The Role Of Intellectual Property Laws In Fostering Innovation

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Authored By: PRIYAL SANJAY THAKOR, BA LL.B, KES’ SHRI JAYANTILAL H PATEL LAW COLLEGE & Co-Authored By: KRUSHA SANJAY THAKOR, LL.B, KES’ SHRI JAYANTILAL H PATEL LAW COLLEGE, MUMBAI, MAHARASHTRA

Abstract:
This essay examines the critical role that intellectual property laws play in supporting innovation. It investigates how strong legal frameworks for protecting intellectual creations, including as patents, trademarks, copyrights, and trade secrets, encourage people and organisations to invest in scientific research and development. Intellectual property laws foster innovation by granting creators exclusive rights to their ideas, ensuring that innovators receive the benefits of their labour. The study investigates how such regulations promote competition, encourage technical developments, and contribute to economic prosperity. It also examines the obstacles and issues that come with establishing a balance between encouraging innovation and opposing monopolistic activities. This essay demonstrates the critical role that intellectual property laws play in promoting innovation and advancement across a range of businesses and sectors by analysing case studies and academic research.

Keywords:

Intellectual Property Rights, Innovations, Patents, Trademarks, Copy rights, Trade secrets, Research and Development, Exclusive rights, Competition, Technology and Advancement.

Introduction:

Intellectual property encompasses the works of the human mind and intellect. Nowadays, intellectual property rights are growing more relevant and financially rewarding. The Indian government has built well-organized administrative and judicial systems for intellectual property rights. These rights are vital to a country’s progress. Intellectual property rules vary between countries. Fundamentally, intellectual property is the set of legal rights that are awarded to people or entities for their innovations or creative works. It includes a vast array of intangible assets, such as creations, literary and creative works, designs, symbols, and confidential knowledge. These works of art kindle human creativity, spur economic progress, and encourage innovation.[1]

History of Intellectual Property Rights and Laws in India

Indian intellectual property rights (IPR) have a multi-century history that reflects the intricate interactions between colonial influences, indigenous knowledge systems, and contemporary legal frameworks. India has a long history of safeguarding intellectual property that dates back thousands of years. India’s approach to intellectual property has been greatly affected by the onset of British colonial authority. To safeguard the interests of British businessmen and innovators, the British applied Western legal theories and passed legislation. The Patent Law of 1856 and the Copyright Act of 1847 were India’s first pieces of intellectual property legislation. India worked to update and modernise its intellectual property laws to better serve its interests as a nation after gaining independence in 1947. Several important laws were passed by the Indian Parliament:

  • Trade Marks Act of 1940: To control trademark registration and usage.
  • The Patents Act of 1970: By enacting more stringent requirements for patentability and permitting compulsory licencing to further the public interest, this legislation represented a substantial shift from the patent rules of the colonial era.
  • The Copyright Act of 1957 (modified in 2012): This legislation addressed concerns including digital piracy and the preservation of performers’ rights by consolidating and amending regulations pertaining to copyright protection.[2]

Further explanations have been provided on the origins, history, and global growth of patents, copyrights, and trademarks:

Origin and History of Patents in India:

The Indian Patents and Design Act replaced earlier legislation, adding provisions for patent additions and secrecy, and raising the patent period from the original 14 to 16 years. Committees were established to assess changes to the laws after independence. A measure was proposed in the Lok Sabha in 1965, however it was never passed. Nevertheless, a revised draft was presented in 1967, which resulted in the passing of the Patents Act, 1970, which is presently in effect in India.

Origin and History of Copyright in India:

India witnessed the establishment of copyright law in 1847, under the administration of the East India Company. The statute had a 42-year duration plus a 7-year post-mortem. Enforcing copyright needed mandatory registration.

 A new copyright legislation with criminal penalties for violation was passed in 1914 when Britain was still in power. It was quite similar to the UK Copyright Act of 1911. Up until 1957, when India, having gained its independence, passed the Copyright Act to bring it into compliance with the Berne Convention, this statute was amended. Since then, this Act has undergone several revisions, the most recent of which was in 2012.

