Nowadays, data has become a very important part of businesses so financial analysis needs to be combined with data analytics to make smarter and more efficient decisions and operations. Companies use more data than ever to be ahead of their competitors and for that reason we need both financial and data analytics.
Financial analyses mean using numbers and calculations to support decision-making, risk management, and performance improvement. For instance, financial analysts build models to make predictions used by companies for deciding where they need to invest or how they can improve their processes, but data analytics are different. It’s about wading through massive amounts of data to discover helpful patterns and trends. It involves applying advanced techniques like statistical analysis, machine learning, and predictive modelling to understand market and customer trends—as well as how to improve operations.
The job market for finance and data analysts is vast. The number of financial analyst jobs in the U.S. will increase @ 11% by 2026. In India, it is ascertained that there will be 500,000 data analytics jobs by 2025 and a CAGR growth of 23%. Banking sector generates the largest number of data analytics jobs in India which accounts to nearly 40% followed by e-commerce with about roughly 13%. Salaries range between $70,000 — $120,000 per year in the US and INR 6 lakhs —15 lakhs in India. Artificial intelligence use-case are booming and more opportunities of remote work.
When you mix finance and data analysis together, you open up a world of career roles like financial data analysts, retail risk managers, or investment analysts. Due to employment trends focusing on using evidence to drive financial decision-making, this illustrates the point further.
Overview of financial and data analytics
Definition of financial analytics
This field analyses financial data and methods for estimating financial risks and dealing with money issues. The purpose is to make the financial expenditure evaluated objectively cuz that it should not create losses to the business entity.
Regulatory framework
Financial analysis guidelines help in assuring accuracy, clarity, and stability.
The Dodd Frank Act and the Sarbenes-Oxley Act are two important acts which required strict financial reporting in order to prevent fraud.
Data analysis: The two important acts are the General Data Protection Regulation and the California Consumer Privacy Act. GDPR mandates teams to obtain formal consent before using personal data and to maintain proper records of their consent. The California Consumer Privacy Act gives rights to individuals based on their personal information that also include the right to access and delete their data.
It is important to follow these rules to ensure responsible and ethical investigations and to protect personal accounts and financial information.
Skills required for a career in financial and data analytics
A career in financial data analytics requires a multi-skill set, which includes technical skills, analytical skills and communication skills. This helps the professionals to excel well in understanding intricate financial data and sophisticated analytical processes.
Economic knowledge
The job depends on strong understanding of economic principles. Management must have knowledge on factors such as financial markets, accounting and investment methods. This understanding enables them to review risk procedures, scope finance proposals and make recommendations that are beneficial to the organisation.
Technical knowledge
It is essential to have skills in using these tools for data analysis. Skills such as Excel, SQL, and programming languages Python and R are essential in analysing large amounts of data. Other helpful skills would be the use of data visualisation software such as Tableau and Power BI to help the researcher enhance the presentation of the solutions from the data. The growing use of machine learning techniques and predictive models within financial analysis has also necessitated the use of these advancements.
Analysis and critical thinking
Conceptual skills are a prerequisite for pattern detection, interpretation and making decisions supported with data Mastery of a variety of statistical concepts and techniques as well as application of logic to qualitatively evaluate business decisions based on the data received is very fundamental.
Communication skills
The necessity of accurate communication is relevant for the effective transformation of complicated data results into business-orientated activities. The scientists in social science should know how to communicate their findings to non-expert users so that the users are able to make sense out of it, which promotes making decisions based on science rather than sheer guesswork.
Legal knowledge and compliance
The knowledge of law and abiding As everyone knows, knowing the legal aspects of any activity is vitally important considering the delicate nature of financial obscurity. Regulations like the General Data Protection Regulation and the Sarbanes-Oxley act have to be strictly followed by businesses so as to help avert legal issues and enhance ethical conduct.
Problem-solving and adaptability
Problem-solving and change management with the knowledge of dynamics involving the work of a financial analyst. One needs to be sharp in problem-solving as well as versatile in the face of emerging technologies and market changes. According to Nelson (2005), in order to remain competitive in such a fast-changing landscape, continuous improvement and development of processes is critical.
How to become a financial and data analyst professional
To aggregate the above information, to pursue a career as a financial and data analyst in any other environment, one has to take certain steps that provide them with the education, skills and experience relevant to this need.
Educational foundation
Begin with a bachelor’s degree in finance, but minors in economics will usually suffice. Advanced degrees in finance or data science and membership in professional bodies like the Chartered Financial Analyst (CFA).
Accountant (CA) and Financial Risk Manager (FRM) enhance global employability (CFA Institute, 2021). International law and cross-cultural communication are also important.
Technical skills development
Be adept at data analysis and financial modelling with advanced knowledge of using Excel, SQL, Python, and Tableau. Familiarity with machine learning and predictive analytics is of big advantage as well (McKinsey & Company, 2020).
Gaining practical experience
Look for internships or entry-level jobs in financial or data analytics positions in order to learn the routine and the peculiarities of the industry (World Economic Forum, 2020)
International exposure and networking
Seek employment either in different markets or look for international companies so that you can attend professional networks and international conferences in the event that they pursue expatriate opportunities.
Continuous learning
Commit to lifelong learning through courses and certifications to stay current with technological advancements and industry trends.
Certifications available for financial and data analyst professional
The following are some of the certifications that are recognised for individuals who have an interest in this field: These certifications enhance credibility, provide specialized knowledge, and increase employability in the global market. These certifications enhance credibility, provide specialised knowledge, and increase employability in the global market.
Chartered Financial Analyst (CFA)
Offered by: CFA Institute is a global not-for-profit organisation that sets the standards for assessment, education and professional development of researchers.
Focus: Basic concepts of investment analysis and portfolio management, legal and ethical considerations.
Relevance: Known in the financial sector, especially to those personnel who perform investment analysis and management.
Certified Financial Planner (CFP)
Offered by: Certified Financial Planner Board of Standards
Focus: Goals and objectives of the insurance and financial planning, investment processes and management of risks.
Relevance: Perfect for any contributor that deals with self-employment and finance.
Certified Analytics Professional (CAP)
Offered by: INFORMS
Focus: The capabilities include data analytics, predictive modelling or advanced analytical models.
Relevance: Most appropriate for data analysts and others who have to incorporate analytics on their work on a daily basis.
CAIA—Chartered Alternative Investment Analyst
Offered by: CAIA Association o Focus: Other investment assets such as hedge funds, private equity, and real asset investments.
Relevance: It is therefore suitable for professionals in the area of operation of such services, such as the field of professional asset and/or option management.
Certificate in Quantitative Finance (COF)
Offered by: Fitch Learning Fitch Learning o Focus: Applications include: quantitative finance, financial engineering, and risk management.
Relevance: Designed especially for the working professionals who operate at the quantitative positions for financial organisations.
Certified Public Accountant (CPA)
Offered by: AICPA or NY state requirements or equivalent with the regulations of all the other countries.
Focus: Accounting, auditing, taxation and financial reporting.
Relevance: Very important, especially for the finance professionals to possess accounting skills in their practice.
Microsoft Certified Data Analyst Associate
Offered by: Microsoft o Focus: Information representation, Power BI and data manipulation.
Relevance: For information professionals, who base themselves and their decisions on analysed data.
Organisational demand for financial and data analyst professionals
Data collection and processing
In doing so, financial and data analysts involve themselves with the collection and subsequent formatting of financial and operating data on large scales. They feed it data from various sources, ensure that the data is accurate and sometimes correct it if there is an instance of error. They specifically utilise special software in order to manage and sort the information in the right manner.
Analysis and reporting
They must also be involved in evaluating the financial information to develop the trends, patterns and details of anomalies. They provide complex data in written form and use different graphics to enable people to make the right decision. Researchers are expected to present such data in terms that are quite straightforward so that everyone, including laypeople, can understand.
Compliance and data security
There is also the need for analysts to adhere to all the policies that are related to the financial industry as well as data protection laws. People have to act to secure data and organise processes according to rules such as GDPR or CCPA to protect people’s data.
Why should one choose a career in financial and data analyst
Growing demand and job security
Both financial and data analytics are two strong growing fields, fuelled by the advancement in analytics in almost every sector. The U.S. Bureau of Labour Statistics has forecasted the 9% increase in employment for the financial analysts in the next decade of 2020 to 2030, which is far better than the average position for all occupations (BLS, 2021). In the same manner, the global market for data analytics is considered to grow from $54. In 2021, it was approximately $3 billion and it is expected to rise to about $105 billion by 2027 with a CAGR of 30.08% (Statista, 2023). This kind of growth is a very good thing, as there are always jobs to be found and this area offers great job security.
Diverse career opportunities
These positions are versatile and people who work in those positions can work in the finance industry, technology industry, healthcare industry and retail industry among others. This diversity affords the possibility of bringing the analytical skills to bear in a variety of situations and in a variety of fields there by improving flexibility and promotional opportunities.
Intellectual stimulation and innovation
The use of technologies such as machine learning and artificial intelligence in these fields guarantees continuity of innovation. Employment of quantitative tools is common practice for financial and data analysts, which makes the work challenging, on the one hand, and up-to-date, on the other. Incorporation of new technologies is part of these careers and will always be helping the individuals to grow in their profession.
Impactful decision-making
Financial and data analysis are human beings who help in the planning of major operations that can define business performance as well as economic development. Through such activities as trend analysis, outcome prediction and risk management, they play a pivotal role in the formulation and implementation of organisational strategies and tactics.
Challenges as a financial and data analyst professional
Data security and privacy
Compliance with such regulations as GDPR and CCPA remains essential among the organisation’s priorities. Due to the fact that analysts work with large amounts of data, they have to ensure the data’s security through the use of measures such as encryption (European Commission, 2021).
Technological advancements
The rate of growth of technological advancements is increasing day by day and sometimes it gets difficult to cope up because of the demands of constant learning and tweaking.
Data quality and integration
Other challenges that may affect the reliability of the analysis may include the control of inconsistent or inaccurate data and the merging of data obtained from different sources (Harvard Business Review, October 2020).
Complexity of financial models
The construction and analysis of complicated financial models represent rich theories and methods, which require much experience.
Conclusion
Altogether, the choice of a profession in the field of financial and data analytics can be considered safe since it is demanded in all industries and does not have any shortage in the number of promising vacancies. The opportunities are evident from the enhancement of innovative technologies alongside the opening of global markets. However, there are always some obstacles that professionals face like the conflicts of data privacy, lack of skills and talents, and ethical problems to reach success in these areas. The industry is dynamic and it is therefore crucial that people have to stay curious and willing to learn more in order to try and match the changes so as to be relevant and able to meet the demands.
References
CFA Institute (2021). Career Path in Financial Analytics.
McKinsey & Company (2020). The Rise of Analytics in Financial Markets.
PwC (2021). Continuous Learning in Finance and Analytics.
World Economic Forum (2020). The Future of Jobs Report.
U.S. Bureau of Labor Statistics (BLS, 2021). Employment Projections.
Statista (2023). Global Data Analytics Market Size.
Glassdoor (2023). Median Salaries for Financial and Data Analysts
Harvard Business Review (2020). The Challenges of Data Quality in Analytics.
CFA Institute (2021). Financial Modelling and Analysis,
McKinsey & Company (2021). The Future of Data Analytics in Finance. European Commission (2021). General Data Protection Regulation (GDPR)
This article is written by Shristi Sahu, and further updated by Shamyana Parveen. In this article, the author explains about the historical background of polluter pays principle, importance, and its principles in the context of India. It also provides the flaws of the polluter pays principle and discusses some landmark judgements.
The “Polluter Pays Principle” (hereinafter referred as “PPP”). It is required for the protection of the environment and for the living things. It is also required to protect the natural resources for the future generation. The ppp is the most important principle of sustainable growth. It is extremely important for everyone to understand environmental laws.
It is a principle and a constitutional mandate. Its main objective is to control environmental degradation. According to this principle, the polluter has to bear the price for polluting the environment.
Before explaining more about the ppp as how it applies or its importance, first we should understand the term “PPP”. So let me explain about the term “PPP”.
What is the Polluter Pays Principle
The “Polluter Pays” principle is the widely-studied practice by which polluters have to incur costs. Polluters should be responsible for managing pollution because they should take costs of managing pollution when it endangers human health or the environment.
Take for instance the incident of the Union Carbide Corporation vs. Union of India (1989) (popularly it is known as Bhopal Gas Leak case). The pollutants which seeped into the groundwater years ago still forms the reason for cancer, growth retardation and dizziness. Let alone the immediate impact of the leakage. The deadly methyl isocyanate (It is an organic chemical compound and it is extremely toxic. It is used in making adhesive, pesticides and insecticides), which drifted into the sleeping city causing the death of thousands of inhabitants within a few days. Such incidents in the past further necessitate mandating principles for combatting the effects of pollution.
High amounts of pollutants emitted by the vehicle, put forth the question of whether the owner or the manufacturer will be liable for the pollutants emitted. The scope and extent of the ppp is explained in this article.
Remediation of the damaged environment is an integral part of the concept of ‘sustainable development’ and therefore the polluter is responsible for paying the cost to every affected individual as well as the cost of reversing the damaged ecology. Under this principle it is not the place of the government to bear the expenses incurred in either, prevention of such damage, or in undertaking corrective measures since this has been for the indemnity cost of the pollution event to be highlighted into the taxation payer.
The polluter shall bear the obligation to pay and remedy all the losses wrought by his omission. This is the very epitome of the ppp. In the legal system the absolute liability of hazardous products has been acknowledged in different countries.
A naturally dangerous industry is the high-water mark of the development of the ppp. While the doctrine has a discouraging effect on aspiring polluters. Its application within the framework of the law lacks breadth in the feeling that it can work productively only when pollution has taken place only in the remedial stage.
Now, we are going to discuss the historical background of “PPP”. So let’s start.
Historical background of Polluter Pays Principle
Origin of the Polluter Pays Principle
The Industrial Revolution came in the late 18th century. That was a time when people dealt with their economy as an agricultural and crafting and then graduated to industrial and mechanical. It divided the number of factories and the concept of mass production in the economies.
However, there is always a flip side to the same coin and the same applies for the industrial revolution. So, are the opportunities and threats of the industrial revolution. On the one hand, the industrial revolution has revealed a wide potential where people’s lives can be in the 21st century. You will remember that the industrial revolution wrought certain changes to the people’s way of life.
The new technologies came such as, textile industry, electricity, engine etc. The people of that time moved from rural areas to urban areas in search of employment. While on the other hand, the industrial revolution also brought industrial pollution. Technology has developed dramatically and manufactured products have replaced archaic products. The by-products are the inevitable part of the manufacturing process.
The ppp was formulated in 1972 by the Organisation for Economic Cooperation and Development (OECD) as a policy instrument which formed policies on environment under which the polluter pays for the cost of polluting the environment. The OECD formulated this principle because it is needed for many reasons, which are as stated below:
The main cause of environmental destruction is the increasing number of industrialization and economic activities. So, there was a need to control pollution by applying the principle of ppp.
This principle encourages fairness and equality by ensuring the cost of pollution control on those people who are responsible for causing pollution, rather than on taxpayers or others.
The member countries of the Organisation for Economic Cooperation and Development (OECD) vowed to domesticate their environmental policies with the ppp. For instance the guidelines on ppp formulated by OECD were meant to dissuade subsidies that may result in distortions on trade. They championed that principle when the public was highly concerned with environmental problems.
This was at a time when there was pressure on the government and other institutions to come up with policies and structures to protect the environment and the people from the dangers of pollution in a post industrialised world.
In the last years many discussions were undertaken referring to the characteristics of the ‘polluter pays’ principle, about its meaning but nevertheless, the question of its scope and the consequences connected with it for the persons who were involved in already past or potentially polluting activities was never sufficiently solved.
Even where it has been accepted, its extent often has been in doubt, particularly in relation to liability for damage payments. It is more of a pointer to a preferred line of behaviour, although it must be said that outside of the noble sentiments, the principle has arguably never been fully met under either European Community or British environmental law.
Yet, there is definition evidence how the principle is related to the idea of ‘better safe than sorry’. Furthermore, the cost should encompass all environmental costs irrespective of how measurable the last cost might be. This is often argued for example, that the producer may pollute so long as he incurred the cost – which is actually a misinterpretation of the conceive principle and general applicability.
Although the definition of the principle carries certain difficulties, it has been widely accepted by the European Community, which classifies it as one of the key aspects of its approach to the set problems concerning the environment. The Action Programme on the Environment has indicated the following as the guidelines of the environmental policy of the European Community. They are set out in Article 130R(2) of the Treaty and these are the most important ones. They are as follow:
They indicate how preventive action is to be preferred to remedial measures;
Pollution of the environment especially in developed nations should be fixed at the roots;
The cost of protection of the environment should be born by the polluter;
It was widely argued that environmental policies ought to be an element of the other policies of the European Community.
Hence, the proposal to pay for the damages to the environment is that of the “polluter pays”.
In addition, Principle 16 of the Rio Declaration of 1992 states “ppp”. It stipulates that national authorities should strive to extend the globalisation of cost of the environment and the application of economic instruments with regard to the approach — polluter pay — bearing in mind that the polluter should, in most cases, pay for pollution with due regard to public interest and without undue prejudice to international trade and investment.
Introduction of Polluter Pays Principle in India
PPP has come to the global limelight since the 1972 Stockholm Declaration whereby polluters shall pay for the cost of degradation. India after signing the Stockholm Declaration, started the process of integrating its regional and national policies with the international environmental standards. The adverse environmental impacts emerged from improving industrialization processes which were more severe during the 1970s and 1980s specifically in the areas of water pollution – rivers, air quality and waste management.
This principle was adopted through some judicial interpretation which are mentioned below:
Vellore Citizens’ Welfare Forum vs. Union of India (1996)
Indian Council for Enviro-Legal Action vs. Union of India (1996)
M.C. Mehta vs. Kamal NAth (1997)
In Research Foundation for Science (18) vs. Union of India (2005), the Hon’ble Supreme Court of India has stated that the “ppp” in its broad sense encapsulates the proposition that the manufacturer of goods or other commodities is bound to pay the cost in the form of preventing the pollution that results from production, or in the form of abating the pollution where it has already occurred is imposable.
Thus, environmental cost together with people or property cost is embraced, costs of preventing pollution that can be prevented are also included not just the costs of damage control for pollution that has occurred.
It will contain all the costs of the environment, and not simply those which are easily measurable. But this principle does not suggest that the polluter can pollute and simply compensate for it. Although the scope and the degree of cost are variable and actual, the principle of cost will certainly be relevant in one or other form for any given situation.
Now, let us discuss some implementation mechanisms in enforcing this principle.
Implementation mechanisms in enforcing the Polluter Pays Principle
The government has a very crucial task of ensuring that the ppp is implemented to the latter. The government entails different policies and laws to effect this principle. Some of them are mentioned below:
Central Pollution Control Board (CPCB)
The CPCB is functioning under the Ministry of Environment, Forest, and Climate Change (MoEFCC). The one that exercises supervisory authority over environmental laws It is also charged with the responsibility of implementing the environmental laws. It controls the pollution index of the environment with respect to air and water and has some discharge standards. It audits as well as makes directions to industries in order to take the right steps. It punishes industries by using fines and penalties on everything that goes against the norms and formally sets laws of the environment.
State Pollution Control Board (SPCB)
The SPCB produces rules and guidelines to be implemented. It also embarked on some awareness making programs on controlling pollution and the protection of the environment. The state environmental laws are implemented through fines on industries, and the amount of fines is dependent on the extent of infringement of rules.
National Green Tribunal (NGT)
The National Green Tribunal (NGT) is a judicial tribunal that primarily hears environmental matters. This Act came into force in the year 2010. This Act has been passed under the provision of Article 21 of the Indian Constitution and under this Act, everything has been said about the right to live in a clean environment. It supervises environmental issues and ensures that polluters are made to suffer the consequences.
This Act gives some power to the Central Government for safeguarding the environment-retroactively. In this Act, provisions related to polluter pays principle are also discussed. At the beginning of the Act, in the preamble, the goals of the Act are declared to be aimed at preserving and enhancing the environment.
Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016
This Act governs the storage and disposal of hazardous wastes. It also safeguards the prospect of making the cost of safe disposal and clean sites to be paid by the polluter. Its general objective is to promote the reduction of hazardous wastes as well as to facilitate their recycling and reusing.
Now, moving forward, let’s discuss the importance of the ppp.
Importance of Polluter Pays Principle
PPP has become more of a popular slogan in recent times. This however never negates the cardinal rule that has come to be embraced as true – if you are the one to make the mess then it is your responsibility to clean it up. This is the main basis of this slogan. It should be mentioned that in environmental law, the ‘ppp’ does not refer to “fault”, but it prefers a curative approach, which is more interested with rehabilitation of the affected ecological systems. The importance of ppp is stated below:
It is a principle of international environmental law in which the cost shifting takes place whereby the polluting party compensates the environment for the harm caused to it.
It is regarded as a custom because it has received huge support in most organisations of the Organisation for Economic Cooperation & Development foreign countries, particularly, the member countries of OECD and European Community (EC) countries. In international environmental law as what is seen under the law, the principle is rarely mentioned.
In the recent past, the ppp is perceived as a methodology of cost-allocation of pollution costs and liabilities. Concerning which/what we shall examine within the framework of the economic rationality of the enterprise.
Correlation between its environmental policy and the socioeconomic policy pertaining to its country.
Furthermore, under this principle it is not their task to pay for the costs of either prevention of pollution, or to exercise the duties of fixing liability, since the result of such action is to transfer the cost implications of the pollution incident to the taxpayers.
