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Recent blog posts

General introduction to intellectual property

General introduction to intellectual property

Intellectual Property (IP) rights result from a contract between the owner of the rights and the state. The national law determining these rights is a balance between the rights given to the property owner and the need for benefits to flow to society. You will be given many examples of this balance, particularly the legal principle and formalities that set limited terms for intellectual property rights beyond which anyone may use the invention or creation. Governments can also, in some circumstances, permit the unrestricted use of copyrighted materials, for example, in education or the legal system.All IP rights are also designed with a limited time, some depending on payment for maintaining the IP right, after which they fall in the public domain to be used for further creative endeavours.Intellectual property rights are one of the fundamental rights of individuals. With the increasing expansion of inventions and discoveries, writings, and intellectual and cultural products, the scope and influence of these rights have increased sharply.In addition, in developed countries, these rights, along with other individual and inalienable rights of individuals, such as the right to life, The right to self-determination, And the right to liberty, moreover even in the international dimension, the importance of these rights has gone so far that the World Intellectual Property Organization (WIPO) It is recognized as the fourth largest international organization affiliated with the United Nations. Also, the global regulations of WIPO are one of the main pillars of the World Trade Organization (WTO) rules. Intellectual property in IranWith the development of information technology and the increase in the volume of trade in Iran, and the initial acceptance of the country's application for membership in the World Trade Organization in 2005, intellectual property in Iran was found as an important position among lawyers and researchers.On the other hand, over time since the enactment of domestic laws in support of global intellectual property and trade laws, the completion of these laws became necessary, and hence, drafts article of patents registration, industrial designs, trademarks, and draft article of protection of literary and artistic property rights, which was presented to Parliament in the first reading on 07/08/1386 approved by the Judiciary Committee - legal Counsel under the "law of patents, industrial designs and trademarks ". And Parliament agreed with five years trial implementation of that regulation. At the end of the mentioned period, the Islamic Consultative Assembly extended the implementation period of this law for another year. The property as new or intellectual rights that have economic value and can be traded is the subject of a specific object is not material. These rights mainly deal with issues that are the product of human thought and are related to his mental creations.In other words, the subject matter of this type of property is inherently intangible and is an aspect of knowledge and information that is manifested in the products of physics or their production process. These rights, regardless of any contractual conditions, recognize and prescribe rights for the creator of the work and oblige the members of the society to observe them.In the division of intellectual property, the following two things can be mentioned:Industrial property, which includes inventions, models of useful objects (less complex inventions), trademarks and service marks, marks of origin, or designations of origin (in the Paris Convention of designations of origin and the TRIPS agreement of geographical indications as examples named industrial property) And prevents unhealthy competition, trade secrets, schemes build integrated circuits and geographical indications.Literary and artistic property: include works such as books, plays, poems, lyrics, songs, films, radio and television, painting, illustration, architectural, photographic effects, and copyright and related rights.Intellectual property international regulations Paris Convention 1883This convention was written to protect industrial designs. The rules of which are divided into national approach and protection/priority right in the registration of designs and general rules that must be followed equally in all countries. As a general rule, under the Paris Convention, industrial design protection is territorial: this means that industrial design rights are limited to the country where protection is sought and granted. If protection is desired in several countries, separate national applications must be made according to the applicable national law and procedures (which are usually different in each country). For instance, if protection is sought in countries A and B, an application should be filed with the IP Office of country A and another one with the IP Office of country B.Iran joined the Paris Convention in March 1958 with the passage of the Iran Permission Act to accede to the International Union of Representatives of the Paris General Assembly for the Protection of Industrial, Commercial and Agricultural Property by the National Assembly and the Senate.Madrid Agreement concerning the international registration of marksThe Madrid Agreement entered into force in 1891. Under this agreement, nationals of the Contracting States may, in the entirety of the Member States, guarantee the protection of marks which can be used for their goods and services which are registered in the country of origin by filing a file for registration of such marks in the Office of the International Intellectual Property referred to in the convention establishing the World Intellectual Property Organization through the relevant office in the country of origin (Industrial Property Office in Iran).One of the two main requirements under the Madrid Agreement is that the trademark should be distinctive and should not be deceptive.Trademark Law TreatiesThere are two other treaties administered by WIPO, which make trademark formalities more user-friendly by harmonizing and simplifying specific procedures. The Trademark Law Treaty (TLT), adopted in 1994, and The Singapore Treaty on the Law of Trademarks was adopted in 2006.The trademark law treaty (TLT)This Agreement adopted in 1994 aims to standardize and streamline national and regional trademark registration procedures by simplifying and harmonizing certain features of those procedures. However, TLT makes trademark applications to and the administration of trademark registrations in multiple jurisdictions less complex and more predictable.Most of this treaty specified the formalities of the Industrial Property Office for the registration of trademarks, which are discussed in three stages: the registration declaration, the post-registration changes, and the extension of its ten-year validity.The Singapore treaty on the law of trademarks Singapore treaty adopted in 2006 has a wider scope of application and addresses more recent developments in communication technologies. Furthermore, the Singapore treaty is the first international instrument dealing with trademark law to explicitly recognize non-traditional marks, such as holograms, three-dimensional marks, colour, position, motion marks or sound. Patent Cooperation Treaty (PCT)The treaty was signed in 2000 in Geneva between 53 countries and the European Patent Office. The purpose of this treaty is to coordinate procedures such as the requirements for submitting a sample patent application and the content that the application must contain.A Patent is a legal document that grants an exclusive right to the patented invention, which is a product or a process that provides, in general, a new way of doing something or offers a new technical solution to a problem. The usual effects of the grant of a patent are that the patented invention may not be exploited during the limited period in the country in which the patent is granted, by persons other than the patent owner, unless the owner agrees to such exploitation by others.In other words, a patent protects an invention and grants to the owner of a patent the exclusive right to decide who shall and who shall not exploit his/her patented invention during the limited term of patent protection.A patent document published to the public at large indicates the scope of patent protection and contains a detailed description of the patented invention.The prominence of intellectual propertyThe intellectual property system as one of the complementary links in the development chain of countries has long been considered by policymakers in different countries. On the one hand, this system provides the legal security required by innovators, research institutes, and investment companies in innovation by formulating the necessary legal materials.On the other hand, as a component of the national innovation system, it plays a vital role in promoting the learning process. Finally, a look at the experiences of industrialized and newly industrialized countries shows that one of the most important factors in these countries' economic and technological progress is systematic planning to promote intellectual property protection because intellectual property has an undeniable role in Technology development.
Iran Employment Contract: Everything You Should Know

