1. Cost Effective: – To form a LLP is very cost effective than to form a company.

2. Credit Worthiness of organization:- LLP enjoy Comparatively higher creditworthiness from Partnership due to Stringent regulatory framework.

3. Applicability of Accounting Standards:- Companies have to mandatorily comply with accounting standards where in the case of LLP it is not yet notified. So no applicability.

4. Audit of accounts:- Companies are required to get their accounts audited annually as per the provisions of the Companies Act, 1956 where as all LLP except for those having turnover less than Rs.40 Lacs or Rs.25 Lacs contribution in any financial year are required to get their accounts audited annually as per the provisions of LLP Act 2008.

5. Maintenance of Statutory Records: Comparatively less documents to be maintain.

6. Contracts with Partners/Director: Restrictions on Board regarding some specified contracts, in which directors are interested where as Partners are free to enter into any contract under LLP.

7. Statutory Meetings: Mandatory in case of company whereas no such requirement in the case of LLP.

8. Transfer of Share / Partnership rights in case of death: – In the case of companies in case of death of member, shares are transmitted to the legal heirs. Where under LLP, in case of death of a partner, the legal heirs have the right to get the refund of the capital contribution + share in accumulated profits, if any. Legal heirs will not become partners.

9. Liability of Partners/Members: In case of companies: – Generally limited to the amount required to be paid up on each share. In the case of LLP, limited to the extent their contribution towards LLP, except in case of intentional fraud or wrongful act of omission or commission by the partner.

– By Mr. Harsh Verma.

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The spate of Public Interest Litigation by Non-Governmental Organization remained unabated with Delhi High Court issuing directions to Government (Ministry of Information Broadcasting and Censor Board) to review the approval of a famous serial – Emotional Atyachar.  The serial that is telecasted at Prime Time by UTV Bindaas seeks to test the loyalty for people involved in relationship. It seeks people to volunteer and approach them if they have doubts about loyalty of their partner. A partner can be any one – spouse, or girl friend or boy friend.  The serial has become a hit among Indian youth and has increased TRPs in Indian media.

Now that Emotional Atyachar seems to have hit a legal road block, the Indian Legal Luminaries are asking why the Courts have become so aggressive.  Already, there is a campaign by big channels like NDTV, IBN-CNN, Star TV to gather momentum about excessive judicial activism and interference in the functioning of Executive.

“A PIL can be filed by anyone in the India. Therefore, 1.4 billion of India get right to file a Public Interest Litigation against any Government decision. The question is whether the Indian Government function freely? “ said a Senior Lawyer of Supreme Court of India

Definitely, there are advantages of making Indian judiciary all powerful. The scams like 2G or Commonwealth will never have been detected had the Indian Judges of Supreme Court of India not taken strict view of things.

As the battle of Emotional Atyachar in the Delhi High Court continues, we now see convergence of Legal, Media and Government functions coming together in a Court Room. As one Senior Lawyer mentioned, it is always better to have stronger Courts than to have Stronger Government.

Ajay Warsi – Advocate, Lucknow.

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Sanjay Dutt is again making news.

This time it seems that he is certainly innocent. I have strong reasons to believe:

1) It was an ex-parte Arbitration Award and seems like Sanjay Dutt either ignored the proceedings or was not aware of it. The sum of Rs. 2.03 crore is very small for this Actor.

2) The order of Mumbai High Court seizing the offices of Sanjay Dutt itself seems flawed and Sanjay Dutt can quickly get relief if he moves the Court. The award mentions that property worth crores of Rupees be sezied for a sum of Rs. 2.3 crores. This order seems flawed itself in first place.

3) The case also seems to be barred under the principles of Res-judicata as Sanjay’s had earlier won the case against Noorani. Only that Noorani filed the case again in a different forum by changing the facts. It seem that Sanjay Dutt has a good case before the Mumbai High Court. Somewhere it seems that the actor ignored this case thinking it to be very small for him (and rightly so), the only thing he forgot was the bad publicity that this case has brought to him. I wish Sanjay a good luck in winning the case.

