March 6, 2024

ntellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce. IP is protected in law by, for example, patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create. By striking the right balance between the interests of innovators and the wider public interest, the IP system aims to foster an environment in which creativity and innovation can flourish. What Is Intellectual Property? Intellectual property is a broad categorical description for the set of intangible assets owned and legally protected by a company or individual from outside use or implementation without consent. An intangible asset is a non-physical asset that a company or person owns.The concept of intellectual property relates to the fact that certain products of human intellect should be afforded the same protective rights that apply to physical property, which are called tangible assets. Most developed economies have legal measures in place to protect both forms of property. Intellectual property is a category of assets that are intangible. This means that they cannot be held and don’t necessarily have a physical presence. These assets are created using human intellect. Intellectual property can take many forms and includes things like artwork, symbols, logos, brand names, and designs, among others.Companies are diligent when it comes to identifying and protecting intellectual property because it holds such high value in today’s increasingly knowledge-based economy. Also, producing value intellectual property requires heavy investments in brainpower and time of skilled labor. This translates into heavy investments by organizations and individuals that should not be accessed with no rights by others.Extracting value from intellectual property and preventing others from deriving value from it is an important responsibility of any company. Although it’s an intangible asset, intellectual property can be far more valuable than a company’s physical assets. It can represent a competitive advantage and, as a result, is fiercely guarded and protected by the companies that own the property. Special Considerations Many forms of intellectual property cannot be listed on the balance sheet as assets since there aren’t specific accounting principles to value each asset. However, the value of the property tends to be reflected in the price of the stock since market participants are aware of the existence of the intellectual property.Some intangible assets, such as patents, are recorded as property because they have an expiration date. These assets are recognized by a numerical value through the process of amortization. Amortization is an accounting method that decreases the value of an intangible asset over a set period of time. This process helps the company to reduce its income by expensing a set amount each year for tax purposes as the useful life of the intangible asset winds down. For example, a patent might only have 20 years before it’s registered as public domain. A company would assign a total value to the patent. Each year for 20 years, the patent would be expensed or amortized by the same amount by dividing the total value by 20 years. Each year the amortized asset amount would reduce the company’s net income or profit for tax purposes. However, intellectual property that is considered to have a perpetual life, such as a trademark, is not amortized since it doesn’t expire, Types of Intellectual Property Patents- A patent is a property right for an investor that’s typically granted by a government agency, such as the U.S. Patent and Trademark Office.2 The patent allows the inventor exclusive rights to the invention, which could be a design, process, improvement, or physical invention such as a machine.Technology and software companies often have patents for their designs. For example, the patent for the personal computer was filed in 1980 by Steve Jobs and three other colleagues at Apple (AAPL).3 Copyrights- Copyrights provide authors and creators of original material the exclusive right to use, copy, or duplicate their material. Authors of books have their works copyrighted as do musical artists. A copyright also states that the original creators can grant anyone authorization through a licensing agreement to use the work. Trademarks- A trademark is a symbol, phrase, or insignia that is recognizable and represents a product that legally separates it from other products. A trademark is exclusively assigned to a company, meaning the company owns the trademark so that no others may use or copy it. A trademark is often associated with a company’s brand. For example, the logo and brand name of Coca-Cola is owned by the Coca-Cola Company (KO). Franchises- A franchise is a license that a company, individual, or party–called the franchisee–purchases allowing them to use a company’s–the franchisor–name, trademark, proprietary knowledge, and processes.The franchisee is typically a small business owner or entrepreneur who operates the store or franchise. The license allows the franchisee to sell a product or provide a service under the company’s name. In return, the franchisor is paid a start-up fee and ongoing licensing fees by the franchisee. Examples of companies that use the franchise business model include United Parcel Service (UPS) and McDonald’s (MCD). Trade Secrets- A trade secret is a company’s process or practice that is not public information, which provides an economic benefit or advantage to the company or holder of the trade secret. Trade secrets must be actively protected by the company and are typically the result of a company’s research and development (R&D), which is why some employers require the signing of non-disclosure agreements (NDAs). Examples of trade secrets could be a design, pattern, recipe, formula, or proprietary process. Trade secrets are used to create a business model that differentiates the company’s offerings to its customers by providing a competitive advantage. Digital Assets- Digital assets are also increasingly recognized as IP. These would include proprietary software code or algorithms, and online digital content.   Types of Intellectual Property IP Protection Duration (in the U.S) Patents Inventions, industrial designs, computer code 20 years Trademarks Unique identifiers for a business or its products or services (e.g., logos, brand names) As long as the trademarked material remains active Copyrights Works of authorship, including books, poems, films, music, photographs, online content 70 years after the author dies6 Intellectual Property Infringement Patent infringement occurs when a legally protected patent