Iran Employment Contract: Everything You Should Know

An employment contract can lead to a lot of disputes between the parties. This information is vital for both employees and employers. These agreements will safeguard your position; hence, here is a brief overview of the issues that need to be included in the contract. The comprehensive Labour Law covers all labour relations and employment contracts in Iran, including hiring local and foreign staff. The Labor Law provides an extensive and inclusive definition of the individuals it covers, and written, oral, temporary and indefinite employment contracts are recognised. It is challenging to lay off any Iranian employee, including staff, since Iran's labour law is very employee-friendly.Employing personnel on consecutive six-month contracts is illegal since dismissing staff without proof of a severe offence. Labour disputes are settled by a special labour council, which usually rules in favour of the employee. The Labor Law specifies the minimum standards that an employer must adhere to when forming an employment relationship. To have a valid contract concluded under the labour law of Iran, the following conditions must be included:Type of work, vocation or duty that the worker must undertake;Basic compensation and supplements to it;Working hours, holidays and leaves;Place of performance of duties;Probationary period, if any;Date of conclusion of the contract;Duration of employment; andAny other terms and conditions required according to the nature of employment.The employer may require the employee to be subject to a probationary period. An unskilled worker might only serve a probationary period of one month, while a skilled or professional worker might serve a three-month probationary period. During the probation period, either party may immediately terminate the employment relationship without cause or payment of severance pay. The only caveat is that if the employer releases the relationship, they must pay the employee for the entire duration of the probation period.Suspension of Employment ContractAn employee under certain conditions can suspend the employment contract presents yet another challenge to employers. The following conditions are necessary to break the employment contract:For the period of military service (active, contingency and reserve) and voluntary enlistment during conflicts. This period shall be considered part of the employee's service record at the place of employment;The closure of a workshop;Educational leave for up to four years; andThe period of detention that does not lead to conviction;Once the conditions giving rise to the suspension of the contract are removed, the employer must allow for the employee’s return to work. If the position is filled or eliminated, the employer is obligated to provide a similar role for the employee. Failure to do the above is considered wrongful discharge and subject to legal action.Termination of Employment ContractEmployment contracts can only be terminated in the following circumstances:Death of employee;Retirement of the employee;Total disability of employee;Expiration of the duration of the employment contract;Conclusion of work in task-specific contracts; andResignation of the employee.The employer is bound to pay benefits under all of the above scenarios according to the employee’s years of service.Dismissal of an EmployeeAn employee may only be dismissed upon the approval of the Islamic Labor Council or the Labor Discretionary Board. Grounds for dismissal include an employee's neglect to carry out their duties or violate the employer’s disciplinary by-laws. The employer must have provided written prior notice of the employee's violations. If the board is not convinced that the employee's dismissal is justified, the employer must reinstate the employee. Once an employee is dismissed, the employer is obligated to provide the legal severance package.Severance & Termination BenefitsThe Law mandates the following compensation for suspended, terminated and disabled employee:Suspended Employee - Where an employee is suspended without cause, the employer must reinstate the employee and pay for all damages and compensation resulted from the wrongful suspension;Terminated Employee - An employer is under a legal obligation to provide thirty (30) days salary for every year of service for employees made redundant or retired;Disabled Employee - The employer must pay 30 days salary for every year of service. Moreover, if the disability of an employee is due to working conditions, the employer must pay 60 days salary for every year of the employee's service period.Working Hours & OvertimeThe workweek in Iran is based on a forty-four hour week. The typical work week consists of working from Saturday to Wednesday (8 hours a day) and half a day on Thursday (4 hours). Any hours worked beyond these will entitle the employee to overtime. According to the law, overtime pay must be paid at 40% above the hourly wage. In addition, the employee must consent to overtime work.Holidays & LeaveEmployees are entitled to leave on all official state holidays (approximately 22 days a year) and Fridays. Any employee working during these holidays will be entitled to overtime pay. Additionally, employees are entitled to a one-month holiday per annum. The annual leave for those employees engaged in complex and hazardous employment shall be five weeks per annum. Employees are entitled to save up to 9 days of their annual leave. In case of termination, disability or redundancies, employees must be compensated for any accrued leave.Finally, employees are entitled to 3 days of paid vacation for marriage or death of a spouse, father, mother or child.Maternity LeaveFemale employees are entitled to 90 days of maternity leave. The employee's salary during maternity leave will be paid according to the provisions of the Social Security Act. Maternity leave must be considered part of an employee's service record. The employer must offer the same position to returning employees.What about the Employment Contract for Foreign Nationals?Employment contracts for foreigners without a valid work permit is prohibited by law. The requirement does not apply to diplomats, United Nations employees, or foreign press reporters.A work permit to a foreign national will be issued if the following conditions are met:Lack of expertise among Iranian nationals;The foreign national being qualified for the position;The expertise of the foreign national will be used for training of, and later replacement by, Iranian individuals.Work permits will be issued, renewed or extended for a maximum period of one year. Moreover, no exit permission will be granted to the foreign national unless the nation has paid all due taxes, duties, etc.What can be concluded?As mentioned earlier, employment contracts legally set out the primary working frameworks and establish the working relationship between the parties. A well-drafted agreement can avoid other risks and problems for both employers and employees. So one should keep in mind that drafting the provisions and clauses of such contracts needs trained legal specialist’s opinions.
The Rise and Rise of NFTs - Legal Considerations and Its Future

