BRF Unit 3 Part I
BRF Unit 3 Part I
Introduction to Intellectual Property Law – Evolutionary past – Intellectual Property Law Basics - Types of
Intellectual Property - Innovations and Inventions of Trade related Intellectual Property Rights – Agencies
Responsible for Intellectual Property Registration – Infringement - Regulatory – Over use or Misuse of Intellectual
Property Rights - Compliance and Liability Issues.
Classification of property
Movable property: In civil law systems, personal property is often called movable
property or movables – any property that can be moved from one location to another.
This term is in distinction with immovable property or immovable, such as land and
buildings.
Intellectual property: Intellectual property (IP) refers to creations of the mind, such as
inventions; literary and artistic works; designs; and symbols, names and images used in
commerce.
In a simple way Intellectual property is a property that arises/ comes from the human
intellect. Simply it is product of human creation.
Intellectual property rights: Intellectual property rights are the rights given to persons over the creations
of their minds. They usually give the creator an exclusive right over the use of his/her creation for a
certain period of time.
Intellectual property can be brought, sold, and licensed. Similarly, it can be protected against theft or
infringement by others. Nevertheless, there are some restrictions on use. For example, if you were to
purchase the latest best seller by John Grisham, you would be entitled to read the book, sell it to others, or
give it away. You would not entitle to make photocopies of the book and then distribute and sell those
copies to other.
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Ownership : (identify the original owner for registration)
Time Duration: Intellectual properties have time duration based on the property
Fee: the owners has to pay prescribed fee for protecting their intellectual property
Commercial value: intellectual properties have commercial value it means we can sell
and we can buy
Enhancing profitability
It is a business strategy
It is crucial to Success in the market place
Useful for compete with competitors
Useful to the customers
Economy development
The subject of IP is very useful and important for engineers. This is because a lot of technical innovations
occur in engineering institutes and to protect them knowledge of IP is necessary. Knowledge of IP helps an
engineer to not only protect his valuable ideas and thus create “Intellectual Property” but also to promote its
licensing and development in the large interest of society.
The present course thus creates awareness about how IP can benefit an engineer in terms of new and better
career opportunities and also increased sources of income. You don’t need a legal background to study and
understand intellectual property- what you need to have is a strong technical background, which you already
have- as an engineering professional!
Intellectual property law: Intellectual property law deals with the rules for securing and enforcing legal
rights to inventions, designs, and artistic works. Just as the law protects ownership of personal property
and real estate, so too does it protect the exclusive control of intangible assets. The purpose of these laws
is to give an incentive for people to develop creative works that benefit society, by ensuring they can
profit from their works without fear of misappropriation by others.
IP Law provides certain protections for products that were created out of a person’s own mental process,
and establish ownership for marketable ideas.
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Basics:
Intellectual property is a field of law that aims at protecting the knowledge created through human efforts
in order to stimulate and promote further creativity.
Authors who write books and musicians who compose songs would be unlikely to engage in further
creative efforts unless they could realize profit from their endeavors. If their work could ne
misappropriated and sold by others, they would have no incentive to create further works. Pharmaceutical
companies would not invest millions of dollars into research and development of new drugs unless they
could be assured that their inventions would enable them to recover these costs and develop additional
drugs.
On the other hand, if owner of intellectual property is given complete and perpetual rights to his or her
invention or work, the owner would have a monopoly and be able to charge excessive prices for the
invention or work, which would harm the public.
Intellectual property law attempts to resolve these conflicting goals to that owners’ right to reap the
rewards of their efforts are balanced against the public need for a competitive marketplace.
Thus, for example, under federal law, a patent for a useful invention will last for only 20 years from the
date an application for the patent is field. After that period of time, the patent expires, and anyone is free
to produce and sell the product.
The procedure for grant of IPRs in India has been formulated from time to time. At present the following
legislations on IPRs are in force in India:
The patent Act, 1970 as amended by the Patent (Amendments) Act, 2005 along with the Patent
(Amendments) Rules, 2005 (effective from 01.01.2005).
