ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037
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Vol. 06, Special Issue 04, (ICESD-2021) June 2021 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 30 SIGNIFICANCE OF INTELLECTUAL PROPERTY RIGHTS FOR START-UP IN INDIA
Veronika Bhagoria1, Prof. Shruti Pagare2
1Research Scholar, School of Commerce, Davv, Indore
2Assistant Professor, St. Paul Institute of Professional Studies, Indore
Abstract - As in the current situation, start-up companies play a fundamental role in promoting economic growth and have a great influence. Also, the government today has introduced various policies to promote start-up within the country. Whereas, Intellectual Property Rights (IPR) has been defined as the expression of thoughts, inventions and creations with the public will to grant property rights. Intellectual property rights grant the inventor or creator of the property certain exclusive rights so that they can obtain commercial benefits from their creative efforts or reputation. There are various types of intellectual property protection, such as patents, copyrights, trademarks, etc. This research article This article gives the basic information about various types of IPRs viz., patents, trademarks, copyrights, trade secrets, designs, etc., with basic information about the significance of IPR for the start-up in the country.
Keywords: Intellectual property rights, patent, copyright, trademarks, design, trade secrets, start-ups, entrepreneur etc.
1 INTRODUCTION
Intellectual property refers to the entire creation of human thought. These creations include artistic and literary works; symbols, names and images used in commerce; designs etc.
Through another form of property rights called "intellectual property rights" (IPR), legal protection can be provided for such creations. Intellectual property rights allow the owner to exercise a monopoly on the use of intellectual property within a certain period of time. Such rights of the owner include the right to use your intellectual property, the right to obtain any benefit from the intellectual property, the right to transfer or sell it, and the right to exclude others from the intellectual property.
Start-up involves conceptualizing a good business idea into an effective business model and implementing it through the use of entrepreneurial skills. Since the last ten years, more and more new companies have emerged in India and surrounding areas.
Emerging companies have always been seen as having huge growth potential.
The COVID-19 pandemic has crippled economies around the world, with India's economy derailed as a nationwide shutdown resulted in supply chain disruptions. Under the current circumstances, a large part of society is facing economic difficulties. However, innovation and intellectual property can provide us with a way forward. Using IPR wisely, you can prosper in business and business. New businesses can use copyright, patents and trademarks to maintain their leading position in the market. Intellectual property assets are now regarded as the key corporate assets of any corporate organization.
Governments around the world have plans in place to revive their economies.
Following the example, the Indian government has also recognized the urgent need to put in place a recovery plan to minimize the damage. The Indian government has accelerated the recovery of our economy by adopting various economic reforms to stimulate our economy.
Among many measures, the government has introduced a policy of promoting local industries called “AATAMNIRBHAR BHARAT” i.e. the production and use of products made in India. This policy is designed to promote the start-up ecosystem. Politics is making the start-up ecosystem more important than ever to not only revive the economy, but also to compete and comply with global standards.
2 LITERATURE REVIEW
Xu-Kun, 2015, Intellectual property is mainly composed of Industrial Property and Copyright. Industrial property, which includes inventions (patents), trademarks, trade secret, industrial designs, and geographic indications. Copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. Rights related to copyright include those of performing artists in their performances, producers of
ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037
Available Online: www.ajeee.co.in/index.php/AJEEE
Vol. 06, Special Issue 04, (ICESD-2021) June 2021 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 31 phonograms in their recordings, and those of broadcasters in their radio and television programs.
Nipun Mehrotra (2018), “The Indian start-up community, ranked third globally in terms of number of start-ups, has been creating new job opportunities and attracting capital investment. We believe that start-ups need to focus on societal problems, including healthcare, sanitation, education, transportation, alternate energy management and others, which would help deal with the issues that India and the world face. These require investments in deep technology and products which are built to scale globally.
Grant Thornton (2016) define, the start-up business as an organization which is an entrepreneurial venture/a partnership or a temporary business organization engages in development, production or distribution of new products/services or processes.
Narendra Modi (2016) stated that, the Start-up India is a revolutionary scheme that has been started to help the people who wish to start their own business. These people have ideas and capability, so the government will give them support to make sure they can implement their ideas and grow. Success of this scheme will eventually make India, a better economy and a strong nation.
3 TYPES OF INTELLECTUAL PROPERTY RIGHTS
Copyright: Copyright is a type of intellectual property protection that protects original works of authorship. Copyright is a right granted to the creators of their original literary, musical or artistic works, allowing them to reproduce their work and not allowing others to copy. Copyrights are granted in sculptures, architectural works, drawings, computer software, sound recordings, television and radio programs, photographs and films.
Trademark: A trademark refers to a phrase, word or symbol that distinguishes the source of a product or service from one party or the other. A trademark is a sign or sign used to distinguish a company's products and / or services, which can be filed for registration with a competent authority for the purpose of protection. A trademark gives its owner the exclusive right to use said trademark for a period of 10 years and is renewable.
Patent: A patent is a type of term protection that can be used to protect new, obscure, and useful inventions (or discoveries), such as a process, machine, manufactured product, or process. create or create a new material composition. When the owner of a patent has a patent, the law prohibits others from offering, manufacturing, or using the product. The patent is granted for a specific field in a defined country for a period of 20 years.
