module -4 gatt

8/4/2019 Module -4 GATT

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State Policies and

GATT


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Government Intervention

One of the features of modern businessis the increasing involvement of thegovt. in business activities.

It is said that As on today there is nocountry in the world where governmentof the land does not interfere in its

economic activities.


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Reasons for Intervention

When country moves toward economicdevelopment, greater has to be the role ofthe state.

Modern economy must be planned economy Ours is being socialist democratic society,

the govt is compelled to enter directly intoindustrial and commercial activities.

The functions of the govt. which wereoriginally limited to the maintenance of lawand order have considerably expanded.


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Reasons for Intervention

State participation is necessary to lay astrong base for the future development ofindustry and commerce.

The failure of markets invites govt.intervention in an economy.


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Forms of government intervention orTypes of Controls


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1. Formal Control

Formal control are usually those enactedfrom legislation

E.g.: Companies Act 1956, MRTP ACT 1969,Industrial (Development and Regulation) Act1951.

Very powerful intervention technique.


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2. Informal Control

Refer to the controls in which business firmsadopted themselves out of need and custom.

Business firms, in various lines of activity,develop conventions, informal agreementsand accepted ways of doing things that haveimportant regulative implications.


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3. Coercive Controls

Coercive regulations require performance ofcertain actions in order to avoid penalties.

E.g.: Taxes must be paid to avoid fine orimprisonment.


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4. Inductive Controls

Inductive controls holdout a promise ofreward for compliance with the desired lineof action.

E.g. : Subsidies may be granted to stimulatecertain activities.


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5. Direct Controls

Govt. fixes prices of certain goods or servicesto protect consumers.


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6. Indirect Control

By using indirect measures govt. can controlthe business activities.

E.g.: Variation of taxes.


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7. Promotional Control

These are of positive nature and include suchactivities like development of banks,encouragement to small scale units, removalof regional imbalances, subsidies etc.


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8. Regulatory Controls

Regulatory measures ensure orderlydevelopment of industries with the leastwastage of resources.

Regulatory measures include direct controlsand formal controls.


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A good control system

It must be democratic It must be powerful-power enough to make

an unwilling minority obey the will of the

majority. It must be efficient

It must be adaptable

The duties imposed must be simple enough

to be understood

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Economic Roles of Govt.

The Govt. plays an important role in almostevery national economy of the world.

Government normally play four importantrole in an economy viz.

1. Regulatory Role.

2. Promotional Role.

3. Entrepreneurial Role

4. Planning Role


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Fundamental Rights

The constitution has eight fundamentalrights mentioned below.

1. Right to equality.

2. Right to freedom

Freedom of speech and expression. Freedom to assemble peacefully. Freedom to form associations or unions. Freedom to move freely through out the

territory of India Freedom to reside and settle in any part of theterritory of India.

Freedom to practice any profession


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Fundamental Rights

3. Right to life and personal property.4. Right to freedom of religion.

5. Right to cultural and educational freedom.

6. Right against exploitation.7. Right to property.

8. Right to constitutional remedies.


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Fundamental Duties

Obeying the constitution Following noble ideas.

Defending the country.

Rendering the national service when calledupon.

Promoting harmony and spirit of commonbrotherhood with all people of India.

Respecting regional diversities.


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GATT

General agreement on tariff and trade(GATT) was established in 1948 in Genevato pursue the objective of free trade inorder to encourage growth and

development of all member countries. The GATT was transformed into a world

trade organization with effect from January

1995.


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Objectives of GATT

Raising standard of living Ensuring full employment

Developing full use of the resources of the

world Expansion of production and international

trade

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Principles

For the realization of its objectives GATTfollowed following principles

Non-discrimination

Prohibition of quantitative restrictions Consultation

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The Uruguay Round

Uruguay round is the name which the eighthand the latest round of the multilateral tradenegations (MTN) held under the auspices ofGATT is popularly know as UR because it waslaunched in Uruguay in September 1986.

