The Role of Intellectual Property Rights in the Innovation

Info: 2398 words (10 pages) Essay

Published: 23rd Jul 2019

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Jurisdiction / Tag(s): International Law

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Introduction

In the twenty first century, the functionality and operations of the various industries around the
world are changing rapidly. This process of change began right in the mid twentieth century when
the industries began to evolve mainly on the innovation and design processes. With the advent of
computers, new ways of information flow began to be adopted. Computers and information
technology helped rapid advancement in different fields. Increasing scope of making better designs,
adopting newer business methods and invention of modern technologies increased the bulk of
intellectual properties immensely. Threat of piracy, plagiarism and theft of intellectual material in
different forms also increased. Therefore, the international community is trying to find out and
synchronise effective ways of protecting intellectual property rights worldwide. Since 1995, the
World Trade Organisation (WTO) has obtained jurisdiction over intellectual property rights on a
global scale (Matthews, 2002). This has expanded the role of intellectual property rights in the
innovation and design processes manifold. These rights are supposed to facilitate the protection of
intellectual material like blueprints, films, designs and processes involving business, technology,
literature, science, etc. In the twenty first century, the realm of intellectual property rights emerges
as a relatively new and rapidly developing area of practice (Heath & Sanders, 2009). The global
framework of intellectual property rights is quite controversial although, it is still immensely helpful
in deciding the course of innovation and design processes. Intellectual property rights mechanisms
are being rapidly deployed and consistently monitored to ensure the integrity and security of the
intellectual properties.

Literature Review

Role of intellectual property rights is multifaceted. Modern industries cannot exist without
continuous innovation and development of various design processes. Provisions of intellectual
property rights framework are intended to provide an international platform for the management
and regulation of the intellectual properties. Such framework would promote free and fair
competition and protection of the emerging technologies, methods, processes and designs
internationally.
Mainstream thinking and analytical frameworks dominate the course of the theoretical literature on
intellectual property rights. The various fields that are being dealt with are law, economics,
management, politics and regulation theories (Andersen, 2006). Intellectual property rights are
becoming crucial in regulating the managerial and technical processes involving modern design and
innovation. For example, intellectual property rights mechanisms have affected biodiversity as far as
the issues of seeds and plant varieties are concerned (Middletton, 1999). Framework for intellectual
property rights cover the innovation and designs entailed in agriculture and biotechnology. Thus, it
decides the course of agricultural industries as well (Erisch & Meredia, 2004). Another example is the
pharmaceutical industries, where the intellectual property rights are guiding the ways and methods
of manufacture, design and distribution of several pharmaceutical products in Europe, USA, India
and China (Pugatch, 2004).

Thus, mechanisms of international intellectual property rights are playing a crucial role in the
management and dispute resolution regarding the various research, design and development
processes worldwide.

However, the evolution of the intellectual property rights has taken place in different countries as per
the country specific needs. The governments and the people were concerned about the protection
of their intellectual properties like innovative products and designs. Patent, copyrights and
trademarks were the various systems designed to protect the intellectual property rights until the
first half of twentieth century. Although there was almost no unified mechanism available
internationally in those days, individual countries took initiatives to protect the intellectual
properties like literary works, artworks, designs, technologies, methods, etc. But this is never
achieved solely by physical assets. Intellectual property rights mechanism could develop on the
accumulation of technological capabilities and the development of the necessary institutional
infrastructure (Odagini et al, 2010). Traditionally, intellectual property rights have been matters of
national concern. Individual nation states have developed intellectual property rights regimes
reflecting their national needs and priorities (Ilias & Fergussen, 2008). Finally, in 1995, the
enforcement of Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs
agreement) could be achieved through the WTO (Matthews, 2002).

Before the beginning of a unified global process of intellectual property rights protection through the
WTO, these rights existed in various forms. Patents, copyrights and trademarks ensured protection of
the intellectual properties. But with the lapse of time, the need to unify the intellectual property
rights mechanisms all over the world was strongly felt. Otherwise, different countries would use
largely different parameters and definitions to decide the nature and enforcement of these rights.
The present intellectual property rights mechanism, which is still in a process of evolution, thus
serves several purposes for the protection and integrity of the modern innovation and design
processes.

Finally, this realm of practice becomes a way of law enforcement in the industries. The aim is to
provide ample protection to the different human endeavours in the different fields against piracy,
theft, plagiarism, manipulation, etc. (Vaver, 2006)
Analysis of the Role of Intellectual Property Rights

It has been mentioned earlier that the evolution of intellectual property rights was different in
different countries. In absence of a unified and well defined intellectual property rights mechanism,
it would be difficult to avoid corporate warfare and adoption of unfair means in business rivalry.
Prevention of bitter corporate struggle has been a key issue as far as the role of intellectual property
rights. Besides promoting fair competition, these rights would be pivotal to solve conflicts of patents
between countries and corporations. These rights also play a key role in preventing imitation,
plagiarism, piracy, etc.

1. Intellectual property rights and competitive advantage: Business firms try to protect their business
secrets to the best. Preserving business secrets is a key issue in corporate rivalry. Protection of the
intellectual properties would provide a roadmap to the companies to sustain their respective and
unique business innovation and design processes. In the presence of a global regulation, the
multinational companies and similar other parties would be helped to preserve their business
secrets and protect their achievements in the innovation and design processes. If theft of
technological know how is prevented, the urge to find out alternative and newer technologies would
be developed.

