NPTEL · Ethics in Engineering Practice · IIT Kharagpur

Week 3 — Ethical Theories, Problem Solving & Intellectual Property Rights

Lectures 11–15  ·  Dr. Susmita Mukhopadhayay, Vinod Gupta School of Management
Contents
1

Ethical Theories — Solving Moral Problems

Engineering ethics uses multiple moral theories simultaneously — not to pick one, but to view a problem from different angles. If multiple theories reach the same conclusion, that greatly strengthens the ethical verdict.

Utilitarianism
Actions are good if they maximise overall societal well-being. Collectivist — the greatest good for the greatest number. Uses cost–benefit analysis. Proponent: John Stuart Mill. Two forms: Act utilitarianism (judge each action) and Rule utilitarianism (follow moral rules that generally maximise good).
Duty Ethics (Deontology)
Moral duties are fundamental. Actions are ethical if they could be written down as universal duties (be honest, don't cause suffering, be fair). Proponent: Immanuel Kant (1724–1804). Ethical acts express respect for persons as autonomous moral agents.
Rights Ethics
People have fundamental rights that others have a duty to respect. Proponent: John Locke (1632–1704) — right to life, liberty, and property. Criticism: basic rights of one person may conflict with rights of another; may not account for overall societal good.
Virtue Ethics
Focuses on the character of the moral agent. Virtues include honesty, responsibility, competence, loyalty, trustworthiness, fairness, and caring. Vices include dishonesty, disloyalty, irresponsibility. Asks: "What would a person of good character do?"

Which theory to use?

Key Insight
You do not have to choose one theory. Use all of them to analyse a problem from different angles. Frequently the conclusion is the same regardless of which theory you apply — this convergence provides strong ethical confidence.
Example — Chemical Plant Pollution
A chemical plant discharges hazardous waste into groundwater near a city's water supply. All four theories converge: Rights ethics — the pollution violates residents' rights. Utilitarian analysis — economic benefits of the plant are almost certainly outweighed by pollution costs and health effects. Virtue ethics — discharging waste is irresponsible and harmful. All three point to the same conclusion: the action is unethical.

Cost–Benefit Analysis (Utilitarian Tool)

Only projects with the highest ratio of benefits to costs are implemented. This mirrors the utilitarian goal of maximising overall good.

Pitfalls of Cost–Benefit Analysis
CBA has serious limitations: it may not capture the loss of scenic wilderness, endangered species (no current economic value), or intangible harms. Critically, it is unfair to place all costs on one group while another reaps the benefits. CBA should be supplemented with other ethical frameworks, not used in isolation. Note: Only the statement that CBA is similar to the utilitarian goal (S1) is correct; the statement that "projects with equal benefits-to-cost ratios will be implemented" (S3) is false — it is the highest ratio.
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Analysing Ethical Issues — Three Types

The first step in solving any ethical problem is to completely understand all the issues involved. Issues fall into three categories:

Factual Issues
What are the actual facts of the case? Facts are not always clear or uncontested. Example: the facts about whether global warming is occurring and how severe it will be are debated, affecting what engineers must design to.
Conceptual Issues
What does a key concept mean or apply to in this situation? Example: Does this payment constitute a bribe or an acceptable gift? Is this business information truly proprietary? These can be genuinely controversial.
Moral Issues
Once factual and conceptual issues are resolved, which moral principle applies? Once the problem is clearly defined, the correct moral principle usually becomes obvious. Example: once you determine the payment is a bribe, the ethical answer (refuse it) is clear.
Case Study — Paradyne Computers (1980)
Paradyne bid to supply the SSA with computers. Factual: the RFP required existing systems only; Paradyne's product was untested. Conceptual: Is bidding on a planned (not existing) product acceptable business practice, or lying? Is placing your label over another manufacturer's label deceptive? Does lobbying a former employer constitute conflict of interest? Moral: Once determined that the practices were deceptive, the conclusion follows: lying and deceit are no more acceptable in business than in personal life.
3

Techniques for Solving Ethical Issues

1. Line Drawing

Definition
Line drawing is especially useful when the applicable moral principles are clear, but there is a great deal of "grey area" about which ethical principle applies to the specific situation. It is NOT for sequential decisions (that is flow charting).

