Patent

A patent is a form of intellectual property that gives the owner the legal right to exclude others from making, using, selling and importing an invention for a limited period of years, in exchange for publishing an enabling public disclosure of the invention. In most countries patent rights fall under civil law and the patent holder needs to sue someone infringing the patent in order to enforce his or her rights. In some industries patents are an essential form of competitive advantage; in others they are irrelevant.

The procedure for granting patents, requirements placed on the patentee, and the extent of the exclusive rights vary widely between countries according to national laws and international agreements. Typically, however, a patent application must include one or more claims that define the invention. A patent may include many claims, each of which defines a specific property right. These claims must meet relevant patentability requirements, such as novelty, usefulness, and non-obviousness.

Under the World Trade Organization’s (WTO) TRIPS Agreement, patents should be available in WTO member states for any invention, in all fields of technology, provided they are new, involve an inventive step, and are capable of industrial application. Nevertheless, there are variations on what is patentable subject matter from country to country, also among WTO member states. TRIPS also provides that the term of protection available should be a minimum of twenty years.

The word patent originates from the Latin patere, which means “to lay open” (i.e., to make available for public inspection). It is a shortened version of the term letters patent, which was an open document or instrument issued by a monarch or government granting exclusive rights to a person, predating the modern patent system. Similar grants included land patents, which were land grants by early state governments in the USA, and printing patents, a precursor of modern copyright.

In modern usage, the term patent usually refers to the right granted to anyone who invents something new, useful and non-obvious. Some other types of intellectual property rights are also called patents in some jurisdictions: industrial design rights are called design patents in the US, plant breeders’ rights are sometimes called plant patents, and utility models and Gebrauchsmuster are sometimes called petty patents or innovation patents.

The additional qualification utility patent is sometimes used (primarily in the US) to distinguish the primary meaning from these other types of patents. Particular species of patents for inventions include biological patents, business method patents, chemical patents and software patents.

  • Patentable

To qualify for a patent, the invention must meet three basic tests. First, it must be novel, meaning that the invention did not previously exist. Second, the invention must be non-obvious, which means that the invention must be a significant improvement to existing technology. Simple changes to previously known devices do not comprise a patentable invention. Finally, the proposed invention must be useful. Legal experts commonly interpret this to mean that no patent will be granted for inventions that can only be used for an illegal or immoral purpose.

Some types of discoveries are not patentable. No one can obtain a patent on a law of nature or a scientific principle even if he or she is the first one to discover it. For example, Isaac Newton could not have obtained a patent on the laws of gravity, and Albert Einstein could not have patented his formula for relativity, E=mc2.

Under the law of the European Patent Convention (EPC), patents are only granted for inventions which are capable of industrial application, which are new and which involve an inventive step. An invention may be defined as a proposal for the practical implementation of an idea for solving a technical problem. An invention is capable of industrial application if it can be made or used in any kind of industry, including agriculture, as distinct from purely intellectual or aesthetic activity.

An invention is said to be new if, prior to the date of filing or to the priority date accorded to the application from an earlier application for the same invention, it was not already known to the public in any form (written, oral or through use), ie it did not form part of the state of the art. An invention is said to involve an inventive step if, in the light of what is already known to the public, it is not obvious to a so-called skilled person, i.e someone with good knowledge and experience of the field.

Under the Indian patent law a patent can be obtained only for an invention which is new and useful. The invention must relate to a machine, article or substance produced by manufacture, or the process of manufacture of an article. A patent may also be obtained for an improvement of an article or of a process of manufacture. In regard to medicine or drug and certain classes of chemicals no patent is granted for the substance itself even if new, but a process of manufacturing and substance is patentable. The application for a patent must be true and the first inventor or the person who has derived title from him, the right to apply for a patent being assignable.

  • Non Patentable

Some inventions cannot be patented. Under the law of the European Patent Convention (EPC) the list of non-patentable subject-matter includes methods of medical treatment or diagnosis, and new plant or animal varieties. Further information on such fields can be obtained from a patent attorney. Nor may patents be granted for inventions whose exploitation would be contrary to public order or morality (obvious examples being land-mines or letter-bombs).The following are not regarded as inventions: discoveries; scientific theories and mathematical methods; aesthetic creations, such as works of art or literature; schemes, rules and methods for performing mental acts, playing games or doing business; presentations of information; computer software.

Under the Indian law the following are non patentable (as mentioned under section 3 and 5 of Indian Patents Act, 1970):

An invention which is frivolous or which claims anything obvious contrary to well established natural laws. An invention the primary or intended use of which would be contrary to law or morality or injurious to public heath. The mere discovery of a scientific principle or the formulation of an abstract theory.

The mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus unless such known process results in a new product or employs at least one new reactant.

A substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof or a process for producing such substance The mere arrangement or re-arrangement or duplication of known devices each functioning independently of one another in a known way. A method or a process of testing applicable during the process of manufacture for rendering the machine, apparatus or other equipment more efficient or for the improvement or restoration of the existing machine, apparatus or other equipment or for the improvement or control of manufacture.

A method of agriculture or horticulture. Any process for the medicinal, surgical, curative, prophylactic or other treatment of human being or any process for a similar treatment of animals or plants to render them free of disease or to increase their economic value or that of their products.

No Patent shall be granted in respect of an invention relating to Atomic energy. Claiming substances intended for use, or capable of being used, as food or as medicine or drug Relating to substance prepared or produced by chemical processes (including Alloys, optical glass, semiconductor and inter-metallic compounds), no patent shall be granted in respect of claims for the substances themselves, but claims for the methods or processes of manufacture shall be patentable. The criteria under the US laws are also quite similar as above. Books, movies, and works of art cannot be patented, but protection is available for such items under the law of copyright.

  • Rights in a Patent

Patent registrations confers on the rightful owner a right capable of protection under the Act i.e. the right to exclude others from using the invention for a limited period of time. The monopoly over patented right can be exercised by the owner for a period of 20 years after which it is open to exploitation by others.

Patent confers the right to manufacture, use, offer for sale, sell or import the invention for the prescribed period.

Time Period for which Patent is granted:

Initially, the Act provided for a shorter term pf protection for medicine or drug substances. However, vide the Amendment Act of 2005 uniform period of 20 years was provided for all the Patents. Thus, once the prescribed period of 20 years is over, then any person can exploit the patented invention. Here it would be relevant to mention that similar to a trademark even the term of a patent begins from the date of application of patent.

Requirements for Grant of Patent:

  1. The application for Patent shall be made at the Indian Patent Office.
  2. Any person i.e. Indian or a Foreigner, individual, company or the Government can file a Patent Application.
  • The person applying for Patent shall be the true and first inventor of the invention proposed to be patented.
  1. The patent application can also be made jointly.
  2. The patent application shall primarily disclose the best method of performing the invention known to the applicant for which he is entitled to claim protection.
  3. The applicant shall also define the scope of invention.
  • The invention desired to be patented shall be- new, should involve an inventive step and must be capable of industrial application.
  • A patent application can be made for a single invention only.
  1. An international application made under the PCT (Patent Co-operation Treaty) designating India shall be deemed as an application made under the Patents Act with the priority date accruing from the date of the international filing date accorded under the PCT.

Invention under the Patent Act:

The Act under Section 2(1)(j) defines “invention” as a new product or process involving an inventive step capable of industrial application.

The term “industrial application” refers to capable of industrial application in relation to an invention means that the invention is capable of being made or used in an industry. One of the pre-requisite of invention is that it should be new i.e. the invention proposed to be patented has not been in the public domain or that it does not form part of the state of the art.

Under the Patent Act, both processes and products are entitled to qualify as inventions if they are new, involve an inventive step and are capable of industrial application.

