CSE332
INDUSTRY ETHICS
AND LEGAL ISSUES
Unit 2
Different kinds of marks (brand names, logos, signatures, symbols, well known marks, certification
marks and service marks)
Patents, Importance of Patent Information in Business Development
Concept of Intellectual Property, Copyrights, Trademarks
-Patents
A patent is a legal right given to someone who invents something new.
It means that only the inventor has the right to make, use, or sell the invention
for a certain period of time, usually 20 years.
This prevents others from copying or making money from the invention
without permission.
Key Points:
Invention: You need to invent something new or come up with a unique way to solve a problem.
Exclusive Rights: The patent gives the inventor the exclusive right to use, sell, or make the invention
for a limited time.
Protection: If someone else tries to make or sell your invention without permission, you can take
legal action against them.
Example 1: The Lightbulb
Thomas Edison invented the electric lightbulb. He patented it, meaning no one else could make and sell lightbulbs
exactly like his for a certain period. This protected his invention from being copied by others.
Example 2: Smartphone Design
Companies like Apple or Samsung patent new designs for smartphones. For example, Apple patented the design of
the iPhone to protect it from other companies copying the look and features of the phone.
Why Patents Are Important:
Encouragement to Innovate: Since inventors know they’ll have protection for their ideas, they
are encouraged to come up with new inventions.
Fair Profit: It helps inventors make money from their ideas because others can’t just copy
them.
Step-by-step explanation of the patent registration process
Step 1: Check if your idea is patentable
Before applying, you need to make sure your invention meets the basic requirements:
Novel: Your invention must be new and not already known.
Inventive: It must involve some kind of creativity or innovation.
Useful: It should be useful and have practical applications.
Example: Let’s say you invent a new type of shoe that automatically adjusts to the shape of your
feet. You need to check if anyone has made a similar shoe before. If no one has, your invention
might be patentable.
Step 2: Conduct a Patent Search
Do a search to see if anyone else has already patented something similar. You can search for patents
online through official patent websites or hire professionals to do the search.
Example: You search through a patent database and find that no one has patented a shoe that
automatically adjusts to the shape of your feet. This means your invention is likely new.
Step 3: Prepare a Detailed Description
You need to write a detailed description of your invention, including how it works, its unique features,
and its benefits. You may also need to create drawings or diagrams that explain your invention.
Example: You describe how the automatic shoe adjustment mechanism works, what materials are
used, and include a diagram showing how the shoe changes shape when you put it on.
Step 4: File a Patent Application
Now, you need to file a patent application with the relevant patent office (like the USPTO in the US, or the
European Patent Office in Europe).
There are two types of patent applications:
Provisional Patent: A temporary application that gives you a filing date, but you must file a full application
later.
Non-Provisional Patent: A full application that will be examined for patentability.
Example: You file a non-provisional patent for your adjustable shoe invention. The application includes your
description, diagrams, and claims (which define what your invention is).
Imagine you create a new type of smartwatch with a unique feature.
You file a provisional patent to protect your idea while you refine the design and develop more
detailed specifications.
After 8 months, you file a non-provisional patent with all the detailed claims and descriptions to
officially apply for full patent protection.
In summary, a provisional patent is a simpler, less expensive option to get started, while a non-
provisional patent is the full application required to get an actual patent granted.
Step 5: Patent Examination
The patent office examines your application to see if your invention meets all the requirements (novel, inventive,
and useful). They might ask for more information or clarifications.
Example: A patent examiner reviews your application and sees that your invention is new and useful, but they
may ask for more technical details about how the shoe’s mechanism works.
Step 6: Respond to Office Actions (if needed)
If the patent examiner has questions or objections, you’ll need to respond. This might involve making changes to
your application or clarifying certain points.
Example: The examiner asks you to provide a better explanation of how the shoe’s mechanism adjusts
automatically. You send back a clearer description.
