ECONOMICS BEHIND INTELLECTUAL PROPERTY RIGHTS

In todays world several companies use the Intellectual Property Rights (IPR) to protect their new inventions and company secrets. IPR are the legal rights granted by government to encourage innovation and creative output by ensuring that creators reap the benefits for their inventions or works. Intellectual property rights include several forms such as patents, trade secrets, copyrights, trademarks, or geographical indications (GIs).

World intellectual property organization(WIPO) defines IPR as a creation of mind inventions, literacy, artistic works and symbols, names, images and designs used in commerce. When a company hold its physical properties with out any IPR then those properties are considered as tangible where as IPR possessed properties are considered as Intangible. Intellectual property is essentially needed for a private nature belong to either through a natured person or legal person( Companies, Institutions). IPR can be own, bought and sold, rented , protected and infringed upon by others.

EVALUTION OF IPR IN INDIA:

Intellectual Property Rights (IPR) in India was imported from the west through the Indian Trade and Merchandise Marks Act 1884 which was considered as the first Indian Law on IPR. The first Indian Patent Law was enacted in 1856 followed by a series of Acts being passed. There is an Indian Patents and Designs Act in 1911 and Indian Copyright Act in 1914 is the first enacted copy write act in India. Later after getting independence the Comprehensive Copyright Act was enacted in the year of 1957 to consolidate the laws related to copyrights in India.

In 1948, the Indian Government appointed the committee to review the prevailing Patents and Designs legislation. In 1957, Government appointed to revise the Patent Law in order to balance the constitutional guarantee of economic and social justice enshrined in the preamble of the constitution. The report submitted by the committee outlined the policy behind the Indian Patent system. After the revision of previous acts on patents, a new patent act was released in the year of 1970 which process the patents only for food, agrochemicals, alloys, drugs and fixed 7 years term for food, drug and 14 years for others with having compulsory license provisions.

IPR LAWS ADMINISTERED BY OFFICE CGPDTM

EVALUTION OF INTERNATIONAL PERSPECTIVE OF IPR:

Every country has some relationship with other foreign countries in the form of trading, such as imports and exports. The foundation of International Intellectual Property Protection was created in the 19th century in the view of protection of Industrial Property which was created at Paris Convention in the year of 1883 regarding the terms of Patents, Trade Marks and Industrial designs that were granted protection at that convention. In 1998, India also became a member of the Paris Convention. In 1886, International Copyright Act was passed.

The Paris Convention marked the beginning of the International Trade Marks Protection laws and introduced the concept of a well known mark. In 1960 the World Intellectual Property Organization was created which governs the Paris and Berne Convention. In 1977 World Trade Organization (WTO) was created and become an important international organization for the development and understanding the IPR. This WTO was the successor to the General Agreement on Tariffs and Trade(GATT).

The importance of intellectual property in India is well established under statutory, administrative and judicial levels with an agreement made with World Trade Organization (WTO). This Agreement concentrates on Trade Related Aspects of Intellectual Property Rights (TRIPS) which came into force from 1st January 1995. It lays down the minimum standards for protection and enforcement of intellectual property rights in member countries which are required to promote effective and adequate protection of intellectual property rights with a view to reducing distortions and impediments to international trade.

The IPR scene in India has undergone a dramatical change since 1995 with the creation of various tools of Intellectual Property which shows compatibility with TRIPS.

ECONOMICAL PERSPECTIVE OF IPR IN DEVELOPING COUNTRIES :

Intellectual property rights have a great importance in the growth of a country. Intellectual property law differs from county to country. In many developed countries, the strict enforcement of the IPR has a huge contribution to economic growth. IPR promotes innovation which leads to the economic growth. Nowadays every business in the world is looking for the creation of Innovations.

So, protecting those new innovations has become necessary for companies these days. Not only protecting the new inventions of the company but also established companies should also protect their company names also in order to avoid duplicates in the market. Some big companies sell their names in exchange of huge amount in exchange of huge amount of money. Intellectual property rights have a great influence on the financial improvement of a nation. Different country governments face a complex choices on how to design an IP system in the best way to serve their policy objectives.

As India is one of the fastest growing countries, innovation became the first priority to most of the startup companies and as well as established firms including Government firms. Significance of IPR gives a competitive edge in the market for a company and also protects from hackers and pirates. Developing countries went along with the TRIPS agreement for a variety of reasons, ranging from the hope of additional access to agricultural and apparel markets in rich nations, to an expectation that stronger IPR would encourage additional technology transfer and innovation.

From business perspective IPR helps to create a strong brand identity and obtain valuable competitive intelligence. Along with these they help in making revenue through licenses. The main flexibility that is obtained through IPR is freedom of operating. After the introduction of TRIPS the market in India started changing vastly and the act started to provide space for operation and opportunities to companies and innovations. The private sector has started investing in research and development. Finally, The intellectual property right development plays a crucial role on economy for the development of business in a country.