Requirements to Qualify as Invention:

  1. The Invention must be new
  2. Invention must involve an inventive step
  • The invention must be capable of industrial application or utility;
  1. The invention shouldn’t come under the inventions which are not patentable under Section 3 and 4 of the Patent Act, 1970;

Non-patentable inventions are enumerated under Section 3 and 4 of the Patent Act. Such inventions are delineated below:

  • Any Invention which is frivolous or which claims anything obviously contrary to well established natural laws is not patentable.
  • Inventions which are contrary to public order or morality is not patentable.
  • An idea or discovery cannot be a subject matter of a patent application.
  • Inventions pertaining to known substances and known processes are not patentable i.e. mere discovery of a new form of a known substance which does not enhance the known efficacy of that substance is not patentable.
  • An invention obtained through a mere admixture or arrangement is not patentable.
  • A method of agriculture or horticulture cannot be subject matter of patent.
  • A process involving medical treatment of human and animals or to increase their economic value cannot be subject matter of a patent.
  • Plants and animals in whole or in part are not patentable.
  • A mathematical or business method or a computer program per se or algorithms is excluded from patent protection.
  • Matters that are subject matter of copyright protection like literary, dramatic, musical or artistic work is not patentable.
  • Any scheme or rule.
  • Presentation of information
  • Topography of integrated circuits.
  • Traditional knowledge.
  • Inventions relating to atomic energy.

Infringement of Patent:

Infringement of Patent primarily refers to intrusion or violation of the rights of a Patentee against which the Patentee has statutory rights under the Act.

The factors that are essential in determining infringement of a Patent are as under:

  1. While determining infringement it has to be assessed whether the infringing activity fell within the scope of the invention. Thus, the infringement has to be determined with regard to what has been claimed as invention under the Patent Act by applying the principles or standards of construction.
  2. To determine whether the infringing activity violated any statutory rights conferred to the Patentee under the Act. In this respect reference can be made to Section 48 of the Act which enumerates the rights of the Patentee with respect to a product patent and process patent.
  3. To determine the infringer i.e. the person liable for the infringement.
  4. To determine whether the infringing act fell within the acts which do not amount to infringement under the Patents Act i.e. excluded acts of Government use, use of patented product or process for experiment or research, import of medicine or drug by Government and patents in foreign vessels and aircrafts.

Trademarks, Functions, Types, Laws in India

Trademark is a unique symbol, word, phrase, logo, design, or combination that identifies and distinguishes the goods or services of a particular business from others in the market. It serves as a form of intellectual property, providing legal protection against unauthorized use by others. Trademarks play a crucial role in building brand identity, trust, and customer loyalty. Registered trademarks offer exclusive rights to the owner, ensuring recognition and preventing confusion among consumers. Examples include iconic logos like the Nike Swoosh or McDonald’s Golden Arches. Trademarks are protected under specific laws, such as the Trademarks Act in many countries.

Functions of Trademark in India:

1. Identification of Goods and Services

The primary function of a trademark is to identify the source or origin of goods and services. A trademark helps consumers distinguish the products of one business from those of another. Under the Trade Marks Act, 1999, a trademark may consist of a word, name, symbol, logo, label, shape, packaging, or combination thereof. By serving as a unique identifier, a trademark enables consumers to recognize products in the marketplace easily. This function reduces confusion among buyers and helps businesses establish a distinct identity. It is essential for fair competition and consumer protection.

2. Distinguishing Products from Competitors

A trademark distinguishes the goods or services of one enterprise from those of competing businesses. In a competitive market, many products may appear similar in quality, appearance, or purpose. A trademark allows consumers to identify the specific producer or service provider. This distinguishing function prevents confusion and assists consumers in making informed purchasing decisions. The Trade Marks Act, 1999 grants legal protection to trademarks, ensuring that competitors cannot unlawfully use identical or deceptively similar marks. This function promotes fair competition and protects the commercial interests of trademark owners.

3. Indication of Quality

A trademark often serves as an indicator of the quality associated with goods or services. Consumers develop expectations regarding product quality based on their experience with a particular trademark. When a trademark consistently represents reliable products, consumers become confident in their purchasing decisions. This function encourages businesses to maintain high standards in production and service delivery. Under trademark law, the goodwill associated with a mark is legally protected. The quality indication function benefits both consumers and businesses by fostering trust, reliability, and long term customer relationships in the marketplace.

4. Creation of Goodwill and Reputation

A trademark helps create and maintain goodwill and reputation for a business. Through consistent use and quality performance, a trademark becomes associated with consumer trust and satisfaction. Goodwill is an intangible asset that contributes significantly to the value of a business. The Trade Marks Act, 1999 protects trademarks against unauthorized use that may damage the owner’s reputation. This function enables businesses to establish a positive image in the market and attract loyal customers. Strong goodwill enhances brand recognition and provides a competitive advantage in commercial activities.

5. Advertising and Promotional Tool

A trademark serves as an effective advertising and promotional tool. Businesses use trademarks in advertisements, packaging, websites, and marketing campaigns to attract consumers and build brand awareness. A distinctive trademark helps consumers remember products and services more easily. Continuous promotion of a trademark increases market visibility and strengthens consumer recognition. The legal protection provided by the Trade Marks Act, 1999 ensures that businesses can exclusively benefit from the reputation developed through advertising efforts. This function contributes significantly to marketing success and business growth.

6. Protection of Consumer Interests

Trademarks play an important role in protecting consumer interests by helping consumers identify genuine products and services. When consumers recognize a trademark, they can make informed choices based on prior experience or reputation. Trademark protection reduces the risk of confusion, deception, and purchase of counterfeit products. Under the Trade Marks Act, 1999, unauthorized use of registered trademarks is prohibited, thereby safeguarding consumers from misleading goods and services. This function promotes transparency in commercial transactions and strengthens consumer confidence in the marketplace.

7. Legal Protection Against Infringement

A trademark provides legal protection to its owner against unauthorized use by others. Once registered under the Trade Marks Act, 1999, the proprietor obtains exclusive rights to use the trademark concerning specified goods or services. If another person uses an identical or deceptively similar mark without permission, the owner may initiate legal proceedings for infringement. This function safeguards the business identity and reputation associated with the trademark. Legal protection encourages innovation, investment, and brand development by ensuring that businesses can enjoy the benefits of their commercial efforts.

8. Facilitating Business Expansion

A trademark facilitates business expansion by establishing a recognizable identity that can be used across different markets and product lines. Consumers often prefer products bearing familiar trademarks due to established trust and reputation. Businesses can introduce new products or services under the same trademark and benefit from existing goodwill. The Trade Marks Act, 1999 protects this valuable commercial asset and allows businesses to expand without fear of unauthorized imitation. This function supports growth, diversification, and long term commercial success in domestic and international markets.

9. Creation of Commercial Value

A trademark is a valuable intellectual property asset that creates commercial value for a business. Strong trademarks attract customers, increase brand loyalty, and contribute to revenue generation. Over time, a well known trademark may become one of the most valuable assets of an enterprise. It can be licensed, assigned, franchised, or used as security in financial transactions. The Trade Marks Act, 1999 recognizes trademarks as legally protectable property rights. This function enhances the economic value of a business and contributes to its overall profitability.

10. Prevention of Unfair Competition

A trademark helps prevent unfair competition by protecting businesses against imitation and deceptive practices. Competitors may attempt to use similar marks to benefit from the reputation and goodwill of an established brand. Trademark law prevents such conduct by granting exclusive rights to the registered proprietor. Under the Trade Marks Act, 1999, infringement and passing off actions can be brought against unauthorized users. This function promotes fair trade practices, encourages healthy competition, and ensures that businesses compete based on quality, innovation, and service rather than deception.

Types of Trademark:

1. Product Mark

A Product Mark is a trademark used in relation to goods or products manufactured or sold by a business. It helps consumers identify the source and origin of specific goods and distinguishes them from similar products of competitors. Product marks are generally registered under Classes 1 to 34 of the trademark classification system. Examples include trademarks used on food products, clothing, electronics, and medicines. Under the Trade Marks Act, 1999, the owner of a registered product mark enjoys exclusive rights to use the mark in relation to the specified goods and can take legal action against infringement.

2. Service Mark

A Service Mark is a trademark used to identify and distinguish services rather than physical goods. It enables consumers to recognize the provider of a particular service and differentiate it from competitors. Service marks are registered under Classes 35 to 45 of the trademark classification system. Examples include trademarks used by banks, insurance companies, educational institutions, hotels, and telecommunication service providers. The Trade Marks Act, 1999 provides legal protection to service marks in the same manner as product marks. Service marks help build reputation, goodwill, and consumer confidence in service-oriented businesses.

