In the 21st century, intellectual property rights have played a key role in indigenous and international trade of every country. With the advent of growing digitalisation, there is a huge risk of innovative ideas being stolen by an outsider, without any prior permission and consent.
The importance of intellectual property protection varies across the world. Almost, every nation which relies upon international trade is now taking strong action for intellectual property rights protection. A robust IP law structure is partly responsible for the overall growth of the economy of a nation. Unlike any other tangible asset which can be secured by locking up or fencing up, intangible assets like IP, in contrast, is accessible to the common people and can be misused by anyone. In a few situations, self-protection is also done by integrating the IP asset and tangible asset.
Intellectual Property Rights enhance the intrinsic value of all kinds of goods and services, as a unique idea is the core and foundation of every business. If the business is not unique from others, it will be unlikely to be differentiated from the competitor’s product and services. Nowadays, many cases of the unique idea being stolen by the third party are quite common. But, there are still so many people who do not deem it imperative to secure their distinct design or logo. Hence, it is important to secure intellectual property, which would otherwise perilous to business growth.
Intellectual Property can be defined as a set of intangible assets owned by any individual person or institution. Like various physical properties, intellectual property provides the same competitive advantage to a business.
The protection of intellectual property in a web-based environment is crucial for a business than ever before, as the unique designs and logos are more vulnerable and can be easily replicated by anyone.
THREE TYPES OF INTELLECTUAL PROPERTIES RIGHTS:
An Intellectual Property right is majorly divided into three types- trademark, copyright and patent:
A trademark can be a logo, design, or a mark of a business or an individual to distinguish his products and services from the competitors. A unique symbol enables a customer to easily recognize the product and relates to the brand value of a business.
Copyright protects a tangible creative expression like a painting, music compositions and a book. It is one most used intellectual property rights given to the producers of an original creative piece, which includes both published and unpublished work.
A patent protects the unique and distinct creation from illegally sold, used by an outsider for a set time period. In other words, a sovereign authority grants the intellectual property rights to the inventor through a set procedure.
FOLLOWING ARE THE KEY ADVANTAGES OF PROTECTING INTELLECTUAL PROPERTY RIGHTS:
- CONVERT THE CREATIVE IDEA INTO PROFIT
Generally, ideas do not possess any commercial value on their own. In the modern era, Intellectual Property rights have great untapped potential to convert your creative ideas into profit- yielding machine. IP registration through copyright, patent, or trademark will result in a steady stream of commercial gains and extra revenue, which will expand and improve the bottom line of business.
- TO EASE THE MARKETING PROCESS
The intellectual property acts a great tool for establishing the distinct identity of both brand and business. It helps to distinguish the products and services of one seller from the other in the market, which further helps in easily promoting them to their prospective clients.
- FOR RAISING FINANCE FOR THE COMPANY
Any IP right holder can monetize and commercialize the IP assets via licensing, sale and can use them as collateral for debt financing. IP assets can also be used for raising public funding, loans and to get government subsidies.
- FOR PROTECTING THE CREATIVE IDEAS
There are so many cases of creative ideas being replicated through illegal means by an outsider for commercial gains. So, it is mandatory to secure the IP rights before it gets infringed by anyone. A person can take IP protection, irrespective of the kind and size of the business. So, evaluate the business needs and circumstances and take appropriate action for IP protection.
- IMPROVE THE EXPORT OPPORTUNITIES OF A BUSINESS
IP assets accelerate the level of competitiveness in the export market for goods and services. The IP right holder can protect brands and design to market and promote their products and service abroad, and can also take franchising agreement from the overseas companies.
- BOOSTS THE BUSINESS GROWTH
Needless to say that, Intellectual Property protection cannot be overlooked in the cut-throat competitiveness. There are huge chances that the unprotected creative idea can be used by the rivals, which will result in shrinking the market share and slow down of business growth. Shrinking of market share in the formative stage can be detrimental to the overall business growth and performance.
Furthermore, it is important to note that IP Protection is the sole responsibility of the owner to secure from any infringement, as no one else will make an effort to protect the idea from being copied by someone.
Thus, it can be concluded that IP protection is extremely significant, and there must be proper IP laws in each country to protect the indigenous manufacturers from the outside completion.
The government also needs to improve the overall structure of IP laws for forging a long-term social and economic development of a company. The government needs to formulate proper IP laws for individual and companies, as laws should neither be too strict or lenient. For more visit: https://www.trademarkmaldives.com/