The Designs Act 2005 with The Design Rules, 2001.
The Trade Mark Rules, 1999 along with The Trade Mark Rules, 2002.
The Geographical Indications of Goods (Registration and Protection) Act, 1999 and the
geographical indications of goods (registration and protection) rules, 2002.
The copyright Act 1957, Copyright (Amendment) Act 1994, Copyright (Amendment) Act 1999
(effective from15.01.2000).
As the laws governing the grant of all these intellectual properties vary from country to country, these are
some global efforts to harmonize IP laws and procedures or to establish minimum standard for protection.
These efforts are reflected in the international treaties and conventions like Paris convention, patent
cooperation treaty and IPR&Ps, which have been reflected by most of the countries.
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The basic concept behind IP and the grant of legal rights is to encourage innovation and creativity. So that
society can prosper and progress. The fundamental concept behind all forms of rights related to
intellectual property is that “the person, who has put in original effort, must be rewarded.” If there was no
mechanism to protect and reward original effort and creativity, eventually nobody would want to make
any effort and society would be the loser!
ILLUSTRATIONS:
You put in lot of hard work and effort and come up with a very good invention. The movement you
discuss it with someone, it is copied. You can neither prevent it nor get any credit for all your hard work.
Will you be motivated to come up with new inventions?
You spend years writing a laboratory manual. When it is ready, somebody just publishes it and takes all
the profits. Will you be motivated to put in effort again?
Hence it is very important that adequate legal mechanisms are in place to reward original thinkers and
innovators and punish those who try to benefit illegally from the efforts of others. The concept of “rights”
over one’s work is not a new concept. A deep in to history shows that the concept of intellectual property
existed hundreds of years ago.
In Greece 500BC inventors can enjoy the profits only for one year. Later in 1449 AC in England
King Henry VI extended the patent period from one year to 20 years. John of Utinam was the
first person who received 20 years patent for his invention of colour glass.
As early as 1474, there existed in Vennice a decree (order of law) on the protection of inventions
The first English patent was granted to Giacopo Acotio in 1565 for a new type of Furnace.
In 1594 Galileo was granted a Venetian patent for an irrigation machine.
In 1641 in America Samuel Winslow took patent for invention of new procedure for making
salt.
In 1794 Elivitni got patents for cotton zin machine to separate seeds from cotton.
In 1837 Thomas Davenport invented DC electric motor and took patent. But he did’t earned any
profits because at that time there was no electricity.
In 1851 Doctor John Gorri invented Ice Manufacturing machine to keep his patents room cool.
He took patent. He died at the time of it introduction in to the market. But he was recognized as
“Father of Refrigeration.”
In 1872 Graham Bell received patent for his Telephone invention.
In 1880 Thomas Alva Edition received patent for his Bulb invention.
There are even recordes of actions taken by a Jeweler named Claudio Vom Creutz in Nuremberg between
1593 and 1604 for violation of his patent rights relating to polishing of Gemstones. The infringer was
imprisoned, had to pay penalty by way of costs and was banished from the city.
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Layout design of integrated circuits
Geographical indicators ( for goods from a particular region Ex: Darjeeling- Tea)
Plant varieties ( for new varieties of plant)
Trade secrets ( for information of commercial importance)
1. Trade Mark
2. Copy rights
3. Patents
4. Trade secrets
1. Trade Mark: When George Eastman came up with the name KODAK® for his camera in 1883,
what he came with was a trademark. A trademark is a sign capable of distinguishing the goods or
services of one enterprise from those of other enterprises. Trademarks are protected by intellectual
property rights.
A word or a combination of words, letters, and numerals can perfectly constitute a trademark. But
trademarks may also consist of drawings, symbols, three-dimensional features such as the shape and
packaging of goods, non-visible signs such as sounds or fragrances, or color shades used as distinguishing
features – the possibilities are almost limitless.