The Rise and Rise of NFTs - Legal Considerations and Its Future

The Rise & Rise of NFTs The first question that arises is, what are NFTs? NFT's stand for Non-Fungible Tokens. The word "Fungible" means that which can be traded or exchanged for one another—for example, a dollar bill or a Bitcoin or an Ada coin. Therefore, by definition, "Non-Fungible" is unique and cannot be exchanged with another token. A token is a unit of data kept on a digital ledger called a "blockchain". Most NFT's are currently supported by Ethereum. In addition, other blockchains such as "Flow" and "Tezos" have their standards to support NFT. Whilst NFT's have been around for over a year or two, they have become trendy in the last few months. It appears that the lack of physical art events during the lockdown meant that a great deal more attention was paid to digital ones. An auction curated by Christie's took place in February 2021, where the artist, Beeple, sold a staggering $69m worth of NFT. This led to an explosion in digital art NFT's and many other artists coming from graphic design backgrounds, and digital design became involved. There have been further auctions organised by Sotheby's. Further, digital galleries such as "Nifty Gateway" and "Super Rare" have been marketing NFTs applying rather stringent curating criteria. Where does one buy NFT's? NFT's are available through various other sources now, and this is expanding daily. This now even includes eBay. However, the relation to digital art is at least two very well-known digital art galleries called Super Rare and Nifty Gateway, which work professionally. However, some of the significant sales have been carried out through recognised auction houses, for example, the Beeple sale above. In what other areas have NFT's been used? Now one can find NFT's in the domain of games, music, film, sport, fashion, and collectables. Other uses have been somewhat sensationalist, for example, Jack Dorsey, the CEO of Twitter who minted an NFT of his first tweet, which sold for $2.9m! Legal aspects As with all innovation, there are legal implications to be taken from NFT's. Of particular importance, however, is laws that refer to any rights which are transferred from the owner of the art to the holders of the NFT. It is important to note that a mere transfer of an NFT by the owner does not give any intellectual property right to the buyer. Effectively, all the buyers of the NFT will own is a digital receipt showing that the holder holds a version of the work. What does the owner of the NFT in the world of digital art receive? The owner of the NFT will be given a form of authenticity to their digital art. Secondly, for the buyer, the NFT creates a potentially useful online canvas. In the case of digital artist, they are given the opportunity to share a new genre of performative artwork. What about royalties? A smart contract written in the code of the NFT could allow for the distribution of funds for the payment of royalties to create each time the work is resold. However, these automated resale royalty payments might not occur unless the NFT is resold through the same platform. Further, in the EU and the US, the laws do not recognise resale rights relating to created work, so the law provides no recourse for unpaid resale royalties. GDPR This is the leading data protection law in the European Union, and it gives an individual the right to have his/her data erased. Given that what is written in the blockchain is immutable, there could be a direct conflict between GDPR. This, therefore, means that any NFT which contains any personal information may violate data protection rights. This an area to watch as it could lead to complications. Other issues At present, nothing is stopping a person from purchasing NFT's off the blockchain, which can lead to some form of conflict between what the NFT holder has and what he/she believes they have. How about money laundering issues? As with many areas where there are interactions between the physical world and the virtual one, there are many potential pitfalls; this is mainly the case with money laundering: the crux: the payment for NFT is often made by using digital currencies. The better platforms that provide the users with such currencies would ask for some KYC, but that is not always the case with all of them. Even with the better platforms, what they tend to ask for is