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Chapter 9Intellectual Property ProtectionN T I S20109.1 IntroductionIntellectual property is a form of property created through the application of a person’s knowledge andskills. The World Intellectual Property Organization (WIPO) defines the following matters within the scope ofintellectual property: literary, artistic, and scientific works, scientific discoveries, trademarks, service marks,symbols and commercial names, and industrial design inventions.Intellectual property rights refer to the exclusive rights provided by the State to a person in lieu of his/herintellectual creation. A person vested with an intellectual property right can enjoy it without any encumbrance,and can sell, distribute and publish the same. Conversely, any third party cannot use, sell or store the creationmade by the person who holds the rights without the latter’s approval. Because of modern, legal protectionsfor intellectual property, new inventions that contribute to the economic, technological, and cultural progressand prosperity of society and countries are introduced every day. The challenge for Nepalese entrepreneurs,producers, and exporters today is to learn how to capitalize on intellectual property, including their own, tocreate business competitive advantages.Intellectual property typically is divided into industrial property and copyright. Trademark, design, patent,geographical indication, trade secret, traditional knowledge, and integrated circuits fall under industrialproperty. Literary works, stories, poems, drama, novel, music, musical works, artistic works, sculpting,painting, photography, computer software, designs, and presentations made by artists fall under copyright.9.2 Nepal’s Current Legal FrameworkAt present, two laws protect and promote intellectual property in Nepal. The 1965 Patent Design andTrademark Act 2022 (with amendment) prescribes legal provisions for patent, design and trademark. The2002 Copyright Act 2059 provides protection of copyright. We shall discuss the two Acts here.Internationally, intellectual property rights are also prescribed in Article 27 of the 1948 Universal Declarationof Human Rights. Key international conventions are the Paris Convention of 1883, which focuses on protectionof industrial property, and the Bonn Convention of 1886, which focuses on protecting copyright. WIPO isresponsible for the management and regulation of these two conventions. In addition, a Trade-RelatedIntellectual Property Rights (TRIPS) Agreement is part of the Uruguay Round Agreements that created theWTO. Nepal is a member of the WTO.Industrial Property in NepalThe 1965 Patent, Design and Trademark Act (with amendment) follows an earlier 1936 Act. The 1936 Actprovided protection to Nepalese nationals only, whereas the 1965 Act introduced legal rights to foreigners,allowing them to register their industrial property in Nepal and to enjoy the rights prescribed by the law. ThisAct, first enacted on April 26, 1965, has been amended three times. The Act prescribes separate provisionsfor patent, design, and trademark.PatentThe Act prescribes registration to acquire right to a patent, requirements and procedures for registration, andconditions under which a patent cannot be registered. It also prescribes publication of registered patents inthe National Gazette.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT207
N T I S2010To register a patent, a person must submit an application along with a full description of his/her inventionand claim before the Department of Industries (DoI). Upon submission of the application, the DoI constitutesa committee of experts knowledgeable about the invention and, on the recommendation of the committee,registers the patent. When a foreign patent needs to be registered, the Act requires the applicant to submita home registration certificate. In the event a home registration certificate is furnished, the DoI, pursuant toSection 21 (c) of the 1965 Patent, Design and Trademark Act, may register the patent without carrying anyfurther investigation. The typical period of validity of a patent in the world is 10 years and it may be renewedonly once. In Nepal, the period of validity is seven years and the patent may be renewed twice for a periodof seven years each time.The practice of registering patent in Nepal is very low. Records of the DoI indicate that only 59 patents areregistered today in Nepal, and that there is a lack of skilled manpower to examine and investigate patentssubmitted for registration.Section 2 of the 1965 Patent, Design and Trademark Act (with amendment) defines the term ‘patent’ asfollows: ‘Patent means any useful inventions made from any material or group of materials, or new measuresor procedures for operation or dissemination or any other useful inventions made from any new principle orformula.’A person wishing to register his/her patent needs to furnish evidence pursuant to Section 4 of the Act andsubmit the following information along with an application in the prescribed format before the DoI:1. Name, address, and profession of the inventor.2. If the applicant is not the inventor of the patent, a letter certifying how he/she has acquired the rightfrom the inventor.3. Procedures of designing, operating, or enjoying the patent.4. If the patent is based on any particular principle or formula, then the principle or formula shall bestated in the application.Section 6 of the said Act lays downs the grounds for rejecting a request to register apatent as follows:1. The patent is already registered in another person’s name.2. The applicant has not invented the patent and the applicant has not received the right over the patentfrom the inventor.3. The patent is adverse to the health of the public, etiquette, or morality or adverse to nationalinterest.4. The patent is contrary to any prevalent laws of Nepal.DesignTo acquire right over a design, it is mandatory to register it. Section 2 (b) of Patent Design and Trademark Actdefines the term ‘design’ as: ‘design means the feature or shape of a matter prepared.’ Pursuant to Section13 of the Act, to register a design, a person must furnish an application along with a description of the design,including the map and four copies of the design. Pursuant to Section 14 (a), designs that are registered arevalid for a period of five years. After five years the right to the design may be renewed twice for anotherperiod of five years.Applications for legal protection of one’s right to a new design are very few in Nepal. There is very littleawareness among Nepalese industrialists that design can play an important role in enhancing the prestige andname of the owner and contribute to creating a competitive advantage.208NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT
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Nepal Trade Integration Strategy 20
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Table of ContentsForewordAbbreviati
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Table 2.17 Acreage and Production o
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List of BoxesBox 2.1 A Nepalese IT
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LoD Limit of DetectionM&E Monitorin
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Chapter 1Trading Environment, Expor
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N T I S20101.3 Capacity Development
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N T I S2010Table 1.1Balance of Paym
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N T I S2010Changes in the Nepalese
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N T I S20101.5 Expanding an ‘Incl
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N T I S2010 Index 4 measures the po
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N T I S2010Table 1.9Impact of 19 Ex
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N T I S2010Table 1.10Geographical D
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N T I S20101.7 Declining Importance
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N T I S2010negotiate for the inclus
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N T I S2010Types of Exported Produc
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N T I S2010Table 2.2Large Cardamom:
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N T I S2010Index 4: Socio-economic
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N T I S2010Index 1: Export Performa
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N T I S2010exporters. Nepal permits
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N T I S2010RankCountryExports Nepal
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N T I S2010like China and Australia