3. Collective Mark

A Collective Mark is a trademark used by members of an association, organization, or cooperative society to indicate membership and distinguish their goods or services from those of non-members. The mark is owned by the association and used according to prescribed regulations. Under the Trade Marks Act, 1999, collective marks help consumers identify products or services originating from members of a particular group. Such marks promote common standards, quality, and reputation among members. They are especially useful for professional associations, trade organizations, and cooperative societies seeking collective recognition in the marketplace.

4. Certification Mark

A Certification Mark is used to certify that goods or services meet specific standards relating to quality, origin, material, mode of manufacture, or performance. The owner of the certification mark does not trade in the certified goods or services but authorizes others to use the mark if they satisfy prescribed standards. Under the Trade Marks Act, 1999, certification marks provide assurance to consumers regarding the quality and characteristics of products or services. Examples include marks indicating compliance with safety, environmental, or quality standards. Such marks enhance consumer confidence and market credibility.

5. Shape Mark

A Shape Mark protects the distinctive shape of goods or their packaging when such shape identifies the source of the product. The shape must be unique and capable of distinguishing one trader’s goods from those of others. Under the Trade Marks Act, 1999, a shape mark can be registered if it is not functional and has acquired distinctiveness among consumers. Examples include uniquely shaped bottles, containers, or product designs. Shape marks provide legal protection against imitation and help businesses maintain their brand identity. They are particularly valuable in industries where product appearance influences consumer choice.

6. Sound Mark

A Sound Mark is a trademark consisting of a distinctive sound, tune, jingle, or musical note that identifies the source of goods or services. The sound must be capable of distinguishing one business from another and should be represented in a manner prescribed by trademark rules. Under the Trade Marks Act, 1999, sound marks are eligible for registration if they possess distinctiveness. Examples include signature tunes used by broadcasting companies, mobile service providers, or entertainment businesses. Sound marks enhance brand recognition and create a unique identity that consumers can easily associate with a business.

7. Word Mark

A Word Mark consists of words, letters, numerals, or combinations thereof used to identify goods or services. It provides protection to the textual element of a trademark regardless of the style, font, size, or colour in which it is displayed. Under the Trade Marks Act, 1999, registration of a word mark grants broad protection because the proprietor obtains exclusive rights over the word itself. Word marks are among the most common forms of trademarks. They help establish brand identity, enhance consumer recognition, and prevent unauthorized use of similar names in commerce.

8. Device Mark or Logo Mark

A Device Mark or Logo Mark consists of a graphical design, symbol, artistic representation, or logo used to identify a business, product, or service. Unlike a word mark, protection is granted to the visual appearance of the mark. Under the Trade Marks Act, 1999, a logo can be registered if it is distinctive and capable of distinguishing goods or services. Device marks play an important role in branding because visual symbols are often easily recognized by consumers. They strengthen brand identity and provide legal protection against unauthorized imitation or misuse.

9. Well Known Trademark

A Well Known Trademark is a mark that has acquired extensive recognition and reputation among a substantial segment of the public. Under Section 2(1)(zg) of the Trade Marks Act, 1999, a well known trademark enjoys special protection even for unrelated goods or services. Such marks are widely associated with a particular business due to long use, extensive advertising, and consumer recognition. Courts and the Trademark Registry consider various factors while determining well known status. This protection prevents others from exploiting the reputation and goodwill associated with a famous trademark.

10. Trade Dress

Trade Dress refers to the overall visual appearance of a product or its packaging, including shape, colour combinations, design, layout, and presentation that distinguish it from competitors. Although not specifically defined in the Trade Marks Act, 1999, trade dress is protected through trademark principles if it has acquired distinctiveness and identifies the source of goods or services. Trade dress protection prevents competitors from copying the unique appearance of products in a manner likely to cause consumer confusion. It helps preserve brand identity, market reputation, and consumer recognition in commercial activities.

Laws of Trademark in India:

1. Trade Marks Act, 1999

The Trade Marks Act, 1999 is the principal legislation governing trademarks in India. It provides for the registration, protection, assignment, licensing, and enforcement of trademark rights. The Act defines a trademark under Section 2(1)(zb) and grants exclusive rights to registered proprietors under Section 28. It also contains provisions relating to infringement, passing off, well known trademarks, collective marks, and certification marks. The Act aims to protect business goodwill, prevent consumer confusion, and promote fair competition. It replaced the earlier Trade and Merchandise Marks Act, 1958, and remains the foundation of trademark law in India.

2. Trade Marks Rules, 2017

The Trade Marks Rules, 2017 were framed under the Trade Marks Act, 1999 to regulate procedural aspects of trademark administration. The Rules prescribe procedures for filing applications, examination, publication, opposition, registration, renewal, assignment, and rectification of trademarks. They also recognize modern forms of trademarks such as sound marks and simplify electronic filing procedures. The Rules provide detailed requirements regarding forms, fees, and documentation. Their objective is to make trademark registration more efficient, transparent, and accessible. The Rules support effective implementation of the Trade Marks Act and improve the functioning of the trademark registration system.

3. Trademark Registration Provisions

Trademark registration in India is governed primarily by Sections 18 to 26 of the Trade Marks Act, 1999. A trademark application must be filed with the Trade Marks Registry in the prescribed form. After examination and publication, the mark may be registered if no valid opposition exists. Registration grants the proprietor exclusive rights to use the trademark in relation to specified goods or services. The registration is valid for ten years and is renewable indefinitely. Registration provides stronger legal protection and facilitates enforcement actions against infringement. It also serves as evidence of ownership and proprietary rights.

4. Rights Conferred by Registration

Under Section 28 of the Trade Marks Act, 1999, registration grants the proprietor the exclusive right to use the trademark concerning the goods or services for which it is registered. The proprietor can prevent unauthorized use of identical or deceptively similar marks and may institute legal proceedings for infringement. Registration strengthens the legal position of the owner and protects the goodwill associated with the mark. These rights are subject to limitations and conditions specified in the Act. The provision promotes brand protection, consumer confidence, and fair commercial practices in the marketplace.

5. Infringement of Trademark

Trademark infringement is governed by Sections 29 and 30 of the Trade Marks Act, 1999. Infringement occurs when a person uses a registered trademark or a deceptively similar mark without authorization in a manner likely to cause confusion among consumers. The registered proprietor may seek remedies such as injunctions, damages, accounts of profits, and seizure of infringing goods. The law protects the exclusive rights of trademark owners and prevents misuse of established goodwill. Trademark infringement provisions encourage fair competition and ensure that consumers are not misled regarding the source of goods or services.

6. Passing Off Action

Passing off is a common law remedy available even when a trademark is not registered. The principle protects the goodwill and reputation of a business against misrepresentation by others. A passing off action can be brought when a person falsely represents goods or services as being associated with another business, causing confusion and damage. The essential elements are goodwill, misrepresentation, and resulting damage. The Trade Marks Act, 1999 recognizes passing off rights under Section 27(2). This remedy protects unregistered trademarks and prevents unfair commercial practices that may deceive consumers.

7. Assignment and Transmission of Trademarks

The transfer of trademark ownership is governed by Sections 37 to 45 of the Trade Marks Act, 1999. A registered trademark may be assigned or transmitted with or without the goodwill of the business. Assignment involves voluntary transfer by agreement, while transmission occurs by operation of law, such as inheritance. Proper registration of the transfer is required to establish ownership rights. These provisions enable trademarks to be treated as valuable intellectual property assets. They facilitate commercial transactions, mergers, acquisitions, and succession planning involving trademark rights.

8. Licensing and Registered Users

The Trade Marks Act, 1999 permits trademark owners to allow others to use their trademarks through licensing arrangements. Under Sections 48 to 55, a person authorized to use a trademark may be registered as a registered user. Licensing enables businesses to expand market presence while maintaining control over product quality and brand reputation. The registered proprietor continues to retain ownership of the trademark. Licensing provisions are important in franchising, distribution, and commercial collaborations. They help maximize the economic value of trademarks while ensuring continued consumer trust in the brand.

