Tuesday, March 6, 2012

Manage Your IPRs

With the rise of human capital as the greatest asset, it’s now imperative for the Small & Medium Enterprises (SMEs) to understand the importance of Intellectual Property Rights (IPR). It is a kind of property that emanates primarily from activities of the human intellect. IPRs protect intellectual property by preventing infringement through patents, designs, trademarks and copyrights. The legal rights accrued on the intellectual property created are termed as Intellectual Property Rights (IPR).

What are IPRs?

IPRs have vital role to play due to global competition, high innovation risks, short product cycle, need for rapid changes in technology, high investments in R&D, production and marketing. There are various types of IPRs. The Trade Related Aspects of Intellectual Property Rights (popularly known as TRIPS) in the agreement of the World Trade Organisation (WTO) recognises seven forms of IPR, namely patents, designs, trademarks, copyrights, geographical indications, integrated circuits and trade secrets.

IPRs are largely territorial rights except copyright, which is global in nature in the sense that it is immediately available to all members of the Berne Convention. These rights are awarded by the State and are monopoly rights implying that no one can use these rights without the consent of the right holder. It is important to know that these rights have to be renewed from time to time to keep them in force, except in the case of copyright and trade secrets.

IPRs tend to have a fixed term, except trademark and geographical indications that may have indefinite life provided these are renewed after a stipulated time specified in the law by paying an official fee. IPRs can be assigned, gifted, sold and licensed like any other property. Unlike other moveable and immoveable properties, these rights can be simultaneously held in many countries at the same time. They can be held only by legal entities i.e., who have the right to sell and purchase property. In other words an institution, which is not autonomous may not be in a position to own an intellectual property.
 
Benefits of IPRs
There are myriad advantages of IPRs. Firstly, they prevent copying and imitation of your work. Secondly and equally important, they also save you money because you do not have to waste time and money on unnecessary investments related to R&D or marketing. IPRs helps in creating a corporate identity and enhances any company’s market value. They also give an edge to the firm and allows access into new markets.

How to attain a copyright?

An SME has to keep a record of all new innovations that are brought about by employees or the R&D wing of the company. These ideas could be goldmines of the future. Converting these ideas into IPs is a necessary step to safeguard it from being duplicated. Companies need to utilize written contracts which would register the IP to the company and introduce non-disclosure obligations on the staff and related parties from divulging the information or reproducing it. These can also be extended upon former employees from producing competitive products. 

Why invest in IPR?
While IPR might seem like a distant thought to you right now but it won’t be long before you realize how important it was. Realizing it before it’s too late is key. Understanding that an IP could convert into profits for your company is imperative. You could either benefit from practising the IP or by excluding other companies from using certain IP by gaining patent and copyright over that particular intellectual asset. Alternatively, the SME can license the IP and make monetary benefits from it. For SMEs, it is important for them to understand how to use IP to protect their inventions and brand. This is a great way to protect your innovations from bigger competitors who might use it if not protected properly. They might derive commercial benefit from your property, leaving you without any benefits.

If you are able to protect your brand and innovations with the right IPRs, you will be able to turn them into valuable business assets.

So get the inimitable advantage and make the most of your innovations by investing smartly and rightly in IPRs.

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