Patent Portfolio, a Wealth Generation Engine

 With each passing day, the ferocity of climate change is growing exponentially. The consequent rise in global temperature has fuelled the demand for green energy. The Corporate Leadership’s commitment to saving our globe from the adversities of climate change holds out a ray of hope. As the shifting the climate unfriendly industrial activities to the third world are bringing global climate changes to their worst, it seems time has been reaffirmed that the world is round!

In the year 2021 alone, 80 million vehicles were manufactured worldwide. According to a report at present, (in the year 2022) there are 1.446 billion automobiles on our planet.

In the car segment, Japanese Car maker Toyota Motors Corporation is the world leader with 10.5 million cars sold worldwide in 2021.

Toyota Motors Corp is not just investing in technical inventions but also in the sentiments of the local market. It is said that the leader walks an extra mile, it applies to Toyota Motors which chose the domain name www.toyotabharat.com establishes it.

Tata Motors is selling motor vehicles in 125 countries. Tata Motors is India’s biggest automobile manufacturer. The Indian Car maker TATA Motors defines innovation in three segments, design, technology, and quality. 

The depletion of fossil fuels and the harmful effects of fossil fuel usage on human and animal health coupled with the adverse climate change has posed a challenge to the Corporate leadership for finding solutions with the co-existence in harmony with nature.

The research in green fuels has started yielding dividends in the form of hydrogen and electric fuel cells.  Electric and hydrogen fuel cells propelled vehicles have become a reality. The inter-patent relationship map below shows the different dimensions explored in inventions for using Hydrogen as an alternative to fossil fuels:

As a good corporate governance practitioner, Toyota Motors has invested in green fuel R&D. It has evolved over time into a substantial patent portfolio in hydrogen and electric fuel cells. Toyota Motors patented technologies are producing hybrid and pure green fuel-based automobiles.

It is the strategic assertion of monopoly rights in the patent portfolio that makes Toyota Motors the biggest automobile seller.

However, Toyota Motors is not among the top Electric fuel cells patent application filers. In the Electric fuel cells domain, as depicted below, China is the top patent applications filer.

The Tata Group has earned goodwill by practicing the best of corporate governance policies. Tata Motors is a part of the $128 billion worth conglomerate business behemoth The Tata Group. 

In the financial year 2021-22, Tata Motors made the expense of $2.13 billion (Rs 15339 Crore) which amounts to 5.5% of its revenue in research and development (R&D). The 5.5% of revenue as a budget for R&D is well within the developed world range of 5 to 7 percent. The R&D expense is reflected in the launch of a new range of globally competitive automobiles. It has surged both the revenue and the share price of Tata Motors.

Tata Motors holds 5th rank in the top electric fuel cell for automobile patent filing companies.

French automaker Peugeot Citroen Automobile Group, after merging with Fiat Chrysler Automobiles, became Stellantis N.V. a Netherland-based multinational automobile company. It holds the biggest share in the hydrogen fuel cell for automobile patents.

The USA is the biggest car market with the highest per capita car ratio. Both the Toyota Motors and the Tata Motors Hydrogen fuel cell patent filing justifies it:

Presently China is the world leader in filing patent applications for the Hydrogen fuel cell for automobiles.

Out of the 170 patent families, 79 belong to China. In the comparison between the patent families graphs for the electric cells and the hydrogen cells, it becomes clear that China is an emerging green energy superpower.

However, there is no Chinese company with global dominance in the automobile sector. This is reflected in the next graph where French automaker Peugeot Citroen Automobile Group wins the top spot.

Although the picture of green tech is opaque. A complete system of generation to distribution is to be developed. The availability of electricity is also an issue in third-world countries where the fight between demand and supply is mostly won by the demand resulting in long hours of load shedding. Secondly, in third-world countries still, the major source of electricity generation is either hydro or fossil fuels, like coal. So, electricity as green energy in abundance is not a very promising idea for the third world.

The famous merger of luxury brands Jaguar and Land Rover belonging to Ford Motors with Tata Motors for a whopping $2.3 billion in 2006 brought in a lot of intangibles. In the year 2006-07, the gross revenue of Tata Motors was Rs 36987.82 crores. Its revenue in 2021 was Rs 278500 Crores. Although the Jaguar Land Rover revenue went down by 12%, during this time the astronomical growth of 653% is due to the assignment of 9007 patents by JLR as a part of the merger. 

The patent assignment enriched the Tata Motors patent portfolio by bringing in monopolized technology of a premier automobile company. It also helped Tata Motors in quickly build up a new line of world-class automobiles. 

No one has seen the future. Maybe the green viable energy automobile fuel resource would come into Tata Motors' fold in another merger with a company rich in green energy automobile fuel patents. The R&D developments in green fuel-propelled automobiles hold the promise to keep the global temperature rise within 1.5 degree Celsius. 

At this cost, IP is not so Special!

 1.    Article 21: The Constitution of India: No person shall be deprived of his life or personal liberty except according to a procedure established by law. The word life was further elaborated by the Hon’ble Supreme Court in Budhadev Karmaskar V. State of West Bengal, AIR 2011 SC 2636 by holding that the word life in Article 21 means a life of dignity and not just animal life.

2.   In Siddhartharam Salingappa Mhetre V State of Maharashtra, JT 2010 (13) SC 247 it was held by the Hon’ble Supreme Court that the right to life is one of the basic human rights and not even the State has the authority to violate that right.

3.    Justice V.R.KrishnaIyer in Sunil Batra V Delhi Administration 1978 (4) SCC 494 amplifies the jail inmates' atrocities into the following questions: 

·      Does a prison setting, ipso facto, out-law the rule of law, lock out the judicial process from the jail gates and declare a long holiday for the human rights of convicts in confinement, and (to change the metaphor) if there is no total eclipse, what lucent segment is open for judicial justice? 

