Intellectual property refers to creations of the mind: inventions; literary and artistic works; and symbols, names and images used in commerce.
Intellectual property is divided into two categories:
What is
Intellectual Property
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Industrial property includes patents for inventions, trademarks, industrial designs and geographical indications. Copyright covers literary works (such as novels, poems and plays), films, music, artistic works (e.g., drawings, paintings, photographs and sculptures) and architectural design.
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Rights related to Copyright include those of performing artists in their performances, producers of phonograms in their recordings, and broadcasters in their radio and television programs.
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Intellectual property rights are like any other property right. They allow creators, or owners, of patents, trademarks or copyrighted works to benefit from their own work or investment in a creation. These rights are outlined in Article 27 of the Universal Declaration of Human Rights, which provides for the right to benefit from the protection of moral and material interests resulting from authorship of scientific, literary or artistic productions. The importance of intellectual property was first recognized in the Paris Convention for the Protection of Industrial Property (1883) and the Berne Convention for the Protection of Literary and Artistic Works (1886). Both treaties are administered by the World Intellectual Property Organization (WIPO).
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WHY SHOULD WE PROMOTE AND PROTECT INTELLECTUAL PROPERTY?
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There are several compelling reasons. First, the progress and well-being of humanity rest on its capacity to create and invent new works in the areas of technology and culture. Second, the legal protection of new creations encourages the commitment of additional resources for further innovation. Third, the promotion and protection of intellectual property spurs economic growth, creates new jobs and industries, and enhances the quality and enjoyment of life. An efficient and equitable intellectual property system can help all countries to realize intellectual property’s potential as a catalyst for economic development and social and cultural well-being. The intellectual property system helps strike a balance between the interests of innovators and the public interest, providing an environment in which creativity and invention can flourish, for the benefit of all.
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The Importance of
Intellectual Property Assets
Intellectual Property is an asset class all to itself and is often underutilised. Making sure that IP is put to its highest and best use is critical to maximising inherent value. Increasingly, investors, stock market brokers and financial advisors are becoming aware of this reality and have begun to value IP assets highly. Enterprises worldwide are also acknowledging more and more the value of their IP.
Many enterprises, including SMEs, have begun to undertake regular technology and IP audits. In a number of cases, enterprises have realized that their IP assets are in fact worth more than their physical assets. This is often the case for companies operating in knowledge-intensive and highly innovative sectors, companies in the entertainment industry, or companies with a well-known brand name.
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Exclusive rights offered by the intellectual property system are often the main assets from which a technology-based or creation-based enterprise can benefit. The appropriate use of the intellectual property process may contribute to securing high rates of return on capital investment. The economic value of a patent, a trademark, software, a domain name, music and film rights, and any intellectual property, must be carefully weighed in the analysis of which companies deserve to receive capital investments. Not all intangible assets are equal. The investor must use consistent techniques for evaluating the intangible assets of the target enterprise and take decisions on when and whether to invest based on such valuation.
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One of the most important issues an investor must address is the security of intellectual property. Normally, a strong patent or copyright position is desired and the issues of ownership of intellectual property need to be well understood, particularly where the inventor/creator is collaborating with third parties. The investor must also consider all the potential costs associated with patents/copyrights and their protection.
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Various market mechanisms may play a central role. This causes the innovation/creation process to become more competitive, cooperative, globalized and foster new enterprises and industries. To accommodate these factors, enterprises require more and robust intellectual property to stay globally competitive. These market mechanisms coupled with changes in legal and regulatory regimes have led to an increase in patenting and new copyrights. Also, the ability of the creators to protect their rights has also increased, further fostering others to safeguard their own inventions.
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An important factor, which stimulates intellectual property development and in turn leads to additional availability of investment, is the respect for intellectual property rights in general, as this too leads to mitigation of risks. Reinforcing and broadening the rights provided to holders of intellectual property have resulted in increasing their value significantly. This, in turn, has helped investors to see potential returns for their investments that in turn lead to more originalities and growth in key markets. This role of intellectual property has led, not only to economic growth, but also to the stabilisation of certain markets. When investors see growing markets they then move to capture the economic rents that may be associated with the growth, and reinvest proportionately as their returns increase.