Unit 5

Q1)Consumer Protection Act, 2019

Objective of the Consumer Protection Act, 2019:

Consumer Rights under Consumer Protection Act, 2019
Unfair Trade Practices under Consumer Protection Act, 2019
Essential provisions of Consumer Protection Act, 2019
Offences and penalties under Consumer Protection Act, 2019:
Q2) Information Technology Act 2000 and 2002:
Applicability of Information Technology Act, 2000
Objectives of Information Technology Act, 2000:
Features of Information Technology Act, 2000:
Electronic records and signatures:
Certifying authorities
Penalties under Information Technology Act, 2000
Amendments to Information Technology Act, 2000
Information Technology (Intermediaries Guidelines and Digital Media Ethics Code) Rules
2021
Q3) Intellectual Property Rights:
Advantages and disadvantages of Intellectual Property Rights
Q4) Copyrights:
Q5) Patents:
Q6) Trademarks:
Q7) Geographical Indications

Q1)Consumer Protection Act, 2019

Consumer protection is the practice of safeguarding buyers of goods and services against unfair
practices in the market. It refers to the steps adopted for the protection of consumers from
corrupt and unscrupulous malpractices by the sellers, manufacturers, service providers, etc.
and to provide remedies in case their rights as a consumer have been violated.

In India, the protection of the rights of the consumers is administered by the Consumer
Protection Act, 2019. The Consumer Protection Act, 2019 was introduced to replace the
Consumer Protection Act, 1986. The new Act contains various provisions which incorporate the
challenges faced by modern and technology-dependent consumers. The Act also contains
various provisions for the protection and promoting the rights of the consumers.

'Meaning of the word ‘consumer’

A consumer is an individual or group of individuals who purchase goods and services for their
own personal use and not for the purpose of manufacturing or resale. Section 2(7) of the
Consumer Protection Act, 2019 defines a consumer as any person who buys goods or services
in exchange for consideration and utilises such goods and services for personal use and for the
purpose of resale or commercial use. In the explanation of the definition of consumer, it has
been distinctly stated that the term ‘buys any goods’ and ‘hires or avails any services’ also
includes all online transactions conducted through electronic means or direct selling or
teleshopping or multi-level marketing.
Need for the Consumer Protection Act, 2019:
The Consumer Protection Act, 2019 was enacted by the Indian legislature to deal with matters
relating to violation of consumer’s rights, unfair trade practices, misleading advertisements,
and all those circumstances which are prejudicial to the consumer’s rights. The intention of the
Parliament behind enacting the Act was to include provisions for e-consumers due to the
development of technology, buying and selling of goods and services online have considerably
increased during the last few years.

The Act seeks to provide better protection of the rights and interests of the consumers by
establishing Consumer Protection Councils to settle disputes in case any dispute arises and to
provide adequate compensation to the consumers in case their rights have been infringed. It
further provides speedy and effective disposal of consumer complaints through alternate
dispute resolution mechanisms. The Act also promotes consumer education in order to
educate the consumer about their rights, responsibilities and also redressing their grievances.

Objective of the Consumer Protection Act, 2019:

The main objective of the Act is to protect the interests of the consumers and to establish a
stable and strong mechanism for the settlement of consumer disputes. The Act aims to:

A. Protect against the marketing of products that are hazardous to life and property.
B. Inform about the quality, potency, quantity, standard, purity, and price of goods to
safeguard the consumers against unfair trade practices.
C. Establish Consumer Protection Councils for protecting the rights and interests of the
consumers.
D. Assure, wherever possible, access to an authority of goods at competitive prices.
E. Seek redressal against unfair trade practices or unscrupulous exploitation of
consumers.
F. Protect the consumers by appointing authorities for timely and sufficient administration
and settlement of consumers’ disputes.
G. Lay down the penalties for offences committed under the Act.
H. Hear and ensure that consumers’ welfare will receive due consideration at appropriate
forums in case any problem or dispute arises.
I. Provide consumer education, so that the consumers are able to be aware of their rights.
J. Provide speedy and effective disposal of consumer complaints through alternate
dispute resolution mechanisms

Consumer Rights under Consumer Protection Act, 2019

There exist six rights of a consumer under the Consumer Protection Act, 2019. The rights of the
consumers are mentioned under Section 2(9) of the Act, which are as follows:

• The right of a consumer to be protected from the marketing of goods and services that
are hazardous and detrimental to life and property.
• The right of a consumer to be protected against unfair trade practices by being aware of
the quality, quantity, potency, purity, standard and price of goods, products or services.
• The right of a consumer to have access to a variety of goods, services and products at
competitive prices.
• The right to seek redressal at respective forums against unfair and restrictive trade
practices.
• The right to receive adequate compensation or consideration from respective consumer
forums in case they have been wronged by the seller.
• The right to receive consumer education.