2. Copy rights: When Ernest Hemingway wrote The Old Man and the Sea in 1952, what he wrote was
protected by copyright. Copyright (or author’s right) is a legal term used to describe the rights that creators
have over their literary and artistic works. Works covered by copyright range from books, music, paintings,
sculpture, and films, to computer programs, databases, advertisements, maps, and technical drawings.
3. Patents: When Thomas Edison ran electricity through an incandescent filament in 1879, he
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invented the modern light bulb, and what he got for it was a patent. Patents protect inventions. A
patent is a property right given by the government to an inventor that gives the inventor the right to
exclude others from making, using, offering for sale or selling the invention. In return for that
exclusive right, the inventor must disclose the invention to the public so that others can learn from
it.
Types of patents
Design Patent: Design patents cover the ornamental features (i.e., appearance) of a product.
Utility Patent: Utility patents are the most common, and they cover processes, machines,
articles of manufacture, and compositions of matter.
Plant Patent: Plant patents cover newly developed varieties of plants provided they can be
reproduced asexually.
Trade secrets examples: A formula for a soft drinks, Marketing strategies, Manufacturing
techniques, Computer algorithms, Customer lists
5. Industrial design: In a legal sense, an industrial design constitutes the ornamental or aesthetic aspect
of an article. An industrial design may consist of three dimensional features, such as the shape of an article,
or two dimensional features, such as patterns, lines or color.
In principle, the owner of a registered industrial design or of a design patent has the right to prevent third
parties from making, selling or importing articles bearing or embodying a design which is a copy, or
substantially a copy, of the protected design, when such acts are undertaken for commercial purposes.
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What kind of products can benefit from industrial design protection?
Industrial designs are applied to a wide variety of products of industry and handicraft items: from packages
and containers to furnishing and household goods, from lighting equipment to jewelry, and from electronic
devices to textiles. Industrial designs may also be relevant to graphic symbols, graphical user interfaces
(GUI), and logos.
Layout designs (topographies) of integrated circuits are a field in the protection of intellectual property.
In United States intellectual property law, a "mask work" is a two or three-dimensional layout or
topography of an integrated circuit (IC or "chip"), i.e. the arrangement on a chip of semiconductor
devices such as transistors and passive electronic components such as resistors and interconnections. The
layout is called a mask work because, in photolithographic processes, the multiple etched layers within
actual ICs are each created using a mask, called the photo mask, to permit or block the light at specific
locations, sometimes for hundreds of chips on a wafer simultaneously.
Because of the functional nature of the mask geometry, the designs cannot be effectively protected
under copyright law (except perhaps as decorative art). They also cannot be effectively protected
under patent law, although any processes implemented in the work may be patentable. So, national
governments have been granting copyright-like exclusive rights conferring time-limited exclusivity to
reproduction of a particular layout.
7. Geographical Indications:
A geographical indication (GI) is a sign used on products that have a specific geographical origin and
possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must identify
a product as originating in a given place. In addition, the qualities, characteristics or reputation of the
product should be essentially due to the place of origin. Since the qualities depend on the geographical place
of production, there is a clear link between the product and its original place of production.
What rights does a GI provides?
A geographical indication right enables those who have the right to use the indication to prevent its use by a
third party whose product does not conform to the applicable standards. For example, in the jurisdictions in
which the Darjeeling geographical indication is protected, producers of Darjeeling tea can exclude use of
the term “Darjeeling” for tea not grown in their tea gardens or not produced according to the standards set
out in the code of practice for the geographical indication.
However, a protected geographical indication does not enable the holder to prevent someone from making a
product using the same techniques as those set out in the standards for that indication. Protection for a
geographical indication is usually obtained by acquiring a right over the sign that constitutes the indication.
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Geographical indications are typically used for agricultural products, foodstuffs, wine and spirit drinks,
handicrafts, and industrial products.
8. Plant varieties:
Plant Variety Protection in India: Plant variety protection provides legal protection of a plant variety to a
breeder in the form of Plant Breeder’s Rights. The application for the registration of a plant variety is filed
at Protection of Plant Varieties and Farmers’ Rights Authority and its Head Quarters is located at NASC
Complex, DPS Marg, Opp-Todapur, New Delhi-110012.
