--- title: "Patent vs trademark; business organization" subject: "Engineering Professional Practice" chapter: 5 key: "semester_8/engineering_professional_practice:patent-trademark-business-law" source: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/patent-trademark-business-law site: BCT Engineering --- # Patent vs trademark; business organization Engineering Professional Practice · Chapter 5: Regulatory Environment - Asked in: 2071 Bhadra, 4 marks - Video: [Intellectual Property Law Explained | Copyrights, Trademarks, Trade Secrets, & Patents](https://www.youtube.com/watch?v=EUo4G1lw-w8) — All Up In Yo' Business with Attorney Aiden Durham - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/patent-trademark-business-law - Whole chapter: https://www.bctengineer.com/md/semester_8/engineering_professional_practice/chapter-5 ## Question Differentiate Patent right and Trademark right. Write down the characteristics of company business organization. What are the sources of business law in Nepal? ## Short answer A patent protects new inventions for up to 21 years; a trademark protects distinctive signs indefinitely through renewal. A company is a separate legal entity with perpetual succession, limited liability, and transferable shares. Sources of business law include the Constitution, Acts (Companies Act, Civil Code), regulations, judicial precedents, and international treaties. ## Answer #### Patent right vs trademark right | Basis | Patent right | Trademark right | |---|---|---| | Protects | A new invention (product or process) | A sign, name or logo that identifies goods/services | | Purpose | Reward and encourage innovation | Identify the source and protect goodwill | | Condition | Novelty, inventive step, industrial use | Distinctive, not deceptive | | Duration | 7 years, renewable for two further terms of 7 years each (as per the Act) | 7 years, renewable indefinitely | | Disclosure | Invention must be disclosed | Mark is published for the public | | Example | New water purification method | Company logo | Both are registered at the Department of Industry under the Patent, Design and Trademark Act 2022. #### Characteristics of company form of business 1. **Separate legal entity** from its owners; it can own property, sue and be sued. 2. **Perpetual succession:** it continues despite the death or exit of members. 3. **Limited liability:** shareholders are liable only up to the unpaid value of their shares. 4. **Transferable shares** (freely transferable in public companies). 5. **Management by directors** elected by the shareholders. 6. Large capital can be raised from many investors. 7. Common seal, registration and strong legal regulation. #### Sources of business law in Nepal - The **Constitution of Nepal** and Acts passed by Parliament (Companies Act 2063, Civil Code 2074, Partnership Act, Industrial Enterprises Act, Insolvency Act, Securities Act, tax acts and others). - Rules, regulations, directives and notices issued under the Acts (for example by Nepal Rastra Bank and SEBON). - Court decisions (precedents) of the Supreme Court. - Customs and business practice, where not against the law. - International treaties and conventions that Nepal has ratified (such as WTO agreements and WIPO treaties). ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Patent protects a ___ while trademark protects a ___. A. logo; invention B. new invention; sign or logo identifying goods C. book; song D. design; name Answer: B. Patents protect inventions; trademarks protect identifying signs and logos. (Key point: Patent vs trademark protects) 2. Which duration statement is correct? A. Patent 7 years renewable to 14; trademark 7 years renewable indefinitely B. Both are 14 years fixed C. Patent unlimited; trademark 7 years fixed D. Both are life plus 50 years Answer: A. Patent is capped at 14 years; trademark can be renewed indefinitely. (Key point: Duration difference) 3. Limited liability of shareholders means A. liability limited to the unpaid value of shares B. unlimited personal liability C. directors pay all debts D. no one is liable Answer: A. Shareholders are liable only up to the unpaid value of their shares. (Key point: Company characteristic) 4. Which is NOT a source of business law in Nepal? A. Acts of Parliament B. Supreme Court precedents C. Ratified international treaties D. Personal opinion of the employer Answer: D. Sources are the Constitution and Acts, rules, court precedents, customs and ratified treaties. (Key point: Sources of law) ## Related in Engineering Professional Practice - [Copyright, patent right and trademark](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Acopyright-patent-trademark) — Engineering Professional Practice, chapter 5, asked 2× - [Tort law; copyright vs patent right](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Atort-reasons-copyright-patent) — Engineering Professional Practice, chapter 2 - [Business law and labour law in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Abusiness-labour-law-nepal) — Engineering Professional Practice, chapter 5, asked 2× - [IPR and company registration in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Aipr-company-registration-nepal) — Engineering Professional Practice, chapter 5 - [IPR, working hours, public vs private company](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Aipr-labour-working-hours-companies) — Engineering Professional Practice, chapter 5 - [Contract law and labour law in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Acontract-law-labour-law-nepal) — Engineering Professional Practice, chapter 5 ## Related in other subjects - [Differentiate DWF and WWF; sources](https://www.bctengineer.com/question.md?key=semester_6%2Fsanitary_engineering%3Adwf-wwf-sources-sewage) — Sanitary Engineering, chapter 2 - [Legal provisions for starting a company in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Acompany-registration-legal-provisions-nepal) — Entrepreneurship Development, chapter 8 - [Energy sources in Nepal and wind scope](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Aenergy-sources-nepal-wind) — Power Plant Design, chapter 1, asked 2× - [Risk sources in over-budget, delayed projects of Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-sources-nepal-delayed-projects) — Project Engineering, chapter 5