·      Three inter-related problems project themselves: 

(i)        a jurisdictional dilemma between hands-off prisons and take-over jail administration;

(ii)       a constitutional conflict between detention security and innate liberties; and 

(iii)      the role of processual and substantive reasonableness in stopping brutal jail conditions. 

In such basic situations, pragmatic sensitivity, blighted by the preamble to the Constitution and balancing the vulnerability of caged humans to State torment and the prospect of escape or internal disorder, should be the course for the court to navigate. Late Justice V.R.Krishna Iyer raised the conditions of jail inmates in 1978. Much water has flown in Tames since then and the Apex Court has time and again raised concerns about the jail inmates' condition.

4.    In Rakesh Kumar Paul V. State of Assam, AIR 2017 SC 3948 (3 Judges Bench) in paras 25, 26, 47, it was held that while it is true that merely because a minimum sentence is provided for in a statute it does not mean that only minimum sentence is imposable. Equally, there is also nothing to suggest that only a maximum sentence is impossible. Either punishment can be imposed and even something in between. Where does one strikes the balance? It was held that it is eventually for the court to decide what sentence should be imposed given the range available. Undoubtedly, the Legislature can bind sentencing courts by laying down the minimum sentences (not less than) and it can also lay down the maximum sentences. If the minimum is laid down, the sentencing Judge has no option but to give a sentence ‘not less than’ that sentence provided for. Therefore, words ‘not less than’ occurring in Clause (i) to proviso (a) of Section 167(2) of the Cr.P.C. (and in other provisions) must be given their natural and obvious meaning which is to say, not below a minimum threshold and in case of Section 167 of Cr.P.C. these words must relate to an offense punishable with a minimum of 10 years imprisonment. 

5.    As per Cr.P.C. if an offense is punishable with imprisonment for three years and onwards but not more than seven years, the offense is a Cognizable and non-bailable offense. In the cases where the offense is punishable with imprisonment for less than three years or with a fine only, the offense can be said to be non-cognizable and bailable. 

6.   The Copyright Act, of 1957 does not prescribe mandatory registration of copyright.

7.   Section 63: The Copyright Act: Offence of infringement of copyright or other rights conferred by this Act: Any person who knowingly infringes or abets the infringement of:

(a)  The copyright in a work; or 

(b)  Any other right conferred by this Act, [except the right conferred by Section 53] shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with a fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees. 

Provided that [where the infringement has not been made for gain in course of trade or business] the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of fewer than six months or a fine of fewer than fifty thousand rupees].

8.   Recently on May 20, 2022, the Hon’ble Supreme Court in M/s Knit International V. State of NCT of Delhi, AIROnLine 2022 SC 774 (DB) held that offense under Section 63 of the Copyright Act is a cognizable and non-bailable offense. 

9.   In the bone of contention is the number three. It is the maximum imprisonment for non-cognizable and bailable offenses. Whereas, imprisonment between three and seven years are cognizable and non-bailable offense. Though it has not been explicitly mentioned in the judgment, it appears that the Court has considered the maximum imprisonment with a minimum of fifty thousand fine as the consideration of the copyright infringement as a cognizable and non-bailable offense.

10.  In absence of any legal requirement to secure registration for copyright, it is easy to claim copyright over any copyright subject matter and make an accusation of infringement against anyone.

11.  The balance between the pathetic, inhuman, worthlessness condition against the virtues of fundamental rights in imprisonment and punishment for infringement of copyright wherein the decision between cognizable, non-bailable and non-cognizable, bailable was tough. The ruling empowers police to raid any place and arrest anyone without a warrant. The highhandedness of Police in dealing with the public is not hidden from anyone. It has been left out mentioned in the M/s Knit International ruling that copyright infringement is cognizable and non-bailable only if imprisonment of three years is awarded to the accused. In India going to jail is still a lifelong stigma for the common man. The state machinery's high-handedness is known to all. The M/s Knit International ruling has provided judicial powers to police and a lethal political vendetta weapon to the State. In late Justice V. R. Krishna Iyer's words, declare a long holiday for human rights of (copyright infringement) convicts in confinement, and (to change the metaphor) if there is no total eclipse, what lucent segment is open for judicial justice. 

Vision for India at 100!

 This newsletter is meant to light a knowledge lamp with the knowledge resources at hand. It would be precisely focused to add value to law, including IP laws, in brief notes.

#India is celebrating #AazadikaAmritMahotsav on completing 75 years of #independence from British Raj. #Freedom is the most cherished virtue of all living beings. Therefore, the celebration of #AmritMahotsav is imperative. 

The census happens in the first year of the beginning of a decade in India. According to the census of 1951, the literacy rate was merely 18.33% with a 12.3% gap in gender literacy rate. With this poor literacy, #India wins her independence. 

With the present 77% literacy rate, the challenges are many to set the vision for celebrating 100 years of independence with a 100% literacy rate. In the 21st century, knowledge has emerged as the most powerful #empowerment tool. To balance the rights and duties of the citizens, the Constitution of India provides fundamental rights with directive principles.

The #AazadikaAmritMahotsav is in its concluding days as India, proudly also known as Bharat, is just two weeks away from the next independence day on August 15th. At the dawn of an Independent India, literacy was one of the foremost challenges. After crossing the 75% literacy rate, it is high time to make the citizens' law literate. It would be helpful in shedding darkness and opaqueness from our public governance system under which corruption-like evils cultivate and public money gets looted. The suffering of millions of Indians would not end until a high legal literacy rate is achieved. 

May the mission #LegalLitracy revolutionize the largest democracy in establishing #Democracy2.0.