Four types of plant varieties can be registered under PPVFR Act, 2001:
1. New varieties: A variety which is not in public domain in India earlier than one year before the date of
filing; or outside India, in the case of trees or vines earlier than six years, or in any other case, earlier than
four years.
2. Extant variety: A variety which is notified under Seed Act, 1966 or a variety about which there is
common knowledge or a farmers’ variety or any other variety which is in public domain is considered as an
Extant variety.
3. Farmers’ variety: A variety which has been traditionally cultivated and evolved by the farmers in their
fields or a variety which is a wild relative or land race of a variety about which farmers possess common
knowledge.
4. Essentially derived variety (EDV): An “essentially derived variety” shall be said to be essentially
derived from such initial variety when it is predominantly derived from such initial variety, or from a
variety that itself is predominantly derived from such initial variety, while retaining the expression of the
essential characteristics that result from the genotype or combination of genotype of such initial variety and
it is clearly distinguishable from such initial variety. An EDV conforms to such initial variety that results
from the genotype or combination of genotype of such initial variety.
Duration of protection for a registered plant variety:
Trees and vines – 18 years
Other crops – 15 years
Extant varieties – 15 years from the date of notification of that variety by the Central Government under
Seed Act, 1966
The precursor to the TO was General Agreement on Tariffs and Trade (GATT) which sought to
address issues related to international trade in goods.
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The operation of the GATT over the years resulted in lowering of tariffs in general in international
trade. As a result, increasingly other domestic policies of nation came into focus of the trading
nations. The developed countries, including the United States started facing increasing competition in
manufactured exports from Newly Industrializing Countries NICs) of Asia.
For intellectual Property issues in general, the negotiators were required to “clarify GATT provisions
and elaborate as appropriate new rules and disciplines” in order to reduce distortions and
impediments to international trade.
A technology become more important in goods and commodities, having higher proportion of
invention and design (Intellectual Creativity) in their value, IPR become important in international
trade. As a result, in the Uruguay Round negotiations, the intellectual property rights dominated the
discussions.
The Uruguay Round was the 8th round of multinational trade negotiations (MTN) conducted within
the framework of the GATT spanning from 1986 to 1994 and embracing 123 countries as contracting
parties.
how basic principles of the trading system and other international intellectual property
agreements should be applied
how to give adequate protection to intellectual property rights
how countries should enforce those rights adequately in their own territories
how to settle disputes on intellectual property between members of the WTO
Special transitional arrangements during the period when the new system is being introduced.
There are a number of international organizations and agencies that promote the use and protection of
intellectual property:
History: The origins of WIPO can be traced to 1883, when 14 countries signed the Paris Convention for
the Protection of Industrial Property, which created intellectual-property protections for inventions,
trademarks, and industrial designs. The convention helped inventors gain protection for their works
outside their native countries. In 1886 the Berne Convention required member countries to provide
automatic protection for works that were produced in other member countries. The two organizations,
which had established separate secretariats to enforce their respective treaties, merged in 1893 to become
the United International Bureau for the Protection of Intellectual Property (BIRPI), which was based in
Bern, Switzerland. In 1960 BIRPI moved its headquarters to Geneva.
Purpose: The purposes of WIPO are twofold: (1) to promote the protection of intellectual property
throughout the world through cooperation among states and, where appropriate, in collaboration with any
other international organization; and (2) to ensure administrative cooperation among the unions.
Agreement between the WIPO and WTO: To facilitate the implementation of the TRIPS Agreement,
the Council for TRIPS concluded with WIPO an agreement on cooperation between WIPO and the WTO,
which came into force on 1 January 1996. As explicitly set out in the Preamble to the TRIPS Agreement,
the WTO desires a mutually supportive relationship with WIPO. The Agreement provides cooperation in
three main areas, namely notification of, access to and translation of national laws and regulations,
implementation of procedures for the protection of national emblems, and technical cooperation.