However, the State practice does not support the belief that all the cost of de-pollution should come from the polluter, especially when crossing the transnational dispute is involved.
The ppp can be effective in eliminating the continued degradation of the environment.
The principle places a fee on emission of greenhouse gases that equals the cost incurred by the environment. Thus making the polluter bear the cost that was otherwise borne by others.
According to WHO statistics, 99% of the global population are exposed to air that transgress WHO guideline limits of pollution; for low and middle income countries, exposure is the highest. This is likely to affect community health in a global way. In this case, the regulation of the ppp would be beneficial in the sense that it would cut on the cost through emissions reduction. Therefore, the principal can contribute to the reduction of cost of pollution through minimising emissions from within the environment.
As above we discussed the importance of the ppp, there are some challenges in enforcement of this principle. So, let’s discuss it.
Challenges in enforcement of Polluter Pays Principle
There are many positive impacts of ppp and there are also some shortcomings. So, let’s discuss some of them which are as follows:
Identifying polluters
Firstly, there is still confusion on defining ‘who is a polluter’. In legal terminology, a ’polluter’ is the individual who harms the environment, finally or directly or indirectly gives rise to circumstances with regard to such damage. In any case, this definition is wide enough that it encompasses any action taken in the course of doing business unfavourable in some circumstances and rather unfavourable in others.
Insufficient incentives
Secondly, poor households with low economic status, informal firms, and small businesses and farmers can bear no extra costs for energy or for waste management or disposal in their locality.
Resource constraints
Thirdly, small and medium-size firms from the formal sector which are predominantly confined to the consumer home market since they are unable to pass through the cost to the final consumer home market of their products.
Customer demand
Fourthly, cost passing through strategy to end users is normally beyond the reach of exporters in developing nations. It is internalisation of foreign customers because customer demand is elastic.
Common pool resources
Finally, it reveals that most environmental issues in developing nations are caused by overexploitation of common pool resources. Availability of these common pool resources (as could be envisaged in the ppp) might be restrained in some cases by a delegation of private property rights, however, this solution is likely to cause rather severe distributional concerns.
Now, let me discuss some issues with compliance.
Issues with compliance
Some of the small and medium companies cannot afford advancement technologies and processes.
There are many polluters who don’t even understand their duties towards environment protection.
The polluters may fail to adopt environmentally friendly practices because of weak or poorly designed incentives for compliance.
Delaying compliance efforts among the polluters because of the long process of enforcement.
Now moving forward to discuss some recommendations for strengthening the ppp.
Recommendations for strengthening
Strengthening the rules and legal frameworks, and eliminating loopholes.
Adopt modern technologies and enhance the monitoring system.
Promotes public awareness.
Solving transborder issues encourages international cooperations.
Implementing flexible cost allocation schemes that could apply for small-scale polluters.
Now, let me discuss some impact of the ppp on environmental protection.
Impact of Polluter Pays Principle on environmental protection
There are some positive impacts of this principle on environmental protection.
Encourages accountability
The ppp ensures that the polluters should bear the cost of pollution and responsibility towards the environment.
Reduction in pollution
The penalties imposed under the ppp discourage the polluters from damaging the environment by their activities. So, it reduces the pollution.
Promotes sustainable development
It promotes sustainable development by encouraging the industries in making changes towards the eco-friendly alternatives. Sustainable development means an integration of developmental and environmental imperatives. Sustainable development is essentially a policy and strategy for continued economic and social development without detriment to the environment and natural resources on the quality of which continued activity and further development depend.
Supports environmental restoration
The ppp penalties collection from the polluters used in rehabilitating damaged ecosystems by cleaning up the polluted rivers and reforesting degraded lands.
Now, we are going to discuss the impact of this principle on businesses and industries in India.
Impact of the Polluter Pays Principle on businesses and industries in India
The ppp is a policy tool that has tremendous bearing on businesses and industries of India. Here are some key impacts:
Increased compliance costs: Businesses and organizations are obliged to place money into environmental care mechanisms to help reduce pollution. This was the case of investing in devices and systems that lower emissions, cleaning up waste before the disposal and basically using cleaner production processes.
Financial liability: Those firms that pollute the environment must be in a position to meet the cost of correcting their mistakes. This financial implication can be very huge particularly where there is massive environmental degradation. For example, the Bhopal Gas Tragedy and the LG Polymers gas leakage recently, indicates serious economic penalties for the companies.
Enhanced corporate accountability: The desire of the ppp for companies to adopt clean policies and become more productive. This principle can lead to corporate sustainability standards in order for organisations to bear the costs they inflict in the environment.
Market competitiveness: While environmental regulation can be costly, it may also be possible for customers to compel firms to search for new technologies. Soap LFB that buys energy efficient products and relates to environment conservation may afford to develop branded images that will help pull consumers and investors in the market in general.
Legal and regulatory pressure: By time industries have deployed the ppp through the legal frameworks and judicial systems has increased zeal to summon more regulatory attention. Every kind of business activity is monitored by various legal bodies such as the Central and State Pollution Control Boards. This ensures a consistent compliance to the existing environmental standards.
Now, let’s discuss the effectiveness of the ppp.
Effectiveness of the Polluter Pays Principle
PPP encourages the industries and people to adopt pollution cleaner resources and reduce pollution.
The ppp shifts the financial burden towards the polluters from the taxpayers and the public.
The revenues which are collected from the polluters are used in environmental cleanliness, and some conservation projects.
There is an advancement in renewable energy and waste reduction techniques have been used by such incentives.
There are some landmark judgments we should discuss about it. So, let’s move forward.
Landmark Judgements
The Indian Judiciary has incorporated the ppp as a part of the environmental law regime through the following judgments:
Indian Council For Enviro-Legal vs. Union Of India & Ors (1996)
Facts of the case
In India, the ppp was used for the first time in the case of Indian Council of Enviro-Legal Action vs. Union of India (1996). In this case a PIL was filed for pollution of the environment by some private industries. It is located in Bichhri village in Rajasthan for manufacturing some chemicals like Oleum (concentrated form of Sulphuric acid & H-acid etc., They have not even procured the requisite clearance or consent and they never fitted any plant to treat the highly toxic effluent released by them.
The highly toxic effluents of these industries seeped to the core of the earth and contaminated the water table for humans and for the farmland. It also made it uneconomical for cultivation for production of food crops from the previous soil. Some of the industries had shut down or had ceased production of H-acid. Nevertheless, it left long-term effects of their action, which is sufficient to conclude the case.
In this case, an environmentalist organisation brought into notice the sufferings and woes of the inhabitants of a small village called Bichhri in Udaipur district in Rajasthan. An industrial complex primarily involved in manufacturing chemicals was located in the village, Bichhri. The emission of concentrated sulphuric acid and aluminium sulphate from one of the industries, Hindustan Agro Chemical Limited caused discomfort in the lives of the villagers.
The effluents from the factory were very difficult to deal with as it was refractory in nature (it means materials which are very high in temperature). Many of the chemicals percolated into the soil polluting the groundwater and aquifers underneath. The polluted water even destroyed the standing crop. As a result, the villagers had to bear the brunt of barren agricultural lands.
Issues of the case
To what extent the producing industries of toxic chemicals have implemented environmental protection measures?
Whether the defendant would be legally liable for the sum of money necessary to perform such operations to correct the harm?
Judgement of the case
The Hon’ble Supreme Court of India dismissed both the interim applications with costs of Rs. 10 lakhs and compound interest @ 12% per annum for the failure to pay the remedial amount of Rs. 37.385 crores within 15 years of imposition of remediation costs. In pursuance of the said decree.
The court further observed that it is the duty of court to counterbalance the unjust enrichment (it is a legal maxim which aims to prevent someone from unfairly benefiting at another’s expense) through awarding compound interest and punitive costs full restitution of wronged party and to deter such frivolous and dishonest litigation. One party cannot be allowed to take advantage of his own wrong. That is a stay which an unscrupulous litigant cannot use to cause an injustice and cannot secure a right for himself by invoking jurisdiction of the court.
Finally, for the first time the court adopted the ‘ppp’ where cost was recovered from all the big industrial businessmen for polluting the environment and also endangering the lives of the villagers without proper treatment of hazardous slurries of their plants.
The Hon’ble Supreme Court relied on the ppp and the said industries were ordered to make good the losses caused by damage and contribute towards the cost of the restoration of the qualities of environment.
The court also ordered such industries to be shut, and noted that in the future it was incumbent on policy makers to plan all chemical industries keeping in mind all environmental factors as this is the idea behind future planning which is to find ways and means to reconcile environmental concern with a relevant need for industries and technology.
Vellore Citizens Welfare Forum vs. Union of India & Ors (1996)
Facts of the case
This case is popularly known as T.N. Tanneries case. In this landmark judgement of the Hon’ble Supreme Court of India where the much heard phrase ‘sustainable development’ has been adopted as a balancing concept of the court by this Bench. This case was filed as the Public Interest Litigation (PIL) under Article 32 of the Constitution of India and was directed against the pollution which was coming from the huge amount of discharge of untreated effluents by the tanneries and other industries of the State of Tamil Nadu.
Due to the lack of treatment of discharge of the effluents, the entire surface and subsoil water of river Palar had become unacceptable hence no portable water was available to the dwellers in that region.
Issues of the case
To what extent principles like the polluter pays principle and precautionary principle which form a part of sustainable development have any role to play in Indian law?
To what degree are we willing to sacrifice environment safety to the future economy?
Whether tanneries should go on being allowed to function at the cost of life of lakhs of people living there?
Judgement of the case
The ppp is well explained in this case as ” the costs consequent of pollution must be paid by the polluter”. The absolute liability for harm to the environment goes well beyond indemnifying the victims of pollution together with the cost of recovering the affected environment by enhancing natural balance. Thus, it includes external costs and also direct costs to the extent of a particular person or object in the environment.
The Hon’ble Supreme Court of India after elucidating the cardinal features of sustainable development stated that the precautionary principle and the ppp are the characteristics of sustainable development and have been given effect to as part of the legal system.
The court was disappointed that the Central Government had not promulgated an “authority” under Section 3(3) of the Environment (Protection) Act, 1986, to do anything necessary for the protection and enhancement of the environment and therefore the work which needs to be done by the above said authority in terms Section 3(3) read with other provisions of the Act is being done by the Supreme Court and the other courts in the country.
M. C. Mehta vs. Union of India, 1996 (The Taj Trapezium Case)
Facts of the case
This case is popularly known as the ‘Taj Mahal case’. This landmark judgement of the Hon’ble Supreme Court of India is grounded on the principle of sustainable development, where the court made the very first use of the principle called the “precautionary principle”. In this case, due to violation of law relating to environmental pollution a public interest litigation was triggered and there is degradation of the Taj Mahal which is a world heritage site.
According to the opinion of the expert committees, consumption of coke/coal by industries located within the Taj Trapezium Zone (TTZ) were discharging pollution and inflicting harm to the Taj as well as to the residents in the area.
Issues of the case
Whether the Taj Trapezium Zone, a specified area of the Taj Mahal, is being substantially injured by pollution threatening the building and its surroundings?
Whether alteration of Industrial Fuel Switching from coke/coal by Industries located in the Taj Trapezium Zone to the deteriorating condition of the Taj Mahal & Health of the inhabitants in the area?
If the government authorities were doing enough to curb pollution and preserve the great structure for future generations?
What legal measures should be recommended to solve the problem of pollution with the aim to protect Taj Mahal in the future?
Judgement of the case
The above mentioned case was decided by the Hon’ble Supreme Court of India on 30 December, 1996. However, there was inordinate delay by the industries to adopt natural gas as industrial fuel as directed by the Hon’ble Supreme Court of India. The court said that excluding a commercial aspect, the Taj Mahal is a cultural industry and thus pollution must be prevented while the growth of this industry must continue and it must be encouraged.
The court had decided to walk the line of sustainable development and adopt that the environmental measures must anticipate, prevent, and call attention to damage not yet caused but foreseeable and that it justified use of the “precautionary principle” and fight the sources of pollution impact. Hence it directed that all the industries require the use of natural gas to replace coke/coal for firing, as an industrial fuel for operation.
In TTZ those industries which are in any way in a quandary to get the natural gas connections must cease operations using coke/coal in the TTZ and they might resite delete themselves as per directions of the court. The moving industries of the relocation in the new if industrial estates were to be given the incentives.
Now, moving forward to discuss some of the recent cases.
Recent developments or case studies post-1996
Sterlite Industries (I) Ltd.Etc. Etc vs. Union of India and Ors.Etc.Etc. (2013)
Facts of the case
In this case, on 1st August, 1994, Sterlite Industries obtained “No Objection Certificate” from the Tamil Nadu Pollution Control Board (TNPCB) for setting up a copper smelter plant in Meelavittan village, Tuticorin. On 16th January, 1996, the Ministry of Environment and Forests, granted environmental clearance on subject to certain conditions. Those conditions were laid down by the TNPCB and the Government of India.
On 22nd May, 1995, the TNPCB granted consent under Section 21 of the Air (Prevention and Control of Pollution) Act, 1981, and under Section 25 of the Water (Prevention and Control of Pollution) Act, 1974. The National Trust for Clean Environment had challenged the environmental clearance and consent order in the Madras High Court,
Issues of the case
Whether the writ petition is justified or not?
Why did the National Trust for Clean Environment and other parties challenge the environmental clearance and consent orders for Sterlite Industries’ copper smelter plant?
What were the reasons behind the Madras High Court’s decision to order the closure of Sterlite Industries’ plant?
Judgement of the case
The judgement given by the judges in this case after analysing the whole facts decided that appellant must pay a compensation of Rs. 100 crores for creating pollution in the environment. The directed amount to be deposited to the Collector of Thoothukudi district. That amount shall be spent on the expenses made for rehabilitating the environment in all facets which were destroyed by the appellant industry with the consultation of Secretary of Government of Tamil Nadu and TNPCB and approval of the Secretary. By this the court has also applied the ppp in the judgement.
The assertion of the judgement was that the appellant industry went on with its production in a continuous manner without the consent of renewal of the TNPCB. With this there was a suppression of material facts and manipulations of facts also. In addition, the industry which also provides employment to 1300 people and the turnover of the industry has a huge amount of revenue for Central as well as the state government in excise duties, VAT etc.
Lg Polymers India Private Limited vs. Andhra Pradesh Pollution Control Board (2020)
Facts of the case
This case is also known as the Vizag Gas Leak. It is one of the fatal and hazardous events that occurred in recent times. In India, Visakhapatnam is a state of Andhra Pradesh. On 7th May 2020, early morning, a group of people complained of dizziness, vomiting, breathlessness and a disagreeable odor in the air. Soon they started dozing and falling down due to sudden shortage of oxygen to the blood as well as brain.
This happened because of styrene monomer vapour leakage from a storage tank in the city of Vizag, Andhra Pradesh. If one goes by reports, 13 people were found dead and thousands hospitalised and the entire place remained a no-go area for over 36 hours. The preliminary investigation carried out showed that it occurred because of the non-availability of workers and the plant not working due to the Covid-19 outbreak and a screw loose was noted.
Issues of the case
Did the LG Polymers operate its plant with the required and sufficient environment clearances?
Were the safety measures and emergency protocols at the plant adequate?
How far is LG Polymers responsible for the said accident and what reparation should be paid to the affected?
Judgement of the case
The National Green Tribunal (NGT) delivered a landmark judgement. When the tragedy occurred then the NGT started the Suo Moto case and prepared ways to find out the case in terms of Section 14 & Section 15 of the NGT Act, 2010, which defines the process of addressing the hazardous chemical leakage and the arrangements and compensation should be made from it in the emergency situation.
The NGT directed LG Polymers to pay ₹50 crores interim compensation to be paid to the victim for the styrene gas leak that caused many deaths and other complications. The tribunal doubted the environmental clearance by the company and ordered a special investigation with regard to the environmental clearance and the environmental norms followed in the company.
Besides, the NGT constituted a separate committee to look into reasons for the said leakage, losses incurred and smart ways to avoid similar mishaps in the future. The tribunal also continued the shut down order of the plant and the physical restriction of the area, that is, entry into the said forbidden area could only be by way of performing safety measures. The Supreme Court of India later affirmed all these orders and at times insisted on compliance with environmental and safety measures to avoid such disasters.
Now, we are going to discuss the comparative analysis of different countries. So, let’s move forward.
Comparative analysis of Polluter Pays Principle in other jurisdiction
Country
India
United States
European Union
Legal framework
In India, the ppp is considered as an environmental policy and law. It is reinforced by the landmark judgements of the Supreme Court. There are some policies also framed for the implementation of this principle, such as CPCB, SPCB, NGT.
In the United States, the ppp is implemented through federal laws like CERCLA (Superfund) and enforced by the Environmental Protection Agency (EPA).
In the European Union, it is regulated by the Environmental Liability Directive (ELD).
Enforcement
There are some judicial interventions and NGT plays a crucial role in its enforcement.
EPA enforces the rules and laws for ensuring the polluters pay for damage.
States members are responsible for the enforcement of this principle and with the European Commissions.
Scope and coverage
The main focus of the rules and regulations are on remediation and compensation after the damage has occurred.
The main scope is to clean up the hazardous waste places and liability on the polluters for environmental damage.
It emphasizes both remediation and preventive measures.
Conclusion
Although there is no statutory mandate on the ‘polluter pays principle’. Nevertheless, it takes more effort in complying people to the principle rather than mandating it. The judicial pronouncements on this principle have been clear, crisp and undisputable.
It was realised that industries are also social units and they have legally sanctioned responsibilities and obligations towards the environments they exist in. The old slogan of growth together with the preservation of biodiversity cannot stand well for the other in the 21st century. Although the exploitation of nature in the name of narrow development is no longer acceptable.
The principles include the ‘polluter pays’, ‘precautionary principle’, and the ‘principles of sustainable development’. Principles of sustainable development must in an ideal world be part and parcel of any one of us. Several institutions and universities have adopted tree planting as part of their annual celebration, such as Independence Day, Environment Day, etc. It is thus correct to undertake such steps so as to promote sustainable development. Sustainability is the benchmark of equal harmony for nature and us in the entire world. All these steps should be habits of the millennials.
Frequently Asked Questions (FAQs)
On what basis does the Polluter Pays Principle support environmental conservation?
The ppp helps in making polluters bear the cost for polluting and this way they are forced to make necessary changes that will only promote environmentally friendly policies as well as its control technologies.
Do you have an example that best demonstrates implementation of the Polluter Pays Principle?
One of the examples is the carbon tax policy where companies that produce carbon dioxide are charged based on the emission limits to this gas. This tax formula can lead firms and cooperative organisations to reduce emissions of greenhouse gases as this formula has a specific low tax rate for emission reductions.
On what basis, the Polluter Pays Principle is helpful in Implementing Sustainable Development?
The ppp challenges business establishments to embrace changes in their technologies hence put in place measures to reduce their depletion of resources by the future generations equals to the resources consumed.
What are some of the difficulties that come together with implementing the Polluter Pays Principle?
Some of the problems relate to the assessment of pollutant concentration, determination of tax rate/s or penalties, enforcement of laws and regulations, and possible effects of polluting industries and consumers.
How does the Polluter Pays Principle impact consumers?
It affects consumers who may end up paying more for the goods and services since the cost of pollution control will be absorbed by the manufacturer. But this also convinces the consumers to go with more environmentally friendly products.
Is the Polluter Pays Principle practised all over the world?
The ppp is very well known and used in many countries and its application is very different depending on the policies, regulations and institutional system of each country.
What are the roles of governments in the Polluter Pays Principle?
The ppp is created, regulated and implemented by governments; the latter determine rules on pollution emission levels, taxes or penalties and monitor their adherence.
What measures can people put in place to fund the Polluter Pays Principle?
Interventions that the individuals can undertake in order to support the ppp include; encouraging good environmental legislation, practicing good environmental conduct, and sourcing our products from organizations that are friendly to the environment.
This article is written by Sudhakar Singh. You will find that this article provides information about duties and responsibilities of probation officers, and it also shows how probationers can be rehabilitated and reintegrated in societies. This article also contains penological and criminological opinions on probation.
Probation officers are not well known personalities of society but they are an integral part of the criminal justice system. They act as a bridge between the courts and probationers. Under the Indian legal system, various duties have been imposed on probation officers such as, supervision of offenders, enforcement of probation conditions imposed by the courts, maintaining the balance between the public safety and rehabilitation.
In addition to other duties, a probation officer often acts as a counsellor for the probationer, they also keep maintaining the record. To facilitate the court and decide the sentencing conditions of the probationer, the probation officers also prepare the pre-sentence report. Probation officers have a big role in the criminal justice system of almost every country.
To understand what probation officers do today, the remarkable history of probation and the cause of its existence needs to be explained.
Historical development of probation
Probation as a concept can be argued to have evolved from a very early age from the dominance of Greek and Romans philosophy. However the possibility of probation or at least the probation as known in modern society really emerged in the mid nineteenth century and is believed to be indebted to John Augustus, the shoemaker of Boston who is often referred to as the father of probation. It is said that Augustus was taken by his father to the police court in 1841 where he had a live view of juveniles in prison. Augustus opined that such juvenile offenders have to be corrected through counselling and not imprisonment.
By the early twentieth century, various countries, including the United States, introduced probation as a sufficient measure to reform the offenders. Probation of Offenders Act,1907 was passed in the United Kingdom and probation became a legitimate part of the criminal justice system. Probation officers and the courts were empowered to grant probation which helps to reduce the overcrowding in jails and also introduced an alternative to shorten the term of imprisonment.
Probation was also progressing as an elastic punitive measure that offered options for correction and a social shift during the twentieth century. The probation systems that have developed over the years and are linked with rehabilitation and education of juvenile offenders.