Unfair Trade Practices under Consumer Protection Act, 2019

Section 2(47) of the Consumer Protection Act, 2019 defines the term ‘unfair trade practices’
which include:

• Manufacturing spurious goods or providing defective services.

• Not issuing cash memos or bills for the goods purchased or services rendered.
• Refusing to take back or withdraw the goods or services and not refunding the
consideration taken for the purchase of the goods or services.
• Disclosing the personal information of the consumer.

Essential provisions of Consumer Protection Act, 2019

• Consumer Protection Councils : The Act establishes consumer protection councils to

protect the rights of the consumers at both the national and state levels.

• Central Consumer Protection Council - Under Chapter 2 Section 3 of the Consumer

Protection Act, 2019 the Central Government shall establish the Central Consumer Protection
Council which is known as the Central Council. It is an advisory body and the Central
Council must consist of the following members;

o The Minister-in-charge of the Department of Consumer Affairs in the Central Government

will be appointed as the chairperson of the council, and
o Any number of official or non-official members representing necessary interests under the
Act.
The Central Council may meet as and when necessary, however, they must hold at least one
meeting every year. The purpose of the Central Council is to protect and promote the interests
of the consumers under the Act.

State Consumer Protection Councils : Every state government shall establish a State Consumer
Protection Council known as the State Council having jurisdiction over that particular state. The
State Council acts as an advisory body. The members of the State Council are:
o The Minister-in-charge of the Consumer Affairs in the State Government will be appointed
as the chairperson of the council,
o Any number of official or non-official members representing necessary interests under the
Act, and
o The Central Government may also appoint not less than ten members for the purposes of
this Act.
The State Councils must hold at least two meetings every year

District Consumer Protection Council: Under Section 8 of the Act, the state government shall
establish a District Consumer Protection Council for every district known as the District Council.
The members of the District Council are:
o The collector of that district will be appointed as the Chairperson of the District Council, and
o Any other members representing necessary interests under the Act
Central Consumer Protection Authority: The Central Government shall establish a Central
Consumer Protection Authority which is known as the Central Authority under Section 10 of the
Consumer Protection Act, 2019, to regulate matters relating to violation of the rights of
consumers, unfair trade practices and false or misleading advertisements which are prejudicial
to the interests of the public and consumers and to promote, protect and enforce the rights of
consumers. The Central Government will appoint the Chief Commissioner and the other
Commissioners of the Central Authority as required under the Act.

The Central Authority must have an ‘Investigative Wing’ under Section 15 of the Act to conduct
an inquiry or investigation. The investigative wing must comprise of the Director-General and the
required number of Additional Director-General, Director, Joint Director, Deputy Director and
Assistant Director possessing the required experience and qualifications to carry out the
functions under this Act.

The functions and responsibilities of the Central Authority are laid down in Section 18 of the Act
which includes;
To protect and promote the rights of the consumers as a class and to prevent violation of
consumer rights,
o To prevent unfair trade practices,
o To ensure no false or misleading advertisements regarding any goods or services are
promoted,
o To ensure no person takes part in false or misleading advertisements,
o Inquire or investigate in cases of violation of consumer rights or unfair trade practices.
o File complaints before the National, State or District Commission as the case may be,
o To review matters relating to the factors hindering the enjoyment of consumer rights.
o To recommend the adoption of international covenants and best international practices
concerning consumer rights
o Promote research and awareness of consumer rights.
o Lay down necessary guidelines to prevent unfair trade practices and protect the
interests of the consumers.
Furthermore, the Central Authority also has the power to investigate after receiving any
complaint or directions from the Central Government or of its own motion in cases where there
is an infringement of consumer rights or unfair trade practices are carried out. And if the Central
Authority is satisfied that infringement of consumer rights or unfair trade practices has occurred
then it may:

• Recall the goods or services which are hazardous and detrimental to the consumers,
• Reimburse the prices of the goods and services to the consumers, and
• Discontinue the practices that are prejudicial and harmful to the consumers

Consumer disputes redressal commission

The state government shall establish a District Consumer Disputes Redressal Commission,
known as the District Commission in each district of the state under the Consumer Protection
Act, 2019. The District Commission shall comprise of a President and not less than two
members prescribed by the Central Government

Section 34 of the Act authorises the District Commission to entertain complaints where the
value of the goods or services paid as consideration does not exceed one crore rupees. The
complaint relating to goods and services can be filed to the District Commission by the
consumer, recognized consumer association, Central Government, Central Authority, State
Government, etc. Section 36 states that all the proceedings before the District Commission
shall be conducted by the President and at least one member of the commission.

Product liability:
Under Section 83 of the Act, a product liability action may be brought by a complainant against
a product manufacturer, product service provider or product seller.

• Liability of product manufacturer

A product manufacturer will be held liable in a product liability action under the following
circumstances:

o The product contains manufacturing defects.

o The product is defective.
o There is a deviation from manufacturing specifications.
o The product does not conform to the express warranty.
o The product fails to contain adequate information for proper usage.