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3. Paris Convention: The Paris Convention for the Protection of Industrial Property, signed
in Paris, France, on 20 March 1883, was one of the first intellectual property treaties. It established a
Union for the protection of industrial property. The Convention is currently still in force. The Paris
convention is based on the principle of reciprocity, so that foreign trademark and patent owners may
obtain in a member country the same legal protection for their marks and patents as can citizens of those
countries. It is administered by WIPO.
After a diplomatic conference in Paris in 1880, the Convention was signed in 1883 by 11 countries:
Belgium, Brazil, France, Italy, the Netherlands, and Portugal are six of them. As of September 2014, the
Convention has 176 contracting member countries, which makes it one of the most widely adopted
treaties worldwide.
4. Berne Convention:
The Berne Convention for the Protection of Literary and Artistic Works, usually known as the Berne
Convention, is an international agreement governing copyright, which was first accepted
in Berne, Switzerland, in 1886. It has 171 contracting parties. The United States became a part to the
Berne convention in 1989. It is administered by WIPO. And is based on the percept that each member
nation must treat nationals of other member countries like its own nationals for purpose of copyright.
5. Madrid Protocol:
The Madrid Protocol (Protocol), an international treaty, was adopted in 1989 in order to remove the
difficulties that were deterring some countries from acceding to the Madrid Agreement (Agreement), the
1891 treaty that established the system for the international registration of trademarks. The Protocol,
which has been in force since April 1, 1996, has become a convenient and economical means of securing
trademark registration in member countries in Asia, Africa, Europe, and the Middle East, the Pacific Rim
and the Western Hemisphere and the like. Total Contracting Parties are 97.
General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international
trade. According to its preamble, its purpose was the "substantial reduction of tariffs and other trade
barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis." It was
negotiated during the United Nations Conference on Trade and Employment and was the outcome of the
failure of negotiating governments to create the International Trade Organization (ITO). GATT was
signed by 23 nations in Geneva on October 30, 1947 and took effect on January 1, 1948. It lasted until the
signature by 123 nations in Marrakesh on April 14, 1994 of the Uruguay Round Agreements, which
established the World Trade Organization (WTO) on January 1, 1995.
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INFRINGEMENT
“Infringement” is a legal term for an act that means breaking a law. IP rights are infringed when a
product, creation or invention protected by IP laws are exploited, copied or otherwise used without having
the proper authorization, permission or allowance from the person who owns those rights or their
representative.
It can range from using technology protected by a patent to selling counterfeit medicines/software or
copying a film and making it available online.
Legal liability
Security risks
Reputational risks
Resource implications
1. Patent infringement
Infringing a patent means manufacturing, using, selling or importing a patented product or process
without the patent owner’s permission.
The owner of a patent can take legal action against you and claim damages if you infringe their patent.
A suit can lie in the District or High court. It may issue an injunction either to prevent the infringer
from any further use & award damages to the patent owner or will pay the patent owner royalties for
further use.
Apple sued phone maker HTC and has filed a complaint with the U.S. International Trade Commission,
alleging that the Taiwanese company is infringing 20 Apple patents related to the iPhone
Steve Jobs, Apple's CEO, said in a statement "We think competition is healthy, but competitors should
create their own original technology, not steal ours."
2. Trademark infringement :
Trademark infringement is a violation of the exclusive rights attached to a trademark without the
authorization of the trademark owner or any licensees (provided that such authorization was within the
scope of the license).
Remedies for Trademark Infringement
A suit can lie in District or High court. Punishment extends from 6 months to 3 years and a permanent
bans on engaging in commercial activities
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Example of a successful civil enforcement action
Three Suits filed by Adidas Saloman AG in the Delhi High Court against counterfeiters. At the initial
stage, infringing goods were seized by the Local Commissioner Cases were decreed recently & damages
of Rs. 15 lakhs was awarded to Adidas Saloman
3. Copyright infringement:
Copyright infringement is the use of works protected by copyright law without permission, infringing
certain exclusive rights granted to the copyright holder, such as the right to reproduce, distribute, display
or perform the protected work, or to make derivative works.
