Home  > Insights  > Intellectual Property Protection In International Business: What Every Start-Up Needs To Know

 Nov 05, 2024

INTRODUCTION

In today’s globalized economy, intellectual property (“IP”) is one of the most valuable assets a start-up can possess. Since trade does not have a boundary, so should not IPs. Whether it is a unique product design, a brand logo, an invention, or a confidential business process, protecting IP is crucial. Without proper safeguards, businesses are vulnerable to counterfeiting, imitation, loss of market share, and many more problems. This guide will help new businesses navigate the complex world of IP, international registration methods, and other considerations expected.

UNDERSTANDING IP TYPES

As described by the World Intellectual Property Organisation (“WIPO”), these are the following types of intellectual property rights:

  • Patents
    A patent is an exclusive right granted for an invention. It protects the invention from being made, used, or sold by others without the owner’s permission. It allows the inventor exclusive rights to the invention, which could be a design, process, improvement, or physical invention.

  • Copyright
    Copyright is a legal term used to describe the rights that creators have over their literary and artistic works. Works covered include books, music, paintings, to computer programs, databases, etc. Copyrights provide authors and creators of original material the exclusive right to use, copy, or duplicate their material.

  • Trademarks
    A sign capable of distinguishing the goods or services of one enterprise from those of another is called a trademark. They date back to ancient times when artisans used to put their signature or “mark” on products they produced. They can be symbols, phrases, or insignia that represent a company and legally separate the company from others.

  • Industrial design
    An industrial design constitutes the design or the aesthetic aspect of the article. It consists of three-dimensional features such as the surface or shape of an article or of two-dimensional features such as patterns, lines, or colours.

  • Geographical Indications
    Geographical indications are signs used on goods that have a geographical origin that gives them certain superior qualities, reputations, or characteristics. Most frequently, geographical indications include the name of the place of origin of goods.

  • Trade Secrets
    Trade secrets are a company’s process or practice that is not public information and provides an advantage to the company economically. They must be actively protected by the company and are typically the result of a company’s research and development. Companies often require signing non-disclosure agreements (“NDAs”) to protect their trade secrets.

INTERNATIONAL IP PROTECTION

Registering a trademark in one country will not grant protection in other countries. Businesses need to acknowledge the probability that companies in other countries can potentially copy, duplicate, and use their IPs if not registered in that country. The company should focus on registering their IP in any nations where they are providing their services, and business and in those places where they plan to do business in the future. Some IP holders also register their marks in countries that have difficulties in asset counterfeiting.

IP PROTECTION IN MORE THAN ONE COUNTRY FROM INDIA

Trademark Protection

One can register trademark in more than one country under the Madrid Protocol. Many MNCs have agreements that make it possible to document a petition to enrol a trademark in more than one country.

Further, few institutions provide registration in multiple countries together.

  • Benelux Office – Belgium, Luxembourg, and the Netherlands
  • European Union Trade Mark (“EUTM”) – all members of the European Union
  • African Regional Intellectual Property Organization (“ARIPO”) – all members of that institution

Copyright Protection

Indian creators can protect their works globally through the following strategies:

  • Familiarising themselves with international treaties like the Berne Convention and TRIPS to ensure cross-border protection.
  • Joining Collective management organizations (“CMOs”) that help copyright owners manage and protect their work as well as royalties for their work. Creators can consider membership in CMOs.

Patent Protection

Few institutions facilitating patent registration exist just like Trademark Organisations. They are as follows:

  • the European Patent Office (“EPO”),
  • the Eurasian Patent Organization (“EAPO”),
  • the African Intellectual Property Organization (“OAPI”),
  • the African Regional Intellectual Property Organization (“ARIPO”)
  • the Patent Office of Cooperation Council for the Arab States of the Gulf (GCC).

There is also a Patent Cooperation Treaty (“PCT”) which is an international treaty that at present covers 153 countries. The PCT system requires filing a single application. This application is processed, searched, and examined through a single procedure. Then the protection is granted.

Industrial Design Protection

The Hague Agreement is concerned with the international registration of industrial designs. It is an international agreement administered by WIPO that provides a streamlined option for registration. The agreement allows citizens, residents, or businesses established in member countries. The procedural requirements are as follows:

  • A single international application
  • Fluency in one language (English or French)
  • Single Fee payment
  • One currency
  • Filing with one office (International Bureau of WIPO or, through office of a Contracting Party)

Geographical Indications Protection

There are bilateral treaties between countries that protect geographical indication in another country. However, they may be limited to certain sectors. Another channel is through WIPO’s Lisbon System for the International Registration of Appellations of Origin. The Lisbon System offers a means of obtaining protection for an appellation of origin already protected in one of the member countries. This can be done through a single system.

Trade secrets protection

Legal protection for trade secrets in India is not present now.

CONCLUSION

As businesses venture into the international marketplace, the importance of IP protection cannot be overstated. Navigating the complexities of IP rights, requires planning and a proactive approach. By understanding various types of IP rights and the avenues available to protect these internationally, start-ups can safeguard their innovations and brand identity. Ultimately, investing in IP protection is not merely a legal obligation; it is a fundamental component of a start-up’s growth.

HOW CAN WE HELP?

  • With in-depth expertise in IP rights and international registration processes, our team provides tailored strategies to safeguard innovations, trademarks, and other valuable assets across multiple jurisdictions.
  • Advising on optimal registration routes under international treaties like the Berne Convention, Hague Convention, Madrid Convention, and Patent Cooperation Treaty.

For more information or queries, please email us at

[email protected]

Key Contact

Surendra Singh Chandrawat

Managing Partner