• Liability of product service provider : A product service provider will be held liable in a
product liability action under the following circumstances:

o The service provider will be responsible when the service provided by them is faulty
or imperfect.
o There was an act of negligence on their part.
o The service provider failed to issue adequate instructions and warnings for the
services.
o The service provider failed to conform to the express warranty or terms and
conditions of the contract.

Liability of product seller : A product seller will be held liable in a product liability action
under the following circumstances:
✓They altered or modified the product which resulted in being detrimental to the consumer.
✓They failed to exercise reasonable care in assembling, inspecting or maintaining such
product
✓They exercised substantial control over the product which resulted in causing harm to the
consumer.

Exceptions to product liability : There are certain exceptions to product liability action
mentioned in Section 87 of the Act, such as;

o The product was altered, modified or misused by the consumer,

o A consumer cannot bring product liability action when the manufacturer has given
adequate warnings and instructions for the use of the product,
o The manufacturer would not be liable in case of a product liability action for not
warning about any danger that is commonly known to the general public.

Offences and penalties under Consumer Protection Act, 2019:

The offences and penalties listed under this Act are mentioned as follows.
a) Punishment for false and misleading advertisements: Under Section 89 of the Act any
manufacturer or service provider who promotes false or misleading advertisements will be
punished with imprisonment for a term that may extend to two years and with fine that may
extend to ten lakh rupees.
b) Punishment for manufacturing, selling, distributing products containing adulterants:
Under Section 90 of the Consumer Protection Act, 2019 any person who sells, manufactures,
distributes products containing adulterants shall be penalised in case of the following
circumstances;

o If the adulterated product does not cause any injury to the consumer, then the term for
imprisonment will extend to a period of six months and fine which may extend to one lakh
rupees,
o If the product containing adulterant causes injury not amounting to grievous hurt, then
the term for imprisonment will extend to a period of one year and fine which may extend to
three lakh rupees,
o If the product containing adulterant causes injury amounting to grievous hurt, then the
term for imprisonment will extend to a period of seven years and fine which may extend to
five lakh rupees,
o If the product results in causing death to the consumer, then the term for
imprisonment will be for a period of seven years which may extend to life imprisonment and
fine not less than ten lakh rupees.

c) Punishment for manufacturing, selling, and distributing spurious products: Section 91

states that any person who sells, manufactures, or distributes spurious products shall be punished
for such acts.

Consumers benefit from Consumer Protection Act, 2019

The Consumer Protection Act, 2019 is a significant piece of legislation brought as it is
beneficial for the consumers. The Act widens the scope of protection regarding the rights and
interests of consumers.

• Unfair contracts: The Act introduced ‘unfair contract’ under Section 2(46) of the
Act, which includes contracts requiring excessive security deposits to be given by the
consumer for the performance of contractual obligations. However, the inclusion of unfair
contracts in the Act would enable the consumer to file complaints in such cases and would
also keep the fraudulent businesses in check.

• Territorial jurisdiction: The Act enables the consumers to file complaints where the
complainant resides or personally works for gain thus it would benefit the consumers in
seeking redressal for their grievances when their rights have been violated
• False and misleading advertisements: The Act defines the term ‘false and misleading
advertisements’ and also lays down strict penalties for such acts or omissions.
• Product liability: The term ‘product liability’ has been defined by this Act, which states
that it is the duty of the product manufacturer, service provider or seller to compensate for any
harm caused to a consumer by such defective product manufactured or service provided to the
consumer
• Mediation and alternative dispute resolution: The Act enables the consumer to opt for
mediation and alternative dispute resolution mechanisms for speedy and effective settlement of
consumer disputes
• E-filing of complaints: The Act also facilitates e-filling of the complaints and seeking
video conference hearings by the Commission. Thus, providing convenient means for the
consumers to voice their grievances.

Q2) Information Technology Act 2000 and 2002:

The Act defines various offences related to breach of data and privacy of an individual and
provides punishment or penalties for them. It also talks about intermediaries and regulates the
power of social media. With the advancement of technology and e-commerce, there has been a
tremendous increase in cybercrimes and offences related to data and authentic information. Even
the data related to the security and integrity of the country was not safe, and so the government
decided to regulate the activities of social media and data stored therein. The article gives the
objectives and features of the Act and provides various offences and their punishments as given
in the Act

The Act is divided into 13 chapters, 90 sections and 2 schedules. The following are the chapters
under the Act:

• Chapter 1 deals with the applicability of the Act and definitions of various terminologies
used in the Act.
• Chapter 2 talks about digital and electronic signatures.
• Electronic governance and electronic records are given under Chapters 3 and 4
respectively.
• Chapter 5 is related to the security of these records and Chapter 6 deals with regulations
of certifying authorities.
• Chapter 7 further gives the certificates needed to issue an electronic signature.
• Chapter 8 gives the duties of subscribers and Chapter 9 describes various penalties.
• Chapter 10 provides sections related to the Appellate Tribunal.
• Chapter 11 describes various offences related to breach of data and their punishments.
• Chapter 12 provides the circumstances where the intermediaries are not liable for any
offence or breach of data privacy.
• The final chapter, i.e., Chapter 13 is the miscellaneous chapter.