As we know that punishment is according to the offence of any person, if any person has committed a minor or less serious offence then we can punish such person with probation. For example, Shalini committed an offence of theft of value Rs.50, then the court may grant her probation and put her under supervision of probation officers because she had committed an offence of low value.
At present, probation is not just acknowledged as a way of reigniting the prison overcrowding issue but as a way of correcting the offenders and eradicating the causes of the crimes. Society has over the years come to realise that analytic and monitoring ways of handling offenders could be a more effective method of punishing the offenders. It gives another chance to offenders to change from their mischievous behaviour and also it guarantees security to the society.
The article below aims to explain the concept of probation in detail.
Concept of probation
Probation originated in the ancient legal system but during the 19th century it got its modern recognition. The term ‘probation’ comes from the Latin word ‘probare’ which means ‘to test’ or ‘to prove’. This is a kind of punishment where the offender is not sent to the prison, but he is set free on the basis that the offender should report to a probation officer. It shows a change in attitude of societies towards punishment, the crime management, and change in the behaviour of offenders. The concept of probation is inspired from the principle of reformative punishment.
A probation officer is an officer appointed by the court to look after the probationer for a specific time period. Generally, the persons put under probation are minor offenders and persons arrested in minor offences. The majority of the offenders on probation are first time offenders.
In our daily lives, we might find many people who are subject to probation. These probationers generally live in our neighbourhoods, doing community service or working in social programs or working in educational programs. The objective behind this kind of punishment is to make a person responsible and regain contact with society and prevent reoffending by his family and community support. Once an individual is placed on probation, a regular drug test is also required to ascertain the requirement of treatment to the probationer.
The probationers are expected to fulfil certain requirements in order to maintain their status of being on probation. We will discuss the same in brief in the next subheading.
Expectations from probationers
Probationers are individuals who are under trial period. During the probationary period the performance, conduct, discipline, behaviour of probationers are evaluated. Let us understand the expectations from probationers in brief;
Comply with the conditions of probation set by the court, such as community service or stay in a specific geographical area.
To have a regular meeting with a probation officer.
Interact with the general public and live a crime free life.
To attend the counselling sessions and every other educational program.
Undergoing a regular drug and alcohol test is mandatory for every probationer.
To understand the concept of probation in detail, it is important to understand the reason and grounds for granting the probation.
Ground of probation
Probation is a court order which allows the offender to avoid prison subject to certain conditions such as good behaviour, attend counselling sessions, regular drug tests etc. probation is usually granted after considering certain ground, such as:
Nature of offence: Generally, probation is granted for minor crimes or to first time offenders. If the crime committed by the offender is not severe or violent in nature then the court may grant probation. Usually, probation is granted to the offenders of misdemeanour, theft or fraud etc.
Offender’s background: If we look into the history of probation we might be able to see that the courts use the criminal history, age, mental condition, and family background of offenders before they allow probation. Of course, if the offender has a prior criminal record, then such offenders may not be allowed probation.
Potential for rehabilitation: The willingness and readiness of an offender to follow the condition of probation is the most crucial thing while considering the grounds of probation. If the probationer is willing to accept the probation then probation works best.
Social interest: While granting probation, courts usually consider the society’s interest and ensure whether the offender poses any threat to the victim and community. The court may decide whether the offender put in any value in the society being a member of society.
Let us consider probation in light of what has been said above and discuss the duties of probation officers in more detail which is explained further below.
Duties of probation officer
According to Section 14 of the Probation of Offenders Act, 1958, various duties have been imposed upon probation officers. This Act mainly emphasises reformative justice and provides probation as an alternative to imprisonment. This Act is more inclined toward the minor crime offenders and provides the discretionary power to the court to release the offenders on probation.
The Probation of Offenders Act, 1958, succeeded the Probation of Offenders Act,1907 [hereinafter referred as 1907 Act]. There is a huge significance of the Act of 1958, which is discussed in detail under this article. To know more, you may visit here. The scope of 1907 Act was narrower and it did not mention the duties of probation officer. The Probation of Offenders Act,1958, extended the meaning and concept of probation and is compatible with the idea of reformative justice. To know more about this Act, click here.
Investigating the circumstances and domestic environment of offenders;
Supervising and monitoring of probationers;
Counselling and providing support to the probationers;
Advising and assisting the probationers;
Assessing performance of other duties as imposed by court or any other law.
To understand each point clearly, let us dive deep into each point particularly.
Duty of supervision
It is noted that supervision of offenders is essential to achieve the goal of compliance with probation conditions imposed on the offenders. Based on Probation of Offenders Act, 1958 specifically in sections: Section 14(b) and Section 18, probation officers are assigned to monitor the probationer.
One important aspect of supervision is to schedule a meeting with the offenders frequently. During these meetings, probation officers assess the probationer and compliance with the terms and conditions of probation. These meetings also help probationers to deal with issues they are facing in day to day life which allows officers to aid and advise the probationer.
For supervision, probation officers may visit probationers home or their workplace to verify that the probationer is living and working in such an environment and conditions which facilitate their rehabilitation. If a probation officer feels that the probationer is now of sufficient age and maturity that does not need further supervision, then he can write a request for bond release from probation in consultation with the district probation officer.
Duty of counselling
An individual serves an essential counselling duty in the reformation and the re-socialization processes of the offenders. Probationers get an opportunity to counsel in order to deal with matters of personal nature that led to criminal acts. In order to offer good counselling to the probationers, different exercises are required by probation officers. Some of them are:
In this way probation officers act more like a counsellor, they help the probationers come out of the personal and social issues. Thus, many offenders admit that they experience problems in achieving desired results in managing addictions, mental disorders or any family matters etc. Besides giving advice, probation officers also provide probationers with information and refer them to the right agency.
Probation officers engage in an assessment of probationer’s personal necessities including psychological and emotional issues. On such evaluation, probation officers provide a tailored plan as per probationer’s needs.
While counselling, a probation officer may refer probationers to other specialised programs such as drug rehabilitation centres, anger management courses, therapy sessions with psychologists, marriage therapy programs, etc.
Enforcement of conditions
If a court suspends a prison term and puts the offender on probation, the court sets certain conditions the offender has to meet. These conditions mainly include that:
Offender must visit probation officer time to time;
Offender must not commit another offence;
Offender must avoid places and people associated with criminal activity;
Offender must go through regular alcohol checkup and drug test;
Offender must secure an employment; and
Offenders must perform community services, etc.
Therefore, it is the duty of the probation officer to ensure that the offender complies with these conditions.
These conditions are useful in order to oversee the work of the offender. For this purpose probation officers can go to the probationer physically or by phone and they can demand a probationer to take a drug or alcohol test. Through the enforcement of these conditions, probation officers determine any improvements in the probationer. They also work closely with other organisations and service deliverers while making sure that probationers attend probation classes, for example; substance abuse classes or counselling classes.
If a probationer violates any conditions attached with probation, whether it is drug evaluations test, or absence in a regular meeting with probation officer, or engaged in new criminal activity, or absence in the counselling session, the probation officer is required to act accordingly. Action taken by probation officer may include;
The officer warning the probationer;
Increasing the conditions of probation; or
Recommendation of the officer to the court to imprison the probationer for the violation of probation conditions.
Reporting the record
Probation officers are also supposed to keep records of the probationer’s activities, achievements and any case of violation of probation provisions. These records serve as the foundation for the officer in analysing improvement in the offenders.
Records are made to inform the court regarding the progress of the offender. These reports contain:
Information about the conduct;
Interaction of the offender with other people;
Adherence to the conditions set in probation; and
Attendance and involvement in any recommended programs and issues encountered.
These reports are important for various reason, such as:
It provides an opportunity so that the probationer can defend himself;
According to this report, the court makes a plan on how to handle such cases in future;
It brings more transparency in the process of probation.
Collaboration with other agencies
Probation officers cannot work in isolation as probationers are presented with a number of challenges mainly, socio-economic challenges, substance abuse, mental illness, unemployment, homelessness and more. Probation officers have to cooperate with different agencies in order to ensure that necessary interventions and services for rehabilitation are well-coordinated.
Some of the major collaboration of probation officer with other agency are mentioned below:
Criminal justice collaboration
Almost all probation officers work with the police, jails, prisons and judiciary as they supervise and oversee offenders on probation. This means that communication between different entities of the criminal justice system is well coordinated. If probationers violated any condition of probation then the officer must inform the court and he can effectively cooperate with police personnel to ensure the non violation of conditions. Active participation of the police system is required to increase effectiveness of probation conditions.
Social services and rehabilitation
Social services agencies play an important role in reintegration of offenders in society. These agencies make the relationship of offenders stronger with other necessary resources of the community. For instance, securing jobs, mental counselling, etc. Probation officers often refer probationers to the specialists in these fields so that the root causes of criminal behaviour can be addressed.
Educational and employment agencies
Cooperation with educational and vocational training organisations plays an important role in the rehabilitation of offenders. Probation officers provide assistance in education, employment training or vocational programs. Working with employment services and local employers, probation officers help offenders to achieve stable jobs, which is a considerable factor in preventing re-offence by probationers.
Link between the court and the probationer
Being a middleman, positioned between the judicial and the criminal justice system, probation officers also have a specific role to work. The main function of a probation officer is to monitor an offender who is under probation, and help them to stay with their families while following the conditions imposed by the court. For example, Raman is under probation and stays with his family. As long as he follows the rules of probation, he can stay with his family otherwise he will be transferred to the prison.
When the accused is in the pre-sentencing stage, probation officers prepare reports which contain information of the accused. The probation officers supervise a probationer, when the probationer is placed on probation and is expected to follow the conditions imposed by the court. In other words, if a probationer violates the conditions established by the court, it is the probation officer that is supposed to report to the court. They can recommend other punishments, changes in the probation condition or even cancellation of probation and then imprisonment.
Pre-sentence report of the probation officer
The court often considers the pre-sentence report of the offender while granting probation. The report has a very important role in the sentencing process. In discharge of this duty, probation officers supply a lot of information about the person who has offended and assists the court in determining the right kind of conditions to be imposed in a certain circumstance. The pre sentence report is based on two important factors, i.e., impartiality and objectivity. Below mentioned are some conditions fulfilled by probation officers while preparing a pre sentence report:
In the pre-sentencing phase, the primary duty of a probation officer is to investigate the history of offenders. This examination mainly includes criminal history, family condition, employment status, educational qualifications, mental health status and other relevant information.
Under Section 14(a) of Probation of Offenders Act, 1958, a probation officer is under an obligation to provide relevant information and facts as requested by the court. For example, Vinayak has committed an offence and he wants to be on probation. Then, the court can ask the probation officer to give detailed information about Vinayak. If Vinayak is found guilty of such an offence in a report then the court will decide which punishment is to be imposed on Vinayak.
When an offender is getting examined before punishment, then the probation officer is required to find all those factors which are responsible for a criminal behaviour.
When a probation officer is doing an investigation, he prepares a report which is also known as the pre-sentencing report. This report contains all the information collected during the investigation. One day before judgement, the probation officer submits this report to the court. It is so because the report is ‘confidential’ and it has been given to the court on the specified date. For example, if judgement is to be given on 21st August, 2024, then the report should be given to the court on 20th August, 2024.
Documentation and record keeping
Another important duty of a probation officer includes document and record keeping of all offenders placed under supervision. Since the probation officers are responsible for supervising the offenders, to ensure they abide by the stated conditions and it is compulsory for the officers to keep record for offenders rehabilitation.The overwhelming majority of community supervision agencies said that offenders are prosecuted when there is a violation of probation or when the offender is engaged in criminal activities.
Proper records provide a detailed account of an offender’s behaviours, progress, and adherence to various rules and constitutional provisions throughout the probationary period, both to the officer and the court.
Probation officers are expected to visit probationers at least once in a week to check if they have followed the conditions set by the court or not. For example, there can be such conditions that the patient must go for counselling, he should find a job and not drink alcohol. Such documentation of all these activities ensures the probation officer gets to monitor the progress, behaviours, or any other activity they may need to intercede with.
Each interaction with the offender, whether it be a meeting, telephone conversation, home visit, or drug test must be documented well.
Decision making
The decisions of probation officers help offenders to live and adapt into society. The probation officer is to be informed with every decision related to the probationer which helps him to create a balance between public safety and probationer rehabilitation. Below mentioned are some conditions when probation officers have to make decisions:
The most important decisions taken by probation officers is determining how to control the violation of probation conditions, such as absence in meetings, failure to take drug tests. In such conditions, probation officers are required to take appropriate actions against such violations. Officers are required to maintain balance between strictness of action and fairness of decision to ensure non violation of conditions.
During probation, if probationers show improvement then the officer might reduce the supervision or he may allow flexibility in meeting. If probationers show no improvement then officers may recommend additional counselling and frequent meetings.
Probationer rehabilitation and after care
The probation is mainly focused to rehabilitate and reintegrate the offenders into society. The rehabilitation and aftercare duty of a probation officer has a crucial role in helping probationers to achieve this goal. Major aftercare duties mainly include:
Aftercare of offenders reduces the risk of reoffending.
Rehabilitation duty is concentrated mainly on the change of behaviour for the better, on the problems which led to the criminal activity.
During the probation period, probation officers give attention to the involvement of probationers in programs like attending the counselling sessions and other education programs.
Aftercare duty of probation officers provide support for smooth transition of offenders. It also helps in the process of moving from supervision to living a normal life.
The progress report of the offender is to be given to the District Probation Officer or Chief Probation Superintendent.
Handling challenges and ethical consideration
In a criminal justice system, probation officers face new challenges on a daily basis. Moral issues are implicit in their employment which force them to maintain fairness, impartiality and privacy of offenders. Probation officers are under an obligation that they do not promote biasness, whether on the grounds of race, gender or socioeconomic backgrounds which affect their decisions as probation officers. A professional approach should be maintained while rendering the assistance in a way that there be no intimacy with the offenders as a result.
Offenders’ identifications and their circumstances should be safeguarded by the probation officers. They have to make sure that this information is passed only to the authorised person and is used legally and rehabilitative in nature.
Probation officers have to maintain balance between supporting the probationer and reporting the violation of probation conditions to the court. A probation officer is a person who is supposed to enforce law on a particular offender and at the same time offer and ensure that the suspect is given an opportunity to reform. The detailed discussion about the role of a probation officer is given below.
Role of probation officer
Probation officers provide a safer model of restorative justice because they are responsible for the enforcement of court’s order and help probationers in their reformation with the help of counselling and supervision.
Mediation role: Probation officers are a bridge between courts, offenders and society. For example, Raman is under probation and the court said that he should not go outside his home after 7pm. This information is given to the probation officers, now he is responsible to communicate the order of the court to Raman.
Rehabilitation support: Probation officers have to play an important role in the rehabilitation process and minimise the rate of re-offending. They have a great contribution in restorative justice.
Collaboration with other agencies: They work within a multidisciplinary framework, such as, collaboration with other agencies, performing social services, mental health agencies. They reduce burden from other correctional institutions by providing community supervision.
Offender assessment: Probation officers are responsible to take care of the interests of the offenders. They allow offenders to understand the probable consequences of their actions in a society.
Increasing accountability: Probation officers consider the general change and personality development of the offenders and accountability more important.
Community safety: They act together with offenders to find solutions to these criminal behaviours which benefit the society and individuals both.
Helping in providing employment: Probation officers provide support in providing and maintaining employment to the offenders. They monitor their participation in their employment and other educational programs.
As we have a clear understanding of a Probation officer’s responsibilities and work in the criminal justice system, now it is important to have a brief glimpse of the skill possessed by a Probation Officer.
Skill of probation officers
Probation assists probationers to make an effective probation and reintegrate them into the society. The probation officers possess a diverse skill set which helps them to effectively manage the probationers. Following are those:
Communication skills: When we look at the role and duties of a probation officer we understand that probation officers must have strong verbal and written communication skills. They often have conversations with offenders of different crimes, victims which require strong communication skills to deal with any challenging situations.
Analytical skill: Analytical skills of probation officers help them to make decisions and handle difficult situations. Probation officers analyse behaviour, criminal history, family background and mental condition of the offender to make a plan which helps them in their reintegration into society. Probation officers analyse the probationer through regular supervision and prepare a timely progress report.
Empathy and support: The blending of probation officers in probationer’s lives explains why probation officers exhibit an empathetic attitude towards probationers. The nature of the support from the probation officers may influence the offender to take responsibility for his/her action and transform the negative behavioural attitude.
Knowledge of laws and regulations: Probation officers must have a clear understanding of probation law, criminal law and guidelines regarding the sentencing of offenders. As a probation officer facilitates the probationer in the judicial process, it is important for him to have a deep knowledge of legal procedure. It ensures public safety and is also helpful in protecting the interest of probationers.
Having considered all the factual aspects which elaborated all necessary points concerning the duties of the probation officer and his skills as well as his role, we will now discuss the penological views of recognizing jurists.
Penological view on probation
Over the time, various penologists have accepted the concept of punishment with the purpose of rehabilitation. Here is an overview of some of the penologists on probation:
Cesare Beccaria: Beccaria is considered as one of the founding fathers of classical school of criminology. He argued that the punishment should always be proportionate to the offence, swift and certain. Beccaria’s idea supports the rehabilitation of offenders. He supports the idea of alternatives to harsh incarceration of offenders which reform offenders.
Jeremy Bentham: Bentham was the propounder of utilitarian theory of crime. He argued that the goal of punishment should always be to reduce the harm to society and punishment should only be imposed where it benefits the society by preventing crime. The “Utilitarian Theory” of Bentham supports the idea of probation if it is seen as more effective than imprisonment of offenders in preventing further crime.
Emile Durkheim: According to Durkheim, the purpose of punishment is to enact the rules of society because it reminds people what they should do and what they should not. Here Durkheim’s view is simple, he said that punishment does not promote revenge it encourages cooperation among the members of the society. According to Durkheim theory probation plays a role of assisting offenders to reintegrate themselves into the society.
Michel Foucault: Foucault has made contemporary study of punishment and its history and transformation in his book ‘Discipline and Punish: The Birth of the Prison’. He focused more on reformation of offenders through their constant supervision. He believed that the punishment should not be of corporeal nature rather it should be of disciplinary nature. Probation is an agency that makes sure that the offender does not repeat his actions and at the same time they can go around within society.
In order to know the significance of the concept of probation, it is important to understand the viewpoint of criminology regarding probation. Following is a detailed discussion regarding the same.
Criminological view on probation
Probation acts as a good alternative to imprisonment. Various criminologists have examined and accepted the effectiveness and implications of probation in criminal justice systems. The views of various criminological schools are:
Positivist criminology: Cesare Lambroso is considered as the founding father of positivist criminology. He also feels that criminal activities are the result of precipitating factors, which the offenders cannot avoid. From a positivist perspective, ‘probation’ acts as a best method to address those issues such as- social, psychological etc by providing regular supervision and various rehabilitative programs. These rehabilitative programs act as potential alternatives to address such criminal behaviour. To know more about the opinion of Cesare Lambroso on criminology and probation to be specific, you can visit here.
Sociological school of criminology: According to the ‘Differential Association Theory’ of Sutherland, people learn criminal behaviour from their environment. In this perspective, probation can act as a way to remove offenders from a negative environment and provide them a better environment through counselling, monitoring and social support from the community.
Environmental criminology: Lawrence Cohen and Marcus Felson have propounded a ‘Routine Activity Theory’. According to this theory, there are three reasons behind any crime; mainly a motivated offender, suitable target and lack of capable guardianship.
Motivated offender- According to this theory, there is always an individual who is more inclined to commit crime. Such individuals are more willing and capable of committing crime.
Suitable target- A suitable target means any person, object or property which is more appealing to commit crime and accessible to offenders. Suitability is evaluated through visibility, accessibility and vulnerability.
Lack of capable guardianship- Guardian here is inferred as a person who is protecting any person, property or object from any threat or danger. Guardians may include parents, neighbours or any technologies like cameras and locks etc.
The environmental criminologist favoured the probation by saying that probation provides a form of guardianship through regular monitoring and supervision and reduces the chances of reoffending.
People often use the words ‘probation’ and ‘parole’ interchangeably but both the words are distinctive from each other. Let us understand through this tabular representation regarding the same.
Difference between probation and parole
We often get confused with the concept of probation and parole, so it is important to understand the basic difference between these two terms. Well, parole is basically an early release of a criminal after assessing his behaviour and the duties allotted to him in the prison. To read more about parole, click here. The difference is given below;
Basis of difference
Probation
Parole
Meaning
In probation, a person lives in a society and remains under the supervision of a probation officer. For example, Akash committed an assault and the court granted probation to him. Now, he can live with his family in a condition that he will live under the supervision of a probation officer.
In parole, a person is punished with imprisonment and after some time he is released from the prison. For example, Satya is imprisoned for 3 years, but due to his good behaviour in prison he is released after 2 years of his imprisonment. This release of Satya is called parole.
Timing
In probation, a person never goes to prison because probation is a kind of punishment, in which he is monitored by a probation officer.
Parole is given to a person when he spends some of his punishment in a prison.
Eligibility
It is granted to a person who has committed a less serious offence. For example, Aditya has committed an offence of intoxication in public. The court may grant probation to him.
It is granted when a person shows good behaviour during the prison and has reduced risk of reoffending.
Conditions
It is granted on conditions such as, regular check in, regular drug and alcohol test, attend counselling meeting and educational programs etc.
It may include conditions like, regular drug test, stay within a specific location or following curfew conditions etc.
As we just had a good discussion on this topic, let’s conclude this interesting article on the duties of probation and various other aspects regarding the same.