Step 7: Grant or Denial of Patent
Once the patent office is satisfied with your application, they will grant you a patent for your invention. If
they think your invention doesn't meet the requirements, they will deny your application.
Example: After reviewing your responses and the details, the patent office grants you a patent for your
adjustable shoe. You now own the rights to this invention.
Step 8: Maintain Your Patent
Once granted, patents usually last for 20 years. However, you’ll need to pay maintenance fees to keep the
patent active and enforce your rights if anyone uses your invention without permission.
Example: You pay the maintenance fees every few years to keep your adjustable shoe patent active.
Quick Recap:
Check if your idea is patentable (Is it new and useful?)
Conduct a patent search (Has anyone patented something similar?)
Prepare a detailed description (Write it out and include drawings)
File a patent application (Submit your invention to the patent office)
Patent examination (The patent office reviews it)
Respond to office actions (Answer any questions or objections)
Grant or denial (If approved, you get the patent)
Maintain your patent (Pay fees to keep it valid)
With this process, you can protect your invention and prevent others from making, using, or selling your idea
without permission.
P.D. - Provisional Date
Provisional Date: This typically refers to the filing date of a provisional patent
application. A provisional patent application is a temporary filing that gives you a filing
date and a year to file a non-provisional patent application. It doesn’t require formal
patent claims or an oath/declaration, but it establishes priority for the invention.
A provisional patent application doesn't mature into an issued patent by itself but is
used to secure the earliest filing date, which is critical in determining who has rights to
an invention if there are disputes over patent ownership.
C.D. - Converting Date
Converting Date: This refers to the date when a provisional patent application is
converted into a non-provisional patent application. Once a provisional patent
application is filed, the applicant has up to 12 months to file a non-provisional
application (if they wish to claim the same priority date). The C.D. (Converting Date)
indicates the date of this conversion process.
First Examination Report (FER):
This is a report issued by the patent office after the initial examination of a patent
application. The report typically outlines the examiner's findings regarding the
patentability of the invention. It will include any objections, rejections, or requirements
for amendments to the application.
Key points typically covered in a FER:
Patentability Assessment: Whether the invention is novel, involves an inventive
step, and is industrially applicable.
Citations of Prior Art: References to similar inventions or prior art that might
affect the novelty or non-obviousness of the invention.
Objections: The examiner may raise formal objections related to the claims,
descriptions, or other technical details of the patent application.
Requirements for Amendments: If the examiner finds deficiencies, the applicant
may be asked to amend the claims, clarify parts of the application, or address other
issues.
The Appellate Board in the context of patents refers to a
judicial body or tribunal that hears appeals related to patent
matters.
IMPORTANT FEES IN DIFFERENT PROCEEDINGS
Note: Professional Patent Drafting costs approximately ₹30,000
DUTIES OF PATENTEE
Maintenance of the patent
Pay renewal fees
Every year till the end of the term
Time limit:
before end of the preceeding year ( 6months extn. Available )
Working of the patents:
Inventions are to be worked in India on commercial scale
Failing which compulsory licencemay be issued
Patent Infringement
1. Demand the infringer stop & pay damages for past
infringement.
2. Offer a “Royalty”
3. Ignore the infringement or postpone action.
4. File a patent infringement lawsuit in federal court
Litigation vs Licensing
If the objective is to stop a If the objective is to obtain royalty
competitor from offering a for the use of one’s invention.
product that infringes one’s patent.
Alternatives To Litigation
Litigations are costly, timely, & disruptive
Alternative dispute resolutions (ADR) include Mediation &
Arbitration
•Litigation: If someone is infringing on your patent, and you want to stop them or get
compensated for damages. It’s a good choice when negotiation or licensing isn’t an option, or if
the infringing party is unwilling to cooperate.
•Licensing: If you want to earn revenue from your patent without engaging in the complexities of
manufacturing and selling products yourself. Licensing is useful when you want to allow others to
benefit from your invention while still maintaining ownership of the patent.