Ajay Gupta — The Bollywood Observer

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A Patent Search is the process by which prior inventions or ideas are examined, with the goal being to find information that bears close similarity to a given Patent or proposed invention. Patent search is a very important step to be followed before applying for a Patent as it helps choosing research problems, monitoring research and development of competitors, pays financially in terms of cashing opportunity, keeping a market lead and avoiding expenses on litigation and loss of inventory if injunction granted. In general, a researcher, an inventor and a company goes for a good patent search as they need to invest lot of time as well as money.

As categorized there are following types of Patent Search:

1. Novelty Search

2. Infringement Search

3. Validity Search

4. State-of-the art Search

NOVELTY SEARCH is the most common type of search which provides a surety to the inventor that his invention is unique before he spends time and money to obtain a Patent. Novelty search helps in creating a rough business plan by determining marketability of the invention. Also known as FREEDOM TO OPERATE, infringement search is done to analyze whether commercialization can be done without infringement. Many a times a Company would like to produce a product and although they do not wish to Patent the product themselves, they want to make sure that they do not get sued by someone else that might have already patented this idea. VALIDITY SEARCH is mainly done by companies to invalidate the Patent of some other company who may have granted Patent by some error. From market point of view this is also one of the most important type of search. STATE-OF-THE ART SEARCH is a guiding path for researchers to know where the technology is actually moving and which is the best area to carry out research. This not only saves money but also time by analyzing most recent patents after which a researcher can directly apply his knowledge to a domain which is best for research. Hence the conclusion is Patent Search is equally important as compared to drafting and should be carried out very carefully so as to obtain best results of related prior arts by using good databases and then by analyzing related Patents so as to save money as well as time.

By Rekha Boolchandani, Patent Associate at Law Firm

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Embedded systems are patentable because they do not fall under section 3(k) of Indian Patent act. According to Section 3(k) computer programs are excluded from patentability. Computer programs are a set of instructions for controlling a sequence of operations of a data processing system. Computer program may merely be written on paper or recorded on some machine readable medium such as magnetic tape or disc or optionally scanned record, or it may be permanently recorded in a control store forming part of a computer.

An embedded system should solve a technical problem. An embedded system is a combination of hardware and software. The software of embedded system can be claimed as a process or method since software code gets protection under copyrights and not patents. Embedded system claim directed towards   a “process/method” should contain a hardware or machine limitation. Technical applicability of the embedded software claimed as a process or method claim, is required to be defined in relation with particular hardware components. Thus software code is differentiated from software claimed as method or process having its technical application in the industry. In other word if a embedded system is solving a technical problem in industry under the control of a software program claimed as a technical process cannot be regarded as a software per-se.

The embedded system apparatus claim should clearly define the inventive constructional hardware features i.e the claim should describe about the new hardware features of the system which can constitute towards technical advancement in the relevant field. The claim should also define specific application of the system. A novel solution to a problem relating to internal operation of a embedded system, although comprising a program or subroutine, will necessarily involve technological features of embedded  system hardware or the manner in which it operates are patentable. In other words if the new software is using technological features of the hardware not explored earlier and also solving a technical problem in industry than such embedded systems are patentable.

By Vipin Kumar, Attorney at Law Firm

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According to section 3(k) of Indian Patent Act “a mathematical or business method or computer programs per see or algorithms” are not inventions. A patent application having claims directed to mathematical equation cannot be claimed but if a device or system which works according to some mathematical equation should be a patentable invention. More specifically mathematical equations cannot be patented but if a device or apparatus or system works according to the new mathematical equation or implements the mathematical equation than that apparatus/device should be considered as patentable invention. A patent application having claims directed to business method cannot be claimed i.e if the language of the claim is directed towards claiming a method of online transaction on internet are not inventions, but if a apparatus or system implements a business method than that particular apparatus/system should be considered patentable invention. A patent application having claims directed to software program/algorithm having a bunch of computer instructions cannot be claimed as a invention but if a device/apparatus/system by implementing the software/algorithm is solving a technical problem in the industry than that particular device/apparatus/system is a patentable invention. For example computer readable mediums storing computer programs/data are patentable if the medium has constructional novelty i.e if the data is stored on a computer readable medium in such a way that the management of extraction of data becomes faster as compared to earlier state of art or technology than that particular computer readable medium along with the concerned apparatus for storing and retrieving information is a patentable invention.