The 2 schedules given in the Act are:

• Schedule 1 gives the documents and data where the Act is not applicable.
• Schedule 2 deals with electronic signatures or methods of authentication.

Applicability of Information Technology Act, 2000

According to Section 1, the Act applies to the whole country, including the state of Jammu and
Kashmir. The application of this Act also extends to extra-territorial jurisdiction, which means it
applies to a person committing such an offence outside the country as well. If the source of the
offence, i.e., a computer or any such device, lies in India, then the person will be punished
according to the Act irrespective of his/her nationality.

The Act, however, does not apply to documents given under Schedule 1. These are:

• Any negotiable instrument other than a cheque as given under Section 13 of the
Negotiable Instruments Act, 1881.
• Any power of attorney according to Section 1A of the Powers of Attorney Act, 1882.
• Any sort of trust according to Section 3 of the Indian Trusts Act, 1882.
• Any will including testamentary disposition given under the Indian Succession Act, 1925.
• Any contract or sale deed of any immovable property.

Objectives of Information Technology Act, 2000: The Act was passed to deal with e-commerce
and all the intricacies involved with digital signatures and fulfil the following objectives:

• The Act seeks to protect all transactions done through electronic means.
• E-commerce has reduced paperwork used for communication purposes. It also gives legal
protection to communication and the exchange of information through electronic means.
• It protects the digital signatures that are used for any sort of legal authentication.
• It regulates the activities of intermediaries by keeping a check on their powers.
• It defines various offences related to data privacy of citizens and hence protects their data.
• It also regulates and protects the sensitive data stored by social media and other electronic
intermediaries.
• It provides recognition to books of accounts kept in electronic form regulated by the
Reserve Bank of India Act, 1934.

Features of Information Technology Act, 2000:

• The Act is based on the Model Law on e-commerce adopted by UNCITRAL.

• It has extra-territorial jurisdiction.
• It defines various terminologies used in the Act like cyber cafes, computer systems,
digital signatures, electronic records, data, asymmetric cryptosystems, etc under Section 2(1).
• It protects all the transactions and contracts made through electronic means and says that
all such contracts are valid. (Section 10A)
• It also gives recognition to digital signatures and provides methods of authentication.
• It contains provisions related to the appointment of the Controller and its powers.
• It recognises foreign certifying authorities (Section 19).
• It also provides various penalties in case a computer system is damaged by anyone other
than the owner of the system.
• The Act also provides provisions for an Appellate Tribunal to be established under the
Act. All the appeals from the decisions of the Controller or other Adjudicating officers lie to the
Appellate tribunal.
• Further, an appeal from the tribunal lies with the High Court.
• The Act describes various offences related to data and defines their punishment.
• It provides circumstances where the intermediaries are not held liable even if the privacy
of data is breached.
• A cyber regulation advisory committee is set up under the Act to advise the Central
Government on all matters related to e-commerce or digital signatures.

Electronic records and signatures: The Act defines electronic records under Section 2(1)(t),
which includes any data, image, record, or file sent through an electronic mode. According to
Section 2(1)(ta), any signature used to authenticate any electronic record that is in the form of a
digital signature is called an electronic signature. However, such authentication will be affected
by asymmetric cryptosystems and hash functions as given under Section 3 of the Act.

Section 3A further gives the conditions of a reliable electronic signature. These are:
• If the signatures are linked to the signatory or authenticator, they are considered reliable.
• If the signatures are under the control of the signatory at the time of signing.
• Any alteration to such a signature must be detectable after fixation or alteration.
• The alteration done to any information which is authenticated by the signature must be
detectable.
• It must also fulfill any other conditions as specified by the Central Government.
The government can anytime make rules for electronic signatures according to Section 10 of the
Act. The attribution of an electronic record is given under Section 11 of the Act. An electronic
record is attributed if it is sent by the originator or any other person on his behalf. The person
receiving the electronic record must acknowledge the receipt of receiving the record in any
manner if the originator has not specified any particular manner. (Section 12). According to
Section 13, an electronic record is said to be dispatched if it enters another computer source that
is outside the control of the originator.

The time of receipt is determined in the following ways:

• When the addressee has given any computer resource,
o Receipt occurs on the entry of an electronic record into the designated computer
resource.

o In case the record is sent to any other computer system, the receipt occurs when it is
retrieved by the addressee.

• When the addressee has not specified any computer resource, the receipt occurs when the
record enters any computer source of the addressee.

Certifying authorities
Appointment of Controller :Section 17 talks about the appointment of the controller, deputy
controllers, assistant controllers, and other employees of certifying authorities. The deputy
controllers and assistant controllers are under the control of the controller and perform the
functions as specified by him. The term, qualifications, experience and conditions of service of
the Controller of certifying authorities will be determined by the Central Government. It will also
decide the place of the head office of the Controller.

