The Power of Intellectual Property Right: A Catalyst for Innovation and Growth

12th January, 2024 - 7:36 am Categories: Intellectual Property IP Litigation 0 Comments

Introduction

Intellectual property refers to the creation of mind, wherein a person uses his intellect to create unique works such as artistic works, inventions, scientific discoveries, literary works etc. Intellectual Property Rights are a set of legal protections which are given to individuals for their creations. Intellectual property rights are exclusive right given to the owners of intellectual property to control their creations for a certain amount of time. Individuals as well as organisations are encouraged to invest their time and resources towards research and development as this exclusivity provides them incentives in form of monetary benefits or recognition. This recognition and monetary benefits helps to boost innovations and economic growth where a strong legal framework for IPR is established. It offers a framework that gives the IP holders authority over their creation which ensures it is properly utilised also assuring that their efforts are duly acknowledged and rewarded. The article highlights how IP protection is necessary to create an environment where individual and organisations innovations are safeguarded and the inventors are able to reap the benefits out of their work.

Significance of Intellectual Property Rights

A strong framework of IPR helps to promote innovation as it gives an assurance to the creators that their work will be protected, and they will have exclusive rights over their creations. Due to this the individuals are motivated to invest their time in innovating new things which helps to boost innovation in the market. Intellectual property rights are directly related to innovation, a country where IP laws protect and rewards a person for inventing or creating new works then individual would be more inclined towards innovating new works.

Intellectual property rights ensures that the works of the individual and organization are not diffused in the market which gives these organizations a cutting edge over certain aspects in the industry. This motivates the other competitors to provide goods and services better than the other competitors and they try to invest their resources in innovation which helps them to make high quality products. This ensures that the consumers in the market get a large range of products with high quality which leads to consumer welfare.

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A strong framework of IPR is directly related to economic growth because it helps to attract more investment in technology and innovation which helps business to improve their operational efficiency and increase productivity which leads to economic growth. This also helps a country to attract investment as investor fell more secure to invest in markets where productivity is high giving them easy returns on their investment. It also helps to build a competitive environment where the businesses in the industry try to improve the quality of their goods and services.

An entrepreneur invests his time and resources in innovation only when he is ensured that his work would be protected. IPR helps these entrepreneurs by empowering them to innovate while also protecting their ideas and creations. For small entrepreneurs this protection is necessary to safeguard their work and to prevent unauthorized use of such work. It also helps these individuals to compete in the market with big organizations who already have huge amount of resources for investment in Research and Development.

Investors feel more secure to invest their money and resources in the countries where a strong legal framework of intellectual property rights is established. It gives the investors the assurance that their innovation is protected from any unauthorized use in the market. This leads to more foreign direct investment in field of Research and Development in the countries which also leads to their economic growth.

Intellectual Property Rights as a Catalyst for Innovation and Growth

1. Incentive for Research and Development

Intellectual property rights help to increase Research and Development as it gives the creator rights over their work which empowers them to invest their time and resources in innovating new things. This increases the investments in the field of Research and Development which leads to technological development and creation of unique things which help business to improve their operational efficiency and increase productivity which leads to economic growth. This acts as an incentive for the individuals to monetize their creations and earn recognition. So, a strong framework for IPR is necessary to ensure that creators get due recognition and reward for their work which directly leads to the growth of the country.

2. Reward for Creativity

When a person creates anything with his intellect the one thing, they desire is to earn recognition or monetary rewards from that work. This thing is ensured by Intellectual property rights as it gives the creator exclusive right over their creation which help them to monetize their work. This helps them to earn rewards having economic value. For example, Patents gives the inventor an exclusive right over the use of the invention this helps the inventor to monetize his work by offering it to other business for a lump sum amount or entering into agreements for royalty.

3. Fostering Healthy Competition

When organizations develop something through its intellect and manpower by investing time and resources on research and development it helps it to improves its operational efficiency and increase productivity. This makes the other competitors invest their time in the innovation of new works and technological development which in a way help the business to increase the quality of their products and helps them to provide goods and services which are better than the other players in the market. This healthy competition between the various market players to provide the best goods and services leads to healthy competition which also leads to consumer welfare.

4. Ensuring Return on Investment

When an investor invests his time and resources in innovating something one thing, he expects is to get a reward which has some value may be monetary or in terms of recognition the society. This thing is achieved with help of strong framework for intellectual property rights which assures the investors that their invention would be protected from diffusion in the public domain and prevents the unauthorized use of such works. This helps the inventors to monetize their works and earn rewards by selling their rights to other businesses by charging fees, royalty etc. which ensures return on investment for these creators.

5. Preserving Trade Secrets

Protections for a creative work is very important because there is no use of investing time and resource over a thing if it is easily available in the public domain without rewarding the inventor. This protection is achieved through trade secrets which is a kind of IPR, it protects the important business information which has commercial value. Preserving such secrets is necessary because if these secrets are easily made available to the public domain, then the inventors will not be able to reap any benefits from their work. This will lead to a situation where people would not invest their time and resources in research and development. This makes an industry static where no one is inclined towards innovating new works which will directly affect the consumer welfare.

Intellectual Property Services

When an Individual or organisation innovates or creates anything with their intellect the first and primary thing they need to ensure is that it is protected for which they use Intellectual Property services, which includes a range of professional services which are offered by law firms to individuals and organizations to protect, manage, and monetize their intellectual property assets. These services are necessary for protecting intellectual creations of individuals and organizations. Khurana and Khurana is a leading IP law firm which has professionals with high level of legal and technical competence of protecting and managing intellectual property, it provides end-to-end IP Prosecution, Litigation and Commercial Law services.

Conclusion

The power of Intellectual Property Rights as a catalyst for innovation and growth cannot be undermined. It provides a framework that protects the work of intellectual labour it not only encourages creativity and innovation but also serves as a driving force behind economic development. Intellectual Property Rights create an environment where the innovations of people are not only encouraged but also rewarded. The protection and recognition of intellectual property contribute significantly in promotion of research and development in various fields which leads to technological development and creation of unique things which help business to improve their operational efficiency and increase productivity which leads to economic growth. Intellectual property rights leads to welfare but in some situations the IP holder could employ practices which are harmful for the market and the consumers. Such practices involves charging high amount of royalty and fees for their inventions. This leads to the increase in the price of the goods and services for the consumers. The challenge lies in creation of a fine line between protection and accessibility of the intellectual property ensuring that intellectual property does not lead to slower diffusion of technology which can lead to increase in price of goods and services that affects the consumer welfare.

Author: Manit Sharma, in case of any queries please contact/write back to us via email chhavi@khuranaandkhurana.com or at Khurana & Khurana, Advocates and IP Attorney.