Innovaccess defines intellectual property (IP) as an exclusive rights associated to creations of mind. This includes inventions, literary and artistic work, designs, phrases, symbols, and images, which can be protected under law of intellectual property. A company’s trademark, designs, copyrights, and patents are among intellectual property that should be protected. Thanks to intellectual property protection, it ensures company owner or whoever contributes in these creations of those products to earn recognition and or financial benefit from their invention.
Intellectual property has contributed a lot in economy sectors and business competitiveness. A study of International Chamber of Commerce (ICC) titled “Intellectual Property: Powerhouse for Innovation and Economic Growth” revealed that organisations and industries are looking for ever-more competitive ways to succeed by developing and incorporating creative and useful innovations into products and services. Thus, it all can be achieved by intellectual property protection. Not only businesses, governments worldwide can also benefit from such protection. Intellectual property protection can help government improve the country’s economy and help citizens as well as build national capabilities in many areas such as technology, information, and culture.
According to ICC’s study, there are five main areas in which intellectual property protection play important roles.
#1 Intellectual property protection benefits economy
Country that relies on IP rights represents a significant part of developed and developing economies in terms of GDP, employment, tax revenues, and strategic importance. Intellectual property rights also promotes foreign direct investments (FDI) and technology transfers in developed and developing countries. Data shows that in copyright-based industries and interdependent sectors alone account for approximately 4-11 percent of gross domestic product, which also contributes to increased number of jobs by approximately 3-8 percent.
#2 Intellectual property protection promotes innovation
Intellectual protection rights that is effective can increase funding for research and development, and other innovation. This includes helping corporation realise more value from innovations that are protected by IP rights than those that aren’t. IP rights underpin development of cultural expression and diversity, while promoting broader dissemination of innovations through publications and licensing.
#3 Intellectual property protection helps firms monetise innovations and grow
Company uses IP rights in diverse ways to help them develop, trade in, and secure income from their innovative products and services. The study found that firms that use IP rights generally succeed better and have a higher market value than those that do not.
#4 Intellectual property protection helps small and medium enterprises
Small-to-medium enterprises that use IP rights are more extensive in many cases than large companies. The ICC reported that these companies that protects IP rights have higher growth, income, and employment than those that do not.
#5 Intellectual property protection benefits consumers and society
Lastly, IP rights helps provide consumers with innovative products and services in every area of life. It also helps protect consumers from counterfeit and pirated products. IP rights also encourages competition among diverse product, function, and quality offerings giving consumers a greater choice amongst goods and services needed. It also provides important mechanisms to help address many of society’s most important needs, from clean energy and reduced carbon emissions to health care and a truly digital economy.
There is no doubt that intellectual property is imperative in our economic roles. A study from Manzoor Elahi found that intellectual property protection has influenced trade liberalisation policy under World Trade Organization (WTO) for developing countries. As quoted from Elahi’s study, “Protection of intellectual property has a great role to play in economic development. Countries which protect intellectual property have higher economic growth rate. Level of protection also determines growth rate of a country’s economy. It has been observed that countries with less level of protection have low rate of economic growth and vice versa.”
As a word of conclusion, due to advancement in technology and competitive forces stimulating innovation, strong intellectual property rights will lead to higher economic growth.