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N T I S2010The opportunities for pr
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N T I S2010Lentils are subject to o
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N T I S2010Production Capacity: Nat
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N T I S2010Gender Impact: This sect
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N T I S2010Export Prospect: Accordi
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N T I S2010Cost and Quality of Infr
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N T I S2010Attractive markets for T
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N T I S2010Market Access Conditions
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N T I S2010Gender Impact: The respo
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N T I S2010Information from industr
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N T I S2010RankCountryTable 2.26Att
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N T I S2010# Botanical Name 41 Spec
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N T I S2010Current Export Destinati
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N T I S2010significant attention fr
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N T I S20109) Silver JewelryBackgro
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N T I S2010Availability and Quality
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N T I S2010Attractive Markets for S
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N T I S2010Production Capacity: Nep
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N T I S2010ii.iii.required for the
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N T I S201012345678910# Name of Ste
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N T I S2010Export Prospect: Accordi
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N T I S2010Gender Impact: Female wo
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N T I S2010The value added of those
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N T I S2010sheep population, which
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N T I S201013) TourismBackgroundTou
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N T I S2010Index 2: World Market Co
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N T I S2010There are also about 24
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N T I S2010Index 1: Export Performa
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N T I S2010Index 2: World Market Co
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N T I S2010Contribution to Skill De
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N T I S2010Types of Exported Servic
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N T I S201016) Health ServicesBackg
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N T I S2010medical services are bei
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N T I S201017) Education ServicesBa
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N T I S2010should be interpreted ca
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N T I S2010foreign students. The me
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N T I S2010Under mode 4 (presence o
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N T I S2010Index 4: Socio-economic
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N T I S2010generate revenue of US$3
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N T I S2010monopsony power. Several
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N T I S2010The possibility of direc
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N T I S2010Dairy Products, specific
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Chapter 3Access to the Indian Marke
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N T I S2010The Nepal-India Trade Tr
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N T I S2010Most issues reported abo
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N T I S2010Nepalese Domestic Issues
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N T I S2010India’s view is that t
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Chapter 4Access to the Chinese Mark
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N T I S2010products must be wholly
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N T I S2010The findings discussed h
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N T I S20104.5 Other Impediments to
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N T I S20104.7 Recommendations: Cha
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N T I S2010inflow between 2000 and
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N T I S2010Industrial Parks and SEZ
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N T I S2010Lack of up-to-date polic
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N T I S2010Apart from the critical
Page 169 and 170: N T I S2010capabilities in all five
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Page 176 and 177: N T I S2010In the 2005 Trade Facili
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Page 183 and 184: N T I S2010Figure 7.1Future Organog
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Page 187 and 188: N T I S2010Act 1980. So far, 130 fi
Page 189 and 190: N T I S2010The current projects inc
Page 191 and 192: N T I S2010The NBSM as a secretaria
Page 193 and 194: N T I S2010Many more organizations
Page 195 and 196: N T I S2010Table 7.8Existing Nepal
Page 197 and 198: Table 7.9Standards Issues for Ten E
Page 199 and 200: N T I S20107.14 Priority Actions an
Page 201 and 202: N T I S2010It is not clear what amo
Page 203 and 204: N T I S2010GeneralNepal’s general
Page 205 and 206: N T I S2010a crucial part of the PR
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Page 217 and 218: N T I S2010Simpler requirements suc
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Page 225 and 226: N T I S2010Intellectual Property is
Page 228 and 229: Chapter 10Barriers to Service Trade
Page 230 and 231: N T I S2010Constraints in the touri
Page 232 and 233: N T I S2010Table 10.2Nepal GATS Com
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Page 236 and 237: N T I S2010Barriers to Exports of H
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Page 243 and 244: N T I S2010Observations from enterp
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Page 253 and 254: N T I S2010The key principles inclu
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Page 267 and 268: N T I S2010GoN / MoF (2009), Econom
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N T I S2010NEPAL TRADE INTEGRATION
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N T I S2010MainOutcomes Recommended
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N T I S2010NEPAL TRADE INTEGRATION
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N T I S20102. GINGERStrengths Tradi
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N T I S20104. LENTILSStrengths High
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N T I S20105. TEAStrengths Very fav
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N T I S20106. INSTANT NOODLESStreng
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N T I S2010 Review, simplify, and i
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N T I S20109. SILVER JEWELRYStrengt
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N T I S201011. CHYANGRA PASHMINA PR
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N T I S201013. TOURISMStrengthsNatu
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N T I S201015. IT AND BPO SERVICESS
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N T I S201017. EDUCATION SERVICESSt
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N T I S201019. HYDRO-ELECTRICITYStr
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Appendix 1Methodology for Export Po
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N T I S2010B. Data SourcesThe analy
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Appendix 2Market Attractiveness Ind
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N T I S2010Rank13) Tourism1 Germany
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Appendix 3Updated Legislative Actio
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N T I S2010specified management sys
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N T I S2010than pesticide residues
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Appendix 5Malaysia GAP (Skim Amalam
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N T I S2010E. Document ControlQMS d
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Appendix 7Good Agricultural Practic
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