not to Patent
• Collaboration in IP Development

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 Drivers of IP management
IP helps to gain sustainable competitive advantage to the owners(Corporations).
Therefore, managing IP has become imperative on the part of the business
organization. The reasons for which are as follows:
Capital Intensive:
• Generation of return from IP rights is a capital intensive and long term
utility
• Eg: Indian Pharma company Vs US pharma company
Irreversible Decision:
• Survival of a firm is largely dependent on its innovativeness in terms of new
technology, process or products.
• Competitive environment is forcing the business organizations to develop
new products and new technologies to survive in the market.
Legal Protection not Enough:
• IP management cannot be left to technology and legal department alone.
• Based on your IPs competitors may develop the allied products, which may
create barriers to your entry in the market.
• Survival depends on differentiation.
• Differentiation may be in product, process or procedure. 29
 IP value Chain
• Michael Porter of Harvard Business School has proposed the value chain as
a tool for identifying ways to create more value to the customer
• According to this model, every process is the synthesis of acquiring, adding
and delivering value to its products.
• Value chain is vertically aligned activities that add value to the good or
service in moving from basic supplies to the finished product.
• Value chain in IP comprises of Innovation, Protection, Management and
Utilisation.
Managing Trademarks:
• Trademark is much like the name of a human being because the life of a
trademark may be correlated with the life of a product.
• Every human being is to be named immediately after birth, every product is
also to be identified with a trademark.
• Registered trademark is well looked after for its maintenance such as
renewal after expiry and market watch for infringement by others.
• For enhancing the competitiveness, proper branding strategies are evolved.
• Generic name as trademark is avoided as it slowly erodes the legal status
(corn flakes, nylon, aspirin) of trademark leading to common word for a
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generic product
 Continued..
* All trademark questions should be directed to either trademark counsel or
Trademark staff of the company as to avoid the costly mistakes.
* Policing trademark infringement and its misuse with the help of company’s
employees and dealers network.

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