Abstract
Globalisation and liberalisation define today’s emerging economic landscape, with the market serving as the primary driving force. Information and Communication Technology (ICT) has revolutionised both industrial manufacturing processes and modern marketing strategies. The 21st-century economy is increasingly driven by intellectual property, making IP rights a top priority for both private firms and State-Owned Enterprises (SOEs). IPR protection enables enterprises to bolster product credibility and achieve differentiation through strategic branding and trademarks, thereby strengthening their reputation. Moreover, it stimulates innovation by securing patents for novel discoveries.
Effective IPR protection incentivises investment in Research and Development (R&D), which fuels the creation of pioneering products, ideas, and technologies. A robust and efficient IP system is fundamental to a nation’s sustainable economic growth and development. Consequently, a dedicated IP Office is essential to oversee all facets of intellectual property, including copyrights, patents, designs, trademarks, and comprehensive IPR administration.
Keywords: Intellectual Property Right (IPR) Regime; State-Owned Enterprises (SOEs); Research and Development (R&D); Information and Communication Technology (ICT); Entrepreneurs; Sustainable Development Goals (SDGs).
Introduction
Globalisation and liberalisation serve as the defining features of today’s emerging economic system, with the market acting as its principal driving force. Information and Communication Technology (ICT) has fundamentally transformed both industrial manufacturing processes and modern marketing strategies. Beyond this, the 21st-century economy is increasingly driven by intellectual property, where IP rights have become a primary priority for both private firms and State-Owned Enterprises (SOEs).
To secure a competitive advantage, industries must enhance efficiency, reduce production costs, and penetrate markets using innovative strategies. Achieving this requires consistent investment in Research and Development (R&D) to promote and protect the intellectual property sector, which the government should designate as a priority. Industries can benefit from IP tools in various ways: inventions can be secured through patent systems for commercialisation, sale, or licensing. Similarly, trademarks and product designs can be protected and leveraged as valuable corporate assets. Furthermore, creative entrepreneurs can derive significant benefits from robust copyright protection.
Intellectual Property (IP) is defined as the intangible and invisible creations of humankind. It encompasses products of the mind, including inventions, literary works, art, and symbols. IP is categorised into two types: Industrial Property and Copyright and related rights. Industrial Property includes patents, designs, trademarks, geographical indications, and trade secrets, while copyright and related rights cover literary and artistic works, including performances and broadcasts.
Intellectual Property Rights (IPR) are legal rights granted to inventors or creators to protect their creative ideas or products. These legal rights provide the owner with exclusive control over the product for a specific period upon registration, preventing others from using the innovation without the rightful owner’s consent. IPR provides recognition to the inventor and helps enterprises enhance product credibility and distinction through branding and trademarks, thereby strengthening their reputation. Furthermore, it fosters innovation by patenting novel discoveries and encourages enterprises to invest in Research and Development (R&D), which contributes to the development of pioneering products, ideas, and technologies. This article analyses and examines the Intellectual Property Rights (IPR) regime in Nepal with reference to its legal, institutional, and governance frameworks.
Current IP Regime status in Nepal
The Constitution of Nepal (2015), under Article 25, establishes IP rights as fundamental property rights. This article ensures the rights of all Nepali citizens to ‘acquire, own, sell, dispose of, gain business profits from, and otherwise deal with property,’ explicitly defining property to include movable, immovable, and intellectual assets. Historically, Nepal promulgated the ‘Patent, Design, and Trademark Law’ in 1937 to protect industrial property, which was later replaced by the Patent, Design, and Trademark Act of 1965.
Nepal introduced its inaugural National Intellectual Property Policy in 2017 with the vision of ‘Creating an innovative nation through the preservation and provision of intellectual property protection.’ This policy aims to establish a balanced IP system within Nepal and envisions a creative nation supported by the preservation and comprehensive provision of intellectual property safeguards. The policy objectives are to:
i. encourage the protection, promotion, and development of IP;
ii. develop a balanced IP system;
iii. create awareness about the social, economic, and cultural aspects of IP; encourage the commercialisation of IP;
iv. strengthen the legal, administrative, and human resources to ensure the protection and enforcement of IP.
