The relevance of Intellectual Property for Business

Introduction

Intellectual property means the creation of something from a human mind or intelligence. Intellectual Property Rights refer to the rights which a person acquires as a reward for his creation. These rights are extremely helpful in a business as intellectual property is an asset and these assets work out to be an important tool that helps a business to grow without which it is quite impossible.

Business assets can be broadly categorized as tangible and intangible. Tangible assets include physical assets of the business like infrastructure, machines and equipment, capital and economic assets, etc. intangible assets particularly include knowledge, innovation, creative ideas, designs, etc and thus creating the brand reputation. Various intangible assets are to be created during the business that helps in the enhancement of the company name and goodwill. These can be in form of patents, copyrights, designs, and trademarks.

Innovation and Creation

A company or business grows when it is in constant reach of new and innovative minds that create innovative ideas. It helps in building up the competition and aids in the long term development of the business and the company. Building new intellectual property and using it effectively to develop business strategies helps in the long term success of the business. To remain ahead in the competition, it is necessary that the new inventions are used in an effective manner.                                                                                                     

Application

It is important to strategize the IP assets in a correct manner so that the company can emerge out as a leader in the competitive market. The skills and capabilities required to manage the intellectual property need to be developed so that sustainable competitiveness can be maintained. The correct IP strategy when used in the export market also helps to strengthen the position of the company and expand its business.

Merits of having Intellectual Property protected

1. Increases revenue – To remain standing in the competition market, it is necessary to build and manage a strong IP portfolio. Effective use of the IP can prevent the business to take advantage of the goodwill it has in the market. A strong IP system helps in the free flow of information and technology thus helps in the growth of the business and industry. When innovative ideas are rewarded, it promotes productivity growth. Having a strong patent portfolio can get a strong return on intellectual property assets. It helps in attaining a significant portion of the earnings by licensing revenue streams. It is also required to fill in the blank spaces by licensing the patent portfolio to gain large financial returns. The organizations should understand that the patent portfolio is a tandem that carries the business towards benefits along with the other capabilities of the organization. It is also important to note here that big companies have increased their revenue stream with a strong intellectual property asset.

2. Protecting the intellectual property – Patents help in getting the rights of the product/service a business carries on so that no other party or competitor can use, make, and sell those products. Copyrighting the work that my art or literary helps to secure that work against the competitors so that of anyone who tries to copy the copyrighted work faces legal action against him. Trademarks and design help in distinguishing the product in the market from others by giving it a design that is different from others and thus it creates a brand name for that business. Having these intellectual properties protected by the Intellectual Property Laws of the country helps in expanding and enhancing the business and thus promotes the success of the business. When the company is secured from one side, it has other things to focus on, and expanding the business is the priority. Intellectual Property as we know is a valuable asset, and when rivals try to steal or copy your asset, it clearly means that it has great potential, and thus protecting it will only yield in benefits and heights for the business.

Demerits of not protecting IP

When the company doesn’t take crucial steps like protecting and investing in intangible assets like intellectual property, this yields in certain demerits too.

1. If no proper management is done, the designs, works, and products in the market can be copied and stolen by the competitors in the market for their own benefits. Without protection, the rivals can get it under their patent name or get copyright and trademark as their products.

2. If investment in IP is not done in the initial phase then it eventually has to be done in the latter phase; that might be while fighting a court case or re-branding. This comes with the additional disadvantage that while the company is stuck in this, the commercial opportunities which a company would have received will no longer prove beneficial.

3. Many companies that do not take these steps of preventing their IP in the first place, due to the pricy process of getting a patent or a copyright or a trademark will end up spending, even more, when a situation comes to defend their rights. So, getting an attorney to do the documentation and acquiring their intellectual property rights is less of stress as compared to the consequences of not doing it.

4. It is also becoming a liability of the company or their lawyer to prove that they came up with the idea first then the rivals, as the burden of proof lies with the company who is now defending their title. It would be a lot easier to show the proper documents and showing that they got their rights protected before their rivals.

Successful Business

An operative IP system is a primary key to bring about the knowledge assets for the business. Effective use of intellectual property can avert any other business industry competitors and rivals to take advantage of the goodwill in the marketplace. Lacking the protection of such ideas innovators can't reap profits of their inventions and would emphasize less on research and development. Intellectual property rights help visionaries in every stage of business enlargement, competition, and development strategy.
It is now pretty visible from the above discussion that as important as protecting IP is for the business, not protecting and not using it results in greater demerits for the company. Also, it is clear that IPs help in increasing revenue and bring economic and financial benefits, and with what else mindset any entrepreneur establishes the business. Therefore, the relevance of Intellectual Property in a business is really high, and not having it also has pretty higher stakes of disadvantages.

Stats and Figures

Conclusion

Intellectual property protection is a really crucial step to take along with other formalities, which now is pretty clear. Without protection, the business will not show full benefits and it is also a great possibility that the thought outcomes may not come their way. If they are stuck in just fighting and defending no growth and development will be seen. You would not really like others getting benefits of something you created or produced, as then you will not get the compensation which you deserve. It doesn’t matter how big or small a company is but getting their intellectual property protected is a crucial step that must not be left unattended.

BY –

Shivangi Garg