A line is drawn with two extreme poles:

Positive Paradigm (Left end)
An example of something unambiguously morally acceptable. E.g., "Products should perform as advertised."
Negative Paradigm (Right end)
An example of something unambiguously not morally acceptable. E.g., "Knowingly sell defective products that will harm customers."

Various hypothetical situations are then placed along the line to determine where the actual situation falls.

Case Study — Intel Pentium Chip (1994–95)
A flaw was found in the Pentium chip. Intel initially tried to conceal it. Using line drawing: positive paradigm = "products perform as advertised"; negative paradigm = "knowingly sell defective products." Intel's actual approach ("flaw exists, customers not informed, magnitude minimised") fell closer to the negative paradigm — not the best ethical choice.

2. Flow Charting

Definition
Flow charting is helpful when there is a sequence of events or a series of consequences that flows from each decision. It gives a visual picture of a situation and lets you see the consequences of each decision point.
Exam Trap — Line Drawing vs. Flow Charting
Line drawing is for grey-area situations where the moral principle is debated. Flow charting is for sequential events/consequences. The exam often tests whether you can distinguish these two techniques. (Assertion about "flowchart for grey-area" is FALSE — that is line drawing.)
Case Study — Bhopal (Union Carbide)
Flow chart analysis was applied to the Bhopal disaster, where MIC (toxic substance) mixed with water created toxic fumes. Two flow charts were used: one examining decisions about locating the plant in India, and another examining decisions about deactivating the flare tower for maintenance. Each decision node shows the cascade of consequences that follow.

3. Conflict Problems and the Creative Middle Way

When two conflicting moral values both seem correct, three solutions exist:

Steps for Solving Ethical Dilemmas

  1. a)Moral clarity: Identify all relevant moral values in the situation.
  2. b)Conceptual clarity: Be clear about key concepts — what you are asked to do may not be good for the organisation in the long run.
  3. c)Informed about the facts: Gather all relevant factual information pertinent to the applicable moral values.
  4. d)Informed about options: Consider all realistic options — dilemmas often seem like forced two-way choices, but closer examination reveals additional paths.
  5. e)Well-reasoned decision: Arrive at a carefully reasoned judgment by weighing all relevant moral reasons and facts. This is deliberation, not a mechanical algorithm.
4

Code of Ethics

Definition
Codes of ethics state the moral responsibilities of engineers as seen by the profession and as represented by a professional society. They express the profession's collective commitment to ethics.

Eight essential roles of Codes of Ethics

  • Serving and protecting the public
  • Providing guidance on ethical behaviour
  • Offering inspiration to practitioners
  • Establishing shared professional standards
  • Supporting responsible professionals
  • Contributing to ethics education
  • Deterring wrongdoing
  • Strengthening the profession's public image
5

Intellectual Property Rights — Overview

Definition
Intellectual property (IP) is a category of property that includes intangible creations of human intelligence. It mainly covers copyrights, patents, and trademarks, along with trade secrets, publicity rights, moral rights, and rights against unfair competition.
Tangible vs Intangible Property
Tangible property can be physically touched — land, houses, cars. Intangible property cannot be seen or touched, can be easily misappropriated by copying, and the cost of reproduction is negligible. This is precisely why IP needs legal protection.

Two Categories of IPR

Industrial Property
Includes patents for inventions, trademarks, geographical indications, and industrial designs.
Copyright
Covers literary works (novels, poems, plays), films, music, artistic works (drawings, paintings, photographs, sculptures), and architectural designs.

IP Chain of Activities

Creation
Coming up with a new product or idea.
Innovation
Something "not seen before" — a new application or approach.
Commercialisation
Execution and making available for sale.
Protection
Registering under law — patent, trademark, copyright, etc.
Enforcement
Cannot be copied or stolen as per law; enforced in courts.