The policy revises the existing legal framework and recognises the need to enact laws regarding patents, industrial designs, trademarks, utility models, geographical indications, traditional and indigenous knowledge, folklore, integrated circuits, plant variety protection, trade secrets, and biodiversity. It aims to raise awareness and promote intellectual property rights while addressing the necessity of curbing IP infringement by recommending revisions to penal provisions within the current legal structure. Additionally, the policy envisions a National Intellectual Property Council, composed of members from relevant ministries, civil society, and experts, to facilitate and advise on policy matters. The Department of Industry and the Nepal Copyright Registrar’s Office serve as the primary public institutions managing intellectual property issues.
Furthermore, the Industrial Policy of 2011 emphasises the protection and promotion of IP, specifically aiming to safeguard industrial property rights. To achieve these objectives, it has set out two policies:
i. An effective body shall be established for the protection of industrial intellectual property rights,
ii. Entrepreneurs shall be given special encouragement to use intellectual property.
It proposes the establishment of an Intellectual Property Protection Office that covers the entire working area and responsibilities related to Intellectual Property.
Nepal obtained membership in WIPO in February 1997 and acceded to the WTO in April 2004. The 1994 TRIPS Agreement establishes standards for protecting copyrights and related rights, trademarks, geographical indications, patents, designs, and integrated circuit topographies. It also defines standards for the acquisition, maintenance, and enforcement of Industrial Property protection, which encompasses patents, trademarks, industrial designs, utility models, geographical indications, and safeguards against unfair competition. The Ministry of Industry, Commerce and Supplies serves as the primary agency responsible for IP policies and legislation. This ministry coordinates with the World Intellectual Property Organisation (WIPO), relevant international bodies, and foreign IP offices to foster cooperation within the field. Moreover, the Patent, Design and Trademark Act authorises the Department of Industry to register and protect these specific assets. The department also functions in a quasi-judicial capacity to settle IP-related disputes and manage various administrative procedures.
Copyright
Copyrights may be registered with the Nepal Copyright Registrar’s Office under the Ministry of Culture, Tourism and Civil Aviation. While registration is not mandatory for protection, it serves as valuable evidence of ownership and facilitates licensing and commercial exploitation. Generally, the duration of protection lasts for 50 years following the creation of films, performances, and recordings, or 50 years after the death of the author for literary and artistic works. For photographs, the protection period is 25 years.
Trademark
Trademarks for goods and service marks for companies must be registered with the Industrial Property Section of the Department of Industry, under the Ministry of Industry, Commerce and Supplies. Trademarks are granted for a renewable term of seven years. Ownership is strictly conferred upon registration with the Department of Industry. Notably, the Act contains no specific provisions for the protection of unregistered trademarks, including well-known or famous marks.
However, an applicant who has filed for a trademark in another Paris Convention member state may claim priority when applying for the same trademark in Nepal. A trademark will be denied registration if ‘such trade-mark may hurt the prestige of any individual or institution, adversely affect public conduct or morality, undermine the national interest or the reputation of another person’s trademark, or if such trademark is already registered to another person.’ Additionally, registration may be cancelled if a trademark remains unused for one year following its registration.
Infringement suits may be brought before the courts by the owner of a registered trademark against an infringing party to seek an injunction and the confiscation of offending materials. Alternatively, the owner may pursue administrative action through the Department of Industry.
Industrial Design
An application to register an industrial design must be submitted to the Industrial Property Section of the Department of Industry, accompanied by a description, relevant drawings, and four copies of the model. Similar to trademarks, priority may be claimed under the Paris Convention. An application may be refused if the design is deemed to adversely affect the dignity of any individual or institution, negatively impact public morality or welfare, or harm the national interest. Furthermore, registration will be denied if the design is already registered to another person. The Department of Industry also conducts an assessment to ensure the design is both new and original.
Patent
Patent applications must be submitted to the Industrial Property Section of the Department of Industry, accompanied by an application form, a description of the invention’s operation or utilisation, and, where applicable, the underlying principles, formulas, or drawings. If the applicant is not the inventor, documentation regarding the conditions for acquiring the patent rights must be provided. An application may be refused if the invention is already registered, if the applicant lacks the legal right to the invention, or if the invention adversely affects public health, conduct, or morality. Furthermore, a patent will be denied if it contradicts the public interest or violates prevailing Nepali laws.
