The term ‘Intellectual Property‘ broadly means the creation of a rational human intellect. Intellectual property rights, also known as intangible property rights, are the rights granted to a person on the basis of a new creation/invention. It is a hamper made up of numerous rights. A business organisation is an economic structure that exchanges products or services for money.
Exclusivity is a well-known concept for all businesses wanting to safeguard their intellectual property (IP), as those with Intellectual Property, rights can prevent others from using, manufacturing, or selling identical products/services without their permission. Businesses can market the enhanced product/service without fear of copycats in specified areas where Intellectual Property was secured by securing exclusivity. This approach of generating value from Intellectual Property is known as practicing intellectual property rights, and it allows your company to develop a new revenue stream through the exclusive sale of one’s patented products/services.
The international economy has seen unfathomable transformations as a result of evolving variables that aid in determining national prosperity. These developments have resulted in an increase in economic flow, as well as a rise in interest in intellectual property and actions connected to its protection. Technological breakthroughs in fields such as computers and chemistry, among others, have increased the necessity for the development of new types of protection as well as the adaptation of current ones.
Value Creation For Business
As organisations pursue technological, design, or process-based innovation, they begin to build Intellectual Property portfolios that may be used to not only emerge as market leaders but also to generate new income sources. With the aid of Intellectual Property protection, a company may be identified and build a brand. As a negative right, the Intellectual Property Rights protect inventions, logos, literacy work, and so on. It also bans duplication and imitation of the original work of the inventor or creator. It also increases the total worth of the business by facilitating access to capital and other economic assets.
Industrial design rights preserve the aesthetics of a product or article by protecting its designs and form.
A company’s intellectual property is crucial for the development and maintenance of a successful corporation. Intellectual Property protection in the form of patents is critical for biotechnological firms to prosper because it motivates them to create new medications and cures for ailments. This protection helps the owner as well as the industry and business, as well as providing incentives for the private sector to invest in their initiatives. It is well known that the majority of the goods on the World Health Organization’s Essential Drug list are the result of extensive research and development by the pharmaceutical industry, which is protected by patents. Trade secrets and patents are extremely important to a corporation, mostly because they provide an advantage in the competitive market.
Providing Exclusivity to Business
Intellectual property rights entitle exclusive ownership of their innovative new or original goods, creative designs, and brands. The exclusivity provides a suitable incentive to invest in strengthening their competitiveness. A company’s trademark helps it develop strong consumer trust. The brand functions as quality assurance and is a source of incredibly valued items or services. Clients or consumers regard a trademark or brand as a direct reflection of the owner. Copyrights are an extremely significant asset for creative and software enterprises, as well as the media and entertainment industries since this protection helps the companies stay in business in the face of fierce competition. It is pretty apparent that intellectual property gives a strong position when engaging into business partnerships. A patent grants an exclusive right to an innovation. It is a legal instrument designed to foster innovation by granting the inventor limited exclusive rights in exchange for the disclosure of the idea. Patented invention and innovation provide the firm or artist with an advantage in the market by granting an indirect monopoly over his work. Geographical Indication (GI) is intellectual property protection granted to a group of businesses or artisans. It allows businesses in a certain zone to use the mark while prohibiting others from using a similar or identical mark. “For example, Darjeeling Tea, Banarasi Saree and likewise.”
Intellectual property creates money for businesses through licensing, franchising, and the sale of protected products or services. In the case of a merger or acquisition, protected intellectual property assets considerably raise the firm’s value. The value of the intellectual property is also visible in export markets. Protected intellectual property assets can be sold overseas, or franchise arrangements with foreign companies might be negotiated. It is critical to highlight that the top firms in the world with billion-dollar valuations, such as Apple, Microsoft, and Blackberry, have created a robust revenue stream as a result of their significant Intellectual Property assets. A robust Intellectual Property portfolio that can be leveraged to raise income through licensing streams can reap the most benefits.
Conclusion: Because of the rapid rate of development, globalisation, advancement of technology, increase in commercial activities, development of international business, and last but not least, increase in knowledge, business entities have recognised the importance of Intellectual Property assets and their stipulation in the growth of the business. There is a struggle in the sector, and in order to survive and expand at the desired rate, it is vital to recognise the value and necessity of this class of assets, which not only add uniqueness to the organisation but are also critical to the company’s foundation. It is appropriate to conclude by mentioning the famous American businessman Mark Getty, who correctly highlights that Intellectual Property is directly proportionate to the growth of any corporate organisation, ‘Intellectual property is the oil of the twenty-first century.’ Consider the wealthiest persons a century ago; they all acquired their fortunes by extracting or distributing natural resources. All of today’s wealthiest individuals have built their fortunes through intellectual property, and they understand the need for intellectual property protection in entrepreneurship.
Organisations with Intellectual Property portfolios have begun to properly manage their Intellectual Property assets to optimise the economic value as the emphasis on intangible assets such as Intellectual Property has risen. Furthermore, the broader ecosystem has expanded dramatically to accommodate operations like licensing, selling, mortgaging, and enforcing intellectual property rights. As a result, maintaining intellectual property rights has become even more crucial. Such Intellectual Property assets (like physical assets) may now assist one’s firm sail through any harsh market circumstances, such as those faced by many in this ongoing epidemic.
Disclaimer: The present article intends to provide general guidance on the subject, and you can also consult us in your specific case.