Which of the following is true about the intellectual property aspects of social media?

TRIPS :WHAT ARE IPRS

What are intellectual property rights?

Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.

Intellectual property rights are customarily divided into two main areas:

(i) Copyright and rights related to copyright. back to top

The rights of authors of literary and artistic works (such as books and other writings, musical compositions, paintings, sculpture, computer programs and films) are protected by copyright, for a minimum period of 50 years after the death of the author.

Also protected through copyright and related (sometimes referred to as “neighbouring”) rights are the rights of performers (e.g. actors, singers and musicians), producers of phonograms (sound recordings) and broadcasting organizations. The main social purpose of protection of copyright and related rights is to encourage and reward creative work.

(ii) Industrial property. back to top

Industrial property can usefully be divided into two main areas:

• One area can be characterized as the protection of distinctive signs, in particular trademarks (which distinguish the goods or services of one undertaking from those of other undertakings) and geographical indications (which identify a good as originating in a place where a given characteristic of the good is essentially attributable to its geographical origin).

  The protection of such distinctive signs aims to stimulate and ensure fair competition and to protect consumers, by enabling them to make informed choices between various goods and services. The protection may last indefinitely, provided the sign in question continues to be distinctive.

• Other types of industrial property are protected primarily to stimulate innovation, design and the creation of technology. In this category fall inventions (protected by patents), industrial designs and trade secrets.

  The social purpose is to provide protection for the results of investment in the development of new technology, thus giving the incentive and means to finance research and development activities.

  A functioning intellectual property regime should also facilitate the transfer of technology in the form of foreign direct investment, joint ventures and licensing.

  The protection is usually given for a finite term (typically 20 years in the case of patents).

While the basic social objectives of intellectual property protection are as outlined above, it should also be noted that the exclusive rights given are generally subject to a number of limitations and exceptions, aimed at fine-tuning the balance that has to be found between the legitimate interests of right holders and of users.

Latest Intellectual Property Rights (IPRs) MCQ Objective Questions

Intellectual Property Rights (IPRs) Question 1:

Under which type of agreement royalty is paid on the basis of sale?

1. Mining
2. Patent
3. Copy right
4. Licensing

Answer (Detailed Solution Below)

Option 3 : Copy right

The correct answer is Copyright

Key Points Royalty:

• A user must pay a royalty to the owner of the asset or object over which the owner has certain privileges.
• The owner and the user of such property or rights prepare a royalty agreement.
• If money is paid to acquire the property or right, it will be considered a capital expense rather than a royalty.

Important Points

Royalty on Copyright:

• The author (on his book(s), the photographer (of his images), or any other creator of such creative works has a legal right under copyright.
• Based on the sale made by the publisher, a copyright royalty is paid by the publisher (lessor) of a book to the author (lessor) of that book or to the photographer.

 Additional Information

 Royalty on Patent:

• An invention is a product or a technique that, in general, offers a new way of doing something or presents a new technical solution to a problem.
• A patent is an exclusive right awarded for an invention.
• The patent royalty agreement specifies what is being licensed (e.g. a patented product or technique), how the licensee can use it (to manufacture, use or sell the product), and for how long and under what terms they can use it.

Royalty on Mining:

• The lessee of a mine or quarry pays royalty to lessor of the mine or quarry, which is generally based on the production or output basis.

Intellectual Property Rights (IPRs) Question 2:

Under copyright agreement the amount of royalty is computed on the basis of

1. Number of books published
2. Number of books sold
3. Total cost of books published
4. Total sale price of the books sold

Answer (Detailed Solution Below)

Option 4 : Total sale price of the books sold

The correct answer is Total sale price of the books sold.

Key PointsCopyright -

• The legal right of the owner of intellectual property is referred to as copyright.
• The right to copy is the simplest definition of copyright.
• This indicates that the only people who have the sole right to reproduce a work are the original authors of that work and anyone to whom they grant permission.

Important PointsRoyalty - A legally binding payment granted to an individual or business in exchange for continued use of their assets, such as copyrighted works, franchises, and natural resources, is known as a royalty.

Either production or sales are used as the foundation for calculating royalties. The manufacturing account is debited for royalties paid on production whereas the P/L account is charged for royalties received on sales.

Thus, Under copyright agreement the amount of royalty is computed on the basis of Total sale price of the books sold.