for a copy passport to be downloaded onto the website, but no one checks whether the user is, in fact, the owner of the passport. Many people set up wallets in countries that they do not even live in. Given the lack of intrinsic value of the NFT and the limited rights currently conferred on the buyer, there has been criticism levelled on NFTs as a possible means to facilitate criminal behaviour such as money laundering. Financial sanctions This could also apply to sanctions and embargoes. Theoretically, a person living in a sanctioned country can use a wallet unlawfully to purchase coins, which is used to buy NFT's. The Biden administration's plans for crypto regulation While currently, this might not be considered a significant issue as the size of transactions is so far comparatively low compared to the traditional art market, it is now increasingly likely that new legislation will be introduced. The Biden admin has already started to move towards that direction with cryptos generally. There is a tremendous amount of lobbying going on by the more prominent players in the crypto space to try and influence the shape of the legislation to come. How these regulations will affect NFTs will remain to be seen. Whatever steps are taken in the US in terms of regulation will undoubtedly influence other jurisdictions in this regard. The importance of local Copyright laws Copyright law and NFTs are likely to interact a great deal. For example, a photographer who decides to exploit photographs he has taken of a person by minting it as NFT must be conscious of the image rights granted to that individual (the photograph's subject) under the law of the country/state where the photograph was taken. Minting an NFT regarding such pictures may lead to the photographer in question being sued concerning any profit he makes, and the whole exercise would be rendered pointless. Do not mint what you do not own! There have already been cases involving people who had minted photographs owned by a third party without that person's authority. Is there anything written in stone? Will the rights conferred by NFTS remain insignificant? What is the role of contractual drafting in this? A significant body of jurisprudence is likely to result from issues such as the ones outlined above. These would, to a great extent, depend on which laws govern the various relationships at play. There is, in fact, nothing written in stone. Even now, it is possible, for example, for a person to contract with the artist to get ownership of the piece of art and not just the NFT's. The terms of the NFTS to come can in future be expanded. There are already some NFTs that allow commercial exploration of an image by the buyer. There is here plenty of room for innovation. Currently, many players in the market are selling works of art or music but with no contractual terms at all. This can lead to a great deal of confusion. While the NFTs are governed by the smart contracts embedded in the tokens bought, appropriate terms must be drafted specifying what the token receives rights.  More innovation Currently, we see some interesting developments in this regard. A case in point is the latest sale of an NFT of digital artwork known as CryptoPunk at $ 11.8 million by Sotheby's. This was bought by bitcoin, and no physical artwork changed hands. The collection of 50 CryptoPunks was fractionalised, and each token was called a Wrapped CryptoPunks, and each token constitutes a specific tiny percentage of the one. This meant that smaller investors were able to get involved in the purchase. The idea is that if the Cryptopunks become more valuable, so will the value of the shares purchased. Also, interestingly now DAOs (Decentralised Autonomous Organisations) can together buy NFTs. How about the future? As we advance, NFT's could be used increasingly in much more mundane and everyday areas: sale of property, purchase of a train ticket, buying or selling collectables, jewellery etc. We will see a lot more innovation in the areas of fractionalised ownership. However, regulation might start biting as the SEC have said that fractionalised ownership may be treated as "unregistered securities". As with many other areas of law, how the law interacts and regulates this area now will no doubt influence the use of NFTs in relation to its future applications.
Iranian Framework for Foreign Investment Attraction

