Intellectual Property Rights and Business Ethics
IPR types
- Patent: Patents Act, 1970; protects inventions with novelty, inventive step and industrial application; term 20 years from filing; business methods and mere algorithms are not patentable.
- Trademark: Trade Marks Act, 1999; protects distinctive marks; registration for 10 years, renewable indefinitely; infringement and passing off are separate remedies.
- Copyright: Copyright Act, 1957; protects literary, dramatic, musical and artistic works, including software; term generally life of the author plus 60 years; ideas are not protected, only expression.
- Design: Designs Act, 2000; protects visual appearance; initial term 10 years, extendable by 5 years.
- GI and trade secrets: geographical indications protect regional reputation; trade secrets rely on confidentiality rather than registration.
Business ethics
Ethics issues include conflict of interest, insider trading, bribery, data privacy and whistleblower protection. SEBI's prohibition of insider trading and the Prevention of Corruption Act are compliance anchors, not optional best practice.
Worked example
A start-up has a new logo and a new manufacturing process. The logo can be protected as a trademark because it identifies source. The process can be patented only if it is novel, involves an inventive step and has industrial application. Copyright may protect the logo's artistic expression, but it does not protect the functional process. Calling the process a trade secret is possible, but secrecy must be maintained.
Traps that cost marks
Copyright does not protect an idea, only its expression. A patent is not available for a business method as such. Trademark registration is not permanent; it must be renewed. Ownership of employee-created work may vest in the employer under the Copyright Act, so do not assume the employee always owns it.