Functions of the Controller

o According to Section 18, the following are the functions of the Controller of certifying
authority:
o He supervises all the activities of certifying authorities.
o Public keys are certified by him.
o He lays down the rules and standards to be followed by certifying authorities.
o He specifies the qualifications and experience required to become an employee of a certifying
authority.
o He specifies the procedure to be followed in maintaining the accounts of authority.
o He determines the terms and conditions of the appointment of auditors.
o He supervises the conduct of businesses and dealings of the authorities.
o He facilitates the establishment of an electronic system jointly or solely.
o He maintains all the particulars of the certifying authorities and specifies the duties of the
officers.
o He has to resolve any kind of conflict between the authorities and subscribers.
o All information and official documents issued by the authorities must bear the seal of the
office of the Controller.
Powers of certifying authorities
o Every such authority must use hardware that is free from any kind of intrusion. (Section 30)
o It must adhere to security procedures to ensure the privacy of electronic signatures.
o It must publish information related to its practice, electronic certificates and the status of
these certificates.
o It must be reliable in its work.

o The authority has the power to issue electronic certificates. (Section 35)
o The authority has to issue a digital signature certificate and certify that:
o subscriber owns a private key along with a public key as given in the certificate.
o The key can make a digital signature and can be verified.
o All the information given by subscribers is accurate and reliable
o The authorities can suspend the certificate of digital signature for not more than 15 days.
(Section 37)
o According to Section 38, a certificate can be revoked by the authorities on the following
grounds:

• If the subscriber himself makes such an application.

• If he dies
• In case, the subscriber is a company then on the winding up of the company, the
certificate is revoked

Penalties under Information Technology Act, 2000

The Act provides penalties and compensation in the following cases:
• Penalty for damaging a computer system
If a person other than the owner uses the computer system and damages it, he shall have to pay all
such damages by way of compensation (Section 43). Other reasons for penalties and
compensation are:
o If he downloads or copies any information stored in the system.
o Introduces any virus to the computer system.
o Disrupts the system.
o Denies access to the owner or person authorised to use the computer.
o Tampers or manipulates the computer system.
o Destroys, deletes or makes any alteration to the information stored in the system.
o Steals the information stored therein.
• Compensation in the case of failure to protect data
According to Section 43A, if any corporation or company has stored the data of its employees
or other citizens or any sensitive data in its computer system but fails to protect it from
hackers and other such activities, it shall be liable to pay compensation.
• Failure to furnish the required information
If any person who is asked to furnish any information or a particular document or maintain
books of accounts fails to do so, he shall be liable to pay the penalty. In the case of reports
and documents, the penalty ranges from Rupees one lakh to Rupees fifty thousand. For books
of accounts or records, the penalty is Rs. 5000. (Section 44)
• Residuary Penalty
If any person contravenes any provision of this Act and no penalty or compensation is
specified, he shall be liable to pay compensation or a penalty of Rs. 25000.
Offences and their punishments under Information Technology Act, 2000

Amendments to Information Technology Act, 2000

• Amendment of 2008 : The amendment in 2008 brought changes to Section 66A of the
Act. This was the most controversial section as it provided the punishment for sending any
offensive messages through electronic mode. Any message or information that created hatred
or hampered the integrity and security of the country was prohibited. However, it had not
defined the word ‘offensive’ and what constitutes such messages, because of which many
people were arrested on this ground. Another amendment was made in Section 69A of the
Act, which empowered the government to block internet sites for national security and
integrity. The authorities or intermediaries could monitor or decrypt the personal information
stored with them.
• The 2015 Amendment Bill : The bill was initiated to make amendments to the Act for
the protection of fundamental rights guaranteed by the Constitution of the country to its
citizens. The bill made an attempt to make changes to Section 66A, which provides the
punishment for sending offensive messages through electronic means. The section did not
define what amounts to offensive messages and what acts would constitute the offence.
• Information Technology Intermediaries Guidelines (Amendment) Rules, 2018
The government in 2018 issued some guidelines for the intermediaries in order to make them
accountable and regulate their activities. Some of these are:

o The intermediaries were required to publish and amend their privacy policies so that
citizens could be protected from unethical activities like pornography, objectionable
messages and images, messages spreading hatred, etc.
o They must provide the information to the government as and when it is sought within 72
hours for national security.
o It is mandatory for every intermediary to appoint a ‘nodal person of contact’ for 24×7
service.
o They must have technologies that could help in reducing unlawful activities done online.
• The rules also break end-to-end encryption if needed to determine the origin of harmful
messages.