9. Well Known Trademarks Protection

The protection of well known trademarks is provided under Section 2(1)(zg) and other provisions of the Trade Marks Act, 1999. A well known trademark is a mark that has acquired significant reputation and recognition among the public. Such trademarks receive broader protection, even against use on unrelated goods or services. Courts and authorities consider factors such as duration of use, advertising, and public recognition while determining well known status. This protection prevents dilution of reputation and unauthorized exploitation of goodwill. It safeguards famous brands and strengthens consumer confidence.

10. Civil and Criminal Remedies

The Trade Marks Act, 1999 provides both civil and criminal remedies for trademark violations. Civil remedies include injunctions, damages, accounts of profits, and delivery of infringing goods. Criminal remedies are available for falsifying trademarks, applying false trademarks, and selling goods bearing counterfeit marks. Offenders may face imprisonment, fines, or both. These remedies serve as a deterrent against infringement and counterfeiting. Effective enforcement protects the rights of trademark owners, preserves brand value, and safeguards consumers from deceptive and fraudulent products in the marketplace.

Infringement and Passing Off

Trademark infringement

Section 29 of the Trademark Act, 1999 provides remedy in cases of trademark infringement. The statutory provision also enlists the circumstances under which a mark is infringed:

  1. Infringement of a mark occurs when a person not being registered proprietor uses a mark which is identical or deceptively similar to a registered mark in relation to goods or services in respect of which the trademark is registered.
  2. When a person not being a registered proprietor uses a registered trademark which because of its identity with registered trademark and similarity with goods or services is likely to cause confusion in public.
  3. When a person not being registered proprietor of a mark uses mark which is identical or similar to the registered trademark in relation to similar goods or services and the registered mark has a reputation in India.
  4. A registered trademark is infringed by a person if he uses such registered trademark as part of his trade name of his business concern dealing in goods or services in respect of which the trade mark is registered.
  5. A registered trademark is infringed by any advertising of that trademark if such advertising takes unfair advantage and is detrimental to its distinctive character.

Cases on Trademark Infringement

When mark adopted by Defendant is identical to Plaintiff’s registered trademark

If on comparison of the trademarks of the two parties in case the trademark adopted by the Defendant is identical to that of the Plaintiff, the Plaintiff may not be required to prove anything further. Section 29 of the Trademark Act, 1999 statutorily mandates so as well. However, when the two marks are not identical, then the plaintiff would be required to establish that the mark used by the defendant so nearly resembles the plaintiff’s registered trademark as is likely to deceive or cause confusion in the minds of the consumer public.

Onus to prove infringement on Plaintiff

The Supreme Court in the case of Kaviraj Pandit Durga Dutt case held that in an action for infringement the onus would be on the Plaintiff to establish that the trade mark used by the defendant in the course of trade in the goods in respect of which his mark is registered, is deceptively similar.

How can the Plaintiff establish that the Defendant’s mark is identical or resembles the Plaintiff’s mark?

This issue was elaborately discussed by the Delhi High Court in the case of Atlas Cycle Industries Ltd. v. Hind Cycles Limited, wherein the Court stated that in a case of trademark infringement, the plaintiff may establish that its trademark is identical with or so nearly resembles the plaintiff’s work either visually or phonetically or otherwise, that it is likely to deceive or cause confusion in relation to the case in respect of which the plaintiff got his mark registered.

Thus, if the essential features of the trade mark of the plaintiff have been adopted by the defendant, the fact that there are some additional features in the defendant’s mark which show marked differences is immaterial in an action for infringement.

Trademar Passing-off

Section 27 of the Act  recognizes common law rights of the trademark owner to take action against any person for passing of goods as the goods of another person or as services provided by another person or remedies thereof. The remedy made available under Section 27 of the Act protects the rights of the proprietor of an unregistered trademark to register complaint against another person for passing off his goods as goods the goods of proprietor. An unregistered proprietor of trademark can also oppose an application for registration on grounds as enumerated under Section 11 of the Act.

In an action of passing off, the Plaintiff has to establish prior use to secure an injunction and that the registration of the mark or similar mark in point of time, is irrelevant.

Lord Oliver in the case of Reckitt & Colman Products Ltd. v. Borden Inc. enumerated three elements for a successful passing off action:

  • Goodwill owned by a trader
  • Misrepresentation
  • Damage to goodwill

Thus, the passing action is essentially an action in deceit where the common law rule is that no person is entitled to carry on his or her business on pretext that the said business is of that of another.

Tests in the case of passing off– The Supreme Court in the case of Cadila Healthcare Ltd. v. Cadila Pharmaceutical Ltd., laid down the test of passing off and observed that a passing off action depends upon the principle that nobody has a right to represent his goods as the goods of some body. In other words a man is not to sell his goods or services under the pretence that they are those of another person. As per Lord Diplock in Erwen Warnink BV v. J.Townend & Sons[, the modern tort of passing off has five elements, namely

  • A misrepresentation
  • Made by a trader in the course of trade
  • To prospective customers of his or ultimate consumers of goods or services supplied by him
  • Which is calculated to injure the business or goodwill of another trade (in the sense that this is a reasonably foreseeable consequence), and
  • Which causes actual damage to a business or goodwill of the trader by whom the action is brought or (in a quia timet action) will probably do so.

Further in the case of Corn Products Refining Co. v. Shangrila Food Products Ltd., it was observed that the principle of similarity could not to be very rigidly applied and that if it could be prima facie shown that there was a dishonest intention on the part of the defendant in passing off goods, an injunction should ordinarily follow and the mere delay in bringing the matter to Court was not a ground to defeat the case of the plaintiff.

Is fraud an essential element of passing-off?

According to Kerly Law of Trademarks– Passing off cases are often cases of deliberate and intentional misrepresentation, but it is well-settled that fraud is not a necessary element of the right of action, and the absence of an intention to deceive is not a defence though proof of fraudulent intention may materially assist a plaintiff in establishing probability of deception. The burden to prove passing off is on the Plaintiff or goods, besides the essential features which are sufficient to distinguish the same from that of the plaintiff. Thus, while in an action for infringement of a registered trade mark the plaintiff has to establish either an use of his registered trade mark as such or of an identical mark or of a deceptively similar mark by the defendant, he has to establish in an action for passing off that the defendant’s mark or goods are such that the defendant can pass off his goods as those of the plaintiff.

Difference between Trademark Infringement and Passing Off

The difference between a passing off action and an action for trademark infringement was expounded by the Delhi High Court in the case of Cadbury India Limited and Ors. v. Neeraj Food Products as under:

  • An action for passing off is a common law remedy whereas an action for trademark infringement is a statutory remedy.
  • Passing off action in essence is an action of deceit that is, a passing off by a person of his own goods as those of another whereas in case of infringement, the Plaintiff on account of being registered proprietor of the disputed trademark, claims to have an exclusive right to use the mark in relation to those goods.
  • The use by the defendant of the trademark of the plaintiff may be prerequisite in the case of an action for infringement while it is not an essential feature of an action for passing off.
  • If the essential features of the trademark of the plaintiff have been adopted by the defendant, the fact that the getup, packing and other writing or marks on the goods or on the packets in which the defendant offers his goods for sale show marked differences or indicate clearly a trade origin different from that of a registered proprietor of the mark, would be immaterial for the case of infringement of the trademark. The liability of the defendant for such infringement may be absolute. In the case of passing off, the defendant may escape liability if he can show that the added material is sufficient to distinguish his goods from those of the plaintiff.

The distinction between passing off and infringement was examined by Judge Clauson in the case of Listen Ltd. V. Harley, wherein he opined that if you are restraining the infringement of a registered mark, you can restrain the man from using the mark; but, restrain him from selling the articles under the label containing that word without clearly distinguishing his goods from the goods of the Plaintiff is quite a different thing.

The Supreme Court in a recent case of S. Syed Mohideen v. P. Sulochana Bai, stated that passing off right is a broader remedy than that of infringement. This is due to the reason that the passing off doctrine operates on the general principle that no person is entitled to represent his or her business as business of other person. The said action in deceit is maintainable for diverse reasons other than that of registered rights which are allocated rights under the Act.