Conclusion
In the Indian legal system, probation is so important because it gives public safety to and also ensures that the public gets justice. Probation officers closely look into the life of offenders and guide them so that they become part of society. They help and encourage the offenders with different counselling sessions and other educational activities. With the introduction of the Probation of Offenders Act, 1958, parliament provided an alternative to the imprisonment. Therefore, there is a huge contribution of the probation officer into cultivating a sense of responsibility in the minds of the criminals and bringing them back to society.
As discussed through the Probation of Offenders Act, 1958 imprisonment is no more punishment, it may be treated as a measure to take care of the society indirectly and to protect the interest of individuals as a whole. This alternative measure can only be achieved with the cooperation of the judiciary and administration.
Due to overcrowding of prisons and frequent abuse of human rights in prison, I feel probation has lightened up as one of the best solutions in recent years. In all cases, where the concept of restorative justice is enforced, it is important that all branches of the criminal justice system work together and make probation a more effective method of rehabilitation and help probationers to reintegrate into society as a responsible citizen.
Frequently Asked Questions (FAQs)
What are the primary responsibilities of probation officers ?
The main responsibilities of probation officers are:
Monitoring of offenders on daily basis;
Make sure that offenders are complied with the prescribed conditions;.
Providing regular reports to the court;.
Helping offenders to get back into society; and
Helping offenders when they cannot follow conditions.
What are the key elements to determine the risk level of an offender ?
When a court asks a probation officer to give information about an offender, probation officers look into the criminal history, mental health and support of offenders.
What happens if a probationer violates the conditions imposed by court?
If violation of the prescribed conditions is committed frequently, then, the court may extend the term of probation or rescind the probation and order imprisonment.
Why do we call the probation officers as a link between court and probationers ?
Probation officers provide the pre-sentencing report of the offender to the court. They also provide statements regarding the offender’s compliance, behaviour of probationer being in probation and circumstances causing the violation of conditions, to the court. This is why the probation officers are called as bridges between court and probationers.
References
Book on Criminology and Penology by N.V. Paranjape
Law on Probation by B.D. Khatri, Eastern law publication
This article has been edited and published by Shashwat Kaushik.
Table of Contents
Introduction
Doesn’t it feel good to take up law and justice in your own hands or to feel the supreme power over others? Most civilians have this notion that even if justice prevails, the criminal or the guilty person doesn’t get immediate trials or convicted by the court then and there. So it may seem that some people wish that if they would control the judiciary system, it would be different and easier to punish the real falter, as well as dispose of the cases which are pending before the courts as early as possible. Sometimes, this kind of thought has outrageous consequences and later it results in such people who are known as ‘vigilantes’.
The word ‘vigilant’ refers to the person who takes up law in his own hands. Basically, this is nothing but an upheaval to the judiciary system without having any formal authority. The legality placed on certain countries that follow the legal norms for their own smooth functioning of government can never accept this out-of-box jingoistic attitude in a person as the legal system works in favour of evidence and specified regulations. Vigilantism is beyond any legal boundaries and a thorough crime. It is more than a reaction to a crime; it is an exercise in power. To be clear, the bench of judges sits unbiased and with the power of the Constitution inside the Court, and they run their way of investigation through the weightage of evidence along with the decisive thoughts that are submitted in the court, while on the other side these vigilantes doesn’t follow any specific set of rules and there might be a chance of bias according to their own interests. On one hand, they are committing such things in ‘good faith’ for those who are deprived of justice; on the other hand, they are disrupting and violating the law and order system of a country. These vigilantes think of their empirical power and feel that showing off this heroic act will be appreciated with paramount dignity. Such happened in the case of https://www.scobserver.in/cases/tehseen-poonawalla-cow-vigilantism-case-background/ . And this leads to horrible consequences in utter disgust in respect to demeaning the judiciary system. The citizens have the right to voice their opinion or take a stand against the wrong but they don’t have the right to dominate justice. Mostly they are not predictable and can go at a certain level to stop crimes by committing crimes themselves. For this, the judges are there to maintain the stigma of a society. The main motto should always be a problem-solving mentality rather than a problem-creating mentality, as 487.8 per 100,000 people are committing crimes as per recent data in India. The Fundamental Rights in India enshrined in Part III (Article 12–35) of the Constitution of India guarantee civil liberties such that all Indians can lead their lives in peace and harmony as citizens of India. Even though there are armies, combats, and policemen to look after the government, it is also our duty as citizens of our country to establish harmony and solitude.
Such cases of Phoenix Jones, André Bamberski, and a famous case of a mother killing her daughter’s murderer inside a courtroom in Germany are some of the famous vigilante cases throughout the world. Therefore, it all depends on different kinds of persons and their ideologies, or what they do if they are given a huge amount of power, or will they do it for good faith, or they make excuses for their crimes. On the contrary, vigilantism escalates more than the real crime rate. It can only happen in a non-realistic world, such as in superhero movies like Batman, Spiderman, etc. But such kinds of people idolise these super heroes, thinking that they would be appreciated as they are shown in the movies. As of the last update during recent years, there were no such cases of pivotal role in vigilantism found except the case of cow vigilantism, where the Supreme Court of India convicted a few for taking law into their own hands by attacking some specific community people. This shows nothing but hatred for another religion by being biased and blindfolded with their own thoughts and mentality.
Recent cases of vigilantism
Even these types of cases can be found around the globe:
In Georgia, one black man named Auhmad Arbery was attacked by the whiteheads neighbourhood while he was jogging. Later, a jury convicted those three men for killing him. When they were asked about the same, they replied that they had seen Arbery in some underconstructed buildings, and he had been in burglaries. Though the police officer couldn’t find any evidence against Arbery, nor were there any complaints of him.
In some research, it has been found that it happens when trust of people decreases in government and they have nothing left to do, so they take up charges by themselves. Under current law, and since Roe v. Wade in 1973, women have the constitutional right to an abortion until the foetus is viable and can survive outside the womb, about the 24th week of pregnancy. The Texas law is unusual in that it is not enforced by the government or government officials. Instead, it authorises private citizens to bring civil suits and recover $10,000 from any doctor who performs an abortion or any person who aids or abets an abortion.
Advantages
When one side of this holds wrong, the other side of vigilantism is not that harmful if it can be used in a good way. As it can be seen in the rarest of rare cases or where justice is being delayed to give punitive actions to the main accused or the offender, there should be some power given to society so that the criminals get afraid while doing any further heinous crimes, and this way crime can be lessened. So that while doing such unacceptable wrong things, his psychological mind would think a number of times about what he’s getting as punishment.
Disadvantages
Nowadays, violence has been a walking cake in society; it shows it doesn’t exist but one trigger can uplift the whole society with their level of discrimination and certain beliefs. In the Europe refugee crisis during 2015-2016, a vigilant group sprung up in the European states as perceived paralysis in responding to the massive influx of people from a foreign country. Some of them were even called “Islam intruders” and were treated as untouchables. Vigilantism can be in various ways, like individual or collective, violent or non-violent, private or public, defensive or offensive, spontaneous or institutionalised. The Supreme Court of India declared that vigilantism isn’t permissible in any way possible, especially after the mob lynching case that occurred recently. It has also been said that vigilantes are anti-democratic and they lack certain constitutional values as they have extralegal behaviour that is not even legal. In recent cases, Maharashtra, Haryana and Uttar Pradesh have seen more vigilantism cases than other states in India. Specially, it has been arising because of the gradual increase of social media users from whom these vigilantes are trying to gain fame and recognition for their own so-called heroic deeds.
Even on these online platforms the master-minds of opinion gets ready to call upon their own judgements on some trivial issues, not knowing the particular fact, or any kind of legal matter and this also gains extra support on the part of vigilantes which excites them to take up law in their own hands. It can also be seen that while legal orders or judgements are broadcasted on social media platforms, both pessimistic and optimistic words are driven by their own point of view and are submitted without having the full knowledge about the weightage of evidence served during the trials by both parties, as if they were to sit on the chair of a justice. Therefore, these small incidents too, in this advanced technological era, affect the minds of vigilantes and drive them towards wrongdoing without any anticipation. Article 21 of the Indian Constitution refers to violation of human dignity while taking up vigilantism; Articles 14 and 15 refer to violation of the right to equality and prohibition of discrimination under the Constitution of India, which also leads to rigorous punishment for the vigilantes.
Cow vigilantism in India
The act of taking the matter into one’s own hands or a group of people to punish the people or group of people who are or are suspected of harming, killing cows or consuming beef. This has become a very common practice in India, which might also be addressed as an issue. This practice is backed by strong religious beliefs, traditions, political influence or other socioeconimic factors.
Religious significance
Cow is considered to be a sacred animal and a symbol of motherhood. The protection of cows is an integral part of Hindu culture and is also ingrained in religious texts and books. Slaughtering and killing of cows is on a rise these days which has also led to various protection moments and criminalisation of slaughtering of cows in many states of India.
Political factors
This cow vigilantism has also been exploited by various political group for their own motives. Some right wing Hindu parties have used this cow vigilantism as a way to fullfil their own agendas and to gather votes in the name of protection. This can be used as tool for targeting minority groups for, e.g., Muslims.
Socioeconomic factors
In rural areas a large section of people is dependent on cattle rearing for their daily livelihood which has also become a cause for cow vigilantism. Cow is an essential source of earning for people who live in village areas because people earn money by selling cow milk. Cow vigilantism is also fuelled because beef industry is mainly dominated by Muslims; this in turn is leading to social and political unrest.
Societal impact
Cow vigilantism has a very serious impact on the state of India which has created a wave of fear and insecurity among minority sections of the country. The rise of mob lynching and extrajudicial killing is raising concerns about the safety and protection of individuals rights and the rule of law. Also, this cow vigilantism is also damaging to India’s reputation internally.
To address this issue, the government must take a strong measure against this violence and ensure equal protections of all the citizens irrespective of their religious beliefs or the religions they preach. The government must also promote communal harmony, peace and prevent hate speech, etc., to control the issue of cow vigilantism. These are few fueling points of cow vigilantism; tackling these will definitely bring cow vigilantism under control.
Conclusion
Therefore, to take up measures against these wrong happenings:
One has to take preventive measures against these vigilantes in appropriate and immediate time.
A special task force should be appointed to track these vigilantes before any unprecedented things occur.
More judicial approaches should be taken to solve irregular issues.
More courts should be established to dispose of the pending cases smoothly and swiftly.
Punishment should be absolutely given to the offenders and criminals in a jurisdictive way by not mitigating the punishment.
A way to give damages to the victim should be implemented if there’s no part of fault in that person being attacked.
This article written by Sheetal Bhadoriya, provides a detailed analysis of Section 18(1) of Trade Marks Act, 1999. The article deals with the application application procedure for trade mark registration, the grounds for its rejection, opposition to the trade mark, as well the process of renewal of the trade mark along with relevant case laws.
Have you noticed the logo of your favourite brand? If yes, then you might have also noticed that there are completely unique and different logos, which represent a brand’s identity. However, have you ever thought how hundreds of brands ensure that their logo (a type of trade mark) is unique and different from other brands? Here, the concept of trade mark registration comes into play.
Section 18(1) of the Trade Marks Act, 1999, is one of the significant provisions connected to the application for trade mark registration in India. Section 18(1) offers that a person who is supposed to be the owner of a trade mark which will be used by him can file a written request for registering of the trade mark. A trade mark consists of any sign, word, symbol, or design that helps distinguish one entity’s goods or services from another.
Trade mark registration not only extends legal protection, but also subjects the owner to the limited right of using the mark in connection with his customers. What do these all mean to you, your business, and how might you apply trade mark registration for avoiding expensive disputes or helping you build a brand legacy that lasts long? Let us explore it in this article.
Registration of trade mark as prescribed under section 18(1) of the Trade Marks Act, 1999
If a person claims to be the owner of a trade mark that he is now intending to use, he must register the trade mark. For this, he is required to make an application which shall be made in writing to the registrar only by following the procedure prescribed.
Let us now look at the detailed procedure for registration of a trade mark.
Application procedure
Following is the way for applying for the registration of a trade mark:
The registration application should be filled in the trade mark office.
The legal requirements will be analysed.
If there is no objection to the legal requirements, the trade mark is published in the trade mark journal and allows the public to object to it.
If there is no objection or a settlement of objection, then the trade mark is registered.
Documents for registration of trade mark
Following are the documents required to be produced while applying for the registration of a trade mark:
Logo
PAN card of authorised signatory
Certificate of registration of the company
Legal proof of business registration
A power of attorney which gives a trade mark agent or attorney, the authority to file application on behalf of the applicant
Signed Form-48 and user affidavit
ID of authorised signatory
Grounds for rejecting a trade mark application
A trade mark application could be rejected due to the following reasons:
Absence of distinctiveness
The mark is unable to distinguish the goods or services in question.
Resemblance with pre-existing marks
The mark is either a fake or almost similar to an already existent mark.
Prohibited or misleading markings
The mark contains markings which are deceptive or barred in any manner, such as using fake geographic origin, misleading the material originality, falsely using terms like “FDA approved” or “scientifically approved”.
Descriptiveness
Descriptive marks refer to those marks which merely describe the commodity, but have no independent capabilities. This makes it ineligible for registration. An example of such a term would be- Fresh Coffee.
The case of Marcio Limited vs. Agro Tech Foods ltd(2010)Marcio argued Agro tech use of the term “Low Absorb Technology” on the sundrop oil label infringed its trade marks LOSORB and LO-SORB over oils with low absorb properties. The Delhi High court held that terms inherently describing the quality of the product, such as “low absorb,” are commonly not registrable as a trade mark unless they have otherwise become distinctive. Descriptive words cannot be monopolised, as they indicate something common to the products by the consumers. Hence, Agro Tech’s using the same words was also rejected, and the requisite distinction was lacking in the marks that would prevent other brands from the same descriptive phrases for promoting them.
In Wockhardt Limited vs. Mahesh Medical And General Store (2002), it was argued that the concerned mark was deemed to look very similar to another in a manner which would cause confusion among the consumers. This court gave elaborate guidelines with a lot of emphasis on substantial evidence brought forward in the course of the hearing. This case established that irrespective of whether the trade mark was actually used, it is how consumers perceive it that should determine the dispute over the trade mark.
Opposition to the trade mark
In case of any objection to the trade mark by any person, the aggrieved party can oppose the registration process. It encompasses the following procedure:
Filing of notice of opposition
Urging that, within 4 months from the advertisement of the trade mark in the Trade Marks Journal, any person having a legitimate interest can oppose the registration, setting out the grounds of objection.
Written statements
The respondent and the applicant can submit their stand and plead their respective cases, with evidence, in the form of written statements
Hearing
A formal case hearing is held, wherein both parties present their respective cases before the Registrar, or chosen a hearing officer, so that the arguments and evidence put forth by the parties can be thoroughly scrutinised.
Acceptance or rejection
After giving both parties the opportunity to be heard, the Registrar decides on whether to accept or reject the application for the registration of the trade mark.
Renewal of trade mark
The date the application is made will determine its protection for ten years. The owner has an obligation of renewing that registration due and to remit such renewal fees specified by the Registry. After making the renewals of his mark, his owner may make a repeated exercise of all rights accruing to it for another ten years. And in failure to renew his trade mark, or renew the same after the cancellation.
In the case of D. Baskaran vs. The Deputy Registrar of Trade Marks (2019), the High Court of Madras observed the process for regeneration of a trade mark. It was of the belief that regeneration of a trade mark is a legal right. The Registrar is required to notify the owner of the trade mark about any expiration, before the renewal period ends. If the Registrar fails to do so, the owner shall be permitted to apply for renewal even after the relevant period has passed.
Requirements for trade mark registration
For effective registration of a trade mark under Section 18(1), it is necessary to meet the following requirements:
Public search
A major step before registering a trade mark is to conduct a public search. It helps to confirm that one does not invade an already existing trade mark by being alike or undistinguishable to it. This can be realized by searching through the database of trade marks.
Coined mark
A coined mark refers to a coined or newly framed word, which has no dictionary meaning and, therefore is more likely to be distinguishable and easier to register, since it is not likely to cause any confusion within existing trade marks.
Uniqueness or proof of distinctiveness
The mark should be such that it is capable of distinguishing the goods or services of one with those of others. A unique trade mark inherently stands the best chance of protection and is least likely to face objections during the registration process. However, if the mark is not inherently distinctive, the applicant has to prove acquired distinctiveness through demonstrating that the mark acquired identification by the public for the applicant’s goods or services through extensive use, advertising and consumer recognition.
In the case of American Home Products Corporation vs. Mac Laboratories Pvt. Ltd (1985), the court considered the question of whether the trade mark “Paracetamol” had acquired distinctiveness on account of extensive use in the market. It, however, explained that where a mark is not inherently distinctive, there must be proper evidence relating to such distinctiveness, such as consumer surveys, advertising expenses, time duration of use and volume of sales. The case brings out the importance of proof of distinctiveness as a condition to trade mark protection.
Non-offensive
Registered trade marks should respect public morality and avoid being offensive in nature. Trade mark officers have the authority to reject the application of an offensive trade mark.
Non-descriptive
The mark cannot be descriptive of the goods or services that it represents. Descriptive marks are generally not eligible for registration, unless they have acquired some kind of distinctiveness.
No similarity with already registered marks
The mark should not be identical or deceptively similar to an already existing registered mark, in a manner which could cause confusion.
Non-misleading
The mark should not result in misleading the public with respect to nature, quality, or source of the goods or services sold. This guarantees trustful and transparent interactions among consumers and businesses.
Significance of trade mark registration
Legal defence
A registered trade mark provides the owner a right to enjoy private use of the mark and stops others from using the similar mark, then it could cause confusion among consumers. This legal right stretches the brand to an intelligence of uniqueness.
Brand identity
A registered brand greatly helps in establishing a brand identity which is different from others. This is important in marketing and enabling recognition by the customers. Brands hold this responsibility towards consumers.
Resolution of disputes
Registered trade marks aid in resolving the disputes with regard to trade mark infringement, by providing legal ownership with the help of specific rights and asserting any violations of their trade mark’s identity.
Investors
Registration enhances the monetary value of the trade mark, which sends a strong, positive signal to investors.
National and international protection
Registered trade marks provide the brand with protection both at the national and international level.
In the landmark case which highlights the importance of registration of a trade mark, is Cadila Healthcare Ltd. vs. Cadila Pharmaceuticals Ltd. (2001). Herein, the Delhi High Court pointed out that the most significant variable, is the registration of the trade mark, which involves preventing the brand identity from becoming misunderstood by the public or the consumer point of view. Delhi High Court ruled in favour of Cadila Healthcare that Cadila Pharmaceuticals used similar marks thereby Indians being confused between one another and thus tarnishing the Cadila Healthcare brand. The case emphasized the essential to make and protect legal rights through the registration of trade marks through the deterrence of the illegal use of similar marks.
Conclusion
The trade mark registration is providing by the delivery limited in Section 18(1) of the Trade Marks Act 1999. It allows trade mark owners to properly protection their brand identities. As businesses pursue to make a competitive advantage through trade mark registration, grasping the details behind these processes is important for protecting their intellectual property. Such protection is provided under section 18(1) protecting the business to ensure progress in growth and having the business in the market.
A trade mark is extremely valuable to a business, in addition to providing legal protection. It assumes an important place from which growth can be compelled through marketing efforts and even becomes a selling argument for potential investors or buyers. In the pursuit of long-term business success, it is what makes the difference between winning and losing in a busy marketplace.
How safe is your brand identity today? Have you taken the measures to protect your business from such potential infringements or even future legal challenges? Now is the time. Registration of your trade mark doesn’t just guard your business but invests in its future, securing all the hard work put into it and helping it stay safe to continue to grow within that ever-changing market. Is it time to take that momentous step into securing your brand’s image?
Frequently Asked Questions (FAQs)
Who can apply for a trade mark?
A person who is the owner of a trade mark or the person whose name is mentioned as the applicant will be the owner of the trade mark and once the trade mark is successfully registered, an individual or a company can be applicant and may file the application for the registration of the particular trade mark.
What are the requirements for trade mark registration?
A trade mark must be special unique signs that are used to identify goods or services from a certain company, it is important because of the difference of your products from the other.
What is the period of a registered trade mark?
A trade mark is initially registered for ten years and after the completion of this period, the registration can be renewed for another ten years.
A patent is an exclusive right that is granted to the inventor of a product or a process leading to a useful product that is unique and has not existed before. So it means that a patent is a monopoly right, from which if you consider a person’s mind and thoughts (of another inventor or business organisation) towards the person having the patent, they will never be able to appreciate the patent and rather tolerate it. You can call this a negative right too. It’s just like a class monitor who, when on disciplinary duty, has to be tolerated with respect and you don’t do anything that would lead you to the class teacher’s room or, worse, the principal.
Infringement in general means the action of breaking the terms of a law, agreement, etc. Now the funny part about patent infringement is that the patent law does not define what an infringement is. What it does is it describes the rights of the patentee and further says that if a person or an organisation performs similar rights as those of the patentee, then they are most obviously performing a patent infringement, making patent infringement an arduous topic to deal with.
I would like to point out that the Trademark and Copyright Act defines an infringement while the Patent Act doesn’t. So there’s a jurisprudential difference between a patent on the one hand and a trademark and copyright on the other. You can skip this information if you wish to but if it helps you to paint a bigger picture in your mind, then I would suggest you keep this information safe with you, just like you keep the flower in between the pages of your notebook received from a loved one. Let us look at the different rights of the patentee now.
Rights of the patentee
Section 48 of the Indian Patent Act, 1970 has provided the exclusive rights of a patentee. These are important in understanding what right comes with owning a patent in India. Let us explore these rights:
The right to make the invention
This right is only applicable to the patent of a product. Only the patentee is entitled to make or produce the product within the scope of patent.
