intro to ip- pharma'10
TRANSCRIPT
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Theory of Evolution Survival of the fittest!! 2 things needed to survive
All kinds of great ideas: man survived & progressedFirst hand axe 2.5 million years ago
Standardized hand axe 700,000 years ago
Needles 70,000 years ago led to invention of clothes
Writing words and languages 5500-3500
BC & AD, + & -,dividing O into 360o
Market place born & survived out of ideas01/26/10
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Do we need ideas ? Consumer World - market place dominated by needs & wants
Needs & wants met by products (discoveries, ideas or inventions)
Sellers woo buyers , buyers demand products
The seller seeks rewards social & monetary
& the buyer seeks product satisfaction
So the constant need to ideate, improvise & innovate
Innovate or perish! Necessity is the mother of inventionInnovate or perish! Necessity is the mother of invention!
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Idea and ideationMost commonly used expression! What is an idea?
Ingenious intellectual activityLabor of mindDifferent from manual and physical laborOriginal, inspired, influenced or even pirated
Born out of imagination & knowledge
Imagination breeds creativity and creativity breedsGAINFUL COMMERCIAL ACTIVITY-resulting ingeneration of wealth!
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Role of Creativity &Innovation
Innovation is the outcome of ingenious ideas& ideation
Ideas can be generated in the backdrop ofimagination & knowledge.
Great ideas have changed the world, the way
we live and work & brought in new knowledgeNations ability to convert knowledge into
wealth & social good will depend on fosteringcreativity & innovation
Protection systems act as a powerful stimulus& bolster creativity and growth. Whatever is created can be sold to benefit both
seller & buyer-results in the generation of wealth.
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Creative USPsYour IDEAS could take the shape & form of:
Products Expressions Marks Designs
Computer programs Local arts & crafts Trade Secrets
Each creative USP is your IP!01/26/10
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Intellectual Property
Innovative idea behind the technology.
Any creation of the human mind-locked in a
tangible form Intangible moveable property.
Private property
Entitled to legal protection.
Can be used, accessed, distributed
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Intellectual Property RightsUmbrella termLegally protected rights & assets created out of the
exercise of the human intellect
Bundle of exclusive rightsof two kinds:PrivilegesExclusions
Claims & entitlementsEnjoyment only for a limited period of time
Protected since 500BC but actively from the 15th cent
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Constitution of IP
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Intellectual Property
OwnershipIntangibles
Labor intensive
Time boundTransferable
Bundle of Rts
ValuableAssets
xxxxxxxxxxxxxxProtected
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Main kinds of IPs Patents- protects the principle ideas embodied in noveltechnologies, products & processes
Designs- protects the appearance of an article as in its
shape, configuration, pattern or ornamentation
Trade marks- protect names, logos, signs, tastes, smells, thadistinguishes goods and services of one trader from another.
Copyrights- automatically exists in all original literary worksand protects the particular expression
Geographical Indications, Trade Secrets, Plant varieties etc
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Jobs went, jobs were created. Skills went out ofuse, new skills were required. Regionschanged, people changed. Mill towns saw
their mills close, shoe towns saw their shoeindustry move elsewhere, towns that weretextiles power houses buy their linen now
from China.Change is hard but change is natural!
- David Schlesinger- The world is Flat
The world is Flat
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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 inViagra.
If everybody began to use a creators or inventorswork freely he would soon be out of business
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Trade should be an instrument of economic
development To promote trade without discrimination-nondiscrimination
To treat member nations favorably through its MFNclause
To protect domestic industry only through custom tariffs Not to allow measures such as dumping and subsidies
to interfere with fair competition To ensure reductions of tariffs thru multilateral
negotiations and reciprocityonly
Next 40 years GATT grew in membership and succeeded inreducing trade barriers & volumes of trade surged.1950-1960- Golden age of capitalism. Members met regularly inwhat came to be known as negotiating rounds
Basic Principles of GATT
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World Trade Organization
Created Jan1995- outcome of the Uruguayround 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- In2000 its trade volume was 25 times its 1950volume
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Objectives of WTO
Marrakesh declarationof 1994- The objective of theUruguay Round was to strengthen the world economyand to lead to more trade, investment, employmentand income growth throughout the world.
Open Trade- system of rules for open, fair andundistorted competition-laissez faire philosophy
Non-Discrimination- Principles of MFN and NationalTreatment
Dispute resolution- better designed, strongermechanism
Comparative advantage- to help countries prosper bytaking advantage of their assets
Helping LDCs, Environment protection, raise standards
of living, employment, etc.01/26/10
I t t P
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Important Prov s ons oWTO
Contains 29 legal texts covering everything fromagriculture to textiles to services and IPRs
Trading policies-Agriculture, Health and safetymeasures-Textiles and clothing-
GATS-General Agreement on Trade in Services- Uruguay
round- covers 12 service sectors like businesscommunications, distributions, education, financial, etc
Anti-dumping Measures-This agreement recognizes theneed to apply such measures ONLY when dumped productcauses injury to the domestic industry.
TRIPS-This agreement acknowledges the need to protectand 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 domesticlaws
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 oftechnology & fair play
To preserve a balance of rights and obligations
Article 7-the protection & enforcement of IPRs shouldcontribute to the promotion of technological innovation and tothe transfer and dissemination of technology to the mutualadvantage of producers and users of technologicalknowledge and in a manner conducive to social andeconomic welfare and to a balance of rights and obligations.