Copyright, Features, Laws

Copyright is a legal right granted to the creator of original works such as literary, artistic, musical, dramatic, cinematographic, or software content. It gives the creator exclusive rights to reproduce, distribute, perform, display, or license their work, usually for a specific period (in India, lifetime of the author plus 60 years). Copyright protects the expression of ideas, not the ideas themselves. It encourages creativity by ensuring that authors and artists can benefit financially and morally from their creations while preventing unauthorized use or reproduction by others.

Features of Copyright:

  • Protection of Original Work

Copyright protects original literary, artistic, musical, dramatic, cinematographic, and computer software works. Originality means the work must originate from the author and involve minimal creativity, even if it’s simple. The protection is automatic upon creation and does not require registration, although registration serves as legal evidence in disputes. Importantly, copyright safeguards the expression of ideas, not the idea itself, ensuring that creators receive legal recognition and protection for the unique way they express their thoughts or concepts.

  • Exclusive Rights of the Creator

Copyright grants exclusive rights to the creator or copyright holder to use, reproduce, distribute, adapt, perform, or display their work. These rights allow the owner to control how their work is used commercially and non-commercially. The creator can also license or transfer rights to others for royalty or profit. These exclusive rights act as a strong incentive for creative professionals by offering them both economic benefits and moral recognition for their contributions to art, literature, science, and technology.

  • Moral Rights

In addition to economic rights, copyright includes moral rights, which ensure the personal connection between the creator and the work. These rights include the right of attribution (to be identified as the author) and the right of integrity (to object to distortion or modification of the work that could harm the creator’s reputation). Moral rights are independent of ownership and usually remain with the author even after the work is sold or licensed. They emphasize respect for the creator’s dignity and identity.

  • Automatic Protection

Copyright protection is automatic upon the creation of an original work fixed in a tangible form—such as written, recorded, or saved digitally. No registration is needed to obtain copyright, although official registration is beneficial for legal proof in case of infringement. This feature helps simplify the process of securing rights and ensures that all creators, regardless of financial means, receive immediate legal protection. It fosters a more inclusive environment for creativity across cultures and professions.

  • Time-Bound Protection

Copyright is granted for a limited duration, after which the work enters the public domain. In India, this period typically lasts for the lifetime of the author plus 60 years. For works of joint authorship, anonymous works, or corporate authorship, the term may vary. Once the copyright expires, the work can be freely used by the public without permission or payment. This ensures a balance between rewarding creators and enriching the public with creative and cultural resources over time.

  • Transferability and Licensing

Copyright can be assigned or licensed to others, allowing the copyright holder to earn royalties or delegate usage rights. Licensing can be exclusive or non-exclusive and may be limited by time, geography, or purpose. This feature allows creators to commercialize their works without losing ownership, and businesses can use copyrighted content legally through proper agreements. Transferability supports a flexible creative economy and enables collaborative ventures across different industries like publishing, film, music, and education.

  • Legal Remedy for Infringement

Copyright law provides strong legal remedies in case of infringement. Unauthorized reproduction, distribution, or public display of copyrighted work is punishable under the law. Remedies include injunctions, damages, penalties, and seizure of infringing materials. Courts may also award compensation or impose fines depending on the severity of the violation. These enforcement mechanisms ensure that creators’ rights are protected and violators are held accountable, deterring piracy and promoting respect for intellectual property in both physical and digital realms.

Copyright Law in India:

1. Governing Legislation

The law governing copyright in India is the Copyright Act, 1957, which came into force on January 21, 1958. It has been amended six times (notably in 1994 and 2012) to keep up with technological changes and to align with international conventions such as the Berne Convention, TRIPS Agreement, and WIPO treaties.

2. What Copyright Protects

Under the Act, copyright protects original works of authorship, including:

  • Literary works (books, articles, computer programs)

  • Dramatic works (scripts, plays)

  • Musical works (lyrics, scores)

  • Artistic works (paintings, drawings, photographs)

  • Cinematographic films

  • Sound recordings

  • Architectural designs

  • Computer software (as literary works)

Note: Copyright protects the expression of an idea, not the idea itself.

3. Rights Granted by Copyright

The Act provides two types of rights:

a) Economic Rights:

These include the right to:

  • Reproduce the work

  • Distribute copies

  • Perform or communicate the work publicly

  • Translate or adapt the work

  • License the work for profit

b) Moral Rights:

These include:

  • Right of Paternity: To be identified as the author

  • Right of Integrity: To object to distortion or mutilation of the work

4. Duration of Copyright

The general rule is:

  • Literary, musical, artistic, and dramatic works: Lifetime of the author + 60 years

  • Cinematograph films and sound recordings: 60 years from publication

  • Anonymous or pseudonymous works: 60 years from publication

  • Posthumous works: 60 years from the year of publication

5. Copyright Registration

Though registration is not mandatory, it serves as prima facie evidence in court in case of infringement disputes.

  • Applications must be filed with the Copyright Office under the Registrar of Copyrights, Department for Promotion of Industry and Internal Trade (DPIIT).

  • Registered works are entered into the Register of Copyrights.

6. Infringement and Remedies

Copyright infringement includes:

  • Unauthorized reproduction

  • Public performance without permission

  • Selling or distributing pirated copies

  • Uploading or downloading content illegally

Remedies available:

  • Civil: Injunctions, damages, account of profits

  • Criminal: Imprisonment (up to 3 years), fine (up to ₹2 lakh)

  • Administrative: Seizure of infringing goods

7. Fair Use and Exceptions

Certain uses of copyrighted material are allowed under Section 52 as “fair dealing”:

  • For research or private study

  • Criticism or review

  • Reporting current events

  • Educational use

  • Judicial proceedings

8. 2012 Amendment Highlights

The Copyright (Amendment) Act, 2012 made significant changes:

  • Recognized the rights of lyricists and composers in films

  • Enabled royalty sharing in digital media

  • Protected the rights of disabled persons to access content

  • Extended statutory licensing to broadcasters

  • Strengthened anti-piracy measures and digital rights management

9. International Protection

India is a member of several international copyright treaties:

  • Berne Convention (1886)

  • Universal Copyright Convention

  • TRIPS Agreement (WTO)

  • WIPO Copyright Treaty (WCT)

  • WIPO Performances and Phonograms Treaty (WPPT)

Thus, Indian works receive protection in all member countries.

Rights and Restrictions

Many business laws in India precede the country’s independence in 1947. For example, the Indian Contract Act of 1872 is still in force, although specific contracts such as partnerships and the sale of goods are now covered by newer laws. The Partnership Act of 1932 covers partnership firms in India. Business laws regulating chartered accountants and cost accountants were passed in 1949 and 1959, respectively. The Banking Regulation Act of 1949 continues to regulate private banking companies and manage banks in India. In 2012, it was amended by the Banking Law (Amendments) Act. Under these amendments, the Reserve Bank of India (RBI) was given power to restrict voting rights and shares acquisition in a bank. The RBI established the Depositor Education and Awareness Fund. Banks are now able to issue both equity and preference shares under RBI guidelines.

While India is often criticized for complex regulations, it is important to keep in mind that that in some cases, these laws are simpler than those of the U.S. Furthermore, most regulations are consistent across the country, and attorneys in India can practice in any state. Filing lawsuits is seldom productive in most commercial disputes since court cases can drag on for decades and collection can take even longer. For large deals, binding third-country arbitration can be the best way to resolve disputes.

Following India’s economic development in the 21st century, the Ministry of Corporate Affairs passed the Competition Act of 2002 and the Limited Liability Act in 2008. These promote sustainable competition in markets, prohibit anti-competitive business practices, and protect consumer interests while ensuring free trade.

The Parliament of India passes and amends regulations for both businesses and investors. In addition to provisions from the Companies Act of 1956, the Companies Act of 2013 features provisions regarding mergers and acquisitions, board room decision-making, related party transactions, corporate social responsibility, and shareholding. The act was further amended through the Companies Act of 2015 which eliminated the procedural common seal, declarations for commencement of businesses, and minimum paid-up capital requirements. The amendment also relaxed governing-related party transactions while limiting access to strategic corporate resolutions in India.