It prevents others from making, using or selling, or copying the invention protected by the patent, without the permission of the patentee.
This right allows the patentee to protect its innovative work and control the production and distribution of the invention.
The right to practice the invention
This right is most predominantly associated with process, or method, patents. Only the patentee is entitled to use the patented process or method to the extent the patentee intends to utilize (that is, exploit) the patented invention.
It does so by preventing others from using, adopting or implementing the patented process without the patentee’s permission.
The right protects the patentee’s mind in the domain of processes and methods; it enables the patentee to control the application of his invention.
The right to use the invention
This right enables the patentee to use the patented invention commercially. It includes the right to commercialize the invention.
It thus gives the patentee the opportunity to utilize their invention commercially, create income, and profit from their ingenuity.
Patents give this right to the patentee and while doing so also incentivise innovation, by ensuring that inventors are able to monopolise use of an invention.
Right to market the invention
Under this right, the patentee is empowered to sell the patented product in the market. They can decide the terms of sale.
It allows for the patentee to exploit their invention and connect with potential customers.
It is this right that enables the patentee to capture the economic benefits of their invention.
The right to dispose of the invention
It gives the patentee the right to govern the distribution and propagation of the patented product. They can decide who will distribute it to whom.
This also guarantees that the patentee will be able to control the manner in which their invention is brought to market and made available to end users.
Such permission, which is often called a right of first sale, is necessary for the patentee to manage his/her supply chain and retain his/her market position.
Key takeaways
The rights under Section 48 of the Indian Patent Act are the rights inherent to the patent protection.
These rights give the patentee a privileged position over their invention whereby they can dictate who can make, use, and sell their invention.
It encourages innovation by granting inventors the right to invest time, resources, and hard work into developing new technologies; the exclusivity is a reward for that effort.
Infringement — Unauthorized use, making, selling, or distributing of a patented invention.
Familiarity with these aspects is an important skill for both patent holders and individuals looking to use previously patented systems to ensure compliance with the law.
It is strongly advised to seek legal counsel for specific advice on patent rights and related issues in India.
Types of patent infringement based on rights of patentee
Primary/direct infringement
Now, the first and second rights of the patentee (a & b) fall under the category of primary infringement where you infringe it yourself (you being the third party). So a single party is involved in direct infringement.
Secondary/indirect infringement
The fourth and fifth rights of the patentee (d & e) fall under the category of secondary infringement, where you don’t infringe it yourself but simply help others infringe the invention. Multiple parties are involved in indirect infringement.
De-minimus infringement
In criminal law, there’s a concept called De-Minimus non-curate lex. The former is a Latin word meaning the law doesn’t take into consideration triviality. To better understand this let’s consider an example. Suppose a 19-year-old boy gets into his neighbour’s property and plucks away a few mangoes for himself. Is the boy committing an offense? Undoubtedly yes, he has committed the offence of trespass and theft within the meaning of the Indian Penal Code. Does it mean every neighbouring kid who gets into your house and plucks away a few mangoes should be prosecuted for trespass and theft?
Well, the law doesn’t intend to do that; the law says that the law shouldn’t be bothered about trivial violations.
Applying the same concept in patent infringement, an infringement that might be trivial to certain factors will come under the category of de minimus infringement and may not lead to prosecution of the infringer for the greater interest/good of the country or of the infringer.
Exemption to de-minimus infringement
Section 49 of the Indian Patent Act defines what is known as the exemption to de minimis infringement.
If a ship, an aircraft or a land vehicle that is registered in a foreign country comes into Indian territory by accident or temporarily for a certain commercial purpose, the rights conferred by a patent shall not be deemed infringed if the patented invention is being used in the vessel for its functioning, construction or repair.
For example: If a foreign ship enters the Indian Territory and applies the use of a patent invention, normally the patent infringement case must be initiated in the places where the ship is registered or the shipping corporation has a corporate office. Now, the section says that if the country in question offers adequate remedies for the same, then the Indian courts will not exercise jurisdiction.
Even the WTO recognises that de minimus infringement is a legitimate defence against IPR (intellectual property rights) infringement.
Presumptions in patent law
As was already stated at the start of this article, there are no particular rules for patent infringement, and rather, the rights of the patentee are defined in depth. There are some presumptions in patent law that aren’t peculiar to the patent law and are laid down in the law of evidence of the Indian Evidence Act.
Let us consider Mr. Amith has a product and a process patent for the same product at present. Now he finds out that another person named Mr. Ashish is also manufacturing the same products without Amith’s consent. After knowing this, Mr. Amith is angry and decides to file a prosecution process for infringement against Mr. Ashish. Amith is the plaintiff here and Ashish is the defendant.
All Amith needs to do here is prove to the court that the process specification under Amith’s process patent covers the product Ashish is making. Once he can do that, he discharges the burden to Ashish. The burden Ashish has now is to prove that the product he makes is not covered by the process patent specification of Amiths. In other words, Ashish has to prove that he has been making the product from another process that isn’t covered in the Amith process patent specification. If Ashish can do it, he again shifts the burden on Amith.
Now there can’t be much of a lie in the proceeding unlike other civil proceedings because these are purely technical. Unfortunately, there’s a supplementary proceeding called Discovery and Interrogation, which isn’t practiced in India mostly. This process can be witnessed mostly in Japan, the USA and European courts. We will be diving into the discovery and interrogation process later. So hold on tight, alright.
Litigation process in most of the common law countries including India
To understand infringement, let us try to understand the litigation process in the most common law countries, which includes India along with Singapore, Australia, Malaysia, the USA & many more European countries.
Suppose Amith is the plaintiff; thereby, he files the case. In support of his case, he has to rely on a lot of documents and then state that the other party is familiar with the facts given in the documents that led to the litigation.
After the litigation, the other side (Ashish) has to be informed. The time Amith takes to inform Ashish and for him to get prepared accordingly is 30-45 days. Known as the Issue of Notice.
Now CPC (Code of Civil Procedures) says that the defendant, i.e., Ashish, has to lodge his written statement within 90 days of the receipt of the summons or issue of notice. If the defendant fails to do it. The court can condone it for another 90 days.
Suppose Ashish gave his written statement after 90 days.
Then the matter goes into what’s known as the issues; that is where the framing of issues takes place.
After or just along with the issues, there’s a stage called discovery and interrogation. Most Indian lawyers do not use the process of discovery and interrogation to unearth the evidence of the other side. This part is mostly seen in Bollywood movies, though.
After this, the matter gets posted to the plaintiff’s evidence. Where the witnesses are examined in three parts governed by the Indian Evidence Act.
Three types of examinations: first is the chief examination. Leading questions (those that contain the answer to themselves) are not allowed in this.
The next is cross-examination, which is conducted by the party against whom the witness is deposing and leading questions are allowed.
The re-examination is done to remove confusion or ambiguity if arises in cross-examination. During this, the witness can’t plead additional facts or documents.
Basic rules/tips in suit concerning patent infringement
The patent infringement is to be considered by a civil code and not by the patent office. They do follow executive power without any arbitrariness and they do follow justice. They can exercise the power of a court in specified situations. The patent office is a self-contained legislation. They don’t look up to evidence acts or other civil codes specifically. But they do follow natural justice.
The basic rule in a patent infringement suit:
The lowest court where the suit can be filed is the district court. (Section 104)
Now every defendant can set up the counter-claim of invalidity to the plaintiff’s patent. And in the case of the counterclaim, the case shifts to the high court. (Section 104)
The defendant can also file a case before the IPAB (Indian Patent Appellate Board) if the patent is less than one year old.
The defendant can also avail of post-grant opposition. If the patent is less than one year old. (Section 25, point 2, chapter V)
If the patent is more than 1 year old, the defendant can claim in front of the Patent Examiners Board. (The patent examiners board is made of certain elected patent examiners along with the controller of Patents in the Indian Patent Office.)
Sometimes, to ward off challenges, the plaintiff would have to amend the patent (refer to sections 57, 58 and 59 of the Indian Patents Acts 1970). The power to amend lies with the controller of Patens, IPAB, and the High Court.
It is better to file a patent infringement case in the four metropolitan courts when the damages are high, considering the fees of the four metropolitan courts to be less for the same.
Remedies in patent infringement case
Suit for damages. We will see to it concerning case studies later on in the next part of the article.
Suits for accounts of profits. This is generally done by a CA or a lawyer who is appointed to go to the infringing defendant company and look at the records; their sales turnover further considers the volume of the sales turnover the defendant makes by infringing the patent and the scale of profit. It may vary from 2-25%, basically, he assesses the level, quantum, or profit of infringement.
Demand the infringer/defendant to furnish security to the value of the claim and include the cost.
Injunction at the end of the trial.
Interim injunctions will normally not be available as damages arising from patent infringement can be adequately compensated in monetary terms.
Let us better understand the remedies for patent infringement with case studies. Before we do that, let us know how to determine infringement.
The scope of the monopoly granted by the patent will be seen only from the claim. Therefore, claims constitute the heart and soul of the patent. Thus, the patent infringement will be determined by reading the claims.
How to avoid getting sued for patent infringement
Perform an in-depth prior art search
Search existing patents and publications to find potential prior art before you develop or launch any new product or process.
Explore patent databases, like the USPTO (United States Patent and Trademark Office) database and others to find out existing patents In your area of expertise.
Finally, you may want to hire a professional patent searcher or attorney to help with the search process.
Get a freedom to operate (FTO) opinion
An FTO opinion is a complex legal opinion which analyses the of patent infringement.
A professional patent attorneys can examine your product or process as well as relevant patents to help determine the risk of infringing an existing patent.
A-FTO opinion will help you to make informed decisions when it comes to product developments or entering the markets.
Design around existing patents
If your search uncovers the potential for infringement, you may wish to alter your product or process to avoid infringing existing patents.
This may require design alterations, or use of alternative materials or components, or devising different processes.
Work with a patent attorney so that you know your design-around solutions are actually valid and won’t infringe on other patents.
Obtain your own patents
If your inventions are patented, you have a solid defense against infringement.
Hybrid also allows patents to be used as bargaining chips in licensing negotiations or in cross-licensing agreements.
So, engage a patent attorney to help create and implement an overall patent strategy that meets your business goals.
Adopt a patent watch system
Regularly vigil over new patents issued on your industry so you can position yourself to be free of infringement.
You may want to look out for patent monitoring services or software for monitor relevant patent activities.
If you notice a potentially infringing patent, you may want to consult a patent attorney to evaluate your risk and determine a response strategy.
Educate employees about patent law
Educate employees and team members who work in research and development, product design, and marketing on patent law and the dangers of infringing patents.
Prompt employees to report any potential infringement concerns to management or legal counsel.
Maintain accurate records:
Maintain records of your product development process — design documents, prototypes, test results.
Such records can be useful evidence to build your defense against any infringement claims.
Additional considerations
International patent protection: If you want to sell your products or services to the international market, consider patenting the same in the international market.
Patent litigation: For anyone accused of patent infringement, obtain legal counsel as soon as possible to assess options and formulate a defense plan.
Alternative dispute resolution: Consider alternative dispute resolution methods, such as mediation or arbitration, to resolve patent disputes outside of court.
Case studies
Case study 1 (Telofonaktiebolaget Lm Ericsson… vs. Competition Commission of India And… )
The plaintiff is also known as Ericsson and the defendant here is Micromax. These two names, when said now must have rung a bell in your head as companies involved with a product called mobile phones/smartphones. The case was filed around claims for several Standard Essential Patents (SEPs) related to GSM, EDGE and 3G technology.
The decision of the court was in favour of Ericsson and Micromax was declared liable for patent infringement. Micromax had to pay a handsome amount to Ericsson in terms of royalties as well. The court’s decision reflected on FRAND (Fair, reasonable, and non-discriminatory) terms by licensing patented technology.
Case study 2 (SmithKline Beecham vs. Fujimoto Pharmaceuticals Co., Tokyo District Court 1998)
The first thing to note is that this case study is not of India but rather an example of Japan’s patent infringement case and let me tell you that this case resulted in the largest ever reward in the history of Japan’s patent infringement cases.
SmithKline Beecham had a process patent on a product named Cimetidine (a drug) which was valid till September 5, 1993.
Fujimoto imported the infringing product from Slovenia in December 1986, sold 68,000 tablets and manufactured a generic version of Cimetidine Cylok.
Smithkline claimed that Fujimoto had infringed their patent from December 1986 till September 1993.
The judge ultimately ruled in favour of SmithKline Beecham, awarding them 4.2 million dollars in royalties and 21 million dollars in lost profit, assuming a 15% profit rate.
This is to date the biggest monetary award given in a patent infringement suit in Japan. My guess is this has instilled fear in every other company and businessman since then.
Conclusion
In conclusion, patent infringement is a real issue not just in India but all over the globe and we have to give credit to these infringers as well because they are not knife-wielding barbarians; they are quite intelligent, actually, to get credit for another person’s invention with all the details. They strategise well. This leads to the conclusion that while filling out a patent, one should already be prepared for infringers bouncing on to take a bite of the profit and take measures accordingly while preparing their patents, keeping infringers in mind as well as making their patents more thorough and more infringement proof. Even if it happens, in India we have the courts, the patent controllers, and the IPAB, with many remedies present for any such scenarios of patent infringement. Make no mistake, I am not praising the infringers but simply implying their smartness, thereby trying to motivate the inventors and patent specification drafters to keep them in mind as well while filing the patents. Over time, remedies have increased for patent infringement and India, being one of the strictest countries in terms of patent approval, stands with remedies ready in such cases of infringement.
Corporate governance framework is a set of systems, processes and principles that guide the overall functioning of the corporation. It offers an oversight governance framework that aims to govern the company in a responsible, transparent and ethical mannerfor the long-term benefit of all stakeholders.
Sustainable Interests- A good framework makes sure that interests of all parties at stake (e.g., stockholders, employees, customers, suppliers, and the greater community) are considered, weighed, and are pursued in a sustainable fashion. And it is a guarantee against any one group dominating the decision-making to their benefit, and ensuring that benefits are distributed fairly.
Establishing Accountability- A clear allocation of roles and responsibilities as per the corporate governance structure leads to accountability at all levels of hierarchy. This includes not just the board of directors, but management and individual employees as well. It also promotes visibility, since stakeholders can now determine how well the company is doing as a business.
Attracting investment- Good governance practice fosters the confidence of investors, as it demonstrates the commitment to noble management in responsible and ethical manner– High reputation would make the company a household name to the local investors and even the investors from abroad would like to invest in the company
Performance- Several studies show a relationship between good corporate governance leading to good financial performance. Businesses with good governance are more effective, innovative and resilient, which means better profitability and sustainable growth.
Risk management- A robust governance framework includes a comprehensive approach to risk mitigation. The organisation can reduce the probability (likelihood) and impact (if it does happen) that the adverse event may occur through the timely and effective detection and treatment of risk. This is to protect the company’s assets and goodwill.
Building goodwill- Companies acting in an ethical way and doing good governance, also improve their goodwill and brand. This, in turn, strengthens customer loyalty, motivates employee engagement, and builds trust with our stakeholders as a whole. A good reputation also gives you a competitive edge in the marketplace.
With the complexity and speed of the current business world, sound corporate governance are pre-requisites for sustainable success. A good framework can deliver tremendous value to the company and its stakeholders by: of aligning all stakeholders’ interests, through accountability and transparency, the ingredients for investment, performance, take out risk and build reputation.
Make no mistake, corporate governance is not a one size fits all But the central principles of accountability, transparency, fairness and responsibility are just as relevant wherever medical science goes.
What are the components of the corporate governance framework
Corporate governance framework includes and is not limited to:
Company board: Corporate governance provides a skeleton of how the company board should be and how many directors and non-executive directors should be included depending upon the scale of the business. It also confirms the roles and responsibilities specific to the board.
Roles & responsibilities: Corporate Governance describes roles and actions for all levels of management. This includes the responsibilities of board members, stakeholders, suppliers and vendors. Presenting the right actions is the key to avoiding conflicts and enables smooth working of the organisation.
Risk management process: Corporate governance covers risk management, which has several aspects like identifying, evaluating, and managing potential risks that could deeply affect the business. As any new business includes selling products or services over various channels, hence risk management is important to handle the challenges of the business.
Ethics of business: Corporate Governance empowers business guidelines via code of conduct for all employees, inclusive of board members and promotes ethical decisions compliant with both legal and corporate standards. This can also be said as business and organisational etiquette.
Aids in audits: Corporate governance specifies audits process to ensure financial and legal accuracy is maintained both internal and external to the organisation and the organisation is abiding by the government policies.
Stakeholder management: Corporate governance defines involving stakeholders, vendors, supplies and even sometimes consumers in important business-level updates (e.g., product names will be changed) and business decision-making processes so that they are transparent to the community.
10 tools useful for implementing corporate governance
Archer by Archer Technologies LLC, with the following extensive features: security and operations management, regulatory & corporate compliance, business resiliency, public sector solutions, third-party governance, ESG management, and operational resilience.
LogicManager is an ERM tool that helps with data analytics with the following features: enterprise risk management, IT governance management, third-party risk management, audit management, policy management, business continuity planning, and financial reporting compliance.
Riskonnect has good integration with Salesforce CRM. It features internal auditing and alerting via a risk management information system, claims administration, internal auditing, accounts management, and compliance management.
SAP GRC is used for real-time visibility & control over business risk and opportunities via process control, CRM management, business integrity screening, regulation management, enterprise threat detection, privacy governance, global trade management, and HANA implementation.
SAI360 is an employee training, monitoring and third-party access software with the following features: compliance education & management, internal control, environment, health, and safety (EHS) management, and dependency management.
MetricStream is used for flexibility & customisation with the help of policy management, regulatory & change management, case & survey management, and third-party management.
Enablon GRC aids continuous assessment for organisations via compliance management, audit management, inspection management, document control, internal control management, internal audit management, insurance & claims management, and continuous assessment.
ServiceNow is one of the leading tools for IT automation and integration, application and services management, business continuity management, people information management, IT inventory management, continuous authorisation & monitoring, change management, performance analytics, problem management, and incident management.
Standard Fusion promotes usability & user experience via knowledge informatics, survey management, UI/UX management, policy management, and incident management.
Fusion Framework System is visualisation software and helps manage the following: organisational team management, third-party management, business continuity management, and IT disaster recovery management.
11 challenges usually faced by Startups and emerging companies
Financial management: Procuring capital, managing operating funds, managing debts, profits, dividends to investors and rewards to company employees.
Time management: As employees work towards their goals, which then combine towards organisational goals, effectively managing work time, break time, attendance and leaves for the employees is important.
Project planning: Before developing and launching a product/service to the targeted market and then supporting the customers with the issues faced, the entire project must be planned, and the scope of work must be understood and distributed among the organisational hierarchy.
Marketing: Making the public aware of the new product or service and thereby influencing them to become potential customers with positive sales towards the company is the role of marketing.
Building the team and collaboration: Creating a team of employees who work on common goal and help on project deliverables and collaborating real-time among the team members is also challenging without proper communication channels
IT and other security: Physical security for production and manufacturing plants and IT security for data-driven software companies is vital. It’s a challenge to keep the security updated with the latest changes in the company policies.
Lack of infrastructure: Starting a new company or a startup always requires infrastructure like shops, land, buildings, machinery and servers. Connecting all these places together with a purpose-driven model is a challenge.
Up-scaling and growth: Up-scaling and growth are important for emerging companies so that their products and services reach a wider audience and help increase profit, market capitalisation and net worth. Tracking sales and revenue is another challenge.
Legal regulations and litigations: To make sure the emerging company abides by all the laws and regulations and complies with the government at various levels is important. Also, various litigation needs to be solved in a rational way with the agencies.
Effective leadership: Good leadership is crucial for the new companies, as they not only give direction to the employees but also inspire and motivate the employees in challenging times.
How does corporate governance help
As discussed, corporate governance is a set of rules, practices and processes; hence, it helps handle almost all the challenges faced by startup and emerging companies in the following ways:
It increases board accountability and helps protect stakeholder values by holding the organisation accountable. The board can take proactive steps to demonstrate their commitment and accountability.
Implementing IT governance via tools that already follow a set of best practices helps an organisation manage information relating to its employees, issues faced, changes done, and the inventory in place.
With the use of SAP and other tools that already follow governance principles, it helps manage systems applications and data by modelling and effectively connecting the data flow between various systems involved in delivering products to the customer.
Corporate governance provides guidelines on how physical security should be kept depending upon the type of product and services the company would sell and what the best practices are to help protect data and IT infrastructure. Thus, use of security checkpoints, anti-virus and anti-malware software and firewalls to help safeguard the organisation.
Business sustainability and effective control: Corporate governance enables people and time control at various levels of management. It also aims at providing business sustainability as the right decisions are taken while running the business, thus ensuring business continuity.
Legal regulations: Corporate governance obviously comes with the process that is designed considering the legal laws and legislatures of the government. Thus, it helps regulate legal regulation.
Balancing short-term and long-term goals can be achieved when we have governance in place for the organisation. Teams can be aligned to the goals, and they can be split into smaller, achievable goals.
Enhancing data security and compliance: With corporate governance, multiple layers of security can be incorporated to help protect data. Data is the key for the growth of companies in the modern world. Also, compliance can be achieved with the right level of security in place for the right audience.
Ensuring smooth transition among the organisational hierarchy in the event of employees leaving the organisation and new employees joining the organisation in place of them.
Importance of corporate governance
Although corporate governance has often been seen as compliance mechanism, corporate governance is actually a strategic lever in the organization. The best corporate governance is well-designed, well-managed, and well-regulated; it lays the foundation for sustainable development and value creation. A well-defined list of principles that guarantee the company performs actions needed to satisfy its moral and legal obligations and forms the basis for meeting its upper-level aims.