Examples: Using someone else’s material on YouTube without permission, using a popular song as
background to your own video, publishing a translation of someone’s foreign work
Remedies for Copyright Infringement
A suit can lie in the district court or in a high court u/s 63 of the copyright act, 1957 Punishable with
imprisonment up to 3 years and fined as per the claims.
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Ritika Limited v. Ashwani Kumar Ritika Limited v. Nina Talukdar
This is Called “Innocent Infringement” occurs when infringer was unaware that things were
protected.
Conclusion
Create yourself, rather than using other’s creations. Do not use competitor’s mark in such way that it
harms competitor in unfair way. Nso comparisons that are likely to cause confusion . Technological
advancement made the job of the CREATOR easy, it also made the job of the COPY-ER easy.
IPR Issues:
They are never mandatory in nature- whether you want to protect your intellectual creations or not is
purely up to you!
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Illustration: You invent a highly energy efficient boiler. It will be in your own interests to file a patent and
create ownership over it and thus secure your intellectual property rights and also business interests, by
preventing others from copying it. However, patenting is not compulsory. If you don’t want to file a
patent, nobody can force you to do it.
Regulatory Issues:
‘Mandatory requirements relating to the quality and safety of a product which must be fulfilled checked
and certified by the government before the product the product is sold in the market.’
Illustration: Boilers, welding sets, corrosive chemicals etc. the license needed for handling and transport
of corrosive chemicals requires certain conditions to be fulfilled to get the license. These conditions
constitute ‘regulatory requirements’.
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development of new processes. Lead to business profitability.
revenue generation by licensing out.
If an Intellectual Property owner improperly uses the Intellectual Properties beyond its lawful
scope, the Intellectual property is consider to be improperly used or misused.
Example: patent misuse includes illegal tying of products and services to the patented
invention, price fixing and the like.
Monopoly pricing
Restrictions on end users
Territorial restraint
Exclusive dealings
. Article 31 of TRIPs provides for the grant of compulsory licenses, under a variety of situations,
such as:
The interest of public health
National emergencies
Nil or inadequate exploitation of the patent in the country
Anti-competitive practices by the patentees or their assignees
Overall national interest
Prevention of monopoly
Methods to prevent misuse of IPR
There are generally two approaches that have been adopted to prevent IPR abuse: compulsory
licensing (an involuntary contract between a willing buyer and an unwilling seller imposed and
enforced by the state) and parallel imports (goods brought into a country without the
authorization of the patent, trademark or copyright holders after those goods were placed
legitimately into the market elsewhere)
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Compulsory Licensing: (no one has the ownership rights) Compulsory licensing is when a
government allows someone else to produce the patented product or process without the consent
of the patent owner.
IP Law enforcement:
Imposing huge penalties:
Cancelation of licensing:
Imprisonment:
Banned from the doing business:
Parallel Imports: The term “parallel imports” (also known as “gray market goods”) refers to
genuine branded goods obtained from one market (i.e., a country or economic area) that are
subsequently imported into another market and sold there without the consent of the owner of the
trademark.
INTELLECTUAL PROPERTY ENFORCEMENT AND PROTECTION IN INDIA:
(COMPLIANCE AND LIABILITY ISSUES IN IPR)
Registration and Protection:
Registration is not mandatory for protection of copyright and trademark even though it is highly advisable
to obtain registration for the same as it substantially increases the degree of protection and chances of
success in case of infringement. It is pertinent to note that in case of trademarks, registration grants some
extra rights to the owner of trademark. Moreover, it mandatory to get registration of patents, designs and
geographical indication to enjoy any kind of protection under the IP law of India.
How can Intellectual Property Rights be Protected or Enforced in India?
Intellectual Property Rights can be enforced and protected in India broadly under the following
categories:
IP Enforcement and
Remedies
I. Civil Remedies:
When any of the rights granted by the IP regime is violated the aggrieved party has two non mutually
exclusive remedies. First begin civil remedy and the other being a criminal remedy. Civil remedies can be
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