COMMERCIAL ASPECTS OF

Intellectual Property Rights

Exclusive rights granted by the State for inventions, new
and original designs, trademarks, new plant varieties
and artistic and literary works.



Intellectual Property Rights
The right to prevent others from
using
manufacturing
distributing
products
processes
applications
trade names
geographical names
ideas
designs
Industrial Property Rights
Intellectual Property Rights
Patents

Trade marks

Geographical denominations

Industrial designs

Copyright
"Copyright" is a protection that covers published
and unpublished literary, scientific, and artistic
works, whatever the form of expression, provided
such works are fixed in a tangible or material form.
This means that if you can see it, hear it, and/or
touch it-- it is protected.

Anything tangible in a fixed form
Examples
Literary works, including software
Musical works, including accompanying words
Dramatic works, including accompanying music
Pantomimes and choreographic works
Pictorial, graphic and sculptural works
Motion pictures and other audiovisual works
Sound recordings
Architectural works
Works that have not been fixed in a tangible form of
expression; for example, improvisational speeches or
performances that have not been written or recorded.
Titles, names, short phrases and slogans; familiar symbols
or designs; variations of typographic ornamentation,
lettering or coloring; listing of ingredients or contents.
Ideal procedures, methods, systems , processes, concepts,
principles, discoveries, or devices, as distinguished from a
description, explanation or illustration.

Everything on the Internet is copyrighted
World Wide Web pages
Courses
Electronic mail, listservs and newsgroups
The same copyright laws apply to
electronic materials as to print materials
PATENT TRADE MARK
Validity of
protection
when and where
registered
when and where
registered
Refers to
products
processes
applications
names, logo,
shape, symbol,
color, domain
Criteria
novelty, level of
inventiveness
no confusion,
generic name
EU registration
EU patent office
Munich, Germany
OHIM
Alicante Spain
Website www.epo.org
http://oami.euro
pa.eu
Duration
20 years,
not renewable
6-10 years,
renewable
YEARS RENEWABLE
Patents 20 (6) No
Trade marks 6-10 Yes
Designs 6-10 Yes
Copyright
70
after death
No
Trade marks
Name

Logotype

Symbol

Slogan

Shape

Color
Registration of trade marks
NATIONAL REGIONAL INTERNATIONAL
FEES
National fees for
each country
National fees for
each country
or EU fees
One fee
LANGUAGE
Translation into
national
languages
One language One language
WHEN
May be
convenient if
limited number of
countries or no
alternative
For EU market If protection in
more countries is
needed.
Not allowed / not valid
Violation of public order and morale
Copy of earlier registration (bad
faith)
Withdrawal from register
Not in use ( 5 years)
Evolution into generic name
Formica, cellophane, compact
disc
Common mistakes
Believing that trademark protection is
universal
Using a trademark that is already
registered or is being used by competitors
in export market (Nike, Olympics 1992)
Using a trademark that conflicts with a
protected geographical indication (South
African winegrowers Champagne
Leaving the sign on a product even
when exported into a country where it has
not yet been registered


The right to exclusively produce,
use and/or market a
Product
Process
Application
Patents
Extremely complex because of its criteria,
Result of too many funny/weird applications :

Novelty, not publicly known Boomerang
Product/process/application Aspirine
Industrial, not software: Copyright
Level of inventiveness Cashmere
brush
Applicability Mars-shoes
Patent legislation
Registration of patents
NATIONAL REGIONAL
WHERE
Each country where you
seek protection (through
EPO website) or through
national patent office in
your country
European Patent Office
www.epo.org
US Patent Office
www.uspto.gov
FEES
National fees for each
country
National fees for each
country
excl. Benelux
LANGUAGE
Translation into national
languages
One language
WHEN
May be convenient if
limited number of
countries or no
alternative
For EU market
For US market
Patents
product, process, applications
Registration :difficult to prove novelty
limited duration

Trade mark
name, symbol, shape
Registration : do not create confusion
renewable

IPR: only protection when
registered (excl. copyrights)

In a nut shell
19
Contents
Licensing of IPRs
Royalty on Technology Transfer and IPRs
Holding of IPRs in tax efficient manner
Auction of IPRs
Role of IPRs in Venture Capital
Business Growth & Valuation Enhancement
Copyright and Fair Use
Do you have the right to use other peoples material in
your course?
Intellectual Property
What happens to the intellectual material once you have
posted it online?
What can you do if material is used without authorization
21
Licensing of IPRs
Important issues in software licensing
Define Licensor & Licensee
Software Description
Term of License
Expiry / Termination
Renewal
Upgradation
Single or Multi-user
Concurrent User
Network in which it is to be used
22
Licensing of IPRs

Home or Commercial use
Access to source code
Transferability
Division of Components of Software
Downloading & uploading
Sub-licensing
Operating Systems for software
Non Liability through wrong usage
Anti Piracy clause

23
Licensing of IPRs
Software Auditing
Remedies - damages / injunction /
criminal liability
Liability & Obligation of Licensee
Territory
OEM unbundling
Royalty
Taxation
Repatriation
24
Royalty on Technology Transfer and IPRs
Royalty can be
Lump-sum fee percentage of sales
25
Royalty on Technology Transfer and IPRs
Royalty for Technology (Patents)
o Lump sum payments upto $ 2 mn
o Upto 5% for domestic sales and
8% for exports, without any
restriction on the duration of the
royalty payments.
Royalty for use of TM and brand
can be paid upto 2% on exports
and upto 1% on domestic sales.
26
Royalty on Technology Transfer and IPRs
o Define Technology and List of IPRs
o Grant of License
o Rights & Obligations of Licensee and Licensor
o Exclusive / Non-exclusive
o Transferability and Sub-licensing
o Term
o Revocability
o Territory
o Advertising & Promotion
o Audit of accounts from outside agency
o Royalty Payment and Calculation
Issues in Technology Transfer
27
Role of IPRs in Venture Capital
Venture Capital (VC) has been major drivers
of innovation, economic growth, knowledge
base industry and start ups. VC industry
follow the concept of high risk high gain.
VC value intangible assets while making
equity investments, which generally
conventional sources of financing may not
consider.
28
Role of IPRs in Venture Capital
Increases the valuation of
the company
Better IPR portfolio
gives competitive edge
in attracting VC
29
Business Growth & Valuation Enhancement
IPRs being intangible assets forms
substantial part of assets of a company
and thus increase the valuation
IPRs helps in expanding the
market share and venturing into
new markets and businesses
Advantages and Disadvantages of IPR