Intellectual Property under Property Law
I. Introduction to Intellectual Property under Property Law
Property Law traditionally governs tangible (real and personal) property. However, Intellectual Property (IP) refers to intangible creations of the human mind, which are also treated as a form of "property" that can be owned, transferred, or protected by law.
Definition of Intellectual Property (IP):
IP refers to legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields. These rights grant the creator or owner exclusive rights to use their creations for a certain period.
II. Nature of Intellectual Property as Property
Unlike physical property, IP is non-rivalrous — one person’s use does not diminish another’s.
It is assignable, licensable, and heritable.
Protected through statutory laws and common law doctrines.
III. Types of Intellectual Property
| Type | Description | Governing Law (India) | Example |
|---|---|---|---|
| 1. Copyright | Protection of literary, artistic, musical, and dramatic works. | Copyright Act, 1957 | Novels, movies, software |
| 2. Patent | Exclusive right to an invention (product or process). | Patents Act, 1970 | New drug formula |
| 3. Trademark | Protection of symbols, logos, brand names, etc. | Trade Marks Act, 1999 | Nike logo |
| 4. Design | Protection of shape, pattern, configuration of an article. | Designs Act, 2000 | Unique bottle shape |
| 5. Trade Secrets | Confidential business information. | Common law + contractual protections | Coca-Cola formula |
| 6. Geographical Indications (GI) | Products with a specific geographical origin and qualities. | Geographical Indications of Goods Act, 1999 | Darjeeling Tea |
IV. Legal Framework (India)
Though IP is intangible, Property Law principles like ownership, transfer, assignment, inheritance, and trespass (infringement) apply:
Ownership: The creator is the first owner (except in employment contracts).
Assignment: IP can be sold or assigned (like property).
License: Rights can be licensed (e.g., software licenses).
Infringement: Unauthorized use leads to legal remedies.
Remedies: Injunction, damages, account of profits, delivery of infringing goods.
V. Case Laws on Intellectual Property in India
1. R.G. Anand v. Deluxe Films (1978)
Facts: Plaintiff alleged that his play was copied in a film.
Held: The Supreme Court ruled that mere similarity in ideas is not infringement. Only substantial copying of expression is infringement.
Principle: Distinction between idea and expression — only expression is protected under copyright.
2. Novartis AG v. Union of India (2013)
Facts: Novartis sought a patent for Glivec, a cancer drug. It was rejected on the ground of evergreening (minor modification of existing drug).
Held: Supreme Court upheld rejection, stating the drug did not meet Section 3(d) of the Patents Act — it lacked enhanced therapeutic efficacy.
Principle: Preventing monopoly through frivolous patent extensions; balancing innovation and public health.
3. Yahoo!, Inc. v. Akash Arora (1999)
Facts: Defendant registered domain name "yahooindia.com", similar to plaintiff's "yahoo.com".
Held: Delhi High Court granted injunction, recognizing domain names as trademarks.
Principle: Passing off applies to domain names too; deceptive similarity can confuse users.
4. T.V. Venugopal v. Ushodaya Enterprises Ltd. (2011)
Facts: Dispute over the use of the term "Eenadu" (a famous Telugu newspaper).
Held: The SC held that using a well-known trademark in unrelated goods amounts to dilution of brand value.
Principle: Protection extended to well-known trademarks even outside their specific market category.
5. Indian Performing Rights Society Ltd. (IPRS) v. Sanjay Dalia (2015)
Facts: Related to jurisdiction in IP infringement cases.
Held: A suit must be filed where the plaintiff resides or carries on business, but cannot artificially create jurisdiction.
Principle: Prevents forum shopping in IP litigation.
VI. Relationship between IP and General Property Law Principles
| Property Law Principle | Application to IP |
|---|---|
| Ownership | Original creator is usually the first owner |
| Transferability | IP can be sold, assigned, or inherited |
| Lease/Licensing | Common in software, music, brand franchising |
| Infringement | Similar to trespass; damages and injunctions apply |
| Exhaustion | Doctrine of first sale — after sale, rights over that copy are exhausted |
VII. Importance of Intellectual Property
Encourages innovation and creativity
Provides economic incentive to creators
Facilitates branding and consumer trust
Enables technology transfer
Protects cultural and traditional knowledge
VIII. Conclusion
Intellectual Property, while intangible, is treated as a vital form of property under the legal system, with rights akin to ownership in physical property. It is central to modern economies, especially in the knowledge, digital, and creative sectors. Its evolution within property law ensures a balanced approach between rewarding innovation and protecting public interest.
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