Latest Changes In IP Law : What Businesses & Creators Need to Know

IP laws in India cover the Indian Patent Act 1970, the Copyright Act 1957, the Design Act 2000, and the Trade Marks Act 1999. All these laws are ancient and have traditionally protected only human creativity and innovation. However, technology has undergone significant changes in the last few decades. This process has created a requirement for our laws to adapt quickly.

A few crucial changes that have been introduced in the Intellectual Property (IP) law are as follows:

Artificial Intelligence And Machine Learning

Artificial intelligence (AI) and Machine Learning (ML) are perhaps the most important innovations in the IP domain. They have brought changes in creative industries, generated new inventions, and reshaped intellectual property rights. However, it is noteworthy that in India, IP laws do not allow the creation of AI. The Copyright Act of 1957 grants protection only to works created by humans. It does not recognize any work written by AI, such as Chat-GPT or Bard.

So, if any creator or business uses Chat-GPT in their creative work, they cannot claim intellectual property rights based on such creation. For copyright ownership, there must be a significant degree of human intervention.

Similarly, the Indian Patents Act 1970 allows patents only for human inventors. AI can not be listed as an inventor in patent applications. Chat-GPT and other forms of generative AI are increasingly used to generate brand names, logos, and slogans. However, since AI-generated material lacks originality, it cannot be trademarked under Indian law.

Blockchain Technology

Blockchain technology enhances transparency, security, and efficiency in managing patents and trademarks. However, Indian law does not cover blockchain technology. The Copyright Act of 1957 protects original, creative, artistic, and musical works but does not mention blockchain technology.

In addition to blockchain technology, we have smart contracts, which can automate payments for creators. These contracts allow the automatic generation of royalty payments for creative works such as music, art, and books. Businesses and creators use them to prevent unauthorized use of their works. However, India lacks a specific legal framework for blockchain and smart contracts. The Information Technology Act 2000 governs digital transactions but does not cover blockchain-based contracts.

Digital Piracy

Digital piracy means illegally sharing, copying, or downloading copyrighted digital content without the owner's permission. It generally includes all creative work, such as music, movies, software, games, and books. It is a significant threat to businesses and creators in India, as with everything coming online, they need stronger laws to protect their work.

Section 51 of the Copyright Act of 1957 states that any unauthorized copying, sharing, or streaming of a copyrighted work constitutes infringement. Section 63 further states that the punishment for such offences is three years imprisonment and a fine of ₹2 lakhs.

Further, Sections 66 and 67 of the Information Technology Act 2000 cover hacking and theft of digital content. The Cinematograph Amendment Act 2023 covers movie piracy and provides a punishment of up to three years in prison.

Businesses and content creators should now register copyrights and trademarks to protect their intellectual property rights. They must use anti-piracy software and take legal action against anyone who uses their work without their consent.

Laws For Startups

India is now ranked third globally in the number of startups. Therefore, Indian laws have been changed to suit the needs of startups. Intellectual property protection is essential for their development.  

Under the Patents Amendment Act 2021, startups can file patents at a 75% discount compared to other businesses. The Startup India Initiative has reduced the patent grant time from 5 to 7 years to 1 to 2 years. Under the Startup India Program, trademark registration is quick. The trademark also covers brands and domain names generated by artificial intelligence. The Copyright Act of 1957, as amended by 2022, has simplified the registration process for digital content creators.

Fees for intellectual property rights of startups in India have also been reduced. The government also assists in filing legal fees for patents and trademarks.

Data Protection

Protecting data is very important for businesses and creators all over the world. With the increasing use of social media platforms, cloud storage, and digital payments, there is a need for protecting data. We have India's Digital Personal Data Protection Act, 2023 (DPDPA). This latest privacy law protects the personal data of all individuals and businesses. It requires all companies to implement data security measures and pay compensation in case of negligence or data breach. Any sensitive personal data cannot be used without their consent. In case of a data breach, it must be reported to the data protection board, and action must be taken to recover from it.

Therefore, businesses and content creators should update their privacy policies and obtain explicit consent from individuals before collecting data. They should also invest in measures to protect their data, such as encryption and firewalls. Finally, they must report data breaches to the authorities to avoid penalties under the DPDPA.

Emerging Technologies 

Some emerging technologies, such as the Internet of Things (IoT), refer to a network of interconnected physical devices that exchange data. The IoT devices require new technologies and software to function. While patent and copyright laws cover some aspects, many IoT-related innovations remain legally ambiguous. There is no legal protection available for them.

Then, there is 3D printing, which allows creators to produce tangible goods from digital models. India's Design Act of 2000 protects the visual appearance of a product but not 3D printing. Such technologies allow people to replicate designs and use them without authorization, so our patent law needs to be amended.

Virtual reality, such as metaverses, then increases the need for IP protection. Indian laws have not yet covered such emerging technologies, and they must adapt quickly.

Conclusion

The rapid pace of technological innovation demands a continuous evolution of India's IP laws. While recent amendments have addressed some critical areas like startup support and data protection, gaps remain in addressing AI-generated works, blockchain technology, and other emerging fields. Continued dialogue and legislative action are crucial to ensure that India's IP framework effectively safeguards creativity and innovation in the face of ongoing technological advancements.

FAQs

A few FAQs are:

Q1. How does Indian law address AI-generated creations?

Currently, Indian copyright law only protects works created by humans. AI-generated works, like text from ChatGPT, are not recognized for copyright protection, requiring substantial human intervention for ownership claims.

Q2. Can AI be listed as an inventor in patent applications in India?

No, the Indian Patents Act 1970 only allows human inventors to be listed on patent applications. AI cannot be recognized as an inventor under current law.

Q3. Can AI-generated brand names or logos be trademarked?

Generally, AI-generated material lacks the originality required for trademark protection under Indian law. Therefore, it is difficult to trademark AI-created brand elements.