Design: Applicable to the shape features, configuration patterns or decorations of any article, it is functional and has a certain aesthetic value. Any such industrial design can be registered under the Design Law. Any start-up company that has registered a design from the beginning can restrict its use without proper authorization.
COPYRIGHT TRADEMARK PATENT DESIGN TRADESECRETS
Copyright – this protects written or published works such as books, songs, films, web content and artistic works;
Trade marks – this protects signs, symbols, logos, words or sounds that distinguish your products and services from those of your competitors.
Patents – this protects commercial inventions, for example, a new business product or process;
Designs – this protects designs, such as drawings or computer models;
Trade secrets- this protects private information that is important to a business.
ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037
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Vol. 06, Special Issue 04, (ICESD-2021) June 2021 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 32 Trade Secrets: Trade secrecy refers to specific and private information that is important to the business because it gives it a competitive advantage in the market. If another company acquires a trade secret, it could harm the original owner. When a person or business is protected as a trade secret, others cannot copy or steal the idea. the owner of the trade secret has the right to be violated – i.e. someone steals their trade secret - can get a court order against that person and prevent them from using the trade secret.
4 SIGNIFICANCE OF IPR FOR START-UP
Intellectual property rights enable start-up companies that have developed innovative devices to effectively compete with large companies after obtaining invention patents. If a start-up has a unique, unpatented invention, it can be easily copied, manufactured and commercialized by a larger competitor, effectively eliminating the start-up’s efforts to create its invention.
Intellectual property rights can prevent competitors, large institutions / companies from stealing / copying ideas, inventions, trademarks / trademarks, thus providing start-ups with expansion rights and exclusive rights within a certain period of time.
When a start-up company applies for a patent for its idea, their valuation increases and may attract more investors. This is because investors are more likely to acquire a start-up company with protected intellectual property rights.
For those start-ups that have applied for patents for their core inventions and registered their brand names / trademarks, it is always possible to provide confidence to investors, customers and others because it reflects the high standards of start-ups.
Start-ups, depending on their activity and industry, must assess and prioritize their intellectual property rights, which are sometimes the only assets available to a start- up. Failure to do so can create obstacles to the proper functioning of the business, especially among start-up founders who promote, negotiate with current and future investors.
Registered intellectual property rights always have an advantage when they can introduce the use of that intellectual property right and give it greater value and weight, as the relevant laws allow the holder of such registered intellectual property rights to '' exercise their rights more easily before the Court, in the event of any violation. (Patents need to be registered before using it whereas it is not mandatory in the case of copyright and trademark).
All start-ups currently own and need to develop and implement intellectual property rights policies to manage the rights of IP to be applied / acquired in the future. The main purpose of these intellectual property policies is to ensure that there are virtually no disputes between founders and promoters that generally lead to founding failures.
Every start-up company must conduct due diligence on current and future use of intellectual property rights from the beginning. For all start-ups, this should be mandatory so that they do not inadvertently infringe the intellectual property rights of other people and/or entities, leading to litigation or legal proceedings that cause serious damage to any start-up.
IPR FOR START-UPS
COPYRIGHT Entrepreneurial ideas that can be expressed in any form, that is, writing, performance, etc. Many start-ups invest a lot of creativity in developing the most attractive and productive websites/software/apps, because their websites/apps/software are the backbone of most start-ups and therefore require special attention for protection.
TRADEMARK
Starting a business must protect your brand from the beginning.
The importance of a trademark is very important, because it not only prevents third parties from using it, but also helps the trademark have its own economic value, which can be commercialized in the future for profit.
ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037
Available Online: www.ajeee.co.in/index.php/AJEEE
Vol. 06, Special Issue 04, (ICESD-2021) June 2021 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 33 PATENT According to the patent law of 1970, the protection of the
invention.
This is a very important step in the process of protecting intellectual property, just as the invention has been registered, no other organization can use it without authorization.
DESIGN
Design Act 2000 such as features of form, configuration or decoration applied to any product, having a certain function and aesthetic value. Any start-up that registers the design early can prevent anyone from using it without permission.
TRADESECRETS Trade secrets include production or trade secrets and trade secrets, recipes, practices, procedures, designs, tools, models, methods of trade or a combination of information that gives the holder a competitive advantage. on other market players. Trade secrets in India are governed by many laws like contract law, copyright law, principle of fairness etc. Obtaining IPR protection will help a start-up gain an edge over its competitors in the market.
5 CONCLUSION
Acquiring knowledge about intellectual property rights is very important for economic and social development out of any organization. IPRs are needed to withstand the national competitions and the global ones. Investors and young entrepreneurs have a great opportunity of starting their new business or start-ups under the policy “Aatamnirbhar Bharat” and “Make in India”. There is an urgent need for employers to realize the extreme importance of intellectual property rights and need to take a proactive approach to protect their intellectual property rights. To change the way of thinking of these entrepreneurs, it is important to let them understand the need to develop an IP protection strategy from the beginning. It is undeniable that there may be a certain price to protect these rights, but the price is more investment, because intellectual property is an asset, if it is protected from the beginning, it will bring many economic benefits to entrepreneurs. So, this can be easily concluded that the IPR plays a significant role in the growth and betterment of the Start- ups within the country.
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