April 13, 2023

Examining the use of Copyright and Trademarks by Corporates

The article has been written by Pravin Kumar Ray, a 3rd Year Law student at Sarsuna Law College, Kolkata.

INTRODUCTION

One of the most prevalent issues in the business world today is the concept of IPR (intellectual property rights) protection and how due to globalization and the internet companies, countries, and indigenous communities are increasingly finding that their intellectual property rights have been utilized without their consent for the benefit of another entity. For example, through the internet literally, billions of files and pieces of data are shared every week.

A large percentage of this file contains music, movies, and various forms of software shared without the consent of the company they were made by. Countries like China knowingly produce counterfeit goods that cost various businesses worldwide billions of dollars in lost revenue. Such companies cannot seem to stem the tide of counterfeit goods production through established legal channels. Finally, the traditional knowledge of various indigenous local communities about biological, cultural, and agricultural processes and knowledge is often “stolen” by various corporations for the sake of profit i.e., pharmaceutical companies stealing local remedies, cultural symbols, and art being marketed as a consumer product.

Copyrights and trademarks, both terms can be referred to as the backbone of business transactions, as both of them instill a sense of security in the minds of potential consumers as well as business owners. Though both terms are proof of the originality of the work of the business, it is pertinent to note that the two defend discrete concepts. They cannot be referred to interchangeably with each other. Usually, copyrights guard the original or rational works of the business, while trademarks guard the commercial identity of the business. The role of copyright is mainly to defend the rights of the business of its intellectual works including fictional, theatrical, musical, and creative works. Trademark, on the other hand, plays the role of defending the usage of the name of the business and its brand identity.

Therefore, the main purpose of intellectual property law is to encourage the creation of a wide variety of intellectual goods. To achieve this, the law gives people and businesses property rights to the information and intellectual goods they create, usually for a limited period of time. This gives economic incentives for their creation because it allows people to profit from the information and intellectual goods they create. These economic incentives are expected to stimulate innovation and contribute to the technological progress of countries, which depends on the extent of protection granted to innovators.

IMPORTANCE OF COPYRIGHT LAW IN BUSINESS TRANSACTIONS

The original author benefits from copyright. Business leaders should make it a priority to include an IP Clause in the employment and service agreement of the company stating that the company will receive full ownership of all original works. This is governed precisely by the law which must be respected. In the absence of a provision to the contrary, all economic rights and copyright regarding computer programs that are created by one or more bodies in connection with their duties or instructions are supposed to the employer. It is important to note that computer programs are significant exceptions because creations can sometimes be defended by a variety of other kinds of rights, copyright has advantages over other intellectual property rights. For instance, the software can benefit from patent protection in addition to copyright protection. Similarly, slogans, logos, and product packaging benefit from copyright protection but may also benefit from trademark protection if certain conditions are met.

The role of copyright is to protect any form of expression itself. They are very crucial for running a successful business, as they are used for protecting every business’s original and creative works including advertising, sales brochures, promotional materials, videos, instruction manuals, photographs, and website content, from being used by any other third party without the business owner’s due permission. 

Have you ever wondered, how is it, that our minds immediately jump on those brighter-than-tube light teeth when we hear ‘Happydent Chewing Gums’, that unbreakable wall when we hear ‘Ambuja Cement’, those adorably cute ZooZoos when we hear ‘Vodafone’? Well, this is the magic of advertisements, and these advertisements are nothing, but the Copyright of a business. Copyright, therefore, not only plays a crucial role in protecting the creative and original work of the business but also in promoting the business and reaching out to the public at large. Copyright confers a number of benefits. A few of these benefits include:

  1. Only a copyright holder has the right to use the copyrighted work. All others must seek permission from such holders to use the work. Therefore, if someone wishes to use the copyrighted work of a business, they cannot do so until they have explicitly taken permission to do so. For example, the famous ZooZoos, which are the result of the creative and original work of Vodafone, can explicitly be used by Vodafone only.
  2. Copyright can also help business owners to earn extra money. 
  3. Another benefit that copyright holds with itself is that, unlike patents and trademarks, a business is not bound to go through the formality of registration in order to own copyright over its work. Copyright protection is automatic in nature. It begins right from the moment an original work is created. Thus, no investment is required to obtain or maintain it. However, it is strongly advised for one to get the work duly registered under Copyright Law. Getting the work registered helps the business to secure greater and more effective legal protection, as it serves as evidence for proving ownership of the work to the business owner. 

IMPORTANCE OF TRADEMARK LAW IN BUSINESS TRANSACTIONS

A trademark is essentially another word for a brand or brand name. A trademark can be any name, word, symbol, slogan, or device that serves to both identify and distinguish a business or product from others in the market. Once you have trademarked your business, if someone else makes an attempt to use something similar enough to confuse customers, you have the right to legally protect yourself and stop the other party. Trademarks are also essential to the success of franchised businesses such as McDonald’s and Subway.

Example: Nike’s famous “swoosh” logo and even the Nike slogan “Do It

Trademark law permits potential consumers in the marketplace to easily recognize products even from a distance. As trademark owners, business owners have the right to stop others, including their competitors out there from using their trademark or any mark that is deceptively similar to their trademark and can cause confusion in the minds of potential consumers. Trademark protection encourages three main policies- defense of the business owner’s goodwill, the safety of the consumer, and the efficiency of the economy. Having this in mind, we have listed some of the importance and benefits of having a trademark for your business.

  1. Exclusive right to use a logo This might seem trivial, but a logo is a crucial aspect of the business. Trademarks can prevent others from using your logo or any symbol that looks similar or can cause customers to confuse your product with something else. Because trademarks have no expiry, you can always ensure that your customers are receiving high-quality products and services only from you. Since more businesses are starting to use the internet and social media for marketing, your logo is the first thing your potential customers see. So, it is important that you always make a good first impression.
  2. Builds connection with customers Trademark helps businesses build lasting relationships with their customers. It gives businesses a distinct identity and therefore allows customers to easily distinguish their products in the market. With the help of trademarks, customers can knowingly or inadvertently associate certain characteristics with your product. This, in turn, can become a driving force that pushes them to avail or purchase your products again.
  3. Keeps copycats at bay Trademarks can legally protect your business from copycats. Since trademarks are protected by intellectual property rights, you can formally register your mark and legally stop others from commercially exploiting your brand. The main purpose of registering a trademark is to maintain exclusive rights to the mark. So, when someone uses your trademark without your consent, you are allowed to enforce your trademark rights and sue the infringer.
  4. Trademarks can make hiring easier Brands can inspire positive feelings in people’s minds. As a result, employment opportunities are more attractive to candidates. Employee retention can be higher if employees have positive feelings for the brand and the products and services offered.

BIBLIOGRAPHY

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