Trade license is an important document that allows you the right to operate your business in a particular municipal limit. The provision of a trade license is laid down by the State government to monitor and regulate various trade activities within a city. entrepreneur with dreams of starting your business empire in the vibrant state of Rajasthan? Well, get ready for an exciting journey to success! But before you take the plunge, you have to take one crucial step: get a trade license. Beneath Rajasthan’s majestic heritage lies a dynamic system that promotes fair trade, protects the public interest, and paves the way for thriving businesses. The trade license is the golden key that opens the door to this realm of possibilities. It not only validates your business operations but also assures your customers, partners, and stakeholders that you are a responsible player in the game.Trade License is known as “Shop and Establishment Registration” or “Trade License” in many states and “Gumasta License” in Maharashtra. What is a Trade License? The permission to operate a specific trade or business in a specific location is given by a trade license, which is a document or certificate presented to the applicant (a person who intends to start a business). It has ensured that all the safety regulations laid down by the state municipal corporation are followed while doing business or trading. It protects residents from health risks. However, the license only gives the holder the ability to carry out the company or activity for which it was issued. In addition, nothing in this authorization grants Licensee any type of property ownership. The rules and regulations governing this registration of a trade license vary from state to state; for example, the procedures for registering a business license in Rajasthan will be different from registering a business license in Tamil Nadu. Therefore, before applying for a business license, the applicant must familiarize himself with the relevant laws in the jurisdiction. An application for registration of a trade license in Rajasthan must be made within 30 days of incorporation. In most states, applications for new licenses and license renewals are accepted by the Commissioner of the Company. Why trade licenses are important in Rajasthan? Legitimacy and Compliance: A trade license is a legal document issued by the municipal corporation, which grants authorization for a specific commercial activity. By obtaining a trade license, businesses in Rajasthan demonstrate their compliance with the applicable laws, regulations, and standards set by the government. It ensures that businesses operate within the framework of the law and contribute to a fair and transparent business environment. Health and Safety Measures: Trade licenses require businesses to adhere to specific health and safety standards set by the government. This ensures that businesses in Rajasthan maintain a clean and safe environment for employees, customers, and the general public. It helps prevent the spread of diseases, fire hazards, and other potential risks, thereby safeguarding the well-being of individuals associated with the business. Municipal Revenue Generation: Trade licenses contribute to the revenue generation of the municipal corporation. The fees collected through the issuance and renewal of trade licenses are utilized by the local authorities to develop and maintain public infrastructure, facilities, and services. This revenue helps in enhancing the overall business environment and promoting economic growth in Rajasthan. Consumer Protection: Trade licenses play a crucial role in protecting consumers’ interests. Before granting a trade license, the municipal authorities conduct inspections to ensure that businesses meet the required quality standards, maintain fair pricing practices, and provide genuine products or services. This helps in minimizing fraud, malpractices, and the sale of substandard goods, thereby enhancing consumer confidence and trust. Urban Planning and Regulation: Trade licenses enable effective urban planning and regulation. By having a record of licensed businesses, the authorities can monitor and manage the distribution and concentration of various commercial activities across different areas in Rajasthan. This helps in maintaining a balanced and sustainable urban development, avoiding overcrowding, and preventing unauthorized businesses from operating. Access to Financial Assistance and Incentives: In some cases, having a trade license is a prerequisite to accessing financial assistance, loans, and incentives provided by the government or financial institutions. By obtaining a trade license, businesses in Rajasthan become eligible for various schemes, subsidies, and support programs aimed at fostering entrepreneurship, business growth, and development. Documents required to get a Trade License in Rajasthan License Application If the applicant is a legal entity, the relevant documents for company registration and the PAN card must be submitted Aadhaar Card Real estate tax documents The rental agreement or a copy of it should be offered Statements and Khata certificates in any form Occupancy Documents If the business is located in the neighborhood, a letter of objection from the neighbor is required Sanction Records. Procedure for Obtaining a Trade License in Rajasthan Access SmartRaj Website Step 1: Applicants have to visit the official site of Rajasthan to apply for the trade license through the portal. Step 2: After which, the applicant must click on the ‘Trade License Application/Pay’ option which will open up a new page. Login to portal Step 3: The applicant must log in with their username and password to operate the License applications received from the citizen. Step 4: If a new user then registers yourself with the portal by clicking on the ‘Register Here’ option. Apply Trade Application Step 5: Then you need to click on the ‘Apply Trade Application’ option on the web portal. Fill in the right credentials Step 6: Then, the applicant has to complete all the requested details such as New traded license details, Applicant’s address details, other owner details, Type of license, etc. and click on the ‘Save’ details. Upload Requested Documents Step 7: Then you have to upload the below following documents that are mentioned above. Pan card and Aadhar card Lease Deed or Legal Occupancy Certificate Address Proof ID Receipt of UD Tax Ownership Document. Step 8: After uploading all the requested documents (scanned documents), click on the save button. Generate Application Number Step 9: After