As a member of the International Labor Organization, India offers protections for employees. These include the Payment of Wages Act of 1936, the Industrial Employment Act of 1946, the Industrial Disputes Act of 1947, the Payment of Bonus Act of 1965, and the 1972 Payment of Gratuity Act. Protections include annual bonuses of 8.33% and separation fees of about 15 days per year of employment. Other labor laws such as the Building and Other Construction Workers Acts of 1996 and the Workmen’s Compensation Act of 1923 (amended in 2000) are in effect. Passed in 1926, the Trade Unions Act deals with the registration, rights, liabilities, and responsibilities of trade unions. The Industrial Disputes Act of 1946 regulates trade unions and matters between industrial employers and employees.

Business laws in India include consumer protection. The Consumer Protection Act, 1986 mandates Consumer Dispute Redressal Forums at local and national levels. Older laws, such as the Standards of Weights & Measures Act of 1956, ensure fair competition in the market and free flow of correct information from providers of goods and services to consumers.

Due to the growth of trade, the Indian government passed the Foreign Trade (Development and Regulation) Act of 1992 to facilitate imports and augment exports. The latest EXIM Policy, known as the Foreign Trade Policy, was issued for April 2015 to March 2020. The Service Exports from India Scheme (SEIS) replaced the Served from India Scheme. The SEIS extends the duty-exempted scrip to Indian service providers and provides notified services in a specified mode outside the country. Under the Export Promotion Capital Goods Scheme, the export obligation requires six times the duty saved on imported capital goods; in the case of local sourcing of capital goods, the export obligation is reduced by 25%. Beyond goods and services, the Foreign Exchange Management Act of 1999 regulates foreign exchange transactions including investments abroad.

As a founding member of the World Trade Organization in 1995, India has updated business laws regarding copyrights, patents, and trademarks to meet the Agreement on Trade Related Aspects of Intellectual Property Rights. Indian companies and the federal government honor global IP rights. However, because music copyrights are different in India, both Indian and Western IP owners in the entertainment industry have suffered due to digital piracy. Even so, there are few IP-related disputes outside of several celebrated pharmaceutical industry cases. In 2013, India’s Supreme Court denied Novartis an extension to update its cancer drug Glivec due to “evergreening” charges.

E-commerce and online expansion of companies prompted India to create regulations to cover cyber law and security compliances, such as the techno legal regulatory provisions in the Companies Act of 2013. The Information Technology Act of 2000 is the primary law for e-commerce regulation in India. In 2008, the IT Act was amended to provide explicit legal recognition of electronic transactions.

Communication Meaning, Importance, Process, Model

Communication is the process of exchanging information, ideas, emotions, and messages between individuals or groups through various channels. It involves a sender transmitting a message, a medium to deliver it, and a receiver who interprets and responds to it. Effective communication can occur verbally, non-verbally, or through written and digital means. It is essential for fostering understanding, building relationships, and facilitating decision-making in personal and professional settings. Communication ensures clarity, coordination, and collaboration, making it a cornerstone of organizational success and human interaction. Feedback, an integral part of communication, ensures the message is understood as intended.

Importance of Communication:

  • Facilitates Exchange of Information

Communication enables the transfer of ideas, knowledge, and instructions within an organization or among individuals. Clear and effective communication ensures that everyone involved is well-informed, which is essential for decision-making and problem-solving.

  • Builds and Maintains Relationships

Strong communication is the foundation of healthy relationships, whether personal or professional. It fosters understanding, trust, and mutual respect. Open and honest communication helps resolve conflicts, strengthen bonds, and enhance collaboration among individuals or teams.

  • Supports Decision-Making

Informed decisions rely on the availability and accuracy of information. Communication ensures that relevant data, opinions, and insights are shared and understood, enabling managers and teams to make sound decisions. This reduces errors and aligns efforts with organizational objectives.

  • Enhances Employee Motivation and Morale

Effective communication between managers and employees fosters a positive work environment. Providing feedback, recognizing achievements, and addressing concerns motivate employees. This leads to improved performance, higher morale, and a sense of belonging within the organization.

  • Ensures Coordination and Teamwork

In organizations, communication is crucial for coordinating efforts across departments and teams. It aligns individual goals with organizational objectives and ensures that everyone works collaboratively. Clear communication minimizes misunderstandings and promotes synergy.

  • Drives Organizational Growth

Communication plays a critical role in implementing strategies, introducing changes, and achieving targets. Through effective communication, organizations can respond to market demands, customer needs, and competitive challenges, driving sustainable growth and success.

  • Facilitates Conflict Resolution

Misunderstandings and disagreements are inevitable, but effective communication helps resolve them amicably. Open dialogue allows parties to express their views, understand each other’s perspectives, and reach mutually beneficial solutions.

  • Promotes Innovation and Creativity

Effective communication encourages the sharing of ideas and perspectives, fostering innovation and creativity. Employees feel empowered to contribute new solutions and approaches, which drive organizational improvement and competitiveness.

Process of Communication:

Communication process involves several steps through which information is transferred from the sender to the receiver, ensuring the message is conveyed accurately and effectively. It is a dynamic, continuous process that facilitates understanding, decision-making, and relationship-building.

  • Sender/Source

The communication process begins with the sender, who is the individual or entity that has a message to convey. The sender identifies the information to be shared and determines how to communicate it to the receiver.

  • Encoding

Encoding is the process of converting the message into a format that can be understood by the receiver. This could involve using words, symbols, images, or body language. The sender decides on the appropriate method, such as verbal, written, or non-verbal communication, based on the nature of the message and the audience.

  • Message

Message is the actual information or content being communicated. It can be a fact, idea, opinion, or instruction. The clarity and relevance of the message are crucial for ensuring it is understood as intended by the receiver.

  • Channel

Channel is the medium through which the message is transmitted. Communication channels can be verbal (face-to-face conversations, phone calls), non-verbal (gestures, body language), or written (emails, reports). The choice of channel depends on the context, urgency, and nature of the message.

  • Receiver

Receiver is the person or group who receives the message. They interpret and decode the information based on their knowledge, experience, and perceptions. The receiver plays a critical role in understanding and responding to the message.

  • Decoding

Decoding is the process by which the receiver interprets or makes sense of the message. The receiver translates the sender’s message into a form that can be understood. This step is influenced by the receiver’s cultural background, language skills, and personal experiences.

  • Feedback

Feedback is the response given by the receiver to the sender. It can be verbal, non-verbal, or written and helps the sender assess whether the message has been understood accurately. Feedback is a vital part of the communication process, as it enables clarification and correction if necessary.

  • Noise

Noise refers to any external or internal interference that disrupts the communication process. It could be physical (such as background noise), psychological (such as preconceived notions), or semantic (such as language barriers). Noise can distort the message, leading to misunderstandings or misinterpretations.

Model of Communication:

Model of Communication is a conceptual framework that explains how information is transmitted between individuals or entities. It illustrates the process of communication, highlighting key components and the flow of messages. There are several models of communication, but one of the most widely recognized is the Shannon-Weaver Model.

1. Shannon-Weaver Model of Communication (1949)

Often called the “Linear Model,” the Shannon-Weaver model focuses on the transmission of a message from a sender to a receiver. It includes the following components:

  • Sender: The originator of the message or information.
  • Encoder: The process of converting the message into a format suitable for transmission (e.g., speech, text, etc.).
  • Message: The information being communicated.
  • Channel: The medium used to transmit the message (e.g., voice, email, social media).
  • Receiver: The individual or group that receives the message.
  • Decoder: The process of interpreting the received message.
  • Noise: Any external or internal factors that interfere with the transmission or understanding of the message (e.g., technical issues, language barriers).

The Shannon-Weaver model emphasizes the linear and one-way nature of communication, though it is often criticized for its lack of feedback in real-time interactions.

