Intellectual property rights are intangible rights given to the author over the creation of their minds. IP Rights are usually given to the creator for exclusive use of his creation for a fixed time period. It is a protection given to the inventors so as to encourage them to come up with different creations and innovations which can help in development of the Indian economy. In this article, we will discover about the advantages and disadvantages of Intellectual Property Rights.
What are intellectual property rights?
Intellectual property rights are the legal rights provided to the authors for the protection of their original work, it is a protection provided to the creators for their contribution in invention, or protection given to the products for their appearance so as to distinguish it in market, and protection given for scientific developments, artistic works, and so on.
Read our article:Different IP Rights in India: A Complete Checklist
What are the types of intellectual property rights?
The five major kinds of IP rights are:
What benefits does Intellectual Property Rights have in this modern era?
The various benefits of intellectual property rights are as given below:
- Innovative idea to earn profit –IP has a great potential to turn an innovation into services and products which can be commercially profitable and viable. At the same time, these IP ideas have no worth of its own and require the registration of innovation to be able to earn profit. Hence, the consequence of registering patent and copyright will result in continuous stream of fee and increase in income capacity that in turn will boost the overall market result.
- Export Business Opportunities – Intellectual property improves the productivity of a company in the export market. The holder of the IP right may utilize these designs and logos to sell products and services in the foreign countries. It may also attain a franchise arrangement with the abroad corporation, or helps in exporting the proprietary products.
- The ideas are encouraged by securing them – With the increasing competition in the market, there are people who are always willing to copy the concept of others for availing the monetary benefit and development in their business. Hence, the business Company and entrepreneurs should protect their unique ideas and innovation. It is also necessary to give protection to IP properties until it has unlawfully infringed any third party.
Therefore, it is important to implement IP security for all the sizes and forms of companies. Thus, after checking the market requirements and the prevailing situation, a person should decide as to which Intellectual Property Rights (copyright, trademark or patent registration) has to be used to cover different areas of IP.
- Business Growth – It is important to get your intellectual property rights registered as giving protection to your exclusive goods or services is necessary for preventing the rivals to use the same. The protection shall ensure development in the market share which shall result in steady profit and growth. It is very essential for the small scale enterprises to get the protection so as to have its own name in the market as because losing any market share at the initial stage can be dangerous for the long run to its corporate growth.
What are the advantages of intellectual property rights?
There are many advantages to IP which are as given below:
1. There are no extra fees connected with IP
There are no fees required whenever you wish to change or enhance your business and hence it can be done free of cost. But it is always suggested to apply for getting the formal patent protection once the inventor has completed with developing the product.
2. Competitive edge over other alike businesses
IP protection inevitably gives an ability to have a competitive edge over other similar businesses[1] in the market. This will make the companies with the IP protection tension free because their business operation is secure because the same businesses in the market won’t be able to copy, use or manufacture the same product.
3. IP helps in enhancing the company’s value
Intellectual property helps in generating more income for the business through the sale or licensing agreements of the invention.
4. IP aids in marketing the company’s products and services
It can help in differentiating one business over the other in order to attract more potential customers. Thus, it boosts the marketing of the registered products.
5. Obtaining finance becomes easy
It becomes easy to obtain finance from financial institutions and lenders since it enhances the credibility with the IP protection.
6. Greater export opportunities
It increases competitive edge in the export markets and to deal with the products and services internationally.
What are the Disadvantages of intellectual property rights?
Few disadvantages of intellectual property are as follows:
1. Additional costs
For getting the protection for the first time, it could be bit expensive particularly if the product is complex and involves methods, designs, and processes.
2. Pirating
Even after getting the IP protection, it sometimes becomes difficult to stop someone who is copying the inventory work.
3. Reduced quality
With the passage of time, as the rights of intellectual property reduces so does the quality of the IP decreases.
Conclusion
After a thorough read of the whole article, it must have been clear by now that how important is IP protection today to secure your own artistic, literary works and other inventions. It is only because of these protections given under the IP Act, a business or company stands unique from other businesses in the market. Hence, it is highly recommended to get the IP protection and avail its benefits.
Read our article:Basics of intellectual property rights: Explained
