INTELLECTUAL PROPERTY AND INNOVATION

INTRODUCTION

Intellectual Property Right is a territorial right which is granted to people within the territory of that country. Intellectual Property is an intangible property created by application of human intellect including Patent, Copyright, Geographical Indication, Trademark etc. It is an exclusive right of the owner and it protects expression of ideas in a tangible form but not ideas itself. Thus, these rights protect innovative technology from misconduct of inventions. There are various legal provisions and regulatory frameworks for the protection of the Intellectual Property Rights. Intellectual Property includes innovation in the fields of research, scientific inventions, artistic, literary, dramatic, technical and creative etc. fields by application of human mind and intellect.

WHAT IS INNOVATION?

Innovation is the implantation of new ideas, products into the market of already existing creations. It is the application of an invention that is useful in society. It can also refer to discovery of a new thing from an invention.

 

BENEFITS OF INTELLECTUAL PROPERTY RIGHTS

Intellectual Property Rights benefit to inventors, creators, companies, employees in the modern era. Various advantages of Intellectual Property Rights are:

• Business Growth:

Intellectual Property Rights promotes business and economic growth in the export market. By Industrial design and logos, the inventor sells products and services in the foreign countries with the help of franchise arrangements abroad.

• Protection of ideas:

Intellectual Property Rights protect innovative ideas of products, services which in turn benefit the inventors by earning profits. Registration of Intellectual Property Rights like Patent and Copyright promote market growth.

 

ADVANTAGES OF INTELLECTUAL PROPERTY RIGHTS 

 

There are also certain advantages of Intellectual Property Rights in a number of ways. They are:

• Innovation

Intellectual Property Rights promotes creativity and innovation through invention in research and technological developments. This encourages inventors to earn profits by their creativity in developing novel and distinct products and services.

• Fair competition

Intellectual Property Right ensures fair competition in the market and prohibits anti-competitive agreements. It ensures economic growth. For Intellectual Property Rights, business organisations become able to achieve customer loyalty. Industrial Design of a product enhances more flexibility and credibility.

•  Revenue in business:

In business, for Intellectual Property Rights revenue is generated and the holder of the Intellectual Property Right gets return on the investment. Thus, the owner of Intellectual Property Right earns benefit from this right through licensing in a direct or indirect way.

• Enhances productivity in agriculture:

 

Through Intellectual Property Rights, productivity in agriculture is increased by a lot of variations of products.

• In promoting partnership:

 

Intellectual Property Rights promote partnership by engaging startups to share costs for research, filing of patents etc. This is very much helpful for various startups.

• Technological advancement 

 

Intellectual Property Rights promote technological developments meeting all the needs like transfer in technology etc.

 

DISADVANTAGES OF INTELLECTUAL PROPERTY RIGHTS

 

There are certain disadvantages of Intellectual Property Rights. These are:

 

1. Creation of monopolies in business

 

In business, Intellectual Property Rights create monopoly. It enhances the cost for developments. There are also some extra costs for complex products and processes.

• Unauthorized use 

Though Intellectual Property Rights are protected, still sometimes it becomes harder to stop pirating. In Intellectual Property Rights Law, there are certain legal provisions of penalties for infringement of those rights.

• Research and cooperations

Sometimes, Intellectual Property Right laws obstruct scientific research and cooperations.

• Consuming time and money

 

The process for registration of Intellectual Property Rights is lengthy and is very much complex. There are a lot of steps and there may be rejections. The registration fee is very high. This is a lengthy and expensive procedure.

• Limitations in providing Cultural knowledge

Intellectual Property Rights don’t protect cultural knowledge effectively. IP Laws does not recognize different new kinds of art, culture, music, videos.   

 

TYPES OF INTELLECTUAL PROPERTY RIGHTS IN INNOVATION

 

There are various types of Intellectual Property Rights that encourage innovation in science, technology, research, literary, creative, artistic etc. fields. Intellectual Property once granted can’t be infringed. There are certain legal provisions for punishment of infringement of Intellectual Property Rights. Various Intellectual Property Rights for innovation are:

• Patent and Innovation:

The Indian Patents Act,1970 governs Patents in innovation and punishment for infringement of patent also. According to Section 2(n) of The Patents Act, 1970; “Patent” means a patent for any invention granted under this Act. The invention must be novel, original, useful and non-obvious, capable of industrial applications. There are several features of a patent for which a patent is for innovation. These are:

• Exclusive Right:

The patentee to whom the patent is granted has an exclusive right to exclude others from selling, using, importing the patented product for a certain period. The term of the patent is 20 years. This exclusiveness protects the invention and provides profits to the inventors.

• Technological Development:

Patented inventions are used for technological developments of products. Inventors invest their endeavour to make profit from their invention. For this, patents are useful for innovation.

