Legal Question in Intellectual Property in India

Intellectual property rights in a consultancy organization

My organization gets designs and drawings developed for our clients. The organization merely loans the drawings and designs and retains its rights. There is no clause in the service conditions that intellectual property created during the employment shall be company property (A public sector organization).

I feel that intellectual property created is my property. Similar to agreement between my organisation and client, the itellectual property is merely loaned, basic rights remain with the creater. Payment, if any, is made for one time use only. Company can claim rights over it only if the intellectual property is amortized and paid for the amortized amount.

Please Comment


Asked on 5/16/02, 8:51 am

4 Answers from Attorneys

Umesh Bhagwat Bhagwat&Co.

Re: Intellectual property rights in a consultancy organization

To give you proper advice I need to see the employment agreement between you and the company as well as the company and the client.

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Answered on 5/16/02, 9:57 pm
Mahesh T. Pai M. A. T. Pai & Mahesh T. Pai

Re: Intellectual property rights in a consultancy organization

What exactly are you driving at? That you are the owner of the IP created by you for your company? Guess you are in for a disappointment, since unless the contract with your employer specificies, IP on the work donw by you for your employer vests in the EMPLOYER.

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Answered on 5/18/02, 7:04 am
Kamal Verma Kamal V. Verma & Associates

Re: Intellectual property rights in a consultancy organization

Dear Sir,

I am sorry to inform you that any person who

develops designs for clients does not automatically

become the owner of designs or drawings unless

there is specific written agreement otherwise.

Regards,

Kamal V. Verma & Co.

Advocates, Trademarks & Patent Attorneys,

T.H.X. - 48,

ADIPUR - KUTCH,

GUJARAT - 370 205,

INDIA.

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Answered on 5/17/02, 11:48 am
Ramaswami Natarajan Ramaswami & Associates

Re: Intellectual property rights in a consultancy organization

I thank you for your mail.

I'm afraid that you may be wrong.

Please see section 17(dd) of the Copyright Act which is reproduced below for your benefit.

"Section 17.First owner of copyright - Subject to the provisions of this Act, the author of a work shall be the first owner of the copyright

therein;

Provided that-

(a) in the case of a literary, dramatic or artistic work made by the author in the course of his employment by the proprietor of a newspaper, magazine or similar periodical under a contract of service or apprenticeship, for the purpose of publication in a newspaper, magazine or similar periodical, the said proprietor shall, in the absence of any

agreement to the contrary, be the first owner of the copyright in the work in so far as the copyright relates to the publication of the work in any newspaper, magazine or similar periodical, or to the reproduction of the work for the purpose of its being so published, but in all other respects the author shall be the first owner of the copyright in the work;-----

(d) in the case of a Government work, Government shall, in the absence of any agreement to the contrary, be the first owner of the copyright therein ;

(dd) in the case of a work made or first published by or under the direction or control of any public undertaking such public undertaking shall, in the absence of any agreement to the contrary, be the first owner of the copyright therein.

Explanation.-For the purposes of this clause and section 28A, "public undertaking" means-

(i) an undertaking owned or controlled by Government; or

(ii) a Government Company as defined in section 617 of the Companies Act, 1956; or

(iii) a body corporate established by or under any Central, Provincial or State Act.]"

Given this, your assumption is wrong. All that you have is a right to demand that the Organization publish your name as the author or designer or inventor when applying for registration as the human being behind the work for you to claim the benefit of such work later for your future employment purposes and as a case of academic excellence for you.

What the Section provides is that unless there is an agreement that clearly specifies that the ownership will be vested with you, it automatically goes to the employer. Here you clearly mention that there is no such clause in the service agreement as regards the owenership of the intellectual work. Hence it must be deemed to belong to the organziation and not be vested with you automatically.

I hope that this helps.

Thank you.

N. Ramaswami

Advocate

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Answered on 5/16/02, 10:25 am


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