2. Berlo’s SMCR Model (1960)

Berlo’s SMCR (Source-Message-Channel-Receiver) model is an extension of the Shannon-Weaver model, adding more detail to each stage:

  • Source: The originator of the message, which involves their communication skills, attitudes, and knowledge.
  • Message: The actual content or subject being communicated, which includes the message’s clarity, structure, and complexity.
  • Channel: The medium used to transmit the message, which may include visual, auditory, or tactile channels.
  • Receiver: The person receiving the message, whose background, experiences, and ability to decode affect how the message is received.

3. Transactional Model of Communication

Transactional Model views communication as a dynamic, two-way process. In this model:

  • Sender and Receiver: Both roles are interchangeable, as both parties simultaneously send and receive messages.
  • Feedback: This model emphasizes the importance of feedback, where the receiver becomes the sender, providing responses to the original sender.
  • Context: The physical, social, and cultural environment in which the communication occurs is crucial in shaping the interaction.
  • Noise: This model also acknowledges the presence of noise, which can affect the quality of communication.

4. Interactive Model of Communication

Interactive Model builds upon the transactional model by incorporating time as a factor. It views communication as a process influenced by the sender’s and receiver’s experiences, attitudes, and societal context. In this model:

  • Encoding and Decoding: These processes involve the sender and receiver, respectively, using their cognitive and emotional resources.
  • Context: The model also includes the broader context of communication, including physical, emotional, and cultural environments.
  • Feedback and Noise: Feedback is ongoing, and noise affects communication during each stage.

5. Helix Model of Communication

Helix Model, introduced by Barnlund, focuses on the continuous nature of communication. Communication is seen as a spiral process, with each interaction building on previous ones. The helix metaphor suggests that communication is ever-evolving and dynamic, where meaning is built over time, based on previous experiences and exchanges.

Emergence of Communication as a Key Concept in the Corporate and Global World

Importance of Communication in Corporate World in Recent Time

In 21st Centuries, business has become highly complex and competitive. To survive one needs the services of specialists are required in every single field. Communication takes place within the organization as well as between the business and outside world. Today professionals have to compete globally and hence they have to be extra cautious while communicating.

In a global world, we have to communicate globally to negotiate, to deal and to reach out the targeted audience. The ability to communicate effectively with others also and along with a variety of different types of personalities are two of the most desirable qualities in job candidates.

Good communicators have complete control of oral and written communication. Today business communication skills are important for executives as businesses in a professional environment require a rapid inflow, and environment need fast inflow and outflow of communication.

Importance of communication in the corporate world is depicted in the following image.

  1. Helps to increase the sale

To increase the sales, a company requires a salesman who is a good communicator, who can sell products, convey company’s ethos and also outlines the values of company to people who will not only buy the products but will become company loyalist. Thus, communication helps to increase sales.

  1. Helps in retaining the client

A company executive must have necessary skills to deal with the customers. This helps in retaining the clients as customers are business lifelines and their concern is very important for the organization to succeed.

  1. Helps to implement strategies

With the help of effective communication organizations can implement strategies. This builds employment commitment toward the organization, and they feel the sense of sharing of responsibility and capabilities.

  1. Helps in corporate branding

Communication has always been the core of the corporate world. Communication between people and company is the core element of a good corporate reputation. Many companies invest millions in strategies, which aim to reinvest their profile in important ways.

  1. Helps to develop global competence

Communication helps to develop an understanding of other regions, lifestyles and culture of all around the world. This helps in overcoming the cross-cultural barriers during the conduct of business.

  1. Helps in crisis management

To handle the economic crisis is the worst. Each person associated with the company needs information and reassurance with proper communication, thus employees can become the strength of the organization. The stockholders should be communicated properly so they do not indulge in panic and sell off their shares.

THE IMPORTANCE OF GLOBAL COMMUNICATIONS IN THE WORLD TODAY

In a globalized world, effective communication is a necessity. When friends, relatives, and colleagues need to reach all corners of the world, it is easy to see the importance of global communications in the world today. Whether you need to connect from Barcelona to Buenos Aires or Boston to Beijing, instant contact has become the norm and expectation. But how did we get here? Just 10 years ago, we were being introduced to new programs called YouTube, Skype, and Facebook. Now these are household names that are used on a daily basis at home and in the office. But in a business environment, there is more to communications than just opening up Skype and connecting to the other side of the planet. Learning the importance of global communications and implementing effective communications policies are key to helping a global organization thrive in this new world.

Global communications is not only the interaction between two employees within your organization. The first step in achieving effective communications is to know your audience. Your entire company profile and history is available to the whole world at the click of a button, making you a sitting duck if you’re not prepared. If you’re not, your company could wind up as the next viral sensation. Communicating with your customers, your suppliers, your stockholders, and many other stakeholders all factor into the global equation. Proper handling of a customer complaint can be just as important whether it is sent to company headquarters or at a local store – one insensitive comment could wind up being viewed by millions on Twitter. Company owners have to be kept informed about the status of the business and employees have to be able to be in constant contact in order to reach deadlines. Even governments need to be involved in your communications strategy, and having a good one can save you a big headache.

Affecting the true meaning of global communications would be the intercultural factor. Now that we expect to do business on multiple continents, understanding the language and cultural difference between two people can bridge gaps and make business transactions much smoother. Even within Europe, making sure your organization understands the business customs of Spain versus Germany will help grow your business. And in a globalized world, it is absolutely vital.

When analyzing the changes in global communications, technology is, by far, the biggest factor. There have been many changes in technology and something new seems to develop every single day. But just because communication has gotten faster and easier doesn’t mean that it’s always a good idea to implement. Video conferencing is a great way to have face-to-face communication while separated by thousands of kilometers. Without the need for travelling, video conferencing can instantly and vastly improve your internal and external communications over what can be done with a phone call. But installing a video conferencing network can be very costly. Is clear and visual communication a necessity worth such an investment or is it just a nice-to-have? How do you go about making a decision like this?

These are just a few of the many issues that affect global communications on a daily basis. And with an ever-growing globalized world, the importance of global communications becomes more evident every year. Studying a Master’s in Communication can help prepare you to understand how to tackle the various issues and make decisions on your communications strategy. With thorough studying of the core concepts and specific examples, you will be able to cope with the ever-changing world and be ready to guide your organization to new heights in a global world.

Impact of Technological Advancement on Communication

Business communications consisted of formal business letters and a conversation in the boss’s office. Today’s technological advances have moved communications into a new realm, where messages are delivered almost instantly, tasks are assigned and managed by computer programs and people are even removed from the communications equation. And while most advances have improved workflow and efficiency, some concerns about the quality of business relationships have surfaced.

Continued Evolution of Email

Perhaps one of the most obvious developments in business communications has been that of direct correspondence through email. Although it’s existed for almost 50 years, email has experienced continual change. It’s gone from being simply a method of sending a message to becoming a means of workflow management. Within an email system users can:

  • Flag priority messages and set tasks for follow-up
  • Program alerts for when messages from VIP senders arrive
  • Send automated responses when out of the office and unable to personally respond

Project Management Systems and Scheduling

Another use of technology in business is the implementation of project management systems for collaboration between employees. Workers no longer need to be in the same building or sit in a lengthy meeting to share their ideas. Whether they’re at the corporate headquarters or working from home, individuals can create task lists, assign work, upload content, set appointments and track progress all in one online application.

Automated Voice Systems Provide Service

Automated voice response systems are another way to provide customer service while allowing employees to stay focused on other tasks. Instead of a “live person,” the automated system handles the call and either directs the customer to the appropriate individual or retrieves data and communicates the basic information requested by the caller. Similarly computer “bots” handle online requests for information through live chats. Customers feel like they are being served by a live representative, but often the site is served by a computer programmed with basic responses to routine questions.

Artificial Intelligence Engages in Marketing

Artificial Intelligence (AI) systems are being used to predict and influence future sales based on consumer preferences. Knowledge of customer preferences in real time can assist marketing departments in determining where to spend their money by tracking trends more closely and adapting promotional and sales efforts. The streaming entertainment industry, for example, suggests additional programming based on shows already being watched. “Because you watched this … you might enjoy this.”