Starting the journey of building trust and transparency:
Good corporate governance builds trust with all stakeholders, including investors, employees, customers and the community. There needs to be a culture of trust within organisations where clarity is given over lines of responsibility; transparency is provided over decision-making processes; and behaviour should be ethical, and will, if placed at the heart of a company, strengthen relationships with stakeholders. Greater trust in you can translate into more confident investors, happier employees, and a positive brand.
Clarity of long-term vision and strategy:
Good corporate governance is also a framework that produces strategic clarity and long-term vision. Defining roles & responsibilities along with the metrics & measurements for performance will align the organisation. In addition, a strong governance framework encourages long-term thinking, enabling organisations to focus on their long-term success rather than short-term demands.
Financial and operational performance
Companies with strong corporate governance are considered lower risk investments by many investors. This perception can bring access to more and better capital, as investors tend to be more relaxed to finance with companies who have clear and accountable management structures. Moreover, research shows that companies with good governance outperform financially in the long run.
Risk management and mitigation:
Effective corporate governance is the very foundation of risk management. These systems consist of systems for related identification, assessment and mitigation, all of which help organizations prevent any sort of potential risk to either its operations or financial health before it ever happens. Such forward-looking risk management enables organizations to minimize their losses, protect their reputation, and enhance resilience across the board.
Conclusion
Thus, we have learnt that if the startup and other emerging companies incorporate the corporate governance framework, then it not only helps them align with the environment and people around them but also empowers them to attain growth & sustenance to the organisation and the employees of the organisation. Effective growth and management of the organisation thus results in an improved society by contributing to the financial chain at every level. Hence, it is imperative that new companies start their first day with corporate governance and later they can add to the governance policies as needed.
This article has been written by Subhasish Acharya pursuing a Diploma in Video & Visual Communication for Business Growth & Problem-Solving from Skill Arbitrage.
There are a few professionals and students who know how content marketing works and how it yields business success, especially in the technology industries. This is the case since most people have perceived several technology enterprises and learning institutions; however, the strategic use of content marketing to achieve organisation goals has not been solved yet. This paper discusses how technology businesses use content marketing to increase their visibility, credibility, and reach with their target market, hence fuelling their business growth and profitability.
What is content marketing
Content marketing involves the conception and distribution of content that would attract potential customers toward the business, and various forms of types include articles, blog posts, infographics, and even video and audio files, but what the different types have in common is that it all contributes toward the attraction and retention of a clearly defined audience so that they take action toward profits.
How does content marketing work
Content marketing works by doing both inbound and outbound marketing in attracting, engaging, and retaining a target audience.
Inbound marketing
This end of content marketing attracts customers through helpful and relevant content. Businesses through quality content creation and distribution in whatever forms, such as blog posts, infographics, podcasts, videos, etc., can attract potential customers who are actively looking for answers. These contents help in answering the questions, provide insight and give relevance in order to draw them into the sales funnel unobtrusively.
Outbound marketing
Implementing content marketing is aligned with outbound practices because it essentially promotes the content to a wider audience on various platforms. It employs the usage of social media, email marketing, and paid advertisements by directing the content to people who would not probably look out for a business’s product or service. Strategic positioning of such content at hotspots where the target audience is most likely to visit increase the business’s visibility and create an engagement ability.
Together, these two principles develop a beautiful movement where inbound marketing only brings aboard interested people, and through this, the brand expands further outward with outbound marketing and grabs more attention to drive profitable customer actions.
Why is content marketing important?
Marketing is the best way to connect with your audience through words and influence targeted audience in buying your products profitably. So, let’s analyse in-depth at what content marketing is one of the essentials:
Establishes authority, brand and trust:
Compelling content adds to credibility and establishing expertise. When you provide fresh insights, solutions, and opinions about things over and over — your audience sees you as a source of information or ideas they can trust.
Brand differentiation: In a noisy marketplace, great content helps you stand out from the flock. It’s a chance for you to create your unique brand voice, values, and character and build a connection with your audience.
Building relationships: Content marketing is not just about selling; it’s about developing a rapport. Providing the content that your audience appreciates creates trust and loyalty which will ultimately lead to long-term customers.
Boosts SEO
Keyword optimisation: Using relevant targeted keywords in your content tells search engines how relevant your content is to what users are searching for. This improves your search results visibility and generates traffic to your site for free.
Content quality: Vanilla is like a vanilla-people, cause quality matters to Search Engines, because good content giving helpful information, and more value for the search engine users. When you aim for developing high-quality content, you are likely to receive an impressive ranking and a significant amount of inbound traffic.
Link building: Quality content gets linked to by other websites naturally, an aspect of your search engine ranking improvement search factor.
Drives leads
Lead magnets: Use of high-quality content, such as ebooks, whitepapers, or webinars as lead magnets to attract potential customers. By offering people something for their contact details cultivates leads, and anchors them through the sales funnel.
Calls to action: Great content marketing also features strong calls to action that clarify exactly what you want your audience to do next (i.e. buy something, subscribe to a newsletter, book a demo, etc.).
Lead nurturing: A content marketing guide helps in the nurturing of leads by providing the relevant and informative pieces of content to them at all stages of the buyer journey. Such assurances help build trust which eventually translates into higher conversion rates.
More benefits:
Higher social media shares: Good content is shared more often on social media, which can increase your brand visibility and reach.
Customer retention: By regularly delivering substantive content, you keep your existing customers engaged, in the loop, and more loyal to your brand, which in turn raises retention rates.
Builds brand awareness: Branded Content will increase the awareness of the brand and will make more visible and recognised.
Search engine optimisation in content marketing: the last important step
Content marketing is highly significant because of SEO: you’ll be able to reach the maximum audience possible. Overall, SEO is a set of tactics and strategies that make your website rank better on SERPs. Here’s how content can be optimized for search engines in an effective manner.
Keyword research
Keyword research is the backbone of SEO. It unmasks the terms and phrases that your customers employ for the search of products or services offered within your company. To make things easier for you, you may use Google Keyword Planner, SEMrush, and Ahrefs to get relevant keywords with high search volume but low competition. Then, they must be strategically positioned in your content.
Creation of quality contents
Content is the king of the world in SEO. Good, valuable, and informative content that caters to your target audience’s questions or solutions for their problems does the trick. It has been noticed that a search engine favours informative, profound, and interesting content. Long-tail content, which is more than 1,000 words, usually does better in SERPs since this kind of content is more likely to answer the search query for your audience in its entirety.
On-page SEO
On-page SEO ensures that each page is optimised to rank better and more appropriately to bring relevant traffic to the website. Some of the points included are as follows:
Title tags: This title tag should have a primary keyword and be something catchy enough to get someone to click on it.
Meta descriptions: A decent meta description makes all the difference between actual click-through rate increases, especially when short and contains the primary keyword as well as informs the reader what the page is about.
Headings: Headings break up the content. H1 contains the main keyword; secondary keywords in H2 and H3.
URLs: Should be short and descriptive, including at least a major keyword.
Links: internal linking helps a search engine understand the architecture of a site and keeps a user engaged for a longer time
Optimisation of images and other multimedia
Images and multimedia add richness to a user experience, but they can equally make your site crawl if not optimised correctly. Provide alt text and keyword-rich file names for images so the search engine can understand what your image is of. Image compression is done in order to be able to decrease load times. Videos should be hosted on YouTube or Vimeo rather than on your site.
Mobile optimisation
Most of the searches are done through mobiles so it is necessary to have a mobile version. Google uses mobile-first indexing, meaning that it mainly refers to the content served for indexing and ranking purposes on the mobile version. Ensure your website is responsive and a great experience on all devices.
Technical SEO
Technical SEO as a concept deals with everything about the non-content elements on your website and how it impacts the performance in the SERPs. Some of the main elements include:
Site Speed: A fast-speeding site gives users a better experience. Google has incorporated site speed as one of the ranking factors. Use the tools, such as Google PageSpeed Insights, to point out and fix issues.
XML Sitemap: This sitemap in the XML version will make search engines have an easier time understanding your website as well as figuring out new content sooner.
Robots.txt: This is a file where you tell the robots which files to crawl or index and which to leave alone. You have to be sure it is formatted just so you avoid blocking the wrong types of pages.
Secure Website (HTTPS): Having a secure site (HTTPS) helps protect user data and is also a ranking factor for Google.
Backlink building
Backlinks or inbound links from other websites still rank among the highest-ranking factors. Quality links from good sites give suggestions to the search engines that your content is valuable and worth being trusted. Tactics to build backlinks include:
Guest blogging: You write posts for other relevant sites in your niche in order to receive backlinks and get more noticed.
Influencer outreach: That means you will perhaps be able to reach out to influencers who will bring you to a larger audience and grant you high-quality backlinks.
Content promotion: The more you are publishing content, so it circulates about more and reaches people through their social media and channels, the more likely they are to be creating backlinks.
User experience (UX)
Search engines love websites that have good experience. Some of the things that make up UX are as follows:
Easy and logical navigation: A well-structured logical menu is the most important for the user to find what they want
Readability: The content should be broken into smaller paragraphs using bullet points and images to enhance reading.
Elements of engagement: Quiz, surveys, and infographics with interactive elements keep users engaged so that they spend more time on your website.
Analytics and monitoring
Track the SEO performance through all those tools like Google Analytics and Google Search Console, which would provide traffic along with user behaviour about your site and keyword performance. Implement such data to improve your content and alter the improvement of the SEO plan accordingly to you.
What are some of your best practices for IT companies?
IT companies sell products and provide services across industries through blogs, webinars and other modes of communication. The IT industry is a highly competitive one and you need to study your industry well to implement the best strategies of creative content marketing. Try embracing some of these best practices:
Empathise with your audience:
Know your ideal customer profile: Who are you marketing to with just contact information?
Buyer personas: Create detailed breakdowns of different types of your target audience. This will give you a clearer idea of how to change or modify your content to suit their needs and interests.
Market research: Find out what old news your audience is facing and what new news, trends, technologies, and challenges they have. This will enable you to create timely and topical content.
Define your content marketing objectives
Set clear objectives: What do you hope to achieve with your content marketing efforts? Examples of such worldwide goals include lead generation, brand awareness, thought leadership, consumer interaction, and site visits.
Establish measures for success: Also, You need to identify KPIs (Key Performance Indicators) for success in your consumer targeting campaigns. They can be website hits, leads, social media impressions, email signup.
Develop a content strategy:
Create a content calendar: Yes, you read it correctly! Please schedule your content in advance and average good an individual channels.
Choose appropriate content formats: Once the defining ideas are identified, present them in a mix of formats (i.e., blog posts, whitepapers, case studies, infographics, videos, webinars and podcasts) to fit varied audience preferences.
Think about quality and relevance: Share information or insight that helps your visitors fulfill their needs and address their issues.
What is search engine optimization (SEO) and how to do it:
Keyword research: Identify the key phrases and words your audience is searching for.
On-page SEO Use appropriate keywords, meta tags, headings, head tags, image alt text, etcext.
Backlinks: Acquire Qualified backlinks to your site in order to increase your site authority as well as your search ranking.
Promote your content:
Utilize social media: Your content are simply using at this moment. Use social media networks to share it.
Implement email marketing: Use targeted email marketing to interact with prospects and share content to followers.
Use the paid promotion : The tool of a third party promotion, such as the Google Ads and social media ads — to get more account visibility.
Measure and analye results:
Track your key metrics: To check how well your content marketing campaigns are doing, monitor your metrics.
Analytics tools —Use tools like Google Analytics: They help you understand user behaviour, content engagement and conversion rates.
Optimise your Strategy: Analyse the data and make data-driven decisions to optimise your content marketing strategy.
Stay consistent and adapt:
Develop a publishing schedule: Publish regularly to build an audience and keep up with their lives.
Knowing what is happening into technology and following trends will keep your content strategy aligned.
Innovate and experiment: Avoid sitting on your first idea; even if it is a good one; try out new types of content, courses; even new distribution even new promo/repurposing tactics to jump ahead of your competition.
A food supply chain simply means a series of events where the production reaches the ultimate consumer, supply chains make it possible for the production to get the consumer through different stages in a chain of events and include agriculture -Processing-Packaging & Distribution-Wholesaler-Retailer-Consumer, in modern world of packaged and processed foods, the role of food processing industries also attained great significance As the food supply chains play an important role in making the produce reach consumers, the governments took on the role of regulating the food supply chains at every stage of the process in the public interest. In this article, we will discuss what is to be considered legally at every stage of a food supply chain to make it sustainable in the long term.
What is a sustainable food supply chain
‘Sustainable’ literally means ‘to be able to maintain something at a certain level’. To demystify this and to understand it with relevance to food supply chains, ‘sustainability’ means to utilise the input resources as per the current requirement without wastage and saving some of them for future use, which makes the food supply chain sustainable in the long term. ‘Sustainable’ in the sense of business also means ‘survival in the long term’ and this is relevant here because food supply chains include so many intermediaries, which are businesses in the food industry and in order to make them survive in the long term, the utilisation of nonrenewable resources needs to be regulated.
What are supply chain compliances
As mentioned earlier, due to the significant importance the food supply chains have to make the produce available to the consumer and their role in modifying the actual produce to edible goods. The governments are obligated to regulate these food supply chains at every stage of the process in the public interest and those regulations are made possible by making relevant laws, rules, regulations, and orders that are industry-specific and are different for different stages of production and supply in a food supply chain. With the passage of these laws, every person who is involved in a food supply chain is obligated to comply with or adhere to the relevant laws that are specific to their industry or stage of production. Such legal obligation was created on these intermediaries in a food supply chain and failure of which will lead to huge penalties.
Legal considerations
In order to make a food supply chain sustainable in the long term, i.e., to make a food business long-lasting, adhering to the law is a must, and as said earlier, there are relevant laws at every stage in a food supply chain that are to be adhered to. In this article, we will discuss what is to be considered legally to start and sustain a production, processing, distribution, wholesale, or retail unit involved in a food supply chain individually at every stage.
Production
Production is mostly from agricultural activity and to bring sustainability to the agricultural process, natural resources like water, land, etc. are to be utilised without wastage and the pollutants arising out of the process that pollute water, soil and air are to be controlled and the same is legally mandated.
Processing
Processing the agricultural produce is more of an industrial activity and such industries, in order to be sustainable in the long term, have the obligation to comply with the relevant industry-specific laws; some of them are as follows:
Labour laws
Industries require large human capital to perform their regular industrial activity and the inclusion of humans will create an obligation for those industries to adhere to the provisions of the following legislative labour enactments.
Code on Wages,2019.
Code on Social Security, 2020.
Industrial Relations Code, 2020.
Working Conditions Code, 2020.
Environment laws
Industries involved in food processing utilise more nonrenewable resources like coal & diesel to run large industrial machinery and doing so will not only affect the proper and efficient utilisation of non-renewable resources but also affect the environment as a whole as they release dangerous fumes and contaminants into air and water, respectively. Such industries have an obligation to adhere to the following laws.
Environment Protection Act, 1986.
The Air (Prevention and Control of Pollution) Act, 1981.
The Hazardous Waste Management Rules, 2016.
The National Green Tribunal Act, 2010.
Packing and distribution
The utilisation of packaged foods has increased in recent times. People are more likely to buy packed food as they are getting benefits of easy carriage, i.e., flexibility and consume that food whenever and wherever they want without any impediments. The following are the legal considerations that are to be considered before setting up a food packaging and distribution unit.
Weight and measurement, as the case may be, need to be accurate and be labelled on the package and the law regulating the same is as follows:
Legal Metrology Act, 2009
Manufacturing, packing, and selling any pre-packaged commodity is prohibited unless it is in standard quantity and carries all prescribed declarations relating to weights and measurements. Any advertisement mentioning the retail price of packaged commodities should also contain the net quantity thereof.
If any pre-packaged commodity is packed with error in net quantity beyond the limit prescribed in the Rules, it is a punishable offence.
Contracts
Contracts are a part and parcel of almost every business’s day-to-day activities and the law regulating different contracts entered into by a packaging and distributing business is as follows:
International trade
The Foreign Trade (Development and Regulation) Act, 1992, along with the Export-import Policy provides a legal framework for international trade.
Solus Agreements and Trade Restriction agreements
As per Section 27 of the Indian Contracts Act, 1872, every agreement in restraint of trade is enforceable when such conditions stipulated in the agreement are reasonable and are not making any absolute restrictions to trade as a whole.
Intellectual property laws
Intellectual Property Laws have a greater significance in the packaging industry as the packaged commodity on its face displays a brand name and some graphics or pictures which are considered intellectual property and the same as a matter of right to the creator, if registered, are secured under the following laws.
The Trademarks Act, 1999
Protects trademarks, which include logos, symbols, designs, or words that distinguish a brand from its competitors.
The Patents Act, 1970
Protects innovative recipes, methods of production, or the structure of food. Patents can also be awarded for packaging, machinery, and novel processes.
Wholesale and retail trade
Wholesalers and retailers are the intermediaries who play a major role in making it possible that the consumer receives the end product and such wholesalers and retailers also have some legally mandated obligations to adhere to the following laws.
Shops and establishments licence
Wholesalers and retailers are required to priorly take the license required under the Shops and Establishments Act, which is different for different states and union territories and such a license is a mandatory requirement to sell goods.
Goods and service tax (GST) registration
Every wholesale and retail business that exceeds the relevant threshold turnover limits as stipulated in the GST Act, 2017 and the rules made thereunder is obligated to register in the GST portal and get a GSTIN (GST Identification Number) and is also obliged to display the same in a viewable premise in his business place.
E-commerce regulations
In accordance with growing technology, the scope of electronic commerce transactions is also increasing significantly and to safeguard the consumers in such e-commerce transactions, the following laws need to be adhered to by the e-commerce sellers and service providers.
Information Technology Act, 2000. Provides the legal framework for e-commerce transactions
Digital Personal Data Protection (DPDP) Act, 2023. Applies to e-commerce businesses that collect personal data for activities like customer support, signing up and payment facilitation.
General legal considerations for a food supply chain as a whole
There are some general legal considerations that are to be adhered to by all the participants in a food supply chain, irrespective of the stage they are at in a supply chain or the industry they are dealing with; some of them are as follows:
Food safety laws
Ultimately, the food that is being processed is for the end use by the consumers, who are public at large and in the public interest. Laws are enacted to ensure food safety and standard, which are to be adhered to by the food processing industries. Some of them are as follows:
The Food Safety and Standards Act, 2006
The Food Safety and Standards Rules, 2011, and several regulations are made to regulate the food businesses and in order to do so, the central government, i.e., the Ministry of Health and Family Welfare, under the authority given by the act, made relevant regulations from time to time; some of them are:
The Central Licensing Authority, under the Ministry of Health and Family Welfare, grants license to the food businesses in a supply chain; some of those businesses are,
All food businesses, including re-labellers and re-packers, fall under the requisite criteria.
All importers and 100% export-oriented units.
All business units manufacturing any article of food
Business units related to food operating in more than one State
Sanitary and hygiene requirements
As stipulated in relevant regulations thereof under the food safety and standard act, every food business needs to adhere to those sanitary and hygiene requirements; some of them are:
No person employed should be suffering from an infectious disease.
Workers have fingernails trimmed and clean.
Vehicles used to transport food must be kept in good repair and kept clean.
Records of pesticide / insecticide used along with dates and frequency
Food handlers to be provided with protective clothing, head coverings, face masks, gloves, and footwear
Provide training to food handlers in food hygiene, food safety and many others as may be required by relevant regulations.
IPC provisions on food adulteration
Section 272 of the Indian Penal Code stipulates that whoever adulterates any article of food, so as to make such article noxious as food, intending to sell such article as food, or knowing it to be likely that the same will be sold as food, shall be punished with imprisonment of either description for a term which may extend to six months, or with a fine which may extend to one thousand rupees, or with both.
Organisational compliances
Every stage in a food supply chain except the production from agriculture requires an organisational structure like a company or a limited liability partnership (LLP) to involve in active business and such organisational business structures have their own specific special laws to comply with, like the Companies Act, 2013, and the Limited Liability Partnership Act, 2008 etc. Some of the compliance requirements for a company registered under the Companies Act, 2013 are as under
Filing returns with the Income Tax authorities
Statutory Audits
Annual ROC (Registrar of Companies) filings
GST Compliance if the annual turnover exceeds certain threshold limit
Appointment of independent directors
Maintenance of statutory registers etc.
Consumer protection
The Consumer Protection Act, 2019 was enacted by the government of India in order to safeguard consumer interests against the exploitation of the producers and sellers. The act created some obligations to comply with for the businesses involved in selling goods and services to consumers. They made the rules thereunder to safeguard the consumers and some of those rules, which are to be adhered to by the businesses are as follows:
Caution and care should be observed in the advertising of packaged foods, especially ones containing high fat, Sugar and Salt.
Advertisements should not be misleading or deceptive.
Advertisements for food or beverages unless nutritionally designed as such should not be promoted or portrayed as meal replacement.
Wine, alcohol, liquor or other intoxicants.
Infant milk substitutes, feeding bottles or infant food.
Law relating to logistics
As the term ‘food supply chain’ means to supply food from the producer to the consumer either in the original form or any other modified or improved form, and such supply is only possible with making the food travel through one stage to another, and such transportation is made through logistics, and there are laws to regulate logistic businesses, most of the food businesses outsource the logistic work, which makes those businesses not to comply with any of the relevant laws, but some businesses have their own logistic division, and those businesses need to adhere to the following:
Carriage by Road Act, 2007: The Carriage by Road Act, 2007 was brought about to outline the carriers liability in case of any mishappening to the goods for loss, damage, or delay of goods during transportation. The Act also gives the definition of some important terms such as ”carrier”, “consignor,” “goods”, etc. The Act also has provisions stating the rights of the consignor and the consignee and the right to claim for compensation. One important aspect of this Act is that it also addresses the issuance of insurance for goods in transit.
