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The Evolution of Intellectual Property Theories

Intellectual property (IP) protects creations of the mind, balancing individual rights and societal benefits to foster innovation and economic growth, drawing on the ideas of Locke, Hegel, and Nozick.

The Evolution of Intellectual Property Theories
Image generated using Microsoft Designer AI tool by Advanced Study Institute of Asia
By Praveen Baura
ABSTRACT

Intellectual Property refers to creations of the mind or intellect. In the context of the Indian Constitution, it is recognized as a legal right under Article 300A, which addresses the Right to Property. The term 'Property' in this article extends beyond just physical land to encompass intangible assets as well.

John Locke’s principle of self-ownership, as articulated in his Second Treatise of Government (1632-1704), emphasizes the natural right of every individual to their own person and labor. This principle laid the groundwork for the concept of private property, which asserts a form of negative liberty by allowing individuals to claim the full benefit of their own hard work, while restricting others from exploiting it. From this, it can be inferred that Locke’s principle effectively distinguishes the general right of common ownership from the special right of private ownership (here private ownership can be interpreted as IPR), affirming the individual’s exclusive claim to the fruits of their labor. The implication with respect to IPR can be derived that these rights are negative in nature as it restrict others from using one's innovation without his permission.

Hegel expanded on the concept of private property in his work Philosophy of Right, where he asserted that individuals can transfer the use of their physical or mental products to others for a limited time, as these products have an external relation to their true being when a time limit is recognized. Hegel put forward that ownership enables individuals to detach their thoughts from immediate needs, allowing them to infuse their free will and identity into an object. When this personal connection is denied, it leads to feelings of alienation. He contended that individuals who lack property or are estranged from their possessions are not regarded as full participants in the community. Furthermore, Hegel asserted that creators have a rightful claim to their intellectual creations. The Hegelian theory is more stringent than the Lockean theory, as Hegel views the human right to property as unconditional, whereas Locke considers it to be conditional. The duration of protection for different IPRs finds its essence in these lines of Hegel. In India, the protection durations for various forms of intellectual property are as follows: patents are protected for 20 years, trademarks for 10 years (with the possibility of renewal), industrial designs for 15 years, and copyrights for the lifetime of the author plus an additional 60 years.

Robert Nozick's ideas reflect the cumulation of both Lockean and Hegelian theories, incorporating elements of merit from Hegel's concept of justice and Locke's theory of property. In his Entitlement Theory of Justice, Nozick argued that individual creators of innovative ideas and inventors should be rewarded for their talents. His theory is built on three key principles: justice in acquisition, justice in transfer, and the rectification of injustice. Nozick's approach acknowledges the significance of both the personal investment of will and personality in property, as emphasized by Hegel, and the natural rights to property as proposed by Locke, thus culminating in a comprehensive perspective on the rightful rewards for creators. It underscores the importance of rewarding individual creators and inventors for their innovative contributions, which can be considered as one of the essential elements of IPR.

Intellectual Property has constituents of social welfare theory as its protection leads to economic output which is beneficial for the society. The protection of IP is aimed to incentivize creators and inventors to generate more intellectual property for the benefit of the general public. Most intellectual property rights are limited in duration and subject to conditions. This ensures a balance between public benefit and the exclusive rights granted to IP owners. The utilitarian theory, also known as the incentive theory, supports society's responsibility to uphold an innovator's right to ownership of their creation. This right not only benefits the creator but also contributes to the welfare of society as a whole.

Intellectual property rights also involve economic theory which is related to the market. Economic theory suggests that IPR can have both positive and negative effects on economic growth and development. IPR protection can boost innovation by increasing profits for innovators, incentivizing R&D, rewarding economic contributions, encouraging commercialization, and aligning with market economy mechanisms. IPR can be seen as an output of a capitalistic approach of the West while the communist perspectives advocate for the abolition of patent laws and the complete elimination of IP protection. However, the statement might contradict with respect to China, having the Communist Party as the ruling party but with the highest patent filing in the world. IPR has two key economic objectives: firstly, to encourage investment in knowledge creation and innovation by granting exclusive rights to use and exploit new technologies and products; secondly, to prevent competitors from freely using these results, which could otherwise discourage companies from investing in research, development, and innovation.  So, an appropriate balance between both objectives will definitely benefit both the individual and the society.

Understanding the fundamental meaning of Intellectual Property (IP) is essential to grasp its true relevance and its equivalence to the term "property," which, in layman's terms, usually refers to tangible assets like real estate, gold, or money. Regardless of the varying ideologies adopted by different countries, the evolution of IP is inevitable. Nations with proactive IP strategies are certain to gain a significant advantage towards growth. India, for instance, has emerged as a serious contender in the global IP landscape, with over one lakh patents granted by the Indian Patent Office in 2023, along with many other significant efforts that are yet to fully materialize.

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Praveen Baura is a Young Professional at the Intellectual Property Office under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India.

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