This article has been written by Ms. Ritika Vishwakarma, 4th year student of Deen Dayal Upadhyay Gorakhpur University, Gorakhpur
Abstract :-
As we know, Copyright law is very important to preserve intellectual property rights, specially for startups. Generally startups rely on original ideas, designs,and content which helps to obtain competitive advantage over the growing digital market. And here copyright laws come into picture to safeguard these valuable assets by ownership and control over their inventions. Copyright law aims to allow creators to protect their works through rights granted which helps to reproduce, distribute and exhibit their works. In case of a startup’s copyright law provides legal protection to monetized their products and prohibits others from using them without permission.
In India, copyrights law is governed by the Copyright Act 1957,and modified regularly to reflect the changing dimension of creative industries. This Act aims to grant creators exclusive rights to their works against illegal use Or exploitation.
This article shed light on infringement issues ,challenges, importance and defense Strategies of copyright law in startups.
Introduction :-
The term Startups means a company in the first stages of operation. On other hand we can say that it refers to a company founded by one or more entrepreneurs who wants to develop a product which they believe there is demand for. These companies basically look for venture capitalists and start with high costs and limited revenue. Startup companies majorly focus on single products or services which the founder wants to bring to market. For example- Silicon Valley which is basically known for its strong venture capitalist community and is a popular destination for startups. Startups need to consider legal structure which best fits their entity,and here copyright comes into picture or becomes crucial for startups.
Copyright is a form of intellectual property granted under the Indian legal system to the creators of original works such as literary designs. According to section 13 of copyright Act 1957,copyright protection is conferred such as literary works, dramatic works, musical works, cinematography films, artistic works and sound recording. For example- computer, books programs are protected under the act as literary works. To prevent the copyright infringement timely cognizance taken by the court is necessary according to limitations act, 1963 and Cr. PC 1973. A copyright owner of startups cannot enjoy his rights unless infringement of the same is stringently dealt with by the courts. In case of Prakashak Puneet Prashant Prakashan vs Distt. The Allahabad high court held that when the petitioner publishes a book by adding any word before or after the book ‘ bal bharati’ he infringes copyright of respondent.
Importance of copyright laws for startups:-
- Brand name – copyright is very important to protect your brand name when your brand name is protected under the act that will help to represent your company in the best possible way.
- Protect written work- copyright protection to the written work or literary work is also important. It helps to protect your logos, design etc especially important if your sell is related to design or writing.
- Infringement is an expensive problem- copyright infringement can be a severe issue for startups, its game changer can be costly for business. When someone copies your work without permission, they need to be stopped. And here copyright helps to protect.
- Protect trademark- A trademark is a kind of logo, design, or identifies source of products or services it helps basically to differentiate between two companies . Apart from this it is used to protect the company’s reputation.
- Protect your ideas – copyright protection becomes more important in case of ideas, it helps to protect your valuable ideas and innovation in field of startups or businesses.
- Helps in funding – without copyright protection it will be hard for you to get funding from investors. Once you protect your brand with copyright protection it will be easier for you to access funds.
- Helps to collaborate- the copyright protection helps to collaborate with others or right share your work with others.
Copyright Infringement for startup:-
Infringement of copyright :- Copyright infringement is a severe issue for startups. It’s unauthorized use Or the reproduction of copyrighted material without the permission of the owner. And it results in legal consequences such as fine, injunction and litigation which can have devastating effects for startups. A copyright owner cannot enjoy his rights unless infringement of the same wouldn’t be done stringently by the court of law. The approach of the Indian judiciary in this regard is satisfactory. In case of hindustan pencils Ltd vs alpna cottage industries, copyright board of Goa held that when the similarities between artistic works of parties are fundamental and substantial in material aspects, it would amount to copyright violations and defendants copyright liable to be expunged.
And another one jolen Inc vs shoban lal jain the madras high court held that latches acquiescence is good defense action for copyright infringement. And the apex court held that the plaintiff having allowed the defendant to carry business under trade name for 7years is prima facie evidence for guilt of acquiescence and it cannot claim for relief of injunction against defendant.