Easy Collaboration with Remote Workers

The gig or freelance industry has also grown dramatically because of technological advancements that allow talented workers to be hired and perform remotely for an organization. Needs can be posted online and workers hired, sometimes within hours. Freelancers can collaborate with managers and employees through project management platforms, without any one-on-one interaction. The cost savings by using contractors adds up as companies save time and effort by not hiring and managing long-term employees.

The Downside of Technology in Communications

Despite the savings to companies, there are some negative effects to this surge in technological integration into business communications. Some studies have shown a decrease in productivity over the long term due to an “always connected” lifestyle fueled by easy access to information. Many employees may never actually take a break from the work routine because they are always checking email or status updates on a project through a mobile app, resulting in high levels of stress and increased illness. Additionally, many workers are lacking in proper sleep, less connected with people outside the office and lacking the ability to relate to each other in face-to-face interactions.

Objective of Communication

Communication is the lifeblood of an organization. It is the vehicle that ensures proper performance of organizational functions and achievement of organizational goals. As a separate field of study, business communication has the following objectives:

  1. To exchange information

The main objective of business communication is to exchange information with internal and external parties. Internal communication occurs within the organization through orders, instructions, suggestions, opinions etc.

  1. To develop plans

Plan is the blueprint of future courses of actions. The plan must be formulated for attaining organizational goals. In order to develop a plan, management requires information. In this regard, the objective of communication is to supply required information to the concerned managers.

  1. To implement the plan

Once a plan is prepared, it is to be implemented. Implementation of a plan requires timely communication with the concerned parties. Thus, communication aims at transmitting a plan throughout the organization for its successful implementation.

  1. To facilitate policy formulation

Policies are guidelines for performing organizational activities. Policies are also termed as standing decisions to recurring problems. Every organization needs to develop a set of policies to guide its operation. Preparing policies also require information from various sources. Therefore, the objective of communication is to collect necessary information for policy formulation.

  1. To achieve organizational goal

Collective efforts of both managers and workers are essential for achieving organizational goals. Communication coordinates and synchronizes the efforts of employees at various levels to achieve the stated goals of the organization.

  1. To organize resources

Various kinds of resources are available in an organization such as human resources, material resources, financial resources and so on. In organizing these resources in an effective and efficient way is a key challenge to the managers. Communication is the vehicle to overcome this challenge.

  1. To coordinate

Coordination is a basic management function. It involves linking the various functional departments of large organizations. Without proper and timely coordination, an achievement of organizational goals is impossible. Therefore, the objective of communication is to coordinate the functions of various departments for the easy attainment of organizational goals.

  1. To direct the subordinates

The job of a manager is to get the things done by others. In order to get the things done, management needs to lead, direct and control the employees. The performance of these managerial functions depends on effective communication with subordinates.

  1. To motivate employees

A pre-requisite of employee motivation is the satisfaction of their financial and non-financial needs. Financial needs are fulfilled thorough monetary returns. However, in order to satisfy non-financial needs, management must communicate with employees on a regular basis both formally and informally.

  1. To create consciousness

Employees of an organization must be conscious regarding their duties and responsibilities. Communication supplies necessary information and makes them conscious about their duties and responsibilities.

  1. To increase efficiency

In order to increase employee efficiency, they should be provided with necessary information and guidelines. Communication supplies such information and guidelines for them.

  1. To bring dynamism

Organizations should be dynamic to cope with the internal and external changes. Bringing dynamism requires finding new and better ways of doing things. For this purpose, communication helps to seek new ideas and suggestions from the internal and external parties.

  1. To improve labor-management is relationships

Harmonious relationship between workers and management is a prerequisite for organizational success. In this regard, the objective of communication is to ensure the free and fair flow of information and to create good understanding between them.

  1. To increase job satisfaction

Communication enhances job satisfaction level of employees. It creates a friendly environment where employees can express themselves. As a result, they become more satisfied with their job.

  1. To convey employee reaction

Communication conveys employees’ reactions, opinions, suggestions, and complaints to their superiors about the plans, policies, programs and strategies of the company.

  1. To orient employee

Communication orients the new employees with the company’s policies, rules, regulations, procedures etc.

Communication Channels

In an organization, information flows forward, backwards and sideways. This information flow is referred to as communication. Communication channels refer to the way this information flows within the organization and with other organizations.

In this web known as communication, a manager becomes a link. Decisions and directions flow upwards or downwards or sideways depending on the position of the manager in the communication web.

For example, reports from lower level manager will flow upwards. A good manager has to inspire, steer and organize his employees efficiently, and for all this, the tools in his possession are spoken and written words.

For the flow of information and for a manager to handle his employees, it is important for an effectual communication channel to be in place.

The Working of a Communication Channel

Through a modem of communication, be it face-to-face conversations or an inter-department memo, information is transmitted from a manager to a subordinate or vice versa.

An important element of the communication process is the feedback mechanism between the management and employees.

In this mechanism, employees inform managers that they have understood the task at hand while managers provide employees with comments and directions on employee’s work.

Importance of a Communication Channel

A breakdown in the communication channel leads to an inefficient flow of information. Employees are unaware of what the company expects of them. They are uninformed of what is going on in the company.

This will cause them to become suspicious of motives and any changes in the company. Also without effective communication, employees become department minded rather than company minded, and this affects their decision making and productivity in the workplace.

Eventually, this harms the overall organizational objectives as well. Hence, in order for an organization to be run effectively, a good manager should be able to communicate to his/her employees what is expected of them, make sure they are fully aware of company policies and any upcoming changes.

Therefore, an effective communication channel should be implemented by managers to optimize worker productivity to ensure the smooth running of the organization.

Types of Communication Channels

The number of communication channels available to a manager has increased over the last 20 odd years. Video conferencing, mobile technology, electronic bulletin boards and fax machines are some of the new possibilities.

As organizations grow in size, managers cannot rely on face-to-face communication alone to get their message across.

A challenge the managers face today is to determine what type of communication channel should they opt for in order to carryout effective communication.

In order to make a manager’s task easier, the types of communication channels are grouped into three main groups: formal, informal and unofficial.

  1. Formal Communication Channels

A formal communication channel transmits information such as the goals, policies and procedures of an organization. Messages in this type of communication channel follow a chain of command. This means information flows from a manager to his subordinates and they in turn pass on the information to the next level of staff.

An example of a formal communication channel is a company’s newsletter, which gives employees as well as the clients a clear idea of a company’s goals and vision. It also includes the transfer of information with regard to memoranda, reports, directions, and scheduled meetings in the chain of command.

A business plan, customer satisfaction survey, annual reports, employer’s manual, review meetings are all formal communication channels.

  1. Informal Communication Channels

Within a formal working environment, there always exists an informal communication network. The strict hierarchical web of communication cannot function efficiently on its own and hence there exists a communication channel outside of this web. While this type of communication channel may disrupt the chain of command, a good manager needs to find the fine balance between the formal and informal communication channel.

An example of an informal communication channel is lunchtime at the organization’s cafeteria/canteen. Here, in a relaxed atmosphere, discussions among employees are encouraged. Also managers walking around, adopting a hands-on approach to handling employee queries is an example of an informal communication channel.

Quality circles, team work, different training programs are outside of the chain of command and so, fall under the category of informal communication channels.

  1. Unofficial Communication Channels

Good managers will recognize the fact that sometimes communication that takes place within an organization is interpersonal. While minutes of a meeting may be a topic of discussion among employees, sports, politics and TV shows also share the floor.

The unofficial communication channel in an organization is the organization’s ‘grapevine.’ It is through the grapevine that rumors circulate. Also those engaging in ‘grapevine’ discussions often form groups, which translate into friendships outside of the organization. While the grapevine may have positive implications, more often than not information circulating in the grapevine is exaggerated and may cause unnecessary alarm to employees. A good manager should be privy to information circulating in this unofficial communication channel and should take positive measures to prevent the flow of false information.

An example of an unofficial communication channel is social gatherings among employees.

In any organization, three types of communication channels exist: formal, informal and unofficial.

While the ideal communication web is a formal structure in which informal communication can take place, unofficial communication channels also exist in an organization.

Through these various channels, it is important for a manager to get his/her ideas across and then listen, absorb, glean and further communicate to employees.

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