Intellectual Property Rights (IPRs) Question 3:

Given below are two statements:

Statement l: Patents are defined as monopoly rights which one granted by the government, for full disclosure of invention for a limited period of time, that is for 20 years

Statement II: The purpose of granting patents is to encourage inventions by promoting their protection and utilization so as to contribute to the development of Industries

In light of the above statements, choose the most appropriate answer from the options given below

1. Both Statement l and Statement II are correct
2. Both Statement I and Statement II are incorrect
3. Statement is correct but Statement It is incorrect
4. Statement I is incorrect but Statement II is correct

Answer (Detailed Solution Below)

Option 1 : Both Statement l and Statement II are correct

The correct answer is Both Statement l and Statement II are correct

Important PointsStatement l: Patents are defined as monopoly rights which one granted by the government, for full disclosure of invention for a limited period of time, that is for 20 years

Explanation:

• A patent is an exclusive right awarded for an invention is a product or a technique that, in general, gives a new way of doing something or provides a new technical solution to a problem.
• The protection is granted for a limited period, generally 20 years from the filing date of the application.
• Hence, Statement I is true.

Statement II: The purpose of granting patents is to encourage inventions by promoting their protection and utilization so as to contribute to the development of Industries.

Explanation:

• The purpose of granting patents itself is to not only encourage innovation but also ensure that the inventions are worked in India and are made available to the public in sufficient quantity at reasonable prices.
• Hence, Statement II is true.

Intellectual Property Rights (IPRs) Question 4:

Consider the following real-life example. 

If a person uses someone’s song as background music in his/her music video then could be an act a person is an example of:

1. Copyright Infringement
2. Identity theft
3. Hacking 
4. Cyber bullying

Answer (Detailed Solution Below)

Option 1 : Copyright Infringement

The correct answer is option 1.

Concept:

​Copyright Infringement:

The unauthorized use of someone else's copyrighted work is called copyright infringement. As a result, it is the unauthorized use of another person's copyrighted work, infringing on the copyright holder's rights to reproduce, distribute, exhibit, or perform the protected work.

Explanation:

Consider the following real-life example. 

If a person uses someone’s song as background music in his/her music video then could be an act a person is an example of copyright infringement. 

• Copyright infringement occurs when a third party infringes on the copyright holder's rights, such as the exclusive use of a work for a specified period of time.
• Music and movies are two of the most well-known kinds of entertainment that are subjected to substantial copyright violations. Infringement lawsuits may result in contingent liabilities, or funds set aside in the event of a lawsuit.

Hence the correct answer is Copyright Infringement.

Additional Information

• Hacking is the act of unauthorized access to a computer, computer network, or any digital system. Hackers usually have the technical expertise in hardware and software.
• Identity thieves increasingly use personal information stolen from computers or computer networks, to commit fraud by using the data gained unlawfully.
• Cyberbullying is bullying with the use of digital technologies. It can take place on social media, messaging platforms, gaming platforms, and mobile phones.

Intellectual Property Rights (IPRs) Question 5:

Consider the following real-life exam:

PersonX is free to record a TV program to view it later, but if he transfers or distributes it PersonY. This act of PersonX is an example of:

1. Hacking
2. Identity theft
3. Copyright Infringement
4. Cyber bullying

Answer (Detailed Solution Below)

Option 3 : Copyright Infringement

The correct answer is option 3.

Concept:

​Copyright Infringement:

The unauthorized use of someone else's copyrighted work is called copyright infringement. As a result, it is the unauthorized use of another person's copyrighted work, infringing on the copyright holder's rights to reproduce, distribute, exhibit, or perform the protected work.

Explanation:

Consider the following real-life example. 

PersonX is free to record a TV program to view it later, but if he transfers or distributes it PersonY. So the given example is copyright Infringement. 

• Copyright infringement occurs when a third party infringes on the copyright holder's rights, such as the exclusive use of a work for a specified period of time.
• Music and movies are two of the most well-known kinds of entertainment that are subjected to substantial copyright violations. Infringement lawsuits may result in contingent liabilities, or funds set aside in the event of a lawsuit.

Hence the correct answer is Copyright Infringement.

Additional Information

• Hacking is the act of unauthorized access to a computer, computer network, or any digital system. Hackers usually have the technical expertise in hardware and software.
• Identity thieves increasingly use personal information stolen from computers or computer networks, to commit fraud by using the data gained unlawfully.
• Cyberbullying is bullying with the use of digital technologies. It can take place on social media, messaging platforms, gaming platforms, and mobile phones.

