India’s IP Management system - POLITY

News: The Calcutta High Court has recently ruled that employing contractual workers for quasi-judicial functions at the Office of the Controller General of Patents, Designs, and Trade Marks (CGPDTM) is unlawful. This ruling could potentially undermine the validity of numerous patents and trademarks issued in the last two years. This issue arose because the Quality Council of India (QCI), an independent non-profit, had hired contractual staff for these roles, which are typically reserved for government or statutory officers.

 

What’s in the news?

Key-highlights of High Court Ruling:

  • The court reviewed a trademark opposition order issued by a contractual Associate Manager of Trademarks. The court found that this order was invalid as the contractual worker did not have the authority to issue quasi-judicial decisions. The position was only meant for administrative roles.
  • Implications: Orders issued by these contractual staff are considered "legally unenforceable," potentially affecting the legitimacy of patents and trademarks granted during their tenure.
  • Legal Opinion:
  • Union Law Ministry: In June 2024, the Union Law Ministry condemned this practice, declaring such orders “legally unenforceable” as they were made by “outsourced employees” in violation of the Trade Marks Act, 1999 (1999 Act).
  • Government Action: The DPIIT has been instructed to end its MoU with the QCI and form a committee to review and revalidate decisions made by the contractual staff.
  • Past Judicial Criticisms: Previous judgments criticized the Patent and Trademark Office for issuing poorly reasoned or "mechanical" orders. Criticism included the use of "cut-and-paste" orders and lack of thoughtful consideration in patent and trademark decisions.
  • Corruption and Procedural Issues:
  • Corruption Allegations: Reports of bribery and compromised officials handling intellectual property cases have emerged.
  • Congress MP's Allegations: Claims were made about the disruptive effects of employing contractual staff and the need for an independent inquiry into the handling of IP rights.
  • Impact on Intellectual Property (IP) Management:
  • Backlog and Strain: Validating past orders will likely increase the backlog of cases and put additional pressure on the IP system.
  • Economic Impact: IP is crucial for a knowledge-based economy. The mishandling of IP cases could have significant negative effects on the country's economic growth.

 

Intellectual property rights (IPR)

Intellectual property rights (IPR) are territorial rights that can be registered with a legal authority in some presentable or tangible form which can be sold or bought or licensed, similar to physical property.

 

Classification of Intellectual Property Rights:

  • Patents: An exclusive right granted for a new invention—either a product or a process—that provides a new technical solution to a problem.
  • Trademarks: A distinctive sign used to identify goods or services from a particular source. It can include words, letters, numerals, or a combination of these.
  • Copyright and Related Rights: Rights granted to creators for their original literary, artistic, and musical works. These rights allow creators to control how their works are used and to receive payment (royalties) for their use.
  • Geographical Indications (GIs): Signs used on goods that have a specific geographical origin and possess qualities or reputation attributable to that origin.
  • Industrial Designs: The ornamental or formal appearance of a product resulting from creative activity. This includes shapes, patterns, and colors applied to products.
  • Trade Secrets: Confidential business information that provides a competitive edge, such as manufacturing processes or marketing strategies.
  • Semiconductor Integrated Circuit Layout Designs (SICLD): Designs of integrated circuits used in electronic gadgets.
  • Protection of Plant Varieties & Farmers’ Rights: Recognizes and rewards the role of farmers and traditional communities in developing and conserving plant varieties.
  • Protection of Biological Diversity: Covers traditional knowledge related to biological resources.

 

 Key Institutions:

  • Office of the Controller General of Patents, Designs, and Trade Marks (CGPDTM): The central authority responsible for granting and managing patents, designs, and trademarks in India. It operates under the Department for Promotion of Industry and Internal Trade (DPIIT).
  • Department for Promotion of Industry and Internal Trade (DPIIT): The government department overseeing the CGPDTM and overall IP policy.
  • Intellectual Property Appellate Board (IPAB): A quasi-judicial body that handles appeals against decisions made by the CGPDTM.
    • Functions: Adjudicating disputes related to patents, trademarks, and designs.
  • Patent Offices: Regional offices based in major cities like Mumbai, Delhi, Chennai, and Kolkata.

 

Key Laws and Regulations:

  • Patents Act, 1970: It governs the granting and protection of patents in India.
  • Trade Marks Act, 1999: It regulates the registration, protection, and enforcement of trademarks.
  • Designs Act, 2000: It covers the protection of industrial designs.
  • Copyright Act, 1957: It protects literary, dramatic, musical, and artistic works.
    • Features: Provides rights to authors and creators, including moral rights and economic rights, and outlines the process for copyright registration.
  • Geographical Indications of Goods (Registration and Protection) Act, 1999: It protects geographical indications (GIs) which identify goods as originating from a specific place.
  • Biological Diversity Act, 2002: It regulates access to biological resources and associated traditional knowledge.

 

International Compliance: 

  • India aligns its patent laws with international standards.
  • It joined the World Trade Organization in 1995, leading to compliance with the TRIPS Agreement.
  • Amendments in 2005 introduced pharmaceutical product patents in line with TRIPS.
  • India is also part of various intellectual property conventions, including the-
    • Berne Convention for copyright
    • Budapest Treaty
    • Paris Convention for Industrial Property protection
    • Patent Cooperation Treaty for patent matters