• Protection of Intellectual Property Rights:

Except the patentee others can’t make, use, sell the patented invention for a reasonable period of time. This provision protects intellectual property rights to a greater extent.

 

• Innovative Approaches:

Information related to patents helps in understanding the technological goals of the society and regulating others’ activity. These approaches promote innovation.

 

Section 108 of The Patents Act, 1970 deals with Reliefs granted for infringement of patent. According to this Section, the Court will seize, destroy the infringing goods without payment of any compensation.

 

1. Copyright and Innovation:

 

The Copyright Act, 1957 provides provisions of the Copyright law. Copyright is a bundle of exclusive rights granted to the owner of the Copyright to their original works in literary, dramatic, musical, artistic work. This Intellectual Property Right protects those creative works from unauthorized copy or reproduction. Section 63 of The Copyright Act, 1957 provides punishment for infringement of copyright. According to this Section, anyone who infringes the copyright work shall be punished with imprisonment of not less than three years with minimum fine of fifty thousand rupees to maximum two lakh rupees. Thus, copyright promotes innovation.

• Trademark and Innovation:

Trademark is an Intellectual Property Right by which a product can be distinguished from other products. Trademarks can be signs like symbols, designs, words for protection of a logo, company name, image etc. The Trademarks Act,1999 deals with use and protection of trademarks and penalties of false trademarks. Certain legal provisions and regulatory frameworks are used to protect innovation and creativity and also ensure fair competition in the market.

• Geographical Indication and Innovation:

Geographical Indication is a type of Intellectual Property Right that provides for the identification of products of a company of specific geographical source. It distinguishes a product by its origin. The creators give product specifications to the producers to avail Geographical Indication.

• Trade Secret and Innovation:

 

Trade Secret is a type of intellectual property rights where certain confidential business data is sold or licensed to gain commercial benefit. Maintaining secrecy of commercial information promotes economic growth. This ensures fair competition in the market suppressing anti-competitive agreements in business competition and protects commercial information against unlawful use. Thus, Trade Secret enhances business growth and innovation.

  HOW INTELLECTUAL PROPERTY AFFECTS OR HINDERS   INNOVATION?

           Intellectual Property rights hinder innovation in a number of ways. These are:

 

1. By monopolies and anti-competitive agreements in business:

Intellectual Property Rights obstruct innovation by creation of monopolies and anti-competitive agreements in business, prevent competition and novel invention.

• Profits from previous inventions:

Inventors earn profits for seeking Intellectual Property Rights like patent, copyright from previous inventions. It discourages inventors from creating new inventions.

• Poor Quality and slow invention:

 

In scientific experiments, after granting of Intellectual Property Right lowers down the quality of the invention and it becomes slow. It occurs particularly in logical innovation procedures.

• Financial disadvantage of technological innovators of Copyright:

After granting control and use over new technological developments to the owner of copyright becomes the hindrance in the way of better technological invention of copyright.

 

1. Stifling Innovation through Copyright Trade Agreements:

There are certain copyright legislation and trade agreements like The Stop Online Piracy Act (SOPA) and The PROTECT IP Act in U.S.A. in 2011 for prevention of copyright infringement, Anti-Counterfeiting Trade Agreement (ACTA) to prevent commercial counterfeiting and piracy, Trans-Pacific Partnership (TPP) etc. cause harm inventors and restrain innovation.

• Weak Intellectual Property Protection:

 For expensive and poor-quality inventions many Intellectual Property firms solve problems related to Intellectual Property Law by itself.

• Strong Intellectual Property Rights:  

Very strong Intellectual Property Right leads to very expensive innovation and this encourages big Intellectual Property firms to threaten other innovators through litigation.

 

CONCLUSION AND SUGGESTIONS

 

Intellectual Property Rights (IPR) and innovations are interconnected matters of a new invention. Protection of Intellectual Property Rights promotes not only scientific research and experiments but only ensures business and economic growth. In business, creation of monopolies should be restricted to enlarge the scope of innovation. Because of strict rules to access goods and services, patents make it a hindrance to acquire adequate medications and treatment become costly for many people in developing countries. Because of certain restricted legal provisions of Copyright Law, it becomes harder for teachers and students to access certain educational materials that obstruct learning opportunities. There should be a change in those laws and regulations. Copyright laws should not restrict freedom of speech and expression which is the fundamental right in the Indian Constitution. There must be a balance between proper access, innovation and moral discretion in The Intellectual Property Rights Laws and Regulations.

Authored By- Krishna Sur, University of Burdwana

REFERENCES

1. The Patents Act,1970
2. The Copyright Act, 1957
3. The Trade Marks Act, 1999