Iranian Framework for Foreign Investment Attraction

The Iranian government has launched some schemes for foreign investment attraction. According to Iran Business Law Handbook, “projects financed by foreign investors through Buy-Back arrangements, BOT and BOOT scheme or any project financing mechanisms are not subject to restrictions related to permissible foreign shareholdings”. Under what legal framework the contracts mentioned above are implemented? The following are the main routes that a foreign company can follow to establish a long-term presence in Iran. Joint VenturesOne possible strategy for the foreign company is to enter into a joint-venture agreement with a public or private Iranian partner. With the current level of technology and infrastructure, many Iranian companies are capable of expanding and developing in partnership with foreign companies. Companies in the Iranian private sector, especially those with technological and management gaps, are actively seeking joint-venture partners to solve their problems. Some other companies are seeking foreign capital to revive their businesses.Should a company decide to adopt this approach to the market? It is advisable to look for products and services that have domestic demand and regional export potential. Suppose a joint-venture company can earn hard currency by exporting its products; in that case, it will be less dependent on the Iranian banking system for the repatriation of profits and dividends.It should be noted that some joint ventures consist purely of the transfer of technology to Iran by a foreign investment partner without any capital commitment. Since Iranian authorities are very keen on introducing modern technologies, the method can prove very constructively. Buy-Back In order to attract foreign investment, Iran uses a buy-back scheme. Following the end of the Iran-Iraq war in 1988, Iran faced a significant problem: it needed foreign investment in order to not wanting to lose its vital income from the oil and gas industry. Yet its revolutionary ideology and constitution forbade granting “concessions”. In 1989, the First Five-Year Economic, Social, and Cultural Development Plan offered a compromise solution. In accordance with Note 29 of the mentioned plan, the Iranian government is allowed to engage in "buybacks" in order to meet its industrial and mineral needs in connection with exports, production, and investment.Putting it in layman terms, a buy-back transaction is a trading method where plants, machinery, production equipment and technology are supplied (by a domestic or foreign private firm) in exchange for the goods, produced directly or indirectly by means of such facilities, under this scheme. The foreign partner that makes the initial investment can repatriate the return on the investment (at a pre-agreed fixed rate) through goods and services produced by the project. Despite the fact that many foreign companies believe this is simply a financing tool for Iran, it is more accurate to say that it is a short-term compromise formula for foreign investment. The buy-back scheme will probably be replaced by more appropriate laws and regulations in the medium to long term.In other words, once the constitutional concerns are resolved, foreign partners in buy-back agreements can take over the projects they are involved in, or they can form a joint venture with an Iranian partner. Build-Operate-Transfer (BOT) This is a relatively new possibility in the Iranian market. Recent regulations have also introduced the Build-Operate-Transfer (BOT) scheme for Iranian projects. A foreign partner invests in a project, which is then operated by the foreign investor for a period of time before being transferred to the Iranian government. Iranian authorities are showing some flexibility regarding the BOT, which could potentially pave the way for foreign investment attraction in the market.What can be concluded?The promotion of FDI in today's world is instrumental to the growth of the industries and economies of countries. That’s why governments try to ease restrictions on foreign investment. The possibilities of foreign investment attractions can be categorised into JV, Buy Back and BOT in the Iran market. A deep understanding of the law and extensive experience are essential when drafting investment agreements. Please note that legal consultation services are offered by LegaMart to private individuals and companies.

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