This article discusses intellectual property rights and how food businesses can use them. What obstacles does the individual encounter, and what are the potential opportunities and prospects for IP protection in the future?
Introduction

IPR stands for Intellectual Property Rights. It refers to the legal rights that individuals or entities have over creations of their mind or intellect. These rights grant exclusive control and protection over intangible assets, allowing the creators to benefit financially and control the use of their creations.

IPR via trade secrets prevents creative ideas and recipes from being stolen, giving businesses a competitive advantage when rivals attempt to steal them. The possibilities for filing IP are still not well known to many cooks and food enterprises. The food industry can benefit greatly by choosing intellectual property rights. We will discuss how IP filing benefits the food industry in this session.

SIPP Scheme

The goal of Startups Intellectual Property Protection, or SIPP, is to encourage start-ups to embrace and become conscious of intellectual property rights. By giving them access to first-rate intellectual property services and resources, this program aims to support and guide companies in developing and safeguarding cutting-edge technology [1].

IPR in Food Startups

The goal of intellectual property rights is to safeguard the inventive and creative abilities of people whose work may be commercially valuable. The following types of intellectual property rights are accessible in the food industry:

• Patents: Grants exclusive rights to inventors for their inventions, providing them with the right to prevent others from making, using, selling, or distributing the patented invention without their permission for a specified period.
• Trademarks: Protects symbols, names, slogans, or designs used to distinguish the goods or services of one party from those of others. Trademark rights prevent unauthorized use of the mark in a way that could cause confusion among consumers.
• Copyrights: Protects original works of authorship, such as literary, artistic, musical, or dramatic works. Copyright owners have the exclusive right to reproduce, distribute, perform, or display their work, and to authorize others to do so.
• Trade Secrets: Refers to confidential information that provides a competitive advantage to a business. Trade secret protection prevents unauthorized disclosure, use, or acquisition of valuable business information, such as formulas, processes, or customer lists.

The Government of India released a booklet which comprises five years story of startups in India, showing around 85-87 percent growth in registration of startups over a period of time from 2017-2020 [2].

Registering as a Start-Up to Receive IPR Benefits

The start-up applicant must have a Certificate of Recognition from DPIIT (formerly DIPP) to be eligible for benefits under the SIPP Scheme. When submitting a patent, design, or trademark application, the Certificate of Recognition must be sent to the Indian Patent Office (IPO) [3].

How Do IP Rights Work in the Food Industry?

Some food manufacturers want to introduce a new flavor to the market and ensure it isn't abused. They choose to apply for IP protection for this reason. These food firms can safely present their product and increase profits by getting copyright for their recipes or flavors. They have the right to file a lawsuit against anyone who attempts to copy their flavor or recipe without their permission. Prominent food conglomerates like KFC and McDonald's are preserving their own formulas and tastes to guarantee continued commercial success. Chefs are seeking the help of a copyright attorney to protect their inventions as they realize the significance of unique flavors.

Legal Challenges Faced by Indian Food Startups

1. Business Incorporation Complexities: The process of incorporating a business in a country as large and diverse as India is often underestimated by many entrepreneurs. Incorporating a business in India involves keeping the business up-to-date with numerous legal requirements, registrations, and compliance with tax and labor laws. Improper incorporation can lead to legal penalties, severe financial repercussions, including tax liabilities, and limited access to funding.
    
2. Intellectual Property Negligence: Startups, mostly based in India, frequently undervalue the significance of safeguarding their intellectual property (IP), which comprises inventions, trade names, and creative works. If this crucial element is overlooked, rivals may copy their concepts or trademarks, costing businesses their competitive advantage and sometimes even money.
    
3. Data Privacy and Security: Data is a valuable asset in the digital age, and managing it presents several legal issues. Businesses that violate data privacy laws risk severe fines, legal repercussions, and reputational harm that stunts their ability to expand.
    
4. Tax and Labor Law Compliance: Maintaining compliance with labor regulations and tax requirements is a difficult task that frequently lands startups in legal and financial trouble. Non-compliant parties risk paying hefty fines, getting into legal hot water, and damaging their brand reputation.
    
5. Contract Management and Negotiation: As a business grows, it must manage multiple legal documents. Poor contract management and negotiation can result in cash losses, damaged corporate relationships, and legal vulnerabilities. Several startups frequently struggle with handling contracts with clients and providers, and agreements made without careful legal assessment can lead to disagreements and monetary losses.

How can IP strategy be developed in food startups?
Creating an intellectual property strategy is crucial for food startups since it allows them to build their brands right from the beginning with the suitable intellectual property rights selection. Selecting the appropriate intellectual property requires careful consideration of a number of factors, including the procedures that must be safeguarded, the duration of a particular IPR, and the methods by which rivals safeguard their inventions and original ideas.

The Central Government from time to releases various scheme for the food industry in order to promote the sector [4]. A food product or recipe can benefit greatly from an intellectual property right, but only if the business owner is prepared to make the necessary efforts to safeguard, preserve, and fairly monetize those rights. When requesting intellectual property, a business owner should be very specific about what he needs to safeguard above all and present fresh, original ideas.

Conclusion:
Intellectual property rights have long been a vital instrument for safeguarding human inventions and creative works. They safeguard the rights of innovators to continue funding R&D in order to create new goods that facilitate our daily lives. A report by DigitalFoodLab [5] indicates an increase in investment of food startup in India which depicts the food sector is becoming more competitive, so it's critical to safeguard ideas, blogs, creative processes, recipes, and other intellectual property in order to develop a strong and practical IP strategy.
References:

End Notes:

1. https://ipindia.gov.in/writereaddata/Portal/News/323_1_Scheme_for_facilitating_start-ups.pdf
2. https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/5_years_Achievement_report_PRINT.pdf
3. https://ipindia.gov.in/TM-Rules-2017.htm
4. https://www.startupindia.gov.in/content/sih/en/government-schemes.html
5. https://www.digitalfoodlab.com/foodtech-in-india/

Written By: Aman Singh (Faculty of Law, University of Delhi)