Intellectual Property Rights (IPRs) protect the use of information and ideas that are of

1. Social value
2. Moral value
3. Commercial value
4. Ethical value

Answer (Detailed Solution Below)

Option 3 : Commercial value

Intellectual Property Rights (IPRs) protect the use of information and ideas that are of Commercial Value.

The four types of intellectual property rights include:

1. Trade Secrets
2. Trademarks
3. Copyrights, and 
4. Patents

The Economic and Commercial Value of Intellectual Property Rights (IPRs): IPRs as a Means of Protecting Business Interests, Encouraging Innovation and Technology Transfer and Promoting Trade and Investment. 

• The valuation of IP is therefore essential in the framework of commercial transactions. Unfortunately, this aspect is often overlooked by businesses not experienced with these types of deals resulting in transactions that are either overvalued or undervalued and therefore unprofitable or sometimes disastrous situations leading to bankruptcy
• It is therefore essential to analyze and assess the value of the intellectual property during the negotiation process, before the conclusion of the commercial transaction
• A brand is generally subject to trademark protection. 
• Technology can be subject to patent, industrial design, and/or copyright protection
• Other types of intellectual property may also exist

Intellectual Property Rights (I.P.R.) in India covers

1. Patents
2. Copyrights
3. Trademarks
4. All of the above

Answer (Detailed Solution Below)

Option 4 : All of the above

The correct answer is All of the above.

• IPR is a general term covering patents, copyright, trademark, industrial designs, geographical indications, protection of layout design of integrated circuits.

Key Points

• India has laws covering various areas of Intellectual Property as enumerated herein below:
  • Trade Marks
  • Patents
  • Copyrights and Related Rights
  • Industrial Designs
  • Geographical Indications
  • Layout Designs of Integrated Circuits
  • Plant Varieties
  • Information Technology and Cybercrimes
  • Data Protection

Important Points

• Following acts deal with the protection of intellectual property:
  • ​Trade Marks Act, 1999
  • The Patents Act, 1970 (as amended in 2005)
  • The Copyright Act, 1957
  • The Designs Act, 2000
  • The Geographical Indications of Goods (Registration and Protection) Act, 1999
  • The Semiconductor Integrated Circuits Layout Design Act, 2000
  • The Protection of Plant Varieties and Farmers' Right Act, 2001
  • The Information Technology Act, 2000

Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R). 

Assertion (A): Trademark registration gives exclusive proprietary rights to the trademark owner. 

Reason (R): A trademark is a recognizable sign, design or expression which identifies products or services of a particular source from those of others. and are used to claim exclusive proprietary rights of products or services. 

In light of the above statements. choose the correct answer from the options given below : 

1. Both (A) and (R) are true and (R) is the correct explanation of (A)
2. Both (A) and (R) are true but (R) is NOT the correct explanation of (A)
3. (A) is true but (R) is false
4. (A) is false but (R) is true

Answer (Detailed Solution Below)

Option 1 : Both (A) and (R) are true and (R) is the correct explanation of (A)

A trademark registration gives exclusive proprietary rights to the trademark owner. It is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others, and are used to claim exclusive proprietary rights of products or services. 

1. A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others.
2. A service mark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of a service rather than goods.
3.  Some examples include brand names, slogans, and logos. The term "trademark" is often used in a general sense to refer to both trademarks and service marks.  
4.  Trademarks are generally considered a form of intellectual property and may or may not be registered.

Both (A) and (R) are true and (R) is the correct explanation of (A).

Under copyright agreement the amount of royalty is computed on the basis of

1. Number of books published
2. Number of books sold
3. Total cost of books published
4. Total sale price of the books sold

Answer (Detailed Solution Below)

Option 4 : Total sale price of the books sold

The correct answer is Total sale price of the books sold.

Key PointsCopyright -

• The legal right of the owner of intellectual property is referred to as copyright.
• The right to copy is the simplest definition of copyright.
• This indicates that the only people who have the sole right to reproduce a work are the original authors of that work and anyone to whom they grant permission.

Important PointsRoyalty - A legally binding payment granted to an individual or business in exchange for continued use of their assets, such as copyrighted works, franchises, and natural resources, is known as a royalty.

