Social Links

"You can easily add us on any social Website"

Intellectual property in E-Commerce

E-commerce is the second half of our daily lives as we are so much into using the digital modes of trading and thus the need for “Intellectual Property” arises. IP is a term which we use for the industrial property and matters related to copyrights, trademarks etc. It includes the protection of patents, industrial designs and geographical indications. It also includes the protection of utility models, trade dress and layout-designs or topographies of integrated circuits, where such protection exists, and protection against unfair competition including/or protection of undisclosed information/trade secrets. The value of the intellectual property is way too much high as compared to the physical property.


“Future of E-commerce in on based on INTERNET and to maintain the growth of the brand we have to use the IP to safeguard our growth and to maintain the customers in the market.”


Benefits of IP in E-commerce



IP is really a type of property or asset, just as valuable (or more valuable) than physical or real property, even though it may be intangible, like knowledge. The value of IP assets relative to physical assets has increased because of the importance of technology and creative works in the modern economy. IP consists of new ideas, original expressions, distinctive names, and appearance that make products unique and valuable. IP is often traded (or licensed) in its own right without trading in the value of an underlying product or service, by means of patent or other IP licenses from a rights owner to another.1


There are several reasons why IP is important to E-Commerce and e-commerce is important to IP. E-Commerce, more than other business systems, often involves selling products and services that are based on IP and its licensing.  Music, pictures, photos, software, designs, training modules, systems, etc. can all be traded through E-Commerce, in which case, IP is the main component of value in the transaction. IP is important because the things of value that are traded on the Internet must be protected, using technological security systems and IP laws, or else they can be stolen or pirated and whole businesses can be destroyed.


IP is involved in making the E-Commerce transactions work in an easier manner. The systems that allow the Internet to function - software’s, networks, designs, chips and switches, the user interface, and so on - are forms of Intellectual Property and often protected by IP rights. E-


Commerce business, as branding, customer recognition and good will, essential elements of Web-based business, are protected by trademarks and other IP rights to overcome unfair competition law.


E-Commerce businesses and Internet related businesses are based on product or patent licensing. This is because so many different technologies are required to create a product that companies often outsource the development of some component of products, or share technologies through licensing arrangements. If every company had to develop and produce all technological aspects of every product independently, development of high technology products would be impossible. The economics of E-Commerce depends on companies working together to share, through licensing, the opportunities and risks of business. Many of these companies are SMEs.


E-Commerce based businesses usually hold a great deal of their value in IP; so the valuation of your E-Commerce business will be affected by whether you have protected your IP. Many E-Commerce  companies,  like  other  technology  companies,  have patent  portfolios  and trademarks that enhance the value of their business.





1.   Trademark


2.   Copyright


3.   Design


4.   Patent



E-Commerce needs every possible IP’s to protect them and to make their customers aware of their brand. As now a day’s various rival groups of the companies have started duplicate websites and apps just to harm the original company. To overcome such problem the government suggested to register your business name, ideas, layouts, technology so that no one else could use them without asking the owner. Even companies sell their patents also and earn money by issuing licences to the other small companies just like a franchise chain of IP’s.


➢  Trademark



It   is   a   cognizable sign, design,   or expression which   identifies products or services of   a particular source from those of others, although trademarks used to identify services are usually called service marks. The trademark owner can be an individual, business organization, or


any legal entity. A trademark may be located on a package, a label, a voucher, or on the product itself.  For  the  sake  of corporate  identity,  trademarks  are  often  displayed  on  company buildings.2


➢  Copyright


It is a legal right created by the law of a country that grants the creator of original work exclusive rights only he can enjoy as per his wish for its use and distribution. This is usually only for a limited time after that it becomes public. The exclusive rights are not absolute but limited by limitations and exceptions to copyright law, including fair use. A major limitation on copyright is that copyright protects only the original expression of ideas, artistry, literary work and not the underlying ideas themselves.

➢  Design


Design is a outlook of a company LOGO or the website or any their brand name, design is generally made to make the product identical from its colour combination and looks only. So that the customer does not face much problem in choosing the right product from the variety of similar products.


E-commerce companies needs all kinds of IP’s and the most important is the PATENTS, E- commerce websites came up with various new ideas time to time and to save their research and hard work the research is registered under Patent


➢  Patents are not just for large companies but for small companies also who wishes to expand. Patents are not only for high technology. Some of the most successful E- Commerce  companies  have  used  patents  for  business  methods  and  low  –  tech inventions.


➢  There are probably more benefits from the patents. These benefits are not only for E-Commerce companies, but are especially important in E-Commerce. This is because E-Commerce is closely linked to subjects that have recently, in countries where patent

protection is available for these areas of technology, been the subject of vigorous patent activity and without which the world will not work in such an easier manner: telecommunications, semiconductors, business methods and software.

➢  Patents in E-Commerce are important because of the amount of licensing, contracting

out, outsourcing, and strategic relationships involved in E-Commerce.

➢  Companies want to consider whether to implement an Employee Invention Incentive Program in their company. Such programs are common, in particular in countries that do not provide for legislation on remuneration for employee inventions, in larger

companies and usually involve a bonus in stock and/or cash given to an employee or team of employees who produce inventions. The awards are usually given in stages, with a small award given at the time an invention disclosure is filed by the employee with the person in the company who is responsible for this task, another given at the time the patent application is filed, and another one given when the patent issues, with the largest incentive given last. Public announcements and award ceremonies are good ways to boost morale and encourage creativity.

Thus Intellectual property plays an important role in the day to day functioning of the companies whether small or large scale. IP helps the companies to grow and to safeguard their research and hard work so that others could not misuse that particular work which was registered under the intellectual property.


Submitted by LP Team

Social Links

"You can easily add us on any social Website"