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Copyrights Indian Copyright Act 1957-1999
Patents Patents Act of 1970-2005
Trademarks Trademarks Act of 1999
Geographical indications Geographical Indications Act-
1999
Industrial designs Designs Act of 2000
Layout Designs of IntegratedCircuits
Semi Conductor, IC LayoutDesign Act,2000
Plant varieties Protection of plant Varieties &Farmers Rights Act,2001
Biodiversity Biodiversity Act 2002
Undisclosed information-trade
secrets
Indian C ontract Act 1871
IP in India- TRIPS Regime
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Classification of IPRs
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IPR
Patents
Industrial Design
Trademarks
Works of Art
Literature
Music
Broadcasting
Dramatics Works
Sound Recording
Computer ProgramsGeographical
Indications
Industrial Property
Co
pyr
ig
ht
R ti l f t ti
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Rationale for protectingIPRs
Dramatic shift in trade- formerly dominated bycommodities like iron ore, unprocessed cotton,coffee etc. moving towards knowledge intensivegoods.
Trade & Technology more knowledge driven in time
Knowledge component predominant element indifferentiating enterprises from its competitors
Export in high tech goods have multiplied manytimes-11% in 1976-22% in 1996, primary productsdropped from 45%-22%
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Role of IP in value creation
Global trade dependant on knowledge intensive productslike software, electronics, fashions, pharma, biotech etc.
Protection leads to increased global trade
Exploitation adds to profits & commercial value Promotes creativity and allows creators to benefit from
their work. Technical innovations puts business ahead of competition
Awareness of need to protect ones own turf, industry,country reduces risk.
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Gillette: Creating a Patent Wall MACH3 protected by 65 patents blocking all
competition.
Gillette started with patenting the Floating AngleGeometry Design, and then patented the key design in
cartridge, the angle of the blades etc. There werepatents covering the handle, and even the container thathad the proper masculine sound and feel as it wasripped.
All these patents were interlocking so that no onewould duplicate these products.
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Ring fencing
Gillette patented one of its core technologies processcalled DLC (Diamond Like Coating) - produced blades 10times thinner and harder than those used in the sensorrazor.
The R&D budget of US$ 750 million for MACH3 alsoincludes the cost of INVENTING 200 pieces of equipmentand technology needed in manufacturing process.
Each of these manufacturing methods was patentedseparately, among them is also a US$ 20 million vacuumchamber 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 toorder a custom-configured PC via the internet on a toll freenumber.
Dell cross licensed its patents in1999 forUS$16 billion in a deal that enabled each to plug key holes intheir respective business.
Dell gained access to IBMs patented PC components,
and IBM access to Dells patented sales model.Dell now has around 77 patents protecting different partsof the building and testing process.
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The patent war between Kodak & Polaroid ran for 9 yearsin court and another 5 years in settling the issue. FinallyKodak was ordered to:
Pay Polaroid US$ 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 weresold between 1976 and 1985 at the cost of approximatelyUS$ 500 million.
The legal fees for this 14 year battle for Kodak was
additional US$ 100 million.
&
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Patent Infringement
One of the largest companies in the world in terms
of market capitalization was sued by tiny Corpin 1997 for infringing the latter's patented MRI technology,used to detect cancers and other diseases.
GE was forced to payUS$128.7 million, an amount equal
to 10 times the small firm's annual revenue at that time,which Fonar then distributed to its shareholders in the
form of Patent Infringement Dividends.
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In year 2004, Microsoft was ordered to pay $520 millionfor violating the patent of one employee firm, Eolas, whichclaimed to own the way users could get videos or songsinside a web browser.
Similarly we have Nokia vs Qualcomm and Novartis vsNatco Pharma in India
Qualcomm Incorporated has an extensive patent portfoliowhich includes 4000 US Patents and more than 20,000patents & patent applications around the globe. It hasentered more than 130 royalty bearing licenseagreements with telecom equipment makers andconsumer electronics manufacturers.
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IP Wars
Nokia Pays $253 Million to InterDigitalCommunications Corp- patent licensing deal for 2Gwireless technology in December 2005.
Medtronic awarded $51m in patent infringement caseagainst BrainLAB AG involving four patents related toimage-guided surgical techniques and devices.
Microsoft, Autodesk ordered to cough up $133M ( 115
+ 18) to a small technology company Z4 in damagesin a patent battle over anti-piracy technology.
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Indian Tales
Roshans paid Rs.2 crores to music director Ram Sampat assettlement for copyright infringement of music from Krazzy 4.
Ranbaxy & Pfizer settle patent lawsuit over Lipitor that couldgenerate over$1.5 billion in future revenues for the former
TVS motor Co has been restrained by the Madras HC frommaking & selling the 125cc Flame bike for infringement for IPRon technology used for most of Bajajs bikes
Chrysler and Indian Mahindra & Mahindra
are disputing over the design of Scorpio's frontgrill. Chrysler has alleged that Mahindra &
Mahindra has ripped off one of its designs
for the front grill.
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Creations
When you create!!!
All kinds of tangible creations Products & processes
Trade representations
Piece of literary artistic expression Designs of industrial application
Community art or craft
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Protection Of Intellectual Property In India(Patents, Designs, Trade Marks & Copyrights)
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Sr.JOINT
CONTROLLER
OF PATENTS
JOINT
REGISTAR OF
MINISTRY OF COMMERCE
AND INDUSTRYMINISTRY OF HUMAN RESOURSE
DEVELOPMENT
DEPT. OF INDUSTRIAL
POLICY & PROMOTION
DEPT. OF EDUCATION
CONTROLLER GENERAL OF
PATENTS, DESIGNS & TRADE MARKS
PATENT
OFFICE
TRADE MARKS
REGISTRY
COPYRIGHT OFFICE
REGISTAR OF
COPYRIGHT
GIR