Why does intangible property need protection?

6

Patents Patent

Definition
A patent is an exclusive right granted for an invention — a product or process that provides a new way of doing something, or that offers a new technical solution to a problem. Protection is generally granted for 20 years.
Why are patents necessary?
Patents offer incentives and rewards to individuals by recognising creativity, encouraging them to develop new marketable inventions for the benefit of the public.
Public domain requirement
All patent owners are required to share their information in the public domain. This information can inspire further creativity and innovation by others.

Rights of Patent Owners

Court enforcement
Patents ARE usually enforced in courts. Courts CAN also cancel patents if a third party's claims are found valid at a later stage.

What can be patented?

Requirements for patentability
Must be of practical use · Must carry novelty (new characteristics not part of existing knowledge) · Must be an invention (not a discovery).
What cannot generally be patented
Scientific theories, mathematical methods, plant or animal varieties, discoveries of natural substances, commercial methods, and methods of medical treatment (as opposed to medical products) are generally NOT patentable.

Key True/False Facts about Patents (Exam Critical)

StatementT/FExplanation
All patent owners must share their information in the public domain.TRUEMandatory disclosure is a core feature of the patent system.
Patent owners can give permission or offer a licence on their own terms.FALSELicences are on mutually agreed terms, not solely the owner's unilateral terms.
Patents are not usually enforced in courts, and courts cannot cancel patents.FALSEPatents ARE enforced in courts, and courts CAN cancel patents.
A patent is an exclusive right granted for an invention — a process providing a new way of doing something.TRUEThis is the standard definition of a patent.
Patents provide protection but do not encourage or recognise creativity.FALSEPatents explicitly recognise and reward creativity — it is a core purpose.
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Trademarks Trademark

Definition
A trademark is a distinctive sign that identifies certain goods or services produced or provided by an individual or company. It originated in ancient times when craftsmen marked their work to identify authorship.

Purpose of Trademarks

What can be registered as a Trademark?

  • Combination of words, letters, and numerals.
  • Drawings, symbols, or three-dimensional signs (shape and packaging of goods).
  • Holograms, motions, colour, and non-visible signs such as sound, smell, or taste.
  • ISO certifications.
  • Collective marks owned by associations (e.g. accountants, engineers, architects).

In India — Trade Marks Act, 1999

8

Industrial Design & Geographical Indications Design GI

Industrial Design

Definition
Industrial design refers to the ornamental or aesthetic aspects of an article. It may consist of shape, pattern, size, colour, or two-dimensional features. Applied to a wide variety of products — medical equipment, watches, jewellery, electrical items, housewares, textiles, and more.
Requirements for protection (Critical for Exam)
An industrial design must be: (1) New — different from designs already protected. (2) Non-functional — technical features cannot be protected under industrial design; they can only be covered under patents. Only the aesthetic/ornamental aspect is protected as a design.

Protection term: generally 5 years, renewable for up to a total of 15 years in most cases. In India (Designs Act, 2000): initial term of 10 years, followed by another 5 years on request.

Geographical Indications (GI)

Definition
A GI is a sign used on goods that denotes the origin, quality, and reputation of the goods as belonging to a particular geographical location. Most commonly used for agricultural products.
Examples
Darjeeling Tea, Himachal Pradesh apples, Manipur Tamenglong mandarin oranges, Swiss chocolates. These command a premium price because of their geographical origin.
Why protection is needed
Consumers treat GIs as synonymous with quality and trust. False use (e.g. selling non-Darjeeling tea as Darjeeling) misleads consumers and allows price fraud.