Patent examination adheres to the standard principles of novelty, industrial applicability, and inventive step to determine whether a grant is warranted. When necessary, the Department of Industry seeks guidance from subject-matter experts before reaching a decision. Once granted, patent rights remain valid for seven years and can be renewed twice for additional seven-year periods.
Issues of Intellectual Property Rights
Both the public and private sectors face a significant challenge in strengthening, developing, and modernising the intellectual property system. Various factors contribute to the currently low volume of IP-related business transactions. Recognising these as the primary drivers, the necessary improvements for the IP system can be outlined as follows:
i. Awareness Campaigns and Outreach Activities:
Nepali Micro, Cottage, and Small Industry (MCSI) owners, along with small-scale entrepreneurs, lack comprehensive awareness of Intellectual Property Rights. Many remain uninformed about the specific protections and financial benefits provided by IP tools. Consequently, it is essential to implement an extensive series of IP awareness campaigns across all provinces of the country.
ii. Networking:
Awareness campaigns alone are insufficient. It is necessary to possess specific knowledge of IP instruments and the expertise required to acquire, utilise, manage, and commercialise IP rights. A public-private partnership and networking model represents the best approach. An IP Information and Advisory Services Centre should be established to function effectively by engaging inventors, professionals, academics, and owners, creating a network for promotional activities and a platform for knowledge sharing.
iii. IPR Service Provider Organisations:
The role of the private sector in promoting IP rights and addressing related issues is paramount. Entrepreneurs require IP-related services to enhance their capacity to utilise IP tools and techniques effectively. Consequently, an enabling environment must be established to foster the creation and development of service-oriented organisations focused on IPR and its promotion, particularly within the framework of private sector umbrella organisations.
iv. Autonomous IPR Authority:
There is an urgent need to merge the IP Section of the Department of Industry with the Copyright Registrar’s Office to establish a separate IPR Authority with full autonomy. This consolidation is necessary to provide comprehensive IPR services through a single, autonomous, and specialised agency.
v. Strengthen the Enforcement Mechanism:
The enforcement mechanism for the effective protection of IP and the promotion of IP governance is notably weak in Nepal. Border enforcement of IPR protection falls under the jurisdiction of Customs, while domestic enforcement remains the responsibility of both the Department of Industry and the Copyright Registrar’s Office. Consequently, the capacity of all IP enforcement agencies, including the Nepal Police, must be reinforced and strengthened.
vi. Exploring the IPR Related transactions:
A well-organised IPR regime will encourage foreign investors to accelerate their investments in Nepal. This growth would support the achievement of the Sustainable Development Goals (SDGs) and targets, while also contributing to the government’s national vision of ‘Prosperous Nepal, Happy Nepali’.
Conclusion
A robust and well-functioning IP system is essential for the sustainable economic growth and development of the country. In Nepal, Intellectual Property Right Law was introduced 90 years ago. However, throughout this long history, the IP system has failed to make significant progress or become mainstreamed for industrial and commercial innovation. IP-related business transactions, such as technology transfers, licensing, and the buying or selling of IP products, remain extremely limited. Therefore, IP business must be prioritised. Even within the government, a separate, well-functioning, and dedicated IP Office covering all disciplines of the IP regime has yet to be established. Consequently, a dedicated IP Office is needed to oversee IP issues and IPR administration.
The government must also create a favourable environment for increased investment in Research and Development (R&D) to foster innovation and creativity. To achieve this, a Comprehensive IPR Legislation Framework (CIPRLF) is required to promote and protect the IPR system. The current multi-layered challenges in IPR must be addressed cooperatively and collectively within the changing dynamics of the global scenario. Furthermore, the institutional capacity of IPR-related regulatory agencies, including the judicial system, must be strengthened.
(Parajuli is Joint Secretary of the Government of Nepal)
References
- Governance and Bureaucracy, Chhabindra Parajuli, Bhundipuran Prakashan, 2018, Kathmandu
- A Journal of industry and Commerce, Volume 17, No. 1, 2024 March, Ministry of Industry, Commerce and Supplies, Singhadurbar, Kathmandu, Nepal
- Trade Policy Review: Nepal, 2018, Ministry of Industry, VCommerce and Supplies, Singhadurbar, Kathmandu, Nepal
- Nepal Intellectual Property Policy, 2017
- Nepal’s Trademark Challenges, Udayan Regmi, The Kathmandu Post, December 14, 2025
