The heart of most successful businesses are creative and innovative ideas, but these ideas are not enough. The innovative idea is required to be developed into innovative products or services. Products by themselves are necessary to be commercialized to gain the advantages of creativity by the creator. Intellectual Property Rights plays an imperative role in turning an idea into a product suited for a competitive market that notably upsurges profit margins.

Detail Description: The knowledge about the relationship between Intellectual Property and Economic development is not enough. The complexities in desegregating and unravelling Intellectual property protection from other aspects that influence economic development makes it problematic to analyze the IP system in developing economies.

There are different arguments and theories on the impact of IPR on economic growth. Some experts believe that the frailty of Intellectual property protection boosts the transfer of technology and learning through imitation and coping mechanisms. While others argue the advantages of IPR in business growth, it provides a mechanism that emboldens the technology transfer through licensing and direct investment from abroad and its effects to boost technological learning indirectly. The variation between industry to industry and among countries makes the role of IP protection case-specific. The FDI is also affected by the strength or weakness of the Intellectual protection position. If the IP situation is low level, then it will impede specific kinds of investment in industries.

However, there is immense importance of the IP system and particularly the contribution of the patent system to economic and business growth. Regardless of the proposed ideas, the available data denotes increasing activity in the IP market, specifically the patent system. Patent statistics might not be sufficient to conclude the effect of the patent system with respect to business growth, but recent trends surely denote a growing impact on innovation and the global economy.

The Parliamentary Standing Committee of the Government of India noted that an improvement in the protection of IPR increases FDI and inflow of foreign exchange. For instance, an improvement of 1% in the protection of copyrights increases FDI by 6.8%. There is a need for investment in R&D, as India grants a low number of patents (compared to China and the USA), which can be attributed to low spending on research and development (0.7% of the GDP). There have been many initiatives in encouraging IPR in academia, industry and government. It is noted that domestic entities file only 36% of patents filed in India. It attributed this to a lack of awareness of IPR and the need for increased awareness among all.

Applicability and Scope: An enterprise gets recognized and established a brand with the help of IP protection. The IPR grant protection to innovation, logos, literacy work etc., it prevents copying and imitation of original work of inventor or creator as it is a negative right. It also enhances the overall value of the enterprise as it helps with access to capital and other economical assets.

An organization or enterprise has a Trademark that separates them from others dealing in the same industry segment. The trademark, which is protected under IP law of the country, gives MSMEs the right exclusively over it and enables them to associate with the goodwill of the company and standing status of that mark. 

The rights related to the designs and shape of a product or article come under industrial design rights, which protects the aesthetic part of the product. 

The patent is an exclusive right over an invention. It is a legal instrument intended to encourage innovation by providing limited exclusive rights to the inventor in return for the disclosure of the invention. The legally patent invention and innovation give the company or the creator an edge in the market space by indirectly providing a monopoly over his work. 

Copyright is preferred by enterprises dealing in artistic or literary work. It may include books, music, painting and likewise. Literary work from pamphlets to product manuals all are protected under copyright.

Geographical Indication (GI) is intellectual property protection granted to an association of industries or handicraft makers. It enables enterprises of a specific region to use the mark and prevents others from using the similar or identical mark. For example, Darjeeling Tea, Banarasi Saree and likewise.

Relevant Case Law (Eli Lilly And Company & Ors vs Hetero Labs Limited & Ors)

Eli Lilly and Company recently approached the High court of Delhi claiming patent infringement against Hetero Labs Limited India. The plaintiff alleged that even though the plaintiff denied issuing the defendant’s license for the production and selling “Baricitinib”, a medication commonly used for treating rheumatoid arthritis and beneficial in treating covid-19 patients. The defendant manufactured ‘Baricitinib’ under the brand ‘Bracy’ and sold it in the market. The plaintiff stated that it was a prima facie infringement of the patent and could not continue. Before the court, the defendant admitted that they did not acquire any license from the plaintiff and yet proceeded with the production. The court restrained the defendant from production or selling in the market any stock of Baricitinib and to ensure that already released stock is not exported or sold to treat rheumatoid arthritis.

Conclusion: The innovative idea is not enough, and it needs to be developed into a product. At every stage, from the idea to an invention, IP protection improves the value of the enterprise in the market. Protection of ideas and protection of these intangible assets build up the intellectual capital of the enterprise. An enterprise established a brand with the help of IP protection and enhanced the organization’s overall value. 

Disclaimer: The present article intends to provide general guidance on the subject, and you can also consult us in your specific case.