By Vipin Kumar, Attorney at Law Firm

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An enterprise’s assets may be broadly divided into two categories: physical assets – including buildings, machinery, financial assets and infrastructure – and intangible assets – ranging from human capital and know how to ideas, brands and designs and other intangible fruits of a company’s creative and innovative capacity. Traditionally, physical assets have been responsible for the bulk of values of a company, and were considered to be largely responsible for determining the competitiveness of an enterprise in the market place. In recent years, the situation has changed significantly. Increasingly, and largely as a result of information technology revolution and growth of the service economy, companies are realizing that intangible assets are often becoming more valuable than their physical assets. In short, large warehouses and factories are increasingly being replaced by powerful softwares and innovative ideas as the main source of income for a large and growing proportion of enterprises worldwide. And even in sectors where traditional production techniques remain dominant, continuous innovation and endless creativity are becoming the keys to greater competitiveness in fiercely competitive markets, be it domestic or international. Intangible assets are therefore taking centre stage and SMEs should seek how to make best use of their intangible assets. One crucial way of doing so is by legally protecting intangible assets, and where they meet the criteria for intellectual property protection, acquiring and maintaining IP rights. IP rights may be acquired in particular for the following categories of intangible assets, (1). Innovative products and processes (through patents); (2).Cultural, artistic and library works including, in most! Countries, also for computer software and compilation of data! (through h copyright and related rights protection); (3). Creative designs, including textile designs (through industrial design rights); (4). Microchips (through protection of layout designs or topographies of integrated circuits); (5). Denominations for goods of given quality or reputation attributable to the geographical origin (through protection of geographical indication and (6). Trade secrets (through protection of undisclosed information of commercial value).

Your Feedback/Comments/queries are most welcome!!!

By Vipin Kumar, Attorney

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With TRIPS coming in force in 2005 the process patent is necessary. Many countries including India is a hub of Generic Drugs in International Market what will be future of these companies or some steps need to be/taken by the respective govt. w.r.t. to tackle this threat of raise in pricing of medicines/drugs.

By Manmeet, Attorney

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Patent Applications are of three types. Basic Application Convention Application PCT National Phase Application Provisional Application Basic Application Basic application is the first application which is filed in Indian Patent office. The filing date of Basic application becomes the priority date of the invention. The priority date is the date from which the invention gets protection under patent law. After filing a Basic patent application the Applicant can file the same patent application in other countries within 12 months claiming priority from the one filed in India. Convention Application the Convention application is the application which is filed within the time limit of 12 months from making the Basic application in some other country (say china) i.e the application will be claiming priority date from the date of filing of patent application in other country (china). PCT National Phase application PCT applications are those applications which are filed internationally in Patent corporation treaty Geneva. After filing appellation in PCT any applicant gets 30 month time limit to file application in the countries in which the patented product or process is having good market value. The benefit of filling patent application through PCT is, the Applicant gets a long time (30 months) to file the application in other countries as compared to 12 months in convention application. Provisional Application Provisional Application is a basic disclosure of any invention accompanying drawings. After filing a provisional application in India the Applicant gets one year time to file the complete Application. The Applicant will get protection or priority from the date of filing the provisional patent application.

By Vipin Kumar, Attorney

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To retain current clients and generate new clients, the foremost requirement is – Constant review and updating your own services and its techniques

The Next steps to be taken are: never let your current or past client forget you:

Keep sending them updated primers and new catalogs of the services offered by your firm/company.

Website – be active on your website, constant updating and adding new contents. Include a blog on the website. Share new activities and comment on current affairs build your network by being active on professional sites and by attending seminars workshops (of your business/work related), try being a speaker in the seminar which is a good way of endorsing yourself and your work. Associate with big and small firms/companies/professionals you need to be good as a pr and great as a professional, because clients will retain and associate with you only if you are good at delivering good, and quality work. You and your colleagues need to practice with high ethics and passion. After which everything mentioned above follows.

By  Sunayana Puri, Attorney

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