• Information Technology (Intermediaries Guidelines and Digital Media Ethics

Code) Rules 2021
The government of India in 2021 drafted certain rules to be followed by the intermediaries.
The rules made it mandatory for intermediaries to work with due diligence and appoint a
grievance officer. They were also required to form a Grievance Appellate Tribunal. All
complaints from users must be acknowledged within 24 hours and resolved within 15 days. It
also provides a “Code of Ethics” for the people publishing news and current affairs, which
makes it controversial. Many believe that the rules curtail freedom of speech and expression
and freedom of the press. The intermediaries were also required to share the information and
details of a suspicious user with the government if there was any threat to the security and
integrity of the country.

Q3)Intellectual Property Rights:

Intellectual property rights (IPR) are the rights given to persons over the creations of their minds:
inventions, literary and artistic works, and symbols, names and images used in commerce. They
usually give the creator an exclusive right over the use of his/her creation for a certain period of
time.

Need for IPR

The progress and well-being of humanity rest on its capacity to create and invent new works in
the areas of technology and culture.

• Encourages innovation: The legal protection of new creations encourages the

commitment of additional resources for further innovation.
• Economic growth: The promotion and protection of intellectual property spurs
economic growth, creates new jobs and industries, and enhances the quality and enjoyment of
life.
• Safeguard the rights of creators: IPR is required to safeguard creators and other
producers of their intellectual commodity, goods and services by granting them certain time-
limited rights to control the use made of the manufactured goods.
• It promotes innovation and creativity and ensures ease of doing business.
• It facilitates the transfer of technology in the form of foreign direct investment, joint
ventures and licensing.
National IPR Policy of India
• The National Intellectual Property Rights (IPR) Policy 2016 was adopted in May 2016 as a
vision document to guide future development of IPRs in the country.
• Its clarion call is “Creative India; Innovative India”.
• It encompasses and brings to a single platform all IPRs, taking into account all inter-
linkages and thus aims to create and exploit synergies between all forms of intellectual property
(IP), concerned statutes and agencies.
• It sets in place an institutional mechanism for implementation, monitoring and review. It
aims to incorporate and adapt global best practices to the Indian scenario.
• Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce, Government
of India, has been appointed as the nodal department to coordinate, guide and oversee the
implementation and future development of IPRs in India.
• The ‘Cell for IPR Promotion & Management (CIPAM)’, setup under the aegis of DIPP, is to
be the single point of reference for implementation of the objectives of the National IPR Policy.
• India’s IPR regime is in compliance with the WTO's agreement on Trade-Related Aspects
of Intellectual Property Rights (TRIPS).

Objectives of IPR

• IPR Awareness: Outreach and Promotion - To create public awareness about the economic,
social and cultural benefits of IPRs among all sections of society.

• Generation of IPRs - To stimulate the generation of IPRs.

• Legal and Legislative Framework - To have strong and effective IPR laws, which balance
the interests of rights owners with larger public interest.
• Administration and Management - To modernize and strengthen service-oriented IPR
administration.
• Commercialization of IPRs - Get value for IPRs through commercialization.
• Enforcement and Adjudication - To strengthen the enforcement and adjudicatory
mechanisms for combating IPR infringements.
• Human Capital Development - To strengthen and expand human resources, institutions
and capacities for teaching, training, research and skill building in IPRs.

Achievements under new IPR policy

• Improvement in GII Ranking: India’s rank in the Global Innovation Index (GII) issued by WIPO
has improved from 81st in 2015 to 52nd place in 2019.
• Strengthening of institutional mechanism regarding IP protection and promotion.
• Clearing Backlog/ Reducing Pendency in IP applications: Augmentation of technical
manpower by the government, has resulted in drastic reduction in pendency in IP applications.
o Automatic issuance of electronically generated patent and trademark certificates has also
been introduced.
• Increase in Patent and trademark Filings: Patent filings have increased by nearly 7% in
the first 8 months of 2018-19 vis-à-vis the corresponding period of 2017-18. Trademark filings
have increased by nearly 28% in this duration
• IP Process Re-engineering Patent Rules, 2003 have been amended to streamline
processes and make them more user friendly. Revamped Trade Marks Rules have been
notified in 2017.
• Creating IPR Awareness: IPR Awareness programs have been conducted in academic
institutions, including rural schools through satellite communication, and for industry, police,
customs and judiciary
• Technology and Innovation Support Centres (TISCs): In conjunction with WIPO, TISCs
have been established in various institutions across different states.

Advantages of Intellectual Property Rights

• IPR protection gives your business a competitive advantage over other similar
businesses.
• IPR protection allows you to prevent unauthorised use of your intellectual property and
works.

• IPR enhances the value of your company and also opens avenues for collaborations and
opportunities for generating income such as by entering into licensing agreements to exploit/work
the invention/work.

• IPR helps to attract clients and creates your brand value. For example, the consumers
start identifying your products with the unique logo or registered trademark.

