Introduction:
In today’s global innovation economy, the internet has become a revolutionary technology that is known to empower consumers and business alike with the blessings of connectivity at all levels. When it comes to E-commerce, intellectual property is perhaps the most neglected, yet the highes value bearing component either because it is less comprehended or its significant connections to E-commerce aren’t evident. E-commerce more than any other platforms often involves in selling of goods and services that are based on IP and its Licensing. Therefore, online business should make sincere efforts to ensure their activities are free from IP risks which might slow down or actually kill their Businesses.
According to Michael Dertouzos foreword in Tim Berners-Lee’s book, Weaving the Web, “Technology is an inseparable child of humanity and that for true progress to occur, the two must walk hand in hand, with neither one acting as servant to the other”
Importance of Intellectual Property in the E-commerce Sector.
Intellectual property law protects against the disclosure of innovative ideas and literary pieces, which comes under copyrights and related right. And also on industrial property like patents, inventions, trademarks, industrial design, Geographical Indication and trade secrets which further signifies protection against unfair competition. This makes Intellectual Property as an asset which is more valuable than owning a tangible asset. This is most clearly visible in the field of technology and the digital economy. If there are no intellectual practices and statutes governing the functioning of IP laws, there would have been no new creation of works and hard work of someone could be stolen and it would have spread around the world without paying any cost to its creator for his labour on the invention.
Since 1995, India has been a member of the World Trade Organisation (WTO) and thus considers some WTO IPR in its national Laws. These specific laws are also part of IPR on E-commerce, in India. Moreover, the IPR on E-commerce aim to regulate and protect individual privacy and international flow of data, and so get its shape from the General Data Protection Rules (GDPR), 2018 of the European Union. The thumb rule of IPR in India on E-commerce follows Article 17 of the GDPR-Online Content Sharing Platforms (OCSPs). The ministry for Commerce and Industry, Government of India, considers IPR regulations of WTO, and other globally accepted E-commerce regulations which tally its legal IPR.
Many Online selling E-commerce platforms have already set up mandatory criteria for the sellers to upload brand ownership proof before allowing them to grow or sell their business online. A registered IPR protection makes it easier for the IP owner to prove ownership and take the legal action and proceedings against any infringement activities and protect their assets effectively. However, there are also the domains of businesses dealing with software, web designs, and web content, which are counted under IP in E-commerce.
Intellectual Property is also involved in the working of E-commerce as components like software, chips, networks, designs, routers, etc must be protected to allow the functioning of the internet. All e-commerce business are based on product or patent licensing. Most of them either outsource the development of some components or share technologies using licensing agreements.
Elements granted protection in Intellectual Property:
There are several parts of websites which are vested with the protection of different kinds of Intellectual Property.
- E-commerce systems, search engines or other technical internet tools is granted protection under Patent or Utility models.
- Software includes the text-based HTML code which are used in websites and it is vested with a shield under the Copyrights Act or patents Law, depending upon National law.
- Website Design is protected under copyright.
- All the website content in the form of written material, photographs, graphics, music and videos are protected under Copyrights.
- Databases can be protected by copyright or by sui generis database laws.
- Business Names, Logos, Product Names, domain Names and other signs posted on the website are covered under Trademarks.
- Computer generated Graphic symbols, displays, graphic user interfaces (GUIs) & even webpages are protected under Industrial Design Law.
- Hidden aspects of a website like ( confidential graphics, source code, object code, algorithms, programs or other technical descriptions, data flow charts, logic flow charts, user manuals, data structures and database contents) are protected under Trade law Secrets.
The two primary areas which are in relation with Intellectual property which must be taken care of are:
- Safeguarding your own intellectual property.
- Safeguarding Essential Components.
- Violating someone else’s intellectual property.
- Protecting products and patent licenses.
- Safeguarding patent portfolios and trademarks.
In India the precedent with relation to E-commerce, Jurisdictional and Intellectual Property Infringement related issues was laid down in World Wrestling Entertainment, Inc. v. M/s.Reshma Collection & Ors. This case, involved a plaintiff company incorporated under the laws of the State of Delaware, USA engaged in the business of licensing and sale of branded consumer products. The defendant was a company incorporated in Mumbai. The Delhi High Court while reversing the order of a single judge laid down that jurisdiction in e-commerce cases involving trademark and copyright disputes would be determined by the buyer’s place of residence.
Conclusion:
There is no denying that the fair and ethical compliance of digital practices and activities cannot be achieved without Intellectual Property Laws, especially in the field as diverse and dynamic as E-commerce and retail. IPR in E-commerce helps protect businesses that operate on online platforms. Since the online retail space is growing at an exponential rate, intellectual Property Rights help Companies safeguard and maintain their secret trade activities. Intellectual Property Rights in E-commerce also allow IPR owners to claim a share of the company’s Profits. As such it should be said that IPR in E-commerce protects activities in the E-commerce field. However, the success rate depends entirely on the practical implementation of Intellectual Property Rights.