GI vs. Trademark

TrademarkGeographical Indication
Distinguishes goods/services of one company from another.Guarantees that the product originates from a specific place.
Can be owned by any individual or company.Based on collective community or regional ownership.
Generic Geographical Indication
When the name of a place is used to designate a type of product rather than indicate its actual origin, it becomes a generic term and no longer functions as a GI. Example: "cheddar" was once a GI for cheese from Cheddar, Somerset, but is now used generically.
10

TRIPS Agreement & India's Obligations

Definition
TRIPS = Trade-Related Aspects of Intellectual Property Rights. It is one of the main agreements of the WTO, negotiated during the Uruguay Round (1986–1994) under GATT. It appears as Annex 1C of the Marrakesh Agreement. Uniquely, it applies to all WTO members mandatorily.

Objective of TRIPS

To reduce distortions and impediments to international trade while promoting effective protection of IPR, and ensuring IPR enforcement measures do not themselves become barriers to legitimate trade.

IPRs covered under TRIPS

Copyright & Related Rights Trademarks (incl. service marks) Geographical Indications Industrial Designs Patents (incl. new plant varieties) Layout-designs of integrated circuits Undisclosed information / trade secrets

Link between TRIPS and WTO

WTO through TRIPS makes it mandatory for all member countries to follow basic minimum standards of IPR protection, bringing about a degree of harmonisation of domestic IP laws globally.

Doha Declaration — Public Health Exception

Rigid TRIPS IP rights allow pharmaceutical companies to charge prices above marginal cost, restricting governments' ability to ensure affordable access to medicines. The Doha Declaration (2001) clarified that:

India's Obligations under TRIPS

AmendmentKey Change
Patents (Amendment) Act, 1999 (retrospective from 1 Jan 1995)First amendment: Allowed filing of patents in drugs, pharmaceuticals, and agro-chemicals — previously not allowed.
Patents (Amendment) Act, 2002 (in force 20 May 2003)Second amendment: New patent rules; met obligations required by year 2000 under TRIPS; aligned with WIPO's Patent Cooperation Treaty.
Patents (Amendment) Act, 2005 (from 1 Jan 2005)Third amendment: Provided patents for drugs, medicines, food and chemical products. Brought India into full compliance with TRIPS.
Trade Marks Act, 1999 (in force Sept 15, 2003)Replaced the 1958 Act; brought India into TRIPS compliance for trademarks.
Copyright Act, 1957 (as amended)Compliant with Berne Convention, Universal Copyright Convention, and TRIPS. India is NOT a member of the Rome Convention (1961) or WIPO Internet Treaties (WCT/WPPT).

Special provision in Indian Patent Law (Section 3d)

Unique to India
Section 3 of the Patent Act lists exceptions — things that cannot be patented. The unique clause 3(d) prevents patenting of minor improvements in chemical and pharmaceutical entities unless the invention results in the enhancement of known efficacy. This is a public health safeguard setting a higher threshold (therapeutic efficacy) for pharmaceutical patents.

Industrial Design in India — Designs Act, 2000

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Exam-Ready Q&A (Assignment 3)