Disadvantages of Intellectual Property Rights

• You have to incur additional costs for getting IPR protection including legal costs and
other fees.
• Even after getting the intellectual property right, you might still face a lot of difficulties in
curbing the copying and unauthorised use of your work. Moreover, sometimes an attempt to
enforce IP rights could lead to a reduction in the consumer base.
• IP rights aren’t absolute. There are certain limitations and conditions imposed by law on
the exercise of these rights (such as a limited period of protection and compulsory licensing
provisions) in the interests of the general public.

Q4)Copyrights:
The term ‘copyright’ concerns the rights of the creators/authors of literary and artistic works. A
copyright is also called a ‘literary right’ or ‘author’s right’. Copyright gives an author exclusive
right to his creation and prevents the copying and unauthorised publishing of his work.

Copyright protects the following two rights of the author:

• Economic rights i.e., the right of the owner to derive financial benefit from the use of
their works by others. For instance, the right to prohibit or authorise reproduction of the work in
various forms, the right to prohibit unauthorised translation of the work, etc.
• Moral rights i.e., protection of non-economic interests of the author. For instance, the
right to oppose changes to work and the right to claim authorship, etc.

Works that can be protected under copyright

The following categories of works typically come under copyright protection:
• Literary works such as novels, plays, poems, and newspaper articles;
• Computer programs and databases;
• Films, musical compositions, and choreography;
• Artistic works such as photographs, paintings, drawings, and sculpture;
• Architecture and advertisements, maps, and technical drawings

In India, the term of copyright protection extends throughout the lifetime of the author and then
60 years after his death.
Law relating to copyright in India: The Copyright Act, 1957

The Copyright Act, 1957 is a comprehensive legislation dealing with copyrights in India. The Act
regulates the various aspects relating to copyright regime in India such as:
• Registration of copyright
• Publication, term of copyright
• Assignment, and licence of copyright
• Special rights of broadcasting organisation and performer’s rights
• Infringement of copyright and remedies thereof
• Establishment of copyright authorities and copyright societies
• International Copyright

Copyright infringement

Section 51 of the Copyright Act, 1957 provides for ‘What constitutes copyright infringement’.
Copyright is said to be infringed:
• When a person does something that the owner of the copyright has the exclusive right to
do, or permits for profit the use of any place for the purpose of the communication of the work
to the public, where such communication constitutes an infringement of the copyright in the
work, without a licence or in violation of the conditions of the licence.
• When any person makes for sale or hire, sells or lets for hire, or displays or offers for sale
or hire, or distributes either for the purpose of trade or to such an extent as to prejudice the
owner of the copyright, or exhibits in public, or imports into India any infringing copies of the
work.

Q5)Patents:
A patent is an exclusive right granted for an invention or innovation, which might be a product, a
method or a process, that introduces a novel way of doing something or offers a new technical
solution to a problem. In other words, it is a right of monopoly granted to a person who has
invented
• a new and useful article, or
• improvement of an existing article, or
• a new process of making an article.

A patent is granted for inventions having industrial and commercial value. It is the exclusive right
to manufacture the new article/manufacture the article with the invented process for a limited
period of time (usually 20 years from the filing date of the application) in exchange for disclosure
of the invention. A patent owner can sell his patent or grant licence to others to exploit the
same.

Criteria for patentability of an invention

• It should be novel.
• It should have inventive steps or it must be non-obvious.
• It should be capable of Industrial application
Kind of protection given by Patents
• The patent owner possesses the exclusive right to prevent others from commercially
exploiting the patented invention.
• Third parties are prevented from manufacturing, using, distributing, selling etc. the
patented invention/product without the consent of the patent owner.
Patent infringement and remedies
Any violation of the rights of the patentee constitutes infringement of patent such as a
colourable imitation of your invention or taking of the essential features of your invention. Under
the Patents Act, Sections 47 and 107-Aprovides for the acts that shall not be considered as an
infringement of patent. For example, the import of any machine or other articles by or on behalf
of the government or the manufacturing or use of a patented process by or on behalf of the
government does not constitute patent infringement. The various remedies available against
patent infringement are as follows:
• Injunction
• Damages or account of profits
• Delivery up or destruction of infringing goods
• Certificate of validity

Benefits of Patent registration:

• Patent registration ensures the complete protection of your patent/invention against any
unauthorised use for a period of 20 years.
• Patent registration allows you to enjoy monopoly in the market as regards your invention
during the period of patent protection.
• Patent registration confers exclusive right to exploit the patent on patentee or his
licensee or assignee.
• You can licence the patent and gain royalties for the same.

Q6) Trademarks:
A trademark is a symbol that is used to distinguish the goods of one enterprise from its
competitors. A trademark may consist of a single letter, logo, symbol, design, or numerals and
three-dimensional features such as shape and packaging, etc. Section 2(zb) of the Trademarks
Act, 1999 defines “trademark” as a mark capable of graphical representation and which can be
used to distinguish the goods or services of one person from those of others. A trademark may
include the shape of goods, their packaging, and a combination of colours. Hence,
distinctiveness is the hallmark of a trademark. Trademarks used in connection with services
such as tourism, banking, etc., are called Service Marks. The owner has the exclusive right to
the use of a registered trademark. There are 45 classes of trademarks, consisting of 34 classes
of products and 11 classes for services.