Intellectual property rights are particularly important in the context of software, computer chips,
optoelectronics and biotechnology. Patents, copyrights and trade secrets have been instrumental to
obtain competitive advantage through out the industrial history and this is supported by the
economic theory as well (Wallerstein et al, 1993). Business method patents also provide an
important way to obtain competitive advantage (Vaver, 2006). The role of inter-firm rivalry in
fostering innovation and technological diffusion is rather decisive. Intellectual property rights furnish
a framework to exploit such rivalry and achieve a fair competitive advantage. Thus, the economics of
intellectual property decides the dynamics of competition interface (Anderson & Gallini, 1998).

2. Cost involved in the intellectual property rights mechanism: Although intellectual property rights
have been recognised in natural law, historically, governments have granted such rights to achieve a
variety of policy goals. Thus, the cost of intellectual property rights enforcement has involved a wide
variety of economic parameters in both the government and private sectors (National Technical
Information Service, 1986).

The value of intellectual property rights is directly related to the cost of intellectual property
litigation. Infringers recognise that the enforcement of intellectual property rights carries a cost to
the owner of the rights (Ross, 2000). Hence the cost of the intellectual property depends on the
market value and the potential benefits of the innovation. Also, the firms may have to bear the
additional costs of obtaining intellectual property rights consultation and allied legal assistance.
Determination of the issue of cost is to be done on global parameters as well. Steps like unifying the
international law of business method and software patents thus become important in deciding the
cost of protecting the intellectual property rights (Bird & Jain, 2008).
3. Risk involved in intellectual property rights mechanism: Conservation of intellectual property
rights may lead to monopoly. The technologically advanced countries have developed a huge pool of
technical know how. Protection of intellectual property rights may lead to complete monopoly of
these countries over the modern technologies. Unavailability of modern and emerging techniques
may lead to developmental imbalance. Firms with inadequate resources to take advantage from
technology transfers would face serious setback in business. Huge sums of money would be paid as
royalties to the parties those have obtained the patents of futuristic innovations and designs.

Moreover, vulnerability of middle developed countries to changes in foreign direct investment arising
from intellectual property appropriation may lead to serious concerns (Bird & Jain, 2008). Too much
protection of intellectual property rights may create hindrance in the development of ample amount
of available knowledge in the future (Pugatch, 2004). The risk of monopoly over innovation and
design processes by rich countries and powerful corporations pose a threat to humanity as a whole.

4. Benefits and limitations: A pure economic approach does not provide a sufficient and satisfactory
explanation for the creation of intellectual property rights. For example, economists cannot conclude
whether patents confer a net benefit or entail a net loss to society. This controversy is a major
limitation of intellectual property rights (Pugatch, 2004). In such circumstances, it appears as if the
system is repressing widespread and free utilisation of available knowledge.

However, intellectual property rights help the companies and other entities to protect their
respective brands, marks, copyrights, patents, designs, and related rights all over the world.
Synchronisation of the various parameters in regards of these rights at the international level helps
the different organisations to maintain their uniqueness, protect their respective achievements and
prevent the crimes like piracy (Shippey, 2002). So, there are both benefits and limitations with
regards to the intellectual property rights system.

5. Comparison with alternative methods: Worldwide intellectual property rights protection took a
concrete form only in the 1990s. Much before, there have been other methods to provide similar
protections. For example, the method of copyrights evolved through the five hundred years old
history of printing technology (Steinberg & Trevitt, 1996). Patents, copyrights and trademarks were
the first intellectual property rights to be recognised in law. These rights thus have a longer tradition
(Shippey, 2002). If the modern mechanism of the intellectual property rights is compared to the pre-
existing system of patents, copyrights, trademarks, etc., then it can be said that that the modern
mechanism provides more legal, technical and international level synchronisation. The pre-existing
framework of rights was decentralised, complicated and varying from country to country. However,
the modern uniform intellectual property system makes sense for the world because it aims at
providing a uniform code of legal conduct (Bird & Jain, 2008). The framework is less costly and
complicated since it brings varieties of intellectual property under one system. Unification of the
various aspects of intellectual property protection is a major benefit of the present system as
compared to the pre-existing ones.
Conclusion

It is an important issue that how can theft of intellectual property be protected. A decentralised,
variable system is not suggestible in this context. Rather, the developments of the 1990s have
provided a strong legal framework. Consequently the role of intellectual property rights in the
innovation and design processes have become coherent and cannot be ignored. International
management and regulation of these rights play a crucial role in settling international disputes
regarding intellectual property. Since the modern industrial sphere largely depends on the innovation
and design processes, intellectual property rights protection can decide the very course of the
modern industrial development. Particularly in the fields of programming, engineering, electronic
media, business and industrial management, etc. intellectual property rights mechanism provides
reliable ways to ensure integrity of technical information about various innovations and
achievements. In this way, monetary loss due to the crimes like piracy can be prevented. Also,
enforcement of these rights would further develop an urge to research and innovate among the
powerful corporations and government organisations. Thus, the innovation and design process
would be sophisticated and a competitive market would ensure more technical, managerial and
other intellectual discoveries. The role of intellectual property rights thus appears to be rather
beneficial to the sphere of human endeavour.

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