Discussion taken place in following areas Trade in services TRIPS TRIMS

Following the UR agreement GATT wasconverted from a provisional agreement into aformal international organization called WTOwith effect from Jan 1 1995


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TRIMS

Trade Related Investment Measures (TRIMS)refers to certain conditions or restrictionsimposed by a Govt. in respect of foreigninvestment in the country.

The main features of TRIMs are All restriction on foreign capital should be

scrapped. Foreign investor shall be given same rights

in the matter of investment as an investor. No restrictions will be imposed on any area

of investment.


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TRIMS

Imports of raw-material and componentswill be allowed freely.

Foreign investor will not be obliged to uselocal products and materials.

Restrictions on dividend, interest androyalty will be eliminated.


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GATS

The General Agreement on Trade inServices (GATS) which extends multilateralrules and disciplines to services.

GATS covers four modes of internationaldelivering services.

Cross border supply

Commercial presence

Consumption abroad

Movement of personnel


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TRIPS

Protection of intellectual property rights hasbecome an issue of wide and seriousdiscussion with the formation of thegeneral agreement on Trade Related

Aspects of Intellectual Property rights(TRIPS).

Intellectual property rights may be defined

as Information with commercial value. IPRs may be legally protected by patents,

copy rights, industrial designs, geographicalindications etc


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TRIPS

The UR agreement on TRIPS cover sevenIntellectual property-

Copy rights

Trade mark Geographical indication

Industrial design

Patents

Layout design

Undisclosed information


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Patents

A patent is a legal protection granted for aninvention that is new and useful.

A patent is a legal protection granted to thepatent holder exclusive right to make useor sell the patented product or process.


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Indian Patent Act 1970

According to the Indian Patents Act 1970,invention means any new and useful

(i) art, process, method or manner ofmanufacture;

(ii) Machine, apparatus or other articles;

(iii) Substance produced by manufacturer; andincludes any new and useful improvement

of any of them, an alleged invention.


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Indian Patent Law and the UR Agreement

IP Act 1970 Only process patent

Patent expiry period is 5

to 7 years incase offood, medicine, drugs,and 14 years incase ofother patents

Plants and animals,

micro-organisms,biological and microbiological processes arenot patentable.

UR Agreement Product patent is also

applicable Patent expiry period is

20 years for allproducts.

Only plants, animals andbiological process arenot patentable.


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IP Act 1970 Process for treatment of

human beings andanimals are notpatentable.

There is ceiling on theroyalty or fee that arethe patent holder candemand from a licensee.

A patent is treated asworking only when it isused in localmanufacturing.

UR Agreement Not patentable.

On ceiling on the fee or

royalty that can becharged from a licenseeby the patent holder.

A patent is treated asworking when it is notused in localmanufacturing.


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IP Act 1970 Licensing of any patent

is granted for threeyears .

UR Agreement Compulsory licensing of

patent allowed onlyunder exceptional, very

strict conditions


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Trade Marks

Brand A brand is a name, term, sign, symbol or

design or a combination of them which isintended to identify the goods or services

of one seller or group of sellers and todifferentiate them from those ofcompetitors

Brand Name Brand name is a part of a brand consisting

of a word, letter, group of word, or letterscomprising a name which is intended toidentify the goods or services of a seller ora group of sellers and to differentiate them


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Trade Marks

Brand Mark A brand mark is the part of the brand

which appears in the form of a symbol,

design or distinctive colouring or lettering

Trade mark

Part of a brand that is given legalprotection because it is capable ofexcusive appropriation


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The Trade mark Act 1999

Trade and Merchandise mark act 1958 hasbeen replaced by the Trade Marks Act 1999.

Objectives

The registration and better protection oftrade marks for goods and services.

The preventation of the use of fraudulentmarks


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Definitions

Trade Mark Trade mark means a mark capable of being

represented graphically and which iscapable of distinguishing the goods orservices of one person from those of othersand may include shape of goods, theirpackaging and combination of colours


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Definitions

Collective Mark Collective mark means a trade mark

distinguishing the goods or services ofmembers of an association of person, notbeing a partnership within the meaning ofthe Indian partnership Act 1932, which isthe proprietor of the mark from those of

others.