Origin and History of Trademark in India:

The British Trademark Act of 1938 served as the model for the Trademark Act of 1940, which became the first trademark law in India. The Trade and Merchandise Act of 1958 was adopted after independence. Up to the passage of the Trade Marks Act, 1999, which is now in effect, amendments were made. This statute protects owners’ trade, company, and goodwill by preventing rivals from confusingly using or duplicating their marks.

“Innovation distinguishes between a leader and a follower.”

                                                                                            – Steve Jobs

All about The Design Act, 2000 (“Design Act”) in India:

By safeguarding designs in India, the Design Act, 2000 (the “Design Act”) encourages innovation. It gives designers exclusive rights while protecting the aesthetically pleasing features of items, in contrast to patents. In addition to guaranteeing fair competition, this promotes the creation of distinctive products.

Industrial design registration applications are filed with the Controller-General of Patents, Designs, and Trade Marks. A design must fulfil three requirements in order to be eligible for registration: it must be unique and original, which means that no one else has produced or duplicated it; it must also not have been disclosed to the public in India or outside of its borders; and finally, it must be easily distinguishable from other well-known designs.

In addition, the owner of the design receives protection for the first ten years following its registration. By submitting an application for an extension, this protection may be prolonged for an additional five years.[3]

IPR Under Medicine and Health: Importance and Innovations

Patent Under Health Care and Medicine:

When it comes to healthcare products and technology, patent protection is essential. It has a big impact on innovation, competitiveness, and investment. First of all, patents serve as powerful inducements for businesses and financiers to fund R&D. The knowledge that they may secure 20 years of exclusive rights to their findings fosters the creation of creative solutions for healthcare problems. Investors are reassured that they will be able to recover their investment since this exclusivity stops others from stealing or using their ideas. This encourages creativity, which results in the creation of cutting-edge innovations and life-saving equipment in the extremely competitive healthcare industry.[4]

Trademark and Branding in Health Industry:

Trademarks are essential to building a strong and identifiable brand identity in the healthcare industry. A trademark can be anything that consumers identify with a particular good or service, such as a name, logo, symbol, or distinctive sound. Strong brand identities in the healthcare industry effectively convey characteristics like consistency, trust, and dependability. Consumers and patients frequently base their selections about pharmaceuticals, medical equipment, and healthcare services on well-known brands. An established trademark denotes a dedication to excellence and inspires trust, which helps the healthcare industry build a credible and favourable brand image. In the healthcare industry, trademark registration requires numerous crucial stages.

Copyright in Health Technology Software:

Copyrights are essential for protecting software and material in the quickly changing health technology industry. They fulfil two functions:

First and foremost, copyrights safeguard the complex source code, user interfaces, and digital resources that are essential to health-tech solutions’ operation.

Second, they control the textual and visual components that direct users, guaranteeing correctness, precision, and usability in an area where these qualities are critical.

Securing the intellectual and creative investments made in software development, telemedicine platforms, digital health records, and other cutting-edge healthcare technology is why copyrights are so important

Significance of Intellectual Property for Social Media Influencers and Content Creators

Social media has become one of the most powerful and effective tools available for advertising and marketing. But as it gets more and more popular, promoters, YouTubers, and musicians have more legal worries about intellectual property rights (IPRs). These people put a lot of work into becoming recognised as experts in specific fields, goods, and industries. Interestingly, the industry for influencer marketing is expected to be valued at $15 billion by 2022 roughly 15% of the total amount spent on advertising worldwide. Promoters create a variety of cutting-edge, exclusive solutions in addition to content and product creation.

What sets Intellectual Property registration apart in terms of its importance for social media influencers?

Social media networks observe the daily consumption of a wide range of material through several channels. Influencers on social media need to understand that millions of people may easily access and potentially replicate their original work. It is therefore essential that they acknowledge and protect their intellectual property.

