Economic value of intellectual property

Intellectual property rights (IPR)

1. Economic value of Intellectual Property SAYED MOHD HASNAIN 19MSC008 JAI HIND COLLEGE

2. Intellectual Property Properties are of two types - tangible property and intangible property i.e. one that is physically present and the other which is not in any physical form. Intellectual property is one of the forms of intangible property which commands a material value which can also be higher than the value of a tangible asset or property. Intellectual property refers to creations of the mind: inventions; literary and artistic works; and symbols, names and images used in commerce. Intellectual property is divided into two categories: Industrial Property and Copyright Industrial Property includes patents for inventions, trademarks, industrial designs and geographical indications. Copyright covers literary works (such as novels, poems and plays), films, music, artistic works (e.g., drawings, paintings, photographs and sculptures) and architectural design.

3. Intellectual property Right (IPR) Intellectual property Right (IPR) is a term used for various legal entitlements which attach to certain types of information, ideas, or other intangibles in their expressed form. The term intellectual property reflects the idea that this subject matter is the product of the mind or the intellect, and that Intellectual Property rights may be protected at law in the same way as any other form of property. Countries have enacted laws to protect intellectual property for two main reasons. One is to give statutory expression to the moral and economic rights of creators in their creations and the rights of the public to access such creations. The second is to promote creativity and its dissemination which results in economic and social development.

4. INTANGIBLE ASSETS Intellectual property assets can be commercially exploited by their owner or with the permission of the owner by others. One way for others to exploit intellectual property is through licensing' the intellectual property from the owner. The word "license" simply means permission granted by the owner of the intellectual property right to another to use it on agreed terms and conditions, for a defined purpose, in a defined territory and for an agreed period of time. Intellectual property assets are used not only in business transactions, but are also traded in their own right such as online exchanges for the evaluation, buying, selling, and licensing of patents and other forms of Intellectual Property. The buyers and sellers of intellectual property manage their intellectual property as financial assets just as investors in stocks, options and other financial instruments

5. Strong intellectual property rights help consumers make an educated choice about the safety, reliability, and effectiveness of their purchases. Enforced intellectual property rights ensure products are authentic, and of the high-quality that consumers recognize and expect. IP protection makes intangible assets “a bit more tangible” by turning them into valuable exclusive assets which are taken into account in all negotiations that happen around any merger or acquisition transactions that take place between the businesses. An intellectual property can be valued on various parameters, but the overarching principle guiding the valuation process is, how much of a competitive advantage does one’s intellectual property provides over others in the industry.

6. QUALITATIVE AND QUANTITATIVE VALUATION Quantitative valuation : As the name itself suggests, this method relies on measurable data or numerical information to produce an estimate of the value of one’s intangible assets. It attempts to answer the question by providing a monetary value or contribution that the intellectual property provides, whether directly to the business or indirectly by increasing the value of other parts of the operation or the appeal to investors. Qualitative valuation : This method provides a non-monetary estimate of the value of an Intellectual Property by rating it on the basis of its strategic impact, loyalty held by consumers, its impact on the company’s future growth, and other intangible metrics that do not rely solely on numbers.

7. World Intellectual Property Organization (WIPO) The Convention Establishing the World Intellectual Property Organization (WIPO), concluded in Stockholm on July 14, 1967 provides that “intellectual property shall include rights relating to: - Literary, artistic and scientific works Performances of performing artists Phonograms and broadcasts Inventions in all fields of human endeavor Scientific discoveries Industrial designs Trademarks Service marks and commercial names and designations Protection against unfair competition and all other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields.

8. LICENSING AND TECHNOLOGY TRANSFER Technology Transfer (also called Transfer of Technology (TOT) and Technology Commercialization) 1  are the processes by which the information or knowledge related to the technological aspects travel within the group or between the organizations or entity. On the other hand licensing is allowance granted by the patent owner to another person or organization for using the patented invention on agreed terms and conditions, while the patent owner continues maintaining his ownership to the patent and hereafter becomes the source of income by receiving the predetermined royalties or as per the condition. By combining the concept of the technology transfer with the licensing one can help in taking the benefit of the technology research that has been done previously.

9. INDIAN LAWS In India, science and technology policy is determined by the general direction set out in Science Policy 2003 and its implementation plan. The responsibility of administering S&T policy is spread out over many government ministries and their departments, each one of which has jurisdiction over a particular field, such as environment, agriculture, health, information technology and water. The Department of S&T in the Ministry of S&T is the central body that deals with the promotion of S&T Apart from this department, the Department of Scientific & Industrial Research (DSIR) was created in 1985, with a mandate to oversee indigenous technology promotion, development and transfer. DSIR is also responsible for coordinating the activities of the Council of Scientific and Industrial Research (CSIR) and two public enterprises, namely National Research Development Corporation (NRDC) and Central Electronics Limited (CEL).

10. The NRDC provides consulting service to academia and industry for the protection of their IPRs and the transfer of technologies. This function of the NRDC is central to supporting and facilitating effective industry-academia collaboration that result in the commercialization of technologies. Asian governments have introduced the necessary laws, ministry directives, notices, and guidelines. This is meant to establish stable rules to regulate government and university conduct.