Intellectual Property
It is a term used to denote the rights resulting out of the intellectual creations or activities of an individual, in the field of scientific, industrial, literary, or artistic sphere or domain. Therefore, it is clear that the intellectual property essentially includes the products or creations of the mind. These rights include patents, designs, trademarks, copyrights, geographical indications or other related rights. Normally Intellectual property is divided into industrial property and copyright. The industrial property right as the name goes comprises of patents, designs and trademarks or GI of the product made by an industrial organization out of the work output resulting through the research and development activity of the said organization. Intellectual property like any other form of conventional property is a movable asset. Just like any other real and personal property, this intellectual property can also be bought, sold, licensed, exchanged or gratuitously given away to others.
Why do you need intellectual property rights?
Everyone talks about business developments strategies and the inventions or the different species of the Intellectual property, add to the benefits of the industry. But all this is possible or alternatively, do you know the value it can bring to your business only if it is properly protected under the law?
What can you protect?
All your inventions, the brand names and symbols of the products you market, the outer shape or the contour and configuration of the product you market and even the labels, the cartons or the brochures of the marketed goods can be protected under the law.
What is a Patent
A patent is a statutory right or privilege granted by a government to an inventor and to other persons deriving their rights from the inventor, for a fixed period of years, to exclude other persons from manufacturing, using or selling a patented product or from using a patented method or process. So a patent is an exclusive right granted for an invention, which may be a product or a process that provides a new way of doing something, or offers a new technical solution to a problem.
“Patents” are the monopoly rights granted by the state for the technical solutions to the technical problems which you have faced in your R&D work. These technical solutions are of great importance to your company, or the organization, as they are called as one of the business assets.
Brand names or the symbols are the ‘ambassadors’ to the public for your product developed and manufactured by your company, to show that the goods belong to you or you are the manufacturer for such goods in demand.
Trademarks
These brand names are called as the “Trade Marks” being the monopoly right registrable by the concerned authorities which adds colours and profits to your business. Further this is one of the rights in the IPR field which you can enjoy for ever as long as keep marketing the goods you manufacture.
Designs
Outer shape or the configurations of the product you market have the great public demand and they have the right sense of appeal, which you feel, that every other competitor of yours should feel jealous about its market value is another kind of monopoly right called “Design” which is again registrable by the concerned authorities of the state.
Copyright
The labels, the cartons or the brochures of the marketed goods of your company have an eye-catching effect or pushing nature in the business dealings as a best marketable strategy or an effective slogan, which you feel that every other person in the country would like to keep quoting (if and when allowed) for their products. Why such jealous nature or why their hearts have the thirst for such a slogan to be used, rather to say copied, because you own the “copy right”, the moment you have coined or created it. Do you know how long you can enjoy the same right? It is mind boggling that you can ever think of.
Above all, using the above IP rights over your creations, you can grant license and obtain royalty; and be the pioneer in the industrial field. Further you can also do transfer of technology and get an income or the price for the same. If anybody copies your invention, you can sue them for an infringement action, only if your invention creations are protected, otherwise not !!! In that what would you do? Similarly you can allow anyone else to use your trademark, by way of outright sale or a license to use the same with your concurrence. Moreover using the trade mark for your product is very important by way of exploitation. If anybody uses your mark without your authorization, you have an immediate necessity to take proper action. Suppose you have not registered your mark for your product with the concerned authorities, what way you can protect the goods from such copying action? Similarly the copyright can be allowed to be used by another party with specific approval or agreement and obtain the royalty for the same purpose.
Patent protection means that the invention cannot be commercially made, used, distributed or sold without the patent owner's consent. These patent rights are usually enforced in a court, which, in most systems, holds the authority to stop patent infringement. Conversely, a court can also declare a patent invalid upon a successful challenge by a third party. A patent owner has the right to decide who may or may not use the patented invention for the period in which the invention is protected. The patent owner may give permission to, or license, other parties to use the invention on mutually agreed terms. The owner may also sell the right to the invention to someone else, who will then become the new owner of the patent. Once a patent expires, the protection ends & an invention enters the public domain & the owner no longer holds exclusive rights to the invention, which becomes available to commercial exploitation by others.
Patents provide incentives to individuals by offering them recognition for their creativity and material reward for their marketable inventions. These incentives encourage innovation, assuring that the quality of human life is continuously enhanced. Patented inventions have, in fact, pervaded every aspect of human life, from electric lighting (patents held by Edison and Swan) and plastic patents (held by Baekeland), to ballpoint pens (held by Lazlo Biro) and microprocessors (held by Intel). The first step in securing a patent is the filing of a patent application. Patent application generally contains the title of the invention, as well as an indication of its technical field; it must include the background, i.e., the prior art and its drawbacks and a description of the invention, in clear language and enough detail that an individual with an average understanding of the field could use or reproduce the invention. Drawings or diagrams to better describe the invention usually accompany such descriptions. The application also contains "claims", that is, information which determines the extent of protection granted by the patent.
Intellectual Property as business assets
A company’s assets may be broadly classified into two categories: physical assets which include buildings, machinery, financial assets and infrastructure and virtual or intangible assets ranging from human capital and the know how to ideas, brands, designs and other intangible results of a company’s creative and innovative capacity and efficiency. Traditionally the physical assets are responsible for the bulk assets of a company, and were considered to be largely responsible for determining the competitive nature of a company or an enterprise in the market place. Currently, the situation has changed and it is different in a significant manner. Possibly because of the information technologies strategies and their revolution and the growth of the economy, companies have realized that the virtual or the intangible assets are often great value and they have become more valuable than their physical assets.
In short, large companies have switched over to micro miniaturization using powerful software and innovative ideas form the main source of income or revenue for a large and growing organization. And even in sectors like the conventional or basic and generic version ones, the traditional production techniques remain dominant, but there are a continuous innovation process and endless creativity being noticeable and are becoming the key factor to greater competitiveness in fiercely competitive markets, be it domestic or international. Intangible assets are therefore taking center stage and SMEs nowadays try to seek how to make the best use of their intangible assets.
The IP commercialization can be achieved through “licensing” the patents or other IP rights, and also the technical Know-how what you possess. The kinds of licenses are
- Sole license
- Exclusive license
- Non-exclusive license
There are also royalty free licenses, wherein you require the permission from the patentee, but without any consideration whatsoever i.e., the royalty. You can also give cross license. The license granted only up to the term of the patent and not beyond that period. The expired patents cannot be licensed as the right ceases to exist.
So it is very clear beyond doubt that the value of intellectual property lies in its commercialization and not in its mere creation and development.
Contact: iprsekaran@gmail.com [End]
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