Intro to IP- Pharma'10

8/14/2019 Intro to IP- Pharma'10

1/31

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


2/31

01/26/10

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!


3/31

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!

01/26/10


4/31

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.


5/31

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


6/31

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

01/26/10


7/31

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

01/26/10


8/31

01/26/10

Constitution of IP

01/26/1001/26/10

Intellectual Property

OwnershipIntangibles

Labor intensive

Time boundTransferable

Bundle of Rts

ValuableAssets

xxxxxxxxxxxxxxProtected


9/31

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

01/26/10


10/31

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


11/31

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

01/26/10


12/31

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

01/26/10


13/31

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

01/26/10


14/31

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


15/31

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

01/26/10


16/31

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.

01/26/10


17/31

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.

01/26/10


18/31

01/26/10

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


19/31

01/26/10

Classification of IPRs

01/26/1001/26/10

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


20/31

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%


21/31

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.

01/26/10


22/31

01/26/10

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.


23/31

01/26/10

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.


24/31

01/26/10

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.


25/31

01/26/10

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.

&


26/31

01/26/10

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.


27/31

01/26/10

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.


28/31

01/26/10

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.

01/26/1001/26/10


29/31

01/26/10

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.

01/26/1001/26/10


30/31

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

01/26/10


31/31

Protection Of Intellectual Property In India(Patents, Designs, Trade Marks & Copyrights)

01/26/10

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

Intro to IP- Pharma'10

Documents

Transcript of Intro to IP- Pharma'10