All 10 Questions with Correct Answers & Explanations

Q1. The American government, knowing the detrimental effect on the Arctic climate and native animals, still gives permission to Royal Dutch Shell to expand offshore drilling. This decision illustrates:
Correct Answer: (c) Poor right ethics
Common mistake: (d) Poor cost-benefit analysis
The government is violating the rights of Arctic animals and native populations who depend on a healthy environment. This is a failure of rights ethics — it does not respect the rights of affected parties. While there is also a cost-benefit dimension, the most precise answer is poor right ethics, since the question emphasises harm to living beings' rights to exist safely.
Q2. Identify correct statements about Cost–Benefit Analysis: S1: similar to utilitarian goal of maximising overall good. S2: It is fair to place all costs on one group while another reaps benefits. S3: Projects with equal benefit-to-cost ratios will be implemented.
Correct Answer: (d) Only S1 is correct
S1 is True — CBA is indeed similar to the utilitarian goal. S2 is False — it is explicitly stated as unfair to place all costs on one group. S3 is False — only projects with the highest ratio of benefits to costs are implemented, not equal ratios.
Q3. Riya created an original line drawing of a saree pattern. A boutique copied it, slightly changed the colours, and used it commercially without permission. Which IP protection is most relevant?
Correct Answer: (c) Copyright
An original artistic work (drawing/illustration) is protected by copyright from the moment of creation. No registration is needed. The boutique violated copyright by reproducing the artistic work without permission.
Q4. Arjun has: (1) self-cooling technology for a water bottle, (2) brand name "ChillSip" and its logo, (3) technical drawings of the mechanism. Which combination of IP rights correctly protects these?
Correct Answer: (b) Patent for technology, Trademark for brand name & logo, Copyright for drawings
The self-cooling technology is a novel invention — protected by a Patent. The brand name and logo are commercial identifiers — protected by a Trademark. The technical drawings are artistic/creative works — protected by Copyright. Each IP type maps to its correct subject matter.
Q5. Identify True/False for patent statements: S1: All patent owners must share information in public domain. S2: Owners can give licence on their own terms. S3: Patents not usually enforced in courts; courts cannot cancel patents. S4: Patent is exclusive right for an invention providing a new way of doing something. S5: Patents provide protection but do not encourage creativity.
Correct Answer: (d) S1(T), S2(F), S3(F), S4(T), S5(F)
S1 TRUE — all owners must disclose to public domain. S2 FALSE — licences are on mutually agreed terms. S3 FALSE — patents ARE enforced in courts and courts CAN cancel patents. S4 TRUE — standard definition. S5 FALSE — a primary purpose of patents is to recognise and encourage creativity.
Q6. To be protected, an industrial design must be new and ______; as ______ cannot be protected under industrial design.
Correct Answer: (b) Non-functional; Technical features
Industrial designs protect only the ornamental/aesthetic aspects. Technical/functional features must be protected under patents, not industrial design. The design must be new AND non-functional to qualify for design protection.
Q7. Assertion (A): A flow chart is especially useful for situations where moral principles are clear but there is a grey area about which ethical principle applies. Reason (R): In engineering ethics, flow charting is helpful for cases with a sequence of events or series of consequences flowing from each decision.
Correct Answer: (d) A is false but R is true
The Assertion describes LINE DRAWING (grey area about which principle applies), NOT flow charting. The Reason is correct — flow charting is indeed for sequential events and cascading consequences. This is a critical distinction the exam tests repeatedly.
Q8. [Answer: d]
Correct Answer: (d)
Full question text was not visible in the uploaded PDF. Based on context of the week's topics, ensure you know the Indian Patent Act amendments: 1st amendment (1999, retrospective from 1995) — allowed filing for drugs/pharma/agro-chemicals; 2nd amendment (2002); 3rd amendment (2005) — full TRIPS compliance.
Q9. Manipur's Tamenglong mandarin orange is costlier than other apples in the Indian market due to ______.
Correct Answer: (b) Geographical Indication
The Tamenglong mandarin orange carries a premium price because of its specific geographical origin in Manipur — this is exactly what a Geographical Indication (GI) represents. GIs allow products from specific regions to command higher prices based on their origin and associated quality/reputation.
Q10. T/F: S1: WIPO stands for World Intellectual Proprietary Organization (purpose = protect IP owners' rights). S2: Holograms, motions, colour, and non-visible signs like sound/smell/taste can be trademarks. S3: Industrial designs refer to the ornamental or aesthetic aspects of luxury goods. S4: Creation can be defined as never seen before. S5: Intangible property needs protection to avoid free riding.
Correct Answer: (c) S1(F), S2(T), S3(T), S4(F), S5(T)
Common mistake: (b) selected incorrectly
S1 FALSE — WIPO = World Intellectual Property Organization (not "Proprietary"). S2 TRUE — holograms, sounds, smells, tastes can all be trademarks. S3 TRUE as per lecture context (industrial designs include luxury goods among their applications). S4 FALSE — "Creation" = coming up with a new product; "Innovation" = never seen before. S5 TRUE — avoiding free riding is a key reason to protect intangible property.
Week 3 — Key Takeaways at a Glance