Function/Purpose of a trademark

• A trademark is a symbol that identifies a product and its source.

• It reflects the goodwill of a business.
• It assures the consumer about the established quality of the product.
• It serves as an advertisement for the product.
• A registered trademark provides legal protection to your brand.
• It helps to establish a dedicated consumer base by preventing others from imitating your
brand.

Law regulating to trademarks in India: The Trademarks Act, 1999:

• The Trademarks Act, 1999 was enacted to provide for the registration and better
protection of trademarks for goods and services, as well as to prevent the use of fraudulent
marks. The Act contains provisions regarding:
• Registration of trademarks
• Effect of registration
• Rights of the trademark holder
• Special provisions relating to protection of trademarks through international registration
under the Madrid Protocol
• Use of trademark and registered users
• Collective marks
• Certification of trademarks
• Assignment and transmission of trademark
• Infringement and passing off action in trademark and legal remedies thereof, etc.
• A trademark is registered for 10 years but it can be periodically renewed and can be
used for an indefinite period.

Infringement of trademark
In order to constitute infringement of a registered trademark, following conditions are required
to be fulfilled:

• The person is not authorised to use the trademark.

• The infringing trademark is similar/identical/deceptively similar to the already registered
trademark.
• The infringing trademark must be used in the course of regular trade in which the
registered proprietor or user is already engaged.
• The infringing trademark must be printed represented usually in advertisement, invoices
or bills. Mere oral use of a trademark is not infringement.
• Using either the whole of the registered trademark or an adopted one by making a few
additions and alterations.

Section 29 of the Trademarks Act provides for the common forms of trademark infringement.
For instance, the advertisement of a registered trademark of another for promotion of one’s
trade amounts to infringement. Following remedies are available to the trademark owner
against infringement of his trademark:
• Filing suit for infringement
• Criminal remedies
Benefits of trademark registration

• A registered trademark is an intangible asset that adds value to the business.

• Trademark registration aids in creating brand value and gaining a strong position in the
market.
• Registration of a trademark is prima facie evidence of its validity.
• The registered trademark holder has the exclusive right to use that mark and to obtain
relief in case of infringement of trademark.
• Trademark registration is for a period of 10 years and can be renewed as well.
• A registered proprietor of a trademark has the right to transfer his right through licence
or assignment of his trademark

Q7)Geographical Indications
A geographical indication (GI) is used to identify goods having a specific geographical origin.
These indications denote quality, reputation, or other characteristics of such goods essentially
attributable to their geographical origin. Generally, geographical indications are used for
foodstuffs, agricultural products, wine, industrial products and handicrafts. Examples of GI
include Basmati Rice, Darjeeling Tea etc.

Benefits of registration of GI
• Confers legal protection to domestic/national GI which in turn boosts exports.
• Prevents others from making unauthorised use of a Registered Geographical Indication.
• Promotes the economic well-being of producers of items produced in a specific
geographic area.

Law relating to GI in India:

The Geographical Indications of Goods (Registration and Protection) Act, 1999.

The Geographical Indications of Goods (Registration and Protection) Act, 1999 provides for the
registration and better protection of geographical indications relating to goods. The Act contains
provisions relating to the establishment of a Geographical Indications Registry, registration of
geographical indications of goods, rights conferred by registration, registration of authorised
users of registered geographical indications, provisions for renewal, rectification and restoration
of geographical indications, and prohibition of registration of geographical indication as a trade
mark, etc.
Trade Secrets: Trade Secrets are IP rights on confidential information which may be sold or
licensed. A trade secret refers to any confidential business information and may include
designs, drawings, plans, business strategies, R & D related information, etc. In order to qualify
as a trade secret, the information should be commercially valuable i.e., useful in a trade or
business, known to a small number of people, and subject to reasonable steps taken by the
rightful holder of the information to keep it secret.
Types of trade secrets
• Technical information such as information regarding manufacturing processes, designs,
drawings of computer programs, etc.
• Commercial information, such as distribution methods, advertising strategies, etc.
• Financial information, formulas, recipes, secret combination of elements, source
codes, etc.
Industrial Designs: An industrial design means the ornamental or visual aspects of an article.
It may consist of three dimensional features, for instance, the shape of an article, or two-
dimensional features, such as lines, patterns, or colour. An industrial design is purely aesthetic,
non-functional, and has no utility. It is necessary to provide legal protection to the creative
originality of an industrial design to prevent others
from copying it.

The Designs Act, 2000 seeks to promote the creation of novel, original designs along with
balancing competing interests by granting the time-bound monopoly right to use registered
industrial design by the owner. The Act contains provisions regarding registration of designs,
copyright in registered designs, industrial and international exhibitions, restoration of lapsed
designs, the penalty for infringement of registered designs, etc.