Furthermore, it’s important to make sure that any creative works—text, images, or videos—that are obtained from other people are utilised on social media sites with the appropriate permission and agreement. By using this preventative measure, it is possible to prevent violating content producers’ rights.[5]

The following are some justifications for registering intellectual property:

  1. Establishing Ownership: Intellectual property rights must be registered in order to be enforceable. This is because registering a property makes ownership more solid.
  2. Increasing validity: IP that is registered has greater validity and credibility. Customers view material that is protected as more trustworthy, which encourages engagement and return visits.
  3. Simplifying Content Protection: Content that has been copied may be easily removed thanks to registered IP. When original content is misused or replicated, registered intellectual property facilitates simpler removal processes than unregistered intellectual property, which necessitates strong proof for validation.

IPR: Economic Development and Innovations

Relation between IPR and Economy:

Keeping product prices low requires making use of new ideas and improvements. It is important to regularly update technology and promote innovation. Strong regulations pertaining to intellectual property rights (IPRs) are essential for protecting individuals’ rights by discouraging exploitation. But having good rules alone is insufficient; they must also be effectively enforced. Laws that are weak or filled with loopholes may be abused, which would reduce innovation.

IPR gives property owners and artists the exclusive right to determine reasonable prices and sell to interested parties. Giving developers a fair compensation encourages them to create new inventions and leads to creativity. However, owners may misuse these privileges by demanding exorbitant prices, creating monopolies in the market.[6]

Role of IPR in Indian Economic Development:

Economic progress is greatly aided by intellectual property rights (IPR), whose development is impacted by a wide range of circumstances. The primary goal of intellectual property rights (IPR) is to encourage inventors to bring their concepts and works to market so that advanced technologies may be widely adopted and the economy can be strengthened. IPR’s effect on economic development differs from country to country and depends on a number of developmental phases, such as GDP growth, the development of human capital, imitation, technical breakthroughs, and more.

Innovations under Economic Development in IPR:

High-income nations are usually the most innovative because they invest heavily in research and development (R&D). Additionally, the protection of intellectual property rights (IPR) encourages inventors by guaranteeing large profits from their discoveries. All middle-income countries benefit economically from property rights, but because IPR protection is often less in these countries than in high-income ones, the effect of property rights is not as great. Furthermore, the economic composition of middle-income nations varies, as do the degrees of intellectual property rights enforcement. As a result, middle-income nations may be divided into two groups: upper- and lower-middle-income.

 

Conclusion

Furthermore, it should be noted that intellectual property laws have a significant and diverse role in promoting innovation. With the certainty of exclusivity and possible rewards on investment, these rules encourage artists and inventors to invest in research and development by providing the required framework for protecting their ideas. These rules, which protect intellectual property rights, encourage innovation and make it easier for information and technology to be shared, which advances society and the economy as a whole. For the greater good, it is crucial to find a balance between providing access to information and encouraging creativity. Therefore, in order to effectively handle new issues and maximise their ability to promote innovation in the constantly changing global environment, intellectual property laws must be continuously improved upon and adjusted.

References:

[1] GGI INSIGHTS, Intellectual Property, (March 15, 2024), Gray Group International, available at: https://www.graygroupintl.com/blog/intellectual-property (last visited March 15, 2024).

[2] Yashjain_6601, “IPR Law-History” (Legal Service India), available at: https://www.legalserviceindia.com (last visited March 15, 2024 ).

[3] Ahlawat & Associates, “Types of Intellectual Property Rights in India” (Lexology, September 19, 2022), available at: https://www.lexology.com/ (last visited March 15th , 2024).

[4] Dhamodaran, Sri Subiksha, “IPR Consideration in the Health Industry” (November 5, 2023), available at: https://aishwaryasandeep.in (last visited March 15th, 2024).

[5] Lex Orbis, “Title Not Provided” (January 17, 2022), available at: https://www.lexorbis.com (last visited March 15th, 2024).

[6] Chaudhary, Alka, “The Role of Intellectual Property Rights in Economic Development” (July 7, 2022), available at: https://ijcrt.org (last visited March 15th 2024).

Cite this article as:  

PRIYAL SANJAY THAKOR & KRUSHA SANJAY THAKOR, “The Role Of Intellectual Property Laws In Fostering Innovation”, Vol.5 & Issue 5, Law Audience Journal (e-ISSN: 2581-6705), Pages 367 to 376 (20th April 2024), available at https://www.lawaudience.com/the-role-of-intellectual-property-laws-in-fostering-innovation.

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