Risks and obstacles :- Because of limited sources and awareness regarding legal protection, copyright infringement becomes frequently an issue for startups. Mostly inadequate copyright audits increase the likelihood of infringement.
Content and liability:- Platforms users generated content consists of contribution infringement of the same made liable for copyright violations when users uploaded copyright right content without permission.
Harbor provisions:- Under specific provisions Indian laws provides entrepreneurs with safe harbor protection and small business or startups can claim immunity from liability if they fulfill certain obligations such as insituting notice, maintaining, takedown procedure, and promptly responding to infringement notices.
Defense strategies for startups:-
Fair use doctrine :- This doctrine is an exception to the rule of copyright law which permits limited use of copyrighted material without the copyright holder’s permission. The doctrine balances the differences between protecting rights of copyright owners and permitting the use of copyrighted works for specific purposes Generally, this doctrine depends upon facts of the case given for example in english case law Folsom vs marsh, Justice story laid down circumstances in which this fair use doctrine applies such as:-
- Purpose of the use
- Nature of work
- Amount of work
- Effect of original work
But in the Indian legal framework Fair use doctrine compares with Fair dealing in England and fair use in the USA. The cases of Hubbard vs Vosper and Folsom vs Marsh have made significant impact on the conception of Fair use doctrine in India.
Section 52 of the Copyright Act, 1957 deals with “Fair dealing” In India and apart from this amendment made in 2012 expanded the scope of fair dealing doctrine to include music and cinematic works as well. Indian current position regarding section 52 is absence of specific laws or guidelines regarding the quantity of work used without permission with exception. In case of V Ramaiah vs K lakshmaimah, the apex court held that section 52 of copyright Act 1957,specifies types of uses that qualify as fair use and dealing which may not exist if the purpose of reproduction does not lie within enumerated purpose and also court emphasis transformative nature of the use.
Copyright adutis :- For appropriate compliance procedure copyright adults is important for startups it’s helps to regulate potential infringement risks on daily basis.
Permission and licenses :- It is crucial for startups to obtain license and permission , to ensure that navigating licensing agreement and negotiate reasonable terms to ensure that they have legal rights.
Educating employees:- Copyright must be known to users and employees for best practices to prevent accidental infringement. Educating employees and user about copyright policies, education initiative guidelines etc aid in preventing copyright violations on startups platforms.
Conclusion :–
The Indian legal system of copyright law maintains a balance between intellectual property protection and innovation promotion. The concept of Fair Use or dealing doctrine allows flexibility, but due to absence of specific guidelines it creates severe issues for startups. Safe harbor clauses protect but compliance of the same is more essential and it can be assured by conducting copyright audits, procuring licenses and educating employees and users. But copyright provision above mentioned shows that copyright protection in India is strong enough and effective to take care of copyright concerned person. Thus, copyright issues are adequately protected, though not in clear and express terms.
Reference:
This article originally written by king stubb and kasvia published on 25 july 2023,link of same given here is https://ksandk.com/intellectual-property/copyright-law-and-startups-in-india-fair-use-and-infringement-issues/#infringement-issues-and-challenges-for-startu
This article originaly writtenby Mitcell Grant published on 18 june 2022, link of the same given here is https://www.investopedia.com/terms/s/startup.asp
This article originally witten by Mahendra Kumar Sunkar,link of the same is given here is https://www.legalserviceindia.com/article/l195-Copyright-Law-in-India.html
This article originally witten by Mahendra Kumar Sunkar,link of the same is given here is https://www.legalserviceindia.com/article/l195-Copyright-Law-in-India.html
This article originally written by king stubb and kasvia published on 25 july 2023,link of same given here is https://ksandk.com/intellectual-property/copyright-law-and-startups-in-india-fair-use-and-infringement-issues/#infringement-issues-and-challenges-for-startu
This article originally written by king stubb and kasvia published on 25 july 2023,link of same given here is https://ksandk.com/intellectual-property/copyright-law-and-startups-in-india-fair-use-and-infringement-issues/#infringement-issues-and-challenges-for-startu