Example Scenario of Both:
Imagine a company, Tech Innovators, that has patented a new wireless charging technology. They could:
Litigate if a competitor, QuickCharge Co., starts selling wireless chargers using a similar technology and they
believe QuickCharge Co. is infringing on their patent.
License their technology to companies like PhoneMaker Inc. and LaptopCorp, allowing these companies to use
the technology in exchange for royalty payments. This allows Tech Innovators to earn revenue without having to
directly manufacture or sell wireless chargers.
In summary:
Litigation is a legal approach to resolve disputes over patent rights, often
leading to court decisions.
Licensing is a business strategy where you allow others to use your patented
invention for compensation.
Both approaches have their pros and cons depending on the situation!
What is the primary purpose of a patent?
A) To protect trademarks
B) To grant exclusive rights to an invention
C) To ensure copyright protection
D) To stop competition in the market
Which of the following is NOT a requirement for obtaining a
patent?
A) The invention must be novel
B) The invention must be useful
C) The invention must be disclosed publicly
D) The invention must be old
Which type of patent application allows you to secure a filing
date without a detailed description of the invention?
A) Non-provisional patent
B) Provisional patent
C) Utility patent
D) Design patent
How long does a typical utility patent last in the United
States?
A) 10 years
B) 15 years
C) 20 years
D) 25 years
What is a "patent pending" status?
A) The patent application has been granted
B) The patent application is under examination
C) The patent application has been rejected
D) The patent has been filed and published, but not yet
examined
Which of the following is an example of a non-patentable
invention?
A) A new method of growing crops
B) An abstract idea or mathematical formula
C) A new type of smartphone
D) A new type of machine for manufacturing products
What is a "patent claim"?
A) The price of the patent
B) A description of the inventor's qualifications
C) A statement defining what the invention is and what it
protects
D) A requirement to disclose competitors’ information
What is the main difference between a provisional patent and
a non-provisional patent?
A) A provisional patent is more expensive
B) A provisional patent does not require formal claims
C) A provisional patent grants immediate legal rights
D) A provisional patent lasts for a longer time
What is one of the key benefits of licensing a patent?
A) It allows the patent holder to stop others from using their
invention
B) It generates revenue without manufacturing products
C) It provides a temporary protection for an invention
D) It helps in invalidating a competitor’s patent
Which of the following is true about "patent infringement"?
A) It occurs only when a patent is granted
B) It is a situation where someone uses a patented invention
without permission
C) It refers to an inventor breaking the patent law
D) It can only happen in the United States
What happens if a patent is granted and the owner doesn't
pay maintenance fees?
A) The patent will be canceled automatically
B) The patent will remain in force for 10 more years
C) The patent will be extended for an additional term
D) The patent will be granted for life
Which of the following is an example of a design patent?
A) A new type of car engine
B) A new software program
C) The unique ornamental design of a chair
D) A new pharmaceutical drug
Answer: C) The unique ornamental design of a chair
Which of the following is a key feature of a "non-provisional
patent" application?
A) It does not need to be examined by the patent office
B) It must be filed within 12 months of a provisional patent
C) It only protects designs and trademarks
D) It does not require a description of the invention
Answer: B) It must be filed within 12 months of a provisional
patent
Copyright:
What it protects: Copyright protects creative works like books, songs, movies, paintings, and software.
Example: Imagine you write a novel. Copyright protects your story—the words and the way you
express your ideas in the book. No one can copy your book or sell it without your permission.
In short: Copyright is about protecting creative expressions like writing, music, and art.
Patent:
What it protects: A patent protects inventions—new products or processes that are useful and unique.
Example: Let's say you invent a new type of smartphone that can do something totally new, like project a
3D hologram. You can get a patent to protect your invention. This means no one else can make or sell that
exact same smartphone unless you give them permission.
In short: A patent protects inventions that are new, useful, and have a specific function.