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Registrar and Trade Mark Registry

The Controller- general of patents, designsand trade marks, appointed by the centralGovt. is the registrar if trade marks for thepurpose of the trade marks act.

Further, central govt. may appoint otherofficers such designations as it thinks fit forthe purpose of discharging, under the

supervision and direction of the Registrar. The act also lays down that, there shall be a

trade marks registry with its head office atsuch place as the central govt. may specify.


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Registrar and Trade Mark Registry

For the purpose of facilitating theregistration of trade marks, there may bebranch offices of the trade marks registryestablished at such places as the central

govt. may think fit.


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Registration of Trade Marks

Any person claiming to be the proprietor ofa trade mark used or proposed to be usedby him, who is desirous of registering it,shall apply to the registrar in the prescribed

manner for the registration of his trademark.

A single application is enough for

registration of a trade mark for differentclasses of goods and services.

The application shall be filled in the office ofthe trade marks registry.


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Subject to the provisions of this act, theregistrar may accept the application absolutelyor subject to such amendments, modifications,conditions or refuse the application.

In the case of a refusal or conditionalacceptance of an application, the registrarshall record in writing the grounds for suchrefusal or conditional acceptance and the

materials used by him in arriving at hisdecision.

On the registration of a trade mark, theregistrar shall issue to the applicant a

certificate in the prescribed form of the


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The duration of the registration of a trademarkis ten years, but may be renewed from time totime in accordance with the provisions of theact. Failure to renew the registration may

result in the removal of the trade mark fromthe register.


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Grounds of refusal of registration

The act lists a number of absolute grounds orrefusal of registration of trade marks;

It is of such nature as to deceive the public orcause confusion;

It is likely to hurt the religious customs of anyclass or section;

It comprises or contains scandalous or obscenematter;


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The effect of registration

The exclusive right to use of trade mark inrelation to the goods or services in respect ofwhich the trade mark is registered, subject toany conditions and limitations to which the

registration is subject. The right to obtain relief in respect of

infringement of the trade mark in the mannerprovided by this act.


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Assignment and Transmission

A registered trade mark is assignable andtransmissible, whether with or without thegoodwill of the business concerned.

Associated trade marks shall be assignable

and transmissible only as a whole and notseparately.

A certification trade mark shall not beassignable or transmissible otherwise than

with the consent of the registrar.


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Appellate Board

The trade narks act provides for theestablishment of an appellate board to beknown as the intellectual property appellateboard by the central govt. to exercise the

jurisdiction, powers and authority conferred onit by or under this act.


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Offences and Penalties

Offences under the act are punishable byimprisonment and fine.

Such offences include falsifying and falselyapplying trade marks, selling goods or

providing services to which false trade marksor false trade description is applied.

Government responsibilities to


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Government responsibilities toBusiness

Govt. responsibilities to business are muchgreater than the obligations of business to thegovt.

Being democratically elected and having

accepted the mixed economy, govt. is clearabout the role it has to play andresponsibilities it has to discharge towardsbusiness houses.

Specifically, the govt.s responsibilities towardsbusiness are as follows-

Establishment and enforcement of laws.

Maintenance of order.


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COPY RIGHTS

Copy right is basically the right to copy andmake use of literary, dramatic, musical,artistic works, cinematographic films, recordsand broadcast. This comes in existence assoon as the work is created.

Government responsibilities to


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Government responsibilities toBusiness

Providing infrastructure.

Information

Assistance to small scale industries.

Inspection and licenses

Tariff and quotas.


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What is Govt.

Refer to the process of governing, to theexercise of power.

Refer to the manner , method or system ofgoverning in a society; to structure and

arrangement of offices and how they relate tothe governed.

Consisting of three distinct sets of powers

Legislative

Executive

Judiciary

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