The Railway Act, 1989: The Railway Act, 1989, was brought about with the goal of regulating the operation and management of Indian Railways, which is quite a big transport network system. The Act contains provisions stating the responsibilities and liabilities of the railway staff for the safe and timely transportation of the goods. The Act also contains provisions that state the conditions under which the railway administration would be liable to pay for damages, loss or delay in transportation. This Act also explains the procedure for filing a claim in case of damages or losses.
The (Indian) Bill of Lading Act, 1856: This Act was brought about with the aim of regulating the use of bill of lading in India. It is a kind of legal document which acts as proof of contract of carriage between the shipper and the carrier to prevent any disagreements. This bill of lading contains all the details relating to the the shipment and other important points such as dispute resolution mechanism, compensation in case of damages, etc.
The Carriage by Air Act, 1972: The Carriage by Air Act was brought about with the goal of regulating the carriage of goods by air. This act is based on the Warsaw Convention. It applies to the carriage of good by air between two or more countries which are a member to the conventions. The Act contains provisions for loss, damage or compensation in case of any misahappening to the goods or if the owner suffers any losses due to delay in transports of the goods, it also mandates for the use of air waybill as a contract and specifies the time limit for filling claims in case of damage against the carrier.
Labour laws
Even though greater significance was given to the labour laws in the industrial sector, all the stages in a food supply chain that employed a notable human workforce or such number of human workforce as specified under each act specifically stipulated in it for the same to be applicable. Labour laws are as follows:
Code on Wages, 2019 : The Code on Wages 2019 is brought about with the aim of regulating the laws related to wages and bonuses. Some of the main aims of this Act are ensuring minimum wages to workers, timely payment of wages, equal pay for all workers, and preventing discrimination on grounds of gender, race, caste or creed. This Act also covers all the major definitions of wages, fixed minimum wage, deduction from wage, and overtime.
Code on Social Security, 2020: The Code on Social Security is brought about with various goals but the most important one is regulating the social security laws. This Act covers issues such as funds, gratuity, maternity benefits, pension schemes, etc. The main aim of this Act is to ensure social security for workers, both male and female and their families because they are the downtrodden class of society and also deserve to live a basic and healthy life.
Industrial Relations Code, 2020: The Industrial Relations Code was brought about with the aim of regulating industrial relational laws like trade unions, collective bargaining and dispute resolution. One of the main goals of this Code is to make harmonious industrial relations, create more trade unions, and establish methods for peaceful resolution of disputes apart from the traditional court ones like conciliation, arbitration or mediation.
Working Conditions Code, 2020: The Working Conditions Code, 2020, was created with the aim of regulating the working conditions of the labourers, including their place of work. This Code ensures that all the workers should get good living conditions for their well-being and health in all the sectors, including factories, mines, offices, construction sites, etc. The Code also has provisions for overtime, leaves, welfare facilities, and the prevention of occupational diseases.
Conclusion
To make a food supply chain sustainable in the long term, two things need to be done at all the stages in such a food supply chain. The first one is to utilise the non-renewable and natural resources to their maximum extent carefully and not wastefully and also need to leave behind some for future generations and the second thing is that all the business units involved in a food supply chain need to adhere to and comply with applicable laws. Such adherence and compliance will lead to making a food business more long-lasting as no legal penalties or fines, as the case may be, are levied.
This article has been written by Diksha Shastri. It covers the process of filing evidence in support of opposition under Rule 45 of the Trade marks Rules, 2017. The article also emphasises on the types of evidence, its significance on opposition of trade marks, and the challenges that people generally face while submitting evidence.
Registered trade marks are much more than just a symbolic representation. Today, registration of intellectual properties has become a way of branding and monetising various businesses, nationally as well as internationally. A trade mark, as the name suggests, refers to a mark that can be represented geographically in the course of trade, and commerce. However, for any mark or sign to be a trade mark, it has to fulfil the essential of being distinctive and unique.
The reason behind this being the fact that all the trade marks that are registered with the trade mark office must have their own and distinctive features, no two deceptively similar trade marks can be registered as intellectual property. The uniqueness plays a very important role in each trade mark that is granted registration. It helps in curbing improper trade practices like trade mark infringement, impersonation of the brands, and more.
Rule 45 of the Trade marks Rules, 2017, is discussed in depth in this article to shed light on the proper procedure to be followed while submitting the evidence in support of opposition to a trade mark application. The evidence in support of opposition under Rule 45 can help secure the rights of an already existing registered trade mark in case a deceptively similar application is filed with the registry.
Rule 45 of the Trade Marks Rules, 2017
Rule 45 of the trade marks rules talks about the submission of evidence in support of opposition, within 2 months of receiving the counter-statement by the applicant in a process of opposition.
Object of Rule 45 of the Trade Mark Rules, 2017
Any person who initiates a trade mark opposition, they do it to protect the interest in the mark. So, the entire process is made in a way to help safeguard the rights of the prior user of a registered trade mark. Let’s see the purpose of filing evidence under Rule 45:
It helps in supporting your opposition case;
Gives you more points to rely on during the hearing;
Evidence in support of opposition helps in protecting existing trade marks;
Prevents someone to piggyback of your brand name by infringement; and
Last but not the least, it allows you to show the prior and constant use of the trade mark for your business.
For a better understanding of the Rule 45 we first need to see the meaning of trade mark opposition and its process. This will help us in understanding Rule 45 more clearly.
Let us go in chronological order and start with the meaning of trade mark opposition.
Trade mark opposition
One of the factors that lead to the refusal of a trade mark application from registration is that it must not infringe upon the rights of any existing trade marks. This is also what the trade mark objection under Section 11 of the Trade Marks Act, 1999 (hereinafter referred to as ‘the Act’) is highly based upon. To read in more details about Section 11 visit this link.
So, what action can be taken when someone files an application for a trade mark and it infringes the rights of an existing mark? Can one oppose the registration of that infringing mark? The answer is yes and that is how trade mark opposition becomes an integral step of the process of trade mark registration.
Trade mark opposition is that stage of the trade mark registration process where after the publication of a mark in the trade marks journal, the mark remains open for third party opposition for a period of four months. Thus, if anyone feels that a mark published in the Trade Marks Journal is infringing their rights, they can go ahead, and file a trade mark opposition against the registration of the mark. You can click here to read about trade mark registration in detail.
As a result of this, the original trade mark gets a chance to contest the registration of the mark and prove its points. Hence, all in all, this is a fair chance for the third parties to oppose the registration of a trade mark, in case they feel that their rights have been infringed.
For example, if company XYZ is applying for the trade mark registration of a clothing brand under class 25 named “Alyssa” as a wordmark. While conducting the search, they find out that the partnership firm ABC already has a registration certificate for the wordmark “Alissa” in the same class. Now, if the company moves ahead with filing the application, the partnership firm, i.e., prior owner of a similar mark in the same class, can file an opposition to contest the registration of this mark.
Filing a trade mark opposition marks the beginning of the opposition process during which both the parties are required to submit evidence, and even appear for the opposition hearing before the trade mark registrar, who decides whether the opposition stands accepted or not. In cases where the opposition is accepted, the infringing mark gets refusal from registration and in cases where the opposition fails to prove similarity, the application gets accepted for registration.
Now that we know the meaning of the trade mark opposition, let us take a look at who can file for a trade mark opposition.
Who can initiate opposition of a trade mark
Section 21 allows ‘any person’ to file an opposition to registration of a trade mark. Here is the list of people who can initiate opposition of a trade mark:
A prior user of an existing similar trade mark;
Any business, competitor etc who feel their rights were violated;
A customer or designer, etc; and
Any person who thinks that the registration of a mark might create confusion in the minds of the general public.
Now that you know who can oppose a trade mark opposition we shall move towards the process. Simply knowing whether you can oppose a trade mark registration or not is not enough.
Procedure of trade mark opposition
Let’s take a look at the process of trade mark opposition:
Publication in journal of trade marks
When an application gets published in the journal of trade marks after a show cause hearing, it can be opposed by any third party for 4 months.
Filing notice of opposition and counter statement
Once the owner of an existing trade mark or any interested party becomes aware that a similar mark has appeared in the journal of trade marks, they can file a notice of opposition.
Essentials
Firstly, the basic details of the trade mark application on which opposition is to be filed;
Then, the details of the party filing the opposition; and
The grounds of opposition in a clear manner.
Then, the applicant is required to submit a counterstatement before the trade marks registry. Here, they need to deny grounds of opposition with appropriate reasons.
Stage of evidence filing
After both the parties submit their contention for and against the trade mark opposition, it is the opponent’s duty to provide the evidence supporting the grounds of opposition. The timeline for filing evidence in support of the opposition is within two months of getting the notice of submission of counter statement by the applicant of trade mark. This takes place as per the Rule 45 of Trade Mark Rules, 2017.
This stage goes both ways. After the opponent, it is the applicant’s turn to submit evidence in accordance with Rule 46 of Trade Mark Rules, 2017.
Thereafter, the opposing party gets another shot at filing any further or additional evidence that they may feel will help them in making their point stronger. However, at this stage they only get one month from receipt of evidence from the applicant to file the further evidence. At all these three stages, both the parties need to send the copies of evidence to the registrar as well as the other party.
Trade mark opposition hearing
After receiving all the copies of evidence from the parties, the registrar will examine all the submissions, and accordingly issue the notice of opposition hearing.
End of opposition
Where the decision is in favor of the opponent the application gets refused, in other cases, it proceeds for registration.
Click here to read more about trade marks opposition in depth.
After understanding what trade mark opposition is, it would be easy to understand the Rule 45 and what it states. So let’s move ahead to the heart of the article and see what Rule 45 of the Rules states.
Explanation of Rule 45 of the Trade Mark Rules 2017
Rule 45 of the Trade Marks Rules, 2017 comes into the picture during the evidence filing stage of the opposition proceedings. It is the rule that allows the opponent of a trade mark to submit the evidence in support of their opposition.
A simple reading of Rule 45 states that “Within two months of receiving the service of the counter-statement filed by the applicant to protect their mark from being refused, the opponent shall either:
Leave with the registrar and applicant an affidavit of all the evidence in support of his opposition; or
Intimate the registrar and applicant in writing that he does not wish to provide the evidence required and shall only rely on the facts mentioned in the notice of opposition.
If an opponent to a trade mark registration fails to do either of the above steps then it will lead to abandonment of the opposition proceeding. The evidence in support of his opponent has to be provided within the given time period of two months.
In these kinds of procedures it is very important to stick to all the prescribed time limits. Now we will learn about the time frame which is required to file the evidence.
Timeframe for submission of evidence in support of opposition
The time frame is also stipulated in Rule 45 of the Trade Marks Rule, 2017. According to Rule 45, the submission of an affidavit should be done within two months of receiving the counterstatement from the applicant of the mark. The consequence of not doing it in time can lead to:
Delay in opposition proceeding;
Getting your opposition abandoned; or
Registration of the infringing mark.
There are so many documents other than an affidavit which needs to be filed.
Documents required under Rule 45 of the Trade Mark Rule 2017
While submitting an evidence affidavit under rule 45, you need to have the following in handy:
A power of attorney, if you are hiring a professional;
Affidavit containing details of all exhibits;
Hard copy of evidence materials labeled as exhibit; and
In case you don’t have any affidavit, then you need to submit a waiver informing the registry that you are waiving off the right to submit an evidence affidavit.
We cannot just file for an opposition without having evidence that the trade mark is infringing any one’s rights. Evidence plays a key role in proving the stance.
Let us now understand what all evidence can be filed in support of opposition under the Rule 45 of Trade Marks Rule, 2017.
Evidence in support of opposition under Rule 45 of the Trade Mark Rules 2017
As we can see from the stages of the trade mark opposition process, the stage of filing evidence is important for both the parties involved. We can say that it gives them a chance to prove that the points they have made in the opposition notice are accurate, and have some sort of backing.
In a case where the opponent feels that they do not have any evidence to support their contentions, they can even waive their right to submit these evidence by just mentioning in writing and submitting before the registrar that they do not wish to provide any evidence, and that the registrar can solely rely on the notice of opposition to make their decision.
Now, if the opponent fails to submit the evidence in support of opposition under Rule 45, and they also fail in informing the concerned registry of their waiver of the right to produce evidence, the registrar can make a decision at that point to abandon the opposition proceedings.
Now that we have understood the Rule 45, it is also important to know what all types of the evidence in support of opposition are there. Because if we don’t know what all documents we can include what is the use of knowing Rule 45.
Types of evidence required under Rule 45 of the Trade Mark Rules 2017
Till now we have talked in detail about the evidence and its importance. However, what type of evidence can actually be submitted under Rule 45? Let us see in this section of the article.
Affidavit of evidence
An affidavit is used in the courts to allow the parties to present their side and provide evidence in their favour. All the statements made in an affidavit are considered to be factually correct during any legal proceedings. So, it entails an important step in the process of trade mark opposition, where the opponent is making true statements to protect their claim over the trade mark that is being infringed or passed off. Moreover, apart from the statements, the evidence affidavit also has copies of various documents that can prove their case, attached as exhibits to the affidavit of evidence.
In the matter of Mr. Manish Agarwal vs. The Registrar of Trade Marks and Ors. (2022), a writ petition was filed against an order passed by the New Delhi Trade Marks Registry. The order in question contained the admission of evidence in support of opposition, which according to the applicant of trade marks and the petitioner here, were not filed in a timely manner.
To which, in this case, the opponent had responded that the evidence affidavit running over 12 pages, was submitted electronically in a timely manner. However, there was a typing error in the title, which deduced that the evidence was being filed in accordance with Rule 47 instead of Rule 45.
Due to this, and the fact that opponents stuck to the fact that they had submitted the evidence in a timely manner, the Delhi High Court was unable to decide on the timeline of filing the evidence. However, it was of the view that the opposition evidence under Rule 45 must be accepted, allowing the applicant to further submit their evidence, and then proceed with the opposition hearing and decision. Since, there had been enough delay for the registration of the mark, the Delhi High Court charged the opponent a cost of 5000 per application for the confusion created and improper filing.
Through the example of this case, you can see the importance of filing evidence in support of your contention in order to protect your rights over the trade mark. Moreover, it also shows the need to maintain accuracy and vigilance throughout the trade mark opposition process.
Invoice consisting mark
If you submit various sales and purchase invoices that prove that the mark has been in use for the products/services applied for, it makes your case much stronger. Moreover, the dates on invoices are often one of the best ways to analyse the prior user of a trade mark in case of opposition proceedings. In India, the prior users are always given the preference to fight for their rights. So, it is always secure to keep your invoices safely, who knows, you may need them to protect your brand’s unique identity.
For instance, in the case ofChampagne Moet And Chandon vs. Union Of India & Ors. (2011), the petitioners, a french company, having their trade marks registered in India, for manufacturing of wines had brand identity in over 150 countries. They claimed to have founded this firm in 1743, where Claude Moet spent his entire lifetime in making the experience for Champagne better. The brand Moet found its way to India as early as 1906. As a result, they had obtained a registration of trade marks under class 33 in the year 1982 and received the registration in 1985.
They filed an opposition against the registration of a name Moet, for a partnership firm titled as m/s Moet, which had been in use since 1967. They claimed that the mark was adopted from the hindi name of Mohit. Upon receipt of the counterstatement, the petitioners filed their evidence affidavit which included notarised copies of various invoices, correspondences, and other ledger records which proved that the mark was being used by them since 1906.
Whereas, the respondent, i.e., m/s Moet had in its evidence also submitted various sales figures from the year 1968, which proves that the mark has been a significant part of their trading style.
The submission of these invoices with the dates helped in making the case stronger for the respondents, as both the parties were able to prove the honest and concurrent use of their individual marks, leading to the refusal of the opposition proceedings.
Aggrieved by this order, the petitioner took further action to protect his rights and went over to file an appeal before the Intellectual Property Appellate Board (IPAB), which was responsible for handling all appeals arising from the orders of the trade marks registry previously in matters related to trade mark protection in India, previously. In the present case, however, this appeal was also dismissed by the IPAB, without taking any action or making any interference with the previously passed order.
Moreover, in the case of Macleods Pharmaceuticals vs. Zaneka Pharm (2008), the plaintiff had filed a suit for injunction against the use of their registered trade mark under class 5 “Domizol”. While the respondents in this case had tried to pass off their product and apply for registration of the mark ‘Domizole’ under the same class. Once the summons was issued, the respondent claimed to be an honest and prior user of the mark. However, they were not able to provide the evidence in support of that. Whereas, the plaintiff had submitted the product, its detailed description, along with the copy of the registration certificate.
In addition to that, they also provided the certified copies of sales invoice, and the total sales turnover from 2002-2004. The production of the invoices as evidence, assured that the mark was in use continuously and was also recognised by the public at large. Moreover, the registrar also considered how the mark and its identity were bringing in profits for the opponent, due to the increase in turnover over the years. Thus, the Delhi High Court passed an order of injunction as an ex parte order to help them protect the rights over their registered trade mark.
As you can see here, having the certified copies of turnover and sales invoice helped the brand protect its unique rights. When it comes to the submission of evidence under Rule 45, it is important that you collect all sorts of invoices that display your trade mark, to help you protect your image.
Advertising materials
All different types of advertisement and promotional materials that include the trade mark can be included as evidence in the affidavit under Rule 45. You can label each one separately as exhibits to the affidavit. The following types of materials can be included:
Packaging materials;
Pictures of the brand in use;
Social media presence, marketing efforts;
Testimonials or declarations from the consumers;
Brochures, catalogues, newspaper clippings, etc;
Media coverage, press releases, etc;
Statistics of your online presence, and more.
Any of these materials, and more can help you protect the identity of your brand, as long as it mentions the brand and helps in proving :
Usage of the mark; and
Distinctive identity in the minds of the consumers and general public.
Hence, don’t take the efforts you make towards the brand protection and building a brand presence lightly, it will help you in the long run if your rights get infringed and someone tries to piggyback on your reputation and hard earned fame.
Relevant case laws
In the case of Merck Kgaa & Anr vs. Abhinav And Ashok Trading (2014)the Delhi High Court had to pass an ex parte permanent injunction in favour of the petitioners, when they were able to provide all evidence in favour of their prior registered mark. In this case, the plaintiff is a well-known pharma brand for over a hundred years. They were the rightful owner of the registered trade mark ‘Carbophar’ under class 5 for the preparations of medicines, etc. They initiated opposition proceedings against the defendant when they noticed an advertisement in the journal of trade marks in the name of the defendant. When the defendants failed to respond to it, the petitioner moved to the court.
In their defence, the defendants claimed to have received the approval to curate such medicine and denied that they had infringed upon the rights of the petitioner. However, they then stopped participating in the proceedings and the decision was made on the basis of the evidence deduced in support of the opposition and the other available material. As a part of their evidence, the petitioners had submitted:
Trade mark registration certificate;
Original sales invoices;
Packaging materials;
Copy of the cutting of the journal of advertisement; and more.
Additionally, the Madras High Court, in the case of Aqua Pump Industries vs. Subhash Chandra Jain (2022) granted a permanent injunction against the defendant and its associated people from refraining to use the registered mark of the petitioner “Texmo”. They had a registration over this mark since 1998 and have been using it since before that, all over India for the goods related to pumps and monoblocks, etc. The defendants failed to provide any evidence to prove their case. On the other hand, the petitioner had presented the copies of following in the form of evidence:
Certificate of registration;
Copy of the journal entry in the trade marks register;
Certified copies of various advertisements made during the years 1994-2002;
Photocopy of the awards they had received.
These evidence copies were as long as 40 pages and also included the prestigious best export award presented by the Government of India.
This case again proves how useful your advertisement efforts can prove to be, while protecting the of your brand or trade mark rights.
You must have thought what does the Trade Mark Register do in this entire process? Is his role important in the trade mark opposition process?
Our next heading will discuss the role of the Registrar in evidence filling.
Role of the Registrar in evidence filing under Rule 45 of the Trade Marks Rules, 2017
During a trade mark opposition process, except for the two parties, the Registrar of trade marks officer assigned plays a very important role in protecting the integrity of an already existing trade mark. Let’s check out the Registrar’s role specifically while handling evidence in trade mark opposition:
Recipient of the evidence
The first role that the Registrar of trade marks plays in evidence filing is that they are the primary receiver of evidence under Rule 45 of the Trade marks Rules, 2017. As we know, the after submitting the online copies of duly notarized evidence, you also need to send two copies to :
The Registrar; and
The applicant whose mark you are opposing.
This is an important aspect considering that the date of submission can play a very important role, in case there is any delay in submission of the evidence copies. Since the Registrar is the primary receiver, it comes to them to consider the final date of submission in case of dispute.
Keeps the process in line
In a trade mark opposition proceeding, the Registrar of trade marks has the final call. Hence, he or she is the authority that keeps the entire process of opposition in line. In case there is a delay in submission at any stage of opposition including evidence filing, the Registrar has to take the call on abandoning the application or opposition, respectively.
Sends out notifications to parties
At every stage of the trade mark opposition, both the parties involved get updates from the registry in the form of notices on email or on the IPIndia portal. So, who is the person responsible for sending out these notifications on time? The answer is the trade marks Registrar. He or she must be vigilant with the updates and ensure that timely notices are sent to each party, so that the process of opposition can be completed without much delay.
