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Importance of Intellectual Property in the Business World
IP is regarded as a powerful tool to accelerate the economic growth by protecting innovative ideas and concepts of the owner.
FREMONT, CA: Intellectual Property (IP) is a crucial consideration in day-to-day business decisions. Small and medium-sized enterprises (SMEs) are often the driving force behind continuous human innovation and creativity. Small and Medium Enterprises play an essential role in the country's overall production network.
Intellectual property is the original concepts and ideas conceived of and developed by employees, or workers this consist of photos, taglines, slogans, games, movies, music, product or business name, books, articles, illustrations, designs, and many others. The intellectual property rights provide right over the use of their creation to a creator. IP is considered as a powerful tool for economic growth.
Every business owner, whether running a small tech startup or a mainstream publishing company, knows that business management is no small task. With the help of IPs, it can be made more accessible.
Since the IP has value and it belongs to a person, so it's their responsibility to ensure a secure atmosphere. There are four types of protection available for intellectual property – trade secrets protection, trademarks protection, copyrights protection, and patent protection. The security is given for a finite time.
The advantages which intellectual property law provide to the business world are:
• Protect brand advantages: If the trademark is adequately protected, no other competitors can invade to use the data associated with that particular brand. Others can't take the property which belongs to a person.
• Secure technologies: Competitors may try to use other technologies to improve their platform. If the techniques are protected, one cannot use it easily.
• Secure product-differentiation advantages: If the idea related to a particular product is secured. The third-party cannot incorporate the product for their use.
• Protecting business advantages: The competitors want to use marketing or operational benefits of other companies by using business knowledge. This plan can't work when the information is kept in a protected environment.
The two major classes of IP are Patent and Trademarks, and the other lesser-known type is Geographical Indication. A planned patent strategy can reduce company costs and increase value. A patent provides the right to exclude others from exploiting the patented technology. It includes making, using, or selling the patented invention. Patents provide licensing opportunities with companies inside and sometimes even outside a company's field.
A trademark is a unique tool for introducing and communicating the brand to the market. A company needs to own a distinctive mark. It also influences the customer's purchasing decisions. Trademarks are considered necessary for several reasons like; it is a useful communication tool which makes more comfortable for the customer to find a particular brand. It is regarded as never expiring valuable asset of a company.
This is an era of cut-throat competitions. To stay firm, the business enterprise should carefully craft its IP strategy by choosing the right combination of patents, trademarks, trade secrets, and geographical indication. In order to create a strong value and position for its services/products in the market, every company has to follow these criteria.
SMEs have the potential to contribute systematically to the economy and offer a stronger foundation for the growth of new industries as well as strengthening the existing ones. Today, over 65 percent of employment and 50 percent of the Gross Domestic Product is contributed to SME's in the European Economy. Developed countries have historically succeeded because they focused on innovation and SME's.
Many countries, including America and China, are investing in IPs as it helps in business growth. IPs helps SMEs by boosting productivity, earning licensing fees, and even in gaining royalty. Patents help create a monopoly and offers protection to the business, stopping others from commercially exploiting their innovation. With the assistance of IPs, SMEs can obtain a higher return on investments and accurately manage their assets.
Many companies are coming up with bulk activities to improve SMEs. By focusing on IP growth, these activities include awareness and training on IP, providing financial assistance, assisting on technological information, and many more.