What Is Intellectual Property?
Intellectual property is a general term for the set of intangible assets owned and legally protected by a company from outside use or implementation without consent. Stemming from its ability to provide a firm with competitive advantages, defining IP as an asset aims to provide it the same protective rights as physical property. Obtaining such protective rights is critical as it prevents replication by potential competitors—a serious threat in a web-based environment or the mobile technology sector For example: An organization that owns IP can realize value from it in several ways, namely through utilizing it internally—for its own processes or provision of goods and services to customers—or sharing it externally. The latter can be achieved through legal mechanisms such as royalty rights. Problem faced by startups: Although the knowledge about the IP rights in India is budding but people still need assistance and knowledge so as to decide properly about method of protection required for their ideas also, in addition to the products which are emerged from those ideas. The major hardships faced by any Startup can be:
- Protections after launch of the product/idea: It is not a good idea to plan for the protection of IP rights after all the planning are done w.r.t the business. A proper planning should be executed from the day one when the idea has been seeded in the brain because delay in such initiation cause huge loss to the IP.
To give an example publication of an invention before the filing can harness the protection rights as it will not be considered as novel by the registering authority. Similarly in case of trademark the same is required to be promoted from day one i.e. even if the production and distribution of a product is not started to make it distinctive however, promoting without getting an IP protection can create infringement;
- Confusion regarding choice of proper protection for the idea/product: The choice of IP protection can sometime be a difficult problem for a novice;
For example a product can have various shapes and same can be protected under different IP protections provided in India. A design or a shape of a product can be a subject matter of Trademark, Copyright as well Design. In order to safeguard the right related to a distinctive shape it is of utmost importance that the proper mode of protection should be chosen to get maximum out of the intellect put in creation of the shape. The guidance of an expert in this regard can be taken;
- Lack of research before the launch of idea/products: IP rights are individual based rights and provide monopolistic rights in nature hence a lack of research before establishing a business can prove to be detrimental. For example a prior art search in case of patent for a product or a database search in case of trademark should be done before investment is made otherwise time and money spent on an idea which is already developed would be of no use;
- Lack of secrecy before the launch: Most of the IP rights are based upon priority and once the same is lost, it doesn't lead to any thing. In the present age of social media, it is of utmost importance that secrecy should be maintained during the development of an idea/product.
Steps taken and IP reforms initiated by the Government: The scheme of Startups Intellectual Property Protection (SIPP) aims to promote awareness and adoption of intellectual property rights among startups. The scheme is inclined to nurture and mentor innovative and emerging technologies among startups and assist them in protecting and commercialize it by providing them access to high-quality IP services and resources.
- The government has empanelled several facilitators, who are required to provide IPR-related services to startups without charging anything from them. All the charges shall be bear by the government in order to encourage young entrepreneurs and innovation;
- Fast-tracking of patent/trademark applications;
- 50% rebate on filing of applications.
At times it has been noticed that startups shrink their budget when it comes to IP protection or might get so much engrossed in development of the product that the thought about protection of IP rights at the initial stages of development are not there in their mind. However, the need of the hour is that they utilize the facility been given by Government of India with respect to IP Protection as negligence of IP protection may be detrimental to the growth of their business in future. Why is it important to protect intellectual property rights? Your IP rights are important because they can:
- set your business apart from competitors
- be sold or licensed, providing an important revenue stream
- offer customers something new and different
- form an essential part of your marketing or branding
- be used as security for loans
Some IP rights are automatically safeguarded by IP law, but there are also other types of legal protection you can apply for. To exploit your IP fully, it makes strong business sense to do all you can to secure it. You can then:
- protect it against infringement by others and ultimately defend in the courts your sole right to use, make, sell or import it
- stop others using, making, selling or importing it without your permission
- earn royalties by licensing it
- exploit it through strategic alliances
- make money by selling it
In today's competitive environment, innovation is the mainstay for every business that leads to development of intellectual property. Identifying, developing, and leveraging innovation provides competitive edge and aids in long term success of the company. Intellectual property is not limited to technology companies, but is valuable for every business which invests huge sums in research and development for creating indigenous products and services. The forms of Intellectual Property allow you and your products to be distinguished individually from others. They are a seal of authority in the respect to the quality, product, services and expectations put forth by the buyer or the user. IP is a wealth creating machine which gives you legitimate ownership with image of a trustworthy organization .Every business house rely on intellectual property rights, spending millions of Rupees to secure their intellectual properties, with IPR you have the legal right to file a suit against anyone who uses your idea or logo etc without your permission, you can franchise or give copyright of your work to someone and get royalties over it. Nowadays every country realizes the importance of IPR and so, almost every country has statutes providing guidelines regarding it. In India some of the important statutes regarding this are like The Patents Act 1970, The Trade Marks Act 1999, and The Copyright Act 1957 etc. The provisions of these acts have to be followed and any person infringing can be punished or fined. IPRS is an important intangible asset in any company. It gives competitive edge in the market and protects from hackers and pirates. India is fast growing economy and innovation is becoming priority for Indian firms and the government, this innovation needs protection and for this IP is necessary. Prepared BY: PCS Mamta Kumari Mamta Kumari & Associates
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