Hears both sides
Apart from taking into consideration all the contentions, counters, and evidence in opposition of trade marks, the Registrar is also responsible to arrange for the opposition hearing. He decides the date, notifies the parties, and then hears the evidence provided by both the sides before deciding on the fate of a trade mark opposition. During the hearing, it is necessary that the Registrar stays unbiased and provides a chance to both the parties to present their side.
Takes the final decision
Upon receipt of the evidence under rule 45, rule 46 and rule 47, the Registrar decides and takes up the hearing process. At the end, the final decision based on the evidence presented, is taken by the Registrar himself. Hence, this makes him an integral part of the evidence filing under Rule 45 of Trade Marks Rules.
By now, it is very evident that filing the evidence under Rule 45 is one of the best ways to make a strong case about your trade mark rights. Let us take a look at the impact it can leave on your opposition proceeding.
Impact of filing evidence under Rule 45 of the Trade Mark Rules 2017
Filing an evidence under the Rule 45 helps by:
Makes your case stronger;
Helps everyone see that you have been using the trade mark in the relevant class;
You can emphasise on the losses you may incur if the mark is registered; and
You can create a comparison of similarities to see how the registration of the mark can negatively impact your unique brand identity.
Every stage in the trade mark registration process has been given a set time period under which that particular stage has to be completed to ensure speedy registration.
Similarly there is a fixed time period of opposition under Rule 45 as well!
Time period of opposition under Rule 45 of the Trade Marks Rules 2017
The time period for filing an opposition evidence under Rule 45 is two months from the date of receiving the notice of the counter statement. As we can see in the case above, there have been many instances where the parties forget to file the evidence or submissions in time. Moreover, there have also been instances of years of delay in trade mark opposition proceedings. As a result of which the laws have also been revised time and again.
The current standing on this fact is that the time period for filing an opposition under Rule 45 cannot be extended, as the discretion does not lie with the registrar. You can try to stay updated with the notices posted on the official trade mark registry website, keep a track record of all the notices dispatched w.r.t your application, and try to monitor the trade marks journal to protect your rights.
But can the applicant or the third party get an extension on this time period? What if there is an emergency which they cannot avoid? Are they only given one chance? There are some circumstances where the extension is provided, but it does not mean extension will be given all times.
In our next heading let’s find out whether extension of time for filing the evidence is provided or not.
Whether there can be extension of time for filing evidence under Rule 45 of the Trade Marks Rules 2017
As it’s clear by now, the prescribed timeline for submitting the evidence under Rule 45 is two months from the date of receiving the notice of counter statement. Many times, during the court proceedings, the issue of the timeline when the documents have been filed are the reason why things escalate between the parties in a trade mark opposition proceeding, hence the acceptance of the evidence filed beyond the timeline must be clarified.
The case arose when Sun Pharma, the petitioner filed an appeal to challenge the order of the Trade Mark Registry, wherein they had dismissed an opposition against registration of the mark “DABURGLUCORID KP” as a label mark in class 5 by the defendants. In that order of dismissal, the extension of timeline that the petitioners herein sought was not accepted, after the petitioner had made a delay in submitting the evidence in support of the opposition notice. As a result of which the opposition was deemed to be abandoned.
The main question of concern in this case was whether or not the timeline for filing an extension for the evidence filing be extended beyond the time period prescribed in Rule 50 of the Trade Mark Rules, 2017 or not.
In this case, the petitioner is the registered owner of the mark ‘Glucored’ in class 5 since 1995. Moreover, the mark is in use and its registration is valid until 2025. For other infringing marks, the petitioner has filed an opposition and succeeded. However, in this application, there was a delay in submission of evidence in support of opposition.
The counterstatement was served on 12th June 2007. However, the opponent has submitted the evidence in support of opposition on 10th August, within the timeline as they had filed within the prescribed period and only delivery of copies happened 3 days later. The error was not in submission, but in delivering the hard copy of the evidence copy to the defendant before the 13th of August.
The courier was sent to them on 14th August, received on 16th August. Hence, making it an unmissable delay of 3 whole days. Upon receipt of the evidence copy, the respondent asked for an extension in filing the evidence from their end for a month. However, they ended up not making any submissions.
In January 2008, the petitioner then wrote a letter to the Trade Marks Registry that despite the service of evidence, the other party had failed to respond. When no action was taken, in February 2008, they again submitted a letter to close the evidence filing stage and proceed with the hearing. However, nothing happened.
Then, suddenly after 9 long years, in August 2017, the petitioner tried again to bring the Registrar’s attention to the pending matter. As a result, the matter was set for hearing. In the hearing process, the respondent relied on the fact that the evidence was not filed on time, as a result of which it must not have been accepted. Resultantly, the opposition was abandoned.
After a detailed study and interpretation of the provisions of the old rules of 2002 and the new rules of 2017, that were in force now, the Court held that now with the removal of certain words like ‘discretion of the registrar’ ensured that the time limit prescribed within the new rules was indeed mandatory and could not be extended.
Moreover, they held that once the counter statement is received by the opponent, the two month period starts. However, if the evidence filing does not take place within the two months, the registrar has no discretionary power to increase or extend the deadline.
With respect to the present matter, the court also held that there was no delay in filing, only a delay in sending the copy of the evidence. The registry of trade marks was then directed to proceed with the opposition forward on the basis of the merits of the parties.
Relevance of Rule 45 of the Trade Marks Rules 2017
The stage of filing evidence as per Rule 45 of the trade mark opposition may seem to be a small part of a bigger procedure. Most trade mark applicants or owners are not even aware of the details of the opposition process. In fact, they usually take the evidence filing stage lightly. In many cases, people don’t think it’s necessary to present the evidence within the given timeline.
This often results in people losing the battles they could win easily. Can you imagine someone using your trade mark for their profit, and you losing out on the battle because you got lazy, or probably were not even aware of the evidence filing stage, its timeline and its seriousness.
The most important part about the evidence filing in support of the opposition is that you can give your grounds of opposition a serious evidential backing. This makes your case stronger before the registrar.
After discussing all this rule and regulation on Rule 45 of the Trade Marks Rule 2017 let us take a look at some real life examples. What I mean by real life examples is the judgments passed on this Rule.
Relevant case law on Rule 45 of the Trade Marks Rule 2017
M/S V-Guard Industries Ltd vs. The Registrar Of trade marks & Anr (2023)
Facts of the case
In this case, an appeal was filed against the order passed by the Deputy Registrar of trade marks in August 2018, against the approval of registration of the mark ‘LIVGUARD ZING’ by the respondent 2, since the appellant here had neither submitted the evidence affidavit nor intimidated the registrar of their intention of not adducing the evidence in support of the opposition.
The application in question was filed in 2014, and submitted in the journal of trade marks in February 2016. Before the end of four months, on 2nd June 2016, the opponent filed a notice of opposition, in response to which, the counter statement was submitted on 7th March. Until now, each action was taken in a timely manner. It is also undisputed that the notice of counter statement was also served to the opponent immediately on the same day, in an electronic format.
After reading the Rule 45, the court discussed the use of the expression ‘leave with the registrar’. They stated this expression could not be given any legal interpretation. Subsequently, the registrar proceeded with a reading of the Rule 8 of the Trade Mark Rules 2017, which covers the leaving of documents with the trade mark registry.
According to the appellant, the last date for filing the evidence affidavit was 7th May 2018. They had made various attempts to submit the evidence online on the trade mark registry website, failing to do so due to technical issues related to the website. Hence, they proceeded to send the evidence by way of courier, which was received by the registry on 10th May 2018, which was only 3 days later than the prescribed timelines.
Issues of the case
Two main issues were discussed herein:
Whether there was a delay in complying; and
If there was a delay, would the registrar be able to give an extension of time.
Judgement of the case
The Delhi High Court decided, looking at the condonation of delay provided by the appellant that there could be no way to prove that the appellant had not tried to file and submit the evidence on the last day, i.e., 7th, when the website was not in a working condition. Moreover, they submitted the evidence on the very next day, through courier. Hence, ensuring that they made their complete efforts in trying to file, submit or leave the evidence with the Registrar.
While relying on the fact that the legal provisions must not be interpreted in a rigid way, they highlighted the significance of the right to oppose a registration of a trade mark. It was held that since such efforts were made, and the website did indeed not function on the last prescribed day of the evidence filing limit, it would be unfair to think or assume that the party did not even try to submit the evidence in support of their statements. As a result, the order passed by the Deputy Registrar was dismissed, and they were asked to take a look at the evidence and proceed with the opposition proceedings.
Like a coin has two sides, there is some criticism to this rule as well.
Criticism of Rule 45 of the Trade Marks Rules 2017
Rule 45 of the Trade Mark Rules 2017, is designed to provide a chance to protect the interest of an opponent over their trade mark rights. However, there has been a debate regarding the interpretation of the term ‘leaving with the Registrar’, in the case of M/S V-Guard Industries Ltd vs. The Registrar Of trade marks & Anr (2023) discussed hereinabove. The decision of the Registrar with respect to the delay in filing evidence was criticised by the Delhi High Court and a more liberal interpretation was given to the meaning of Rule 45.
As we know how important an affidavit is under Rule 45 let’s check out some tips to draft an affidavit.
Tips to prepare affidavit under Rule 45 of the Trade Marks Rules 2017
Now that we’re reaching towards the end of this article, here are some tips that can help you in preparing the strongest possible evidence affidavit under Rule 45 of Trade Marks rules to protect the identity and integrity of your brand:
Always keep a track on the notices issued by the Registry once the opposition process starts;
The law gives ample amount of time for the trade mark owners at each stage of the opposition to complete the filings, so don’t miss out on any deadlines;
Try to use as much evidence as you can find with your brand name on it, we’ve also covered the different types of materials that can work out as evidence in opposition proceedings hereinabove;
Proper signature of the trade mark owner is also required throughout the evidence;
Attach the hard copies of evidence materials as annexures to the evidence affidavit;
Do not forget to get it notarized by a public notary before finalising and submitting it; and
Always consult an expert legal or intellectual properties advisor before filing the final affidavit.
Along with tips let us also discuss some key mistakes which you have to avoid when you are filing evidence under Rule 25 of the Trade Marks Rule,2017.
Mistakes to avoid while filing evidence under Rule 45 of the Trade Marks Rules 2017
These tips above are there to help you prepare an evidence affidavit that makes your opposition stronger. However, as humans, we are all prone to making errors, so, here’s a list of the common mistakes that you need to avoid at all costs:
Do not miss the deadline – This point cannot be emphasised enough, because even if you have the best possible case, the evidence might not get accepted if you miss out on the deadline.
Do not rely on insufficient research – From the time you get to know about the infringing mark and plan to file an opposition, you have to conduct thorough research at each stage of opposition, especially at the evidence stage, as it becomes your final chance to protect the brand. Research is not limited to seeing the infringing mark, but also taking out your old records and research on the value your brand has created and continues to create.
Not having a proper legal advisor – A lack of access to proper advice can also make you lose an opposition, even if your contentions were strong. As a professional, a lawyer or legal consultant will easily be able to pinpoint minute details that you can use in your affidavit.
Not keeping track of updates – Once you start the opposition towards a trade mark applicant, it becomes your responsibility to keep a track on each of their moves. It can happen that they miss a deadline, and you can use such information or inaction to make your case even stronger.
All the countries have their own trade mark registration process. So they must have their own way of filing evidence in the trade mark opposition process too. Let us do a comparative analysis and see how Indian laws are different from other countries in this aspect.
Comparative analysis of Rule 45 of Trade Marks Rule 2017 with other jurisdictions
India and the United States
Basis
Evidence in TM opposition in India
Evidence in TM opposition in the US
Governing Act/Rule
Submission of evidence in India by the opponent is done under Rule 45 of Trade Marks Rules 2017.
The opponent submits evidence under Rule 45 to the Registrar as well as the applicant.
In the US, the exchange of evidence and other interrogations happen through a discovery conference between the parties.
Procedure of submitting evidence
In India, an opposition show cause hearing happens after submission of evidence by both the Parties.
In the US, if the applicant fails to provide a counter-statement, the show cause hearing takes place prior to the discovery conference.
Format of submitting the evidence
Submission of evidence in India includes duly notarized affidavit along with the hard – copies of the evidence.
It includes depositions, electronically stored information, requests for inspections, and more.
Time period for submission of evidence
The time period given for submission of evidence under Rule 45 is 2 months.
The entire phase of discovery lasts for 180 days.
India and the United Kingdom
Basis
TM evidence filing in India
TM evidence filing in UK
Filling Counterstatment
In India submission of evidence takes place after the submission of a counterstatement by the applicant through form TM-O.
In the UK, a time table to file evidence is issued by the Tribunal to both the parties once the submission of a counter statement takes place with form TM-8.
Submission of evidence
Submission of evidence is important irrespective of the grounds of opposition.
Submission of evidence is only required when the opponent needs to prove the earlier usage of the trade mark.
Format of submitting the evidence
It is submitted in the form of an affidavit.
Evidence in the UK trade mark opposition proceedings is submitted in the form of a witness statement, along with a statement of truth.
Copy of Evidence
The opponent is required to send the copy of the evidence affidavit along with the exhibits to the applicant.
In the UK as well, the opponent has to submit the copies of his written statement and statement of truth to the other side.
India and China
Basis
Trade mark evidence in India
Trade marks evidence filing in China
Responsible authority
In India, trade marks opposition and evidence are handled by the Trade Marks Registry.
In China, it is governed by the China National Intellectual Property Administration (CNIPA).
Time frame
The time frame of submission of an evidence affidavit in support of opposition is two months.
In China, the time frame for submission of evidence is three months.
Process of opposition
Once submission is complete, a date is fixed for the opposition hearing.
However, the CNIPA directly issues an order with their decision under completion of 12 months from submission of evidence.
Is it beneficial for legal professionals and students to be aware of what Rule 45 is?
Importance of understanding trade mark evidence filing for law students and professionals
Many things and concepts look different in theory and practice. trade mark filings, oppositions, etc are also in the same category. So, it is very important for the young and budding legal professionals to know the practicalities of how things work, to get the best possible knowledge on the subject. By learning about the intricacies of the evidence filing stage as a law student, you can:
Indulge in a habit of constant learning and development;
Figure out your level of interest in trade marks or the intellectual properties as a whole;
Refurbish your research skills;
Try and figure out evidence materials and the processes from a young age;
Give you an edge over your competition.
Conclusion
When you fail to take the stages involved in opposition of a trade mark seriously, it can cost you more than just a few bucks of money. This failure can cost you your uniqueness in the competitive market. Remember, if you want to safeguard your trade mark even after the registration process is complete, you must keep a track of the trade marks journal and initiate opposition proceedings as and when required.
And that’s not all! Even after you initiate the trade mark opposition, you have to stay vigilant of the rules and the stages involved. Even if you miss on a simple deadline like submission of the evidence in opposition, your opposition or application may get abandoned. The entire purpose of including this stage in opposition proceedings is to allow the trade mark owners to put forth their points and stop the registration of infringing marks.
Frequently Asked Questions (FAQs)
What is the time limit for filing evidence in support of trade marks opposition?
The time limit for filing the evidence in support of an opposition is 2 months from the date of receipt of the counter statement from the applicant.
What happens if I don’t file evidence for trade marks opposition within the timeline?
In case you fail to submit the evidence in support of your trade mark opposition within the prescribed time period of two months, your opposition will be deemed to be abandoned by the trade marks registry.
On what grounds can a trade mark be opposed?
A trade mark can be opposed when it infringes upon the rights of an prior existing trade mark, or it lacks the distinctiveness or distinguishable characteristics, if it is deceptively similar to an existing mark, or if it is against the public morals or values, or finally, if it contains a name restricted under the Emblems and Names (Prevention of Improper Use) Act, 1950.
What is evidence of a trade mark?
Evidence in a trade mark opposition process comes into play when the parties need to prove that the grounds of opposition, or the denials of it made through the counter statement are based on reliable facts. Evidence can be either in the form of packaging materials, invoices, advertisement materials, the brand value, and more.
Why is evidence in support of the opposition important?
It is very important to submit evidence in support of a trade mark opposition within the prescribed time limit. The idea is to provide the registry with all such information, documents and other proofs, that they can see the value of your mark, extent of infringement, and the negative impact that the continuation of such an infringement can have on your business or brand reputation.
– Simplify Complex Sentences: Some sentences are lengthy and complex, which might confuse readers. For example:
> “During the trade mark procedure, the trade marks registry goes through all the trade mark applications, and during the examination stage, if they find issues pertaining to any of the above-mentioned points, they issue an examination report under Section 9 and/or Section 11 of the trade marks Act, 1999 (hereinafter referred to as ‘the Act’).”
Suggestion: Break this into shorter sentences for better understanding.
– Define Legal Terms: Provide simple definitions for legal jargon. For instance, explain terms like “deceptively similar,” “counterstatement,” and “affidavit” in layman’s terms when first introduced.
Coherence:
– Improve Logical Flow: Rearrange sections for better flow. For example, consider discussing “Who can initiate opposition of a trade mark” immediately after “Meaning of trade mark opposition” to maintain topic continuity.
– Use Transitional Phrases: Add transitional sentences at the beginning or end of paragraphs to guide the reader through your arguments. This will help connect ideas smoothly.
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Grammar and Style
Grammar:
– Proofread for Errors: There are grammatical mistakes and typos throughout the article. For instance:
– “This explanation of Rule 45 of trade marks may seem to be a bit difficult to understand. However, it’ll be simplified if you have an understanding of the entire trade mark opposition proceedings.”
Correction: “This explanation of Rule 45 may seem a bit difficult to understand. However, it can be simplified if you have an understanding of the entire trade mark opposition proceedings.”
– Consistency in Tense: Ensure that you maintain the same verb tense throughout the article to avoid confusion.
Style:
– Adopt a Conversational Tone: Rewrite sentences to sound more conversational and engaging. For example:
– Original: “Not all marks that are applied before the trade marks office are registrable.”
– Revised: “Remember, not every mark submitted to the trade marks office gets registered.”
– Vary Sentence Lengths: Use a mix of short and long sentences to create a dynamic rhythm in your writing.
– Use Informal Language Where Appropriate: Replace formal words with more relatable language. For example, use “you’ll need to” instead of “you will have to.”
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Structure and Organization
Structure:
– Enhance the Introduction: Start with a hook that draws the reader in—perhaps a surprising fact or a question about trade marks.
– Strengthen the Conclusion: Summarize the key takeaways and reinforce the importance of Rule 45 in protecting trade mark rights.
Organization:
– Topic Sentences: Ensure each paragraph begins with a clear topic sentence that outlines the main idea.
– Logical Subheadings: Use subheadings that accurately reflect the content of each section. For example, change “Explanation of Rule 45” to “Understanding Rule 45 in trade mark Opposition.”
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Relevance and Audience Engagement
Relevance:
– Connect to Career Opportunities: Emphasize how understanding Rule 45 can benefit students and professionals looking to advance in legal or business careers.
Suggestion: Add a section on “How Mastery of trade mark Opposition Can Enhance Your Legal Career” or “The Importance of trade mark Knowledge in Business.”
Engagement:
– Include Real-Life Scenarios: Introduce hypothetical situations or anecdotes to illustrate key points, making the content more relatable.
– Interactive Elements: Pose rhetorical questions to the reader to engage them further.
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Tone and Voice
Tone:
– Friendly and Relatable: Adjust the tone to be more approachable. For example, instead of saying “It is very important to submit evidence,” try “You’ll definitely want to submit evidence because…”
Voice:
– Maintain Consistency: While adjusting the tone, ensure that the voice remains consistent throughout the article.
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Content Completeness
Completeness:
– Address Missing Subtopics: Consider adding:
– Practical Tips: Steps on how to effectively prepare and submit evidence under Rule 45.
– Common Mistakes to Avoid: Highlight pitfalls that applicants or opponents often encounter in the opposition process.
– Updates in Law: Mention any recent amendments or important changes in trade mark laws.
Support:
– Cite More Examples: While you have included case laws, adding brief summaries of their outcomes and implications can enhance understanding.
– Use Data or Statistics: If available, include statistics on the number of oppositions filed or success rates to support your claims.
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Formatting and Presentation
Formatting:
– Headings and Subheadings: Ensure all headings are consistently formatted as discussed in groups.
– Bullet Points and Numbered Lists: Use them to break down complex information, like in the “Features of a Registrable trade mark” section.
– Paragraph Length: Break up long paragraphs into shorter ones to improve readability.
Presentation:
– Add Visuals: Incorporate relevant charts or diagrams created by the author. No copy-pasting is allowed as it will create copyright issues. For example:
– Flowchart: A diagram/flowchart illustrating the trade mark opposition process step-by-step.
– Table: Summarize key differences between rules or list essential documents required.
– Captions and Alt Text: Ensure all visuals have captions and alt text for accessibility.
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Additional Suggestions:
– Update Legal References: Verify that all legal references and case laws are up-to-date.
– Hyperlinks: Where appropriate, add hyperlinks to external resources or legal documents for readers who want more information.
Are primary/secondary keywords added to the title, meta description, and subheadings properly?
Is the primary keyword used in the first 100 words of the article?
Are the secondary keywords used at least once in the article? (if they are provided)
Is the title clear, benefits-oriented, and “scroll-stopping”?
At least five internal outlinks added?
At least two external outlinks added?
Title/meta description within the character and pixel limits?
Is the structure exhaustive?
Is the topic covered in depth? Are all possible subtopics covered?
Does the article provide additional value than that in the existing RANKING articles on Google?
Is the article free of grammatical/spelling mistakes?
Is the article free of plagiarism?
Does the article seem to be human-written and free of AI?
Is the readability high? (Short paragraphs, short sentences, simple language, and structuring)