Either production or sales are used as the foundation for calculating royalties. The manufacturing account is debited for royalties paid on production whereas the P/L account is charged for royalties received on sales.

Thus, Under copyright agreement the amount of royalty is computed on the basis of Total sale price of the books sold.

Arrange the following procedure for the grant of patent in a proper sequence:

(A) The true and first owner shall apply in form I and legal representative of true owner shall apply in form II

(B) A complete specification shall be filled with a fee of Rs. 50/- within 12 months from the date of filing of application

(C) The first inventor of the work who claims to be true and first owner or his legal representative

(D) For each invention separate application for a patent shall be made

Choose the correct answer from the options given below:

1. (A), (D), (C), (B)
2. (C), (D), (A), (B)
3. (B), (A), (D), (C)
4. (B), (D), (C), (A)

Answer (Detailed Solution Below)

Option 2 : (C), (D), (A), (B)

The correct answer is (C), (D), (A), (B)

Key Points Patent:

• A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem.
• To get a patent, technical information about the invention must be disclosed to the public in a patent application.
• The term of every patent granted is 20 years from the date of filing of application.

Important Points Procedure for the grant of patent:

 1. The first inventor of the work who claims to be true and first owner or his legal representative.

2. For each invention separate application for a patent shall be made

3. The true and first owner shall apply in form I and legal representative of the true owner shall apply in form II

4. A complete specification shall be filled with a fee of Rs. 50/- within 12 months from the date of filing of application.

Choose the correct code for the following statements being correct or incorrect.

Statement I : Intellectual Property (IP) is a category of property that includes intangible creations of the human intellect.

Statement II : IPR does not include trade secrets and moral rights. 

1. Both the statements I and II are correct.
2. Both the statements I and II are incorrect.
3. Statement I is correct, but II is incorrect.
4. Statement II is correct, but I is incorrect.

Answer (Detailed Solution Below)

Option 3 : Statement I is correct, but II is incorrect.

Statement I: Intellectual Property (IP) is a category of property that includes intangible creations of the human intellect.

Explanation: 

1. Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce.
2.  Intellectual property is an umbrella term for a set of intangible assets or assets that are not physical in nature. 
3. Intellectual property (IP) is a category of property that includes intangible creations of the human intellect.
4. There are many types of intellectual property, and some countries recognize more than others.
5. The most well-known types are copyrights, patents, trademarks, and trade secrets. Thus, the statement I is correct.

Statement II: IPR does not include trade secrets and moral rights. 

Explanation:  

Intellectual property can consist of many types of intangibles, and some of the most common are listed below:

1. Trademarks: Trademarks are the names, phrases, and symbols that differentiate your brand from others in your industry. They must be distinctive and used in commerce to sell or promote a product or service.
2. Copyrights: A copyright grants legal rights to anything you create that expresses or embodies an idea. It gives you exclusive rights to copy, distribute, reproduce, display, and license the work.
3. Patents: Patents are granted for new, useful inventions, and they will give you the right to prevent others from making, using, or selling your invention.
4. Trade Secrets: A trade secret is a piece of confidential business information whose secrecy gives you an advantage over your competitors.
5. Moral Rights: Moral rights are personal legal rights belonging to the creator of copyright works and not be transferred, assigned, or sold. Moral in other words-“Moral rights are the rights individual creators have in relation to copyright works or films they have created.
6. Franchise: A franchise is a license that a company, individual, or party–called the franchisee–purchases allowing them to use a company's–the franchisor–name, trademark, proprietary knowledge, and processes.

Thus, statement II is incorrect.

Option 3 is the correct answer.

Under which type of agreement royalty is paid on the basis of sale?

1. Mining
2. Patent
3. Copy right
4. Licensing

Answer (Detailed Solution Below)

Option 3 : Copy right

The correct answer is Copyright

Key Points Royalty:

• A user must pay a royalty to the owner of the asset or object over which the owner has certain privileges.
• The owner and the user of such property or rights prepare a royalty agreement.
• If money is paid to acquire the property or right, it will be considered a capital expense rather than a royalty.

Important Points

Royalty on Copyright:

• The author (on his book(s), the photographer (of his images), or any other creator of such creative works has a legal right under copyright.
• Based on the sale made by the publisher, a copyright royalty is paid by the publisher (lessor) of a book to the author (lessor) of that book or to the photographer.