Duration of Protection:
Copyright typically lasts for the life of the author plus 70 years (in most jurisdictions).
In some cases, such as for works created for hire, the duration may vary but usually lasts for 95 years
from the date of publication.
Patent protection lasts for 20 years from the filing date for utility patents (which cover inventions) and 14
years for design patents (which cover ornamental designs of products).
After the patent expires, the invention becomes part of the public domain.
Intellectual Property (IP) refers to legal rights granted to individuals or organizations over their creations,
inventions, or ideas.
These rights allow the creators to control and profit from their work, and they provide legal protection
against unauthorized use by others.
There are various types of intellectual property, including copyrights, trademarks, patents, and trade
secrets.
Copyrights:
What it protects: Copyright protects creative works like books, music, movies, art, and software.
It’s about protecting the expression of ideas, not the idea itself.
Example:
If you write a novel, paint a picture, or compose a song, copyright protects your original
work. No one can copy it or sell it without your permission.
Example 1: If you write a book, only you have the right to print, sell, or make copies of that
book.
Example 2: If you create a song, no one else can perform or record it without your
permission.
Trademarks:
What it protects: A trademark protects brands and their identifiers like names, logos, or slogans. It’s
about protecting how your brand is recognized.
Example:
Nike's "Swoosh" logo and their slogan "Just Do It" are both trademarks. When you see the
"Swoosh" or hear "Just Do It," you know it's Nike.
Example 1: The name "Coca-Cola" is a trademark. No other drink can call itself Coca-Cola or use a
similar logo that might confuse customers.
Example 2: The McDonald’s Golden Arches are a trademark. No other restaurant can use those
exact arches or a similar logo.
Key Difference:
Copyright is about protecting your creative work (like books,
music, and art).
Trademark is about protecting your brand identity (like logos,
names, and slogans).
Trade secrets are a type of intellectual property that refers to confidential business information that
gives a company a competitive advantage.
These secrets are valuable because they are not publicly known and can help a company stay ahead of its
competitors.
What Trade Secrets Protect:
Trade secrets protect information that is kept secret and has value because of its secrecy. This could be
things like:
Recipes (like Coca-Cola's secret formula)
Manufacturing processes
Customer lists
Marketing strategies
Software algorithms
Example:
Coca-Cola's Recipe: The exact recipe for Coca-Cola is a famous trade secret. It is not shared publicly, and
the company takes extreme measures to keep it confidential. The value of Coca-Cola lies in part in the fact
that only a few people know the full formula.
Google's Search Algorithm: Google’s algorithm that determines search results is a trade secret. If
competitors knew how it worked, they could try to mimic it, so Google keeps this information confidential.
Trade secrets protect confidential business information that gives a
company a competitive edge. Unlike copyrights or patents, trade secrets
last as long as the information remains secret.
Which of the following does copyright protect?
a) Inventions
b) Brand names
c) Creative works
d) Trade secrets
What is the main purpose of a trademark?
a) To protect inventions
b) To protect artistic works
c) To protect brand identity
d) To protect secret formulas
How long does copyright protection last in most countries?
a) 10 years
b) 50 years
c) 70 years after the author's death
d) 100 years after the author's death
Which of the following is an example of a patentable
invention?
a) A song
b) A new type of smartphone
c) A poem
d) A logo
What is a trade secret?
a) A patent granted for an invention
b) A creative work like a song or movie
c) Confidential business information that provides a
competitive edge
d) A design that is registered for protection
Which of the following can be trademarked?
a) A book
b) A logo
c) A scientific formula
d) A computer program
Which of these is NOT an example of intellectual property?
a) A patented invention
b) A copyrighted novel
c) A company's secret recipe
d) A physical object such as a car
Which of the following is required for obtaining a patent?
a) The invention must be new, useful, and non-obvious
b) The invention must be a creative work
c) The invention must be registered with a trademark office
d) The invention must be kept secret
