Intellectual Property And Small And Medium-Sized Enterprises

Introductioncommonly use the geographic terms. Geographical
Intellectual property is an umbrella term for variousIndications are aimed towards identifying the source
legal entitlements which attach to certain types ofof the product and is considered as the valuable
information, ideas, or other intangibles in theirbusiness tool.o Industrial Design Rights
expressed form. The holder of this legal entitlementIndustrial design rights are defined as the part of the
is generally entitled to exercise various exclusiveintellectual property rights which confers the rights of
rights in relation to the subject matter of the IP. Theexclusivity to the visual designs of objects which are
term intellectual property reflects the idea that thisgenerally not popular utilitarian. It safeguards the
subject matter is the product of the mind or theappearance, style, design of the industrial object such
intellect, and that IP rights may be protected at lawas spare parts, textiles, furniture. According to the
in the same way as any other form of property.Industrial Design Society of America (IDSA),
Intellectual property laws vary from jurisdiction to"Industrial Design (ID) is the professional service of
jurisdiction, such that the acquisition, registration orcreating and developing concepts and specifications
enforcement of IP rights must be pursued orthat optimize the function, value and appearance of
obtained separately in each territory of interest.products and systems for the mutual benefit of both
However, these laws are becoming increasinglyuser and manufacturer." As these designs consist of
harmonized through the effects of internationalthe aesthetic features therefore they do not provide
treaties such as the 1994 World Trade Organizationany protection to the technical features of the article.
(WTO) Agreement on Trade-Related Aspects ofIntellectual Property for Business
Intellectual Property Rights (TRIPs), while otherIn the increasingly knowledge-driven economy,
treaties may facilitate registration in more than oneintellectual property (IP) is a key consideration in
jurisdiction at a time. Certain forms of IP rights doday-today business decisions. New products, brands
not require registration in order to be enforced.and creative designs appear almost daily on the
Improved Intellectual Property asset management bymarket and are the result of continuous human
the SMEs essentially means that SMEs consciouslyinnovation and creativity. Small and medium-sized
plan and strive to get the best result out of their IPenterprises (SMEs) are often the driving force behind
assets in line with their business objectives.such innovations. Theirinnovative and creative
Identification of IP assets is a first step. Protection iscapacity, however, is not always fully exploited as
the next, and management the last one, tomany SMEs are not aware of the intellectual property
effectively manage IP assets. SMEs should also learnsystem or the protection it can provide for their
to use the IP system specially the technicalinventions, brands, and designs.
information disclosed in patent documents. Further,If left unprotected, a good invention or creation may
they need to learn the use of IP system forbe lost to larger competitors that are in a better
developing advertising and marketing proficiencies.position to commercialize the product or service at a
SMEs not only need access to markets but alsomore affordable price, leaving the original inventor or
suitable network partners and joint ventures,creator without any financial benefit or reward.
management skills and credit guarantees. It isAdequate protection of a company's intellectual
advisable to decide on foreign filing only afterproperty is a crucial step in deterring potential
considering the likely demand, licensing possibilities,infringement and in turning ideas into business assets
and enforcement difficulties but this decision shouldwith a real market value. Taking full advantage of the
be made as early as possible. Thus, makingIP system enables companies to profit from their
technocrats and staff of SME aware and informed ofinnovative capacity and creativity, which encourages
the costs and benefits of the use of IP system, andand helps fund further innovation.
through it, of protection of new and original ideas, isTo help SMEs more fully utilize their IP assets in their
essential for reaping the benefits of improvedbusiness activities, the World Intellectual Property
product quality, in an increasingly competitive marketOrganization (WIPO) has established a program to
place and in a knowledge-driven global economy.assist entrepreneurs, SME-support institutions, and
Types of Intellectual Property