 Additional Information

 Royalty on Patent:

• An invention is a product or a technique that, in general, offers a new way of doing something or presents a new technical solution to a problem.
• A patent is an exclusive right awarded for an invention.
• The patent royalty agreement specifies what is being licensed (e.g. a patented product or technique), how the licensee can use it (to manufacture, use or sell the product), and for how long and under what terms they can use it.

Royalty on Mining:

• The lessee of a mine or quarry pays royalty to lessor of the mine or quarry, which is generally based on the production or output basis.

Given below are two statements:

Statement l: Patents are defined as monopoly rights which one granted by the government, for full disclosure of invention for a limited period of time, that is for 20 years

Statement II: The purpose of granting patents is to encourage inventions by promoting their protection and utilization so as to contribute to the development of Industries

In light of the above statements, choose the most appropriate answer from the options given below

1. Both Statement l and Statement II are correct
2. Both Statement I and Statement II are incorrect
3. Statement is correct but Statement It is incorrect
4. Statement I is incorrect but Statement II is correct

Answer (Detailed Solution Below)

Option 1 : Both Statement l and Statement II are correct

The correct answer is Both Statement l and Statement II are correct

Important PointsStatement l: Patents are defined as monopoly rights which one granted by the government, for full disclosure of invention for a limited period of time, that is for 20 years

Explanation:

• A patent is an exclusive right awarded for an invention is a product or a technique that, in general, gives a new way of doing something or provides a new technical solution to a problem.
• The protection is granted for a limited period, generally 20 years from the filing date of the application.
• Hence, Statement I is true.

Statement II: The purpose of granting patents is to encourage inventions by promoting their protection and utilization so as to contribute to the development of Industries.

Explanation:

• The purpose of granting patents itself is to not only encourage innovation but also ensure that the inventions are worked in India and are made available to the public in sufficient quantity at reasonable prices.
• Hence, Statement II is true.

Which one of the followings is not included in the term "Work" under copyright Act 1957?

1. A Cinematographic fillm
2. Layout designs of integrated circuits
3. A sound recording
4. A dramatic work

Answer (Detailed Solution Below)

Option 2 : Layout designs of integrated circuits

Layout designs of integrated circuits is not included in "Work" under copyright Act 1957. 

Key Points

Copyright

• Copyright is a right given by the law to creators of literary, dramatic, musical and artistic works and producers of cinematograph films and sound recordings.
• In fact, it is a bundle of rights including, inter alia, rights of reproduction, communication to the public, adaptation and translation of the work. There could be slight variations in the composition of the rights depending on the work.

 Copyright Act,1957:

• The Copyright Act, 1957 protects original literary, dramatic, musical and artistic works and cinematograph films and sound recordings from unauthorized uses.
• Unlike the case with patents, copyright protects the expressions and not the ideas. There is no copyright in an idea.

Important Points Classes of works for which copyrights protection is available in India

• Original literary, dramatic, musical and artistic works
• Cinematograph films; and
• Sound recordings.

Hence, Layout designs of integrated circuits are not included in "Work" under Copyright Act 1957

The first offence for infringement of copyright can be for a maximum of imprisonment for a term of

1. 6 month and a fine of Rs. 20,000
2. 3 years and a fine of Rs. 50,000
3. 3 years and a fine of Rs. 2,00,000
4. 1 year and a fine of Rs. 3,00,000

Answer (Detailed Solution Below)

Option 3 : 3 years and a fine of Rs. 2,00,000

The correct answer is 3 years and a fine of Rs. 2,00,000

Key Points Copyright Act, 1957​:

• In the year 1957 to protect intellectual property rights, this law was implemented across the country by making the Copyright Act.
• Copyright is a type of intellectual property that protects original works of authorship once they are fixed in a tangible form of expression by the author.
• Under this, books, painting, sculpture, cinema, music, computer programs, Advertising, maps and technical illustrations are included. 

Important Points Section 6, Copyright Act 1957:

Section 63 of the Act provides that any person who knowingly infringes or abets the infringement of-

• the copyright in a work, or
• any other right conferred by this Act except the right conferred by section 53A

shall be punishable with imprisonment for a term which shall not be less than 6 months but which may extend to 3 years and with fine which shall not be less than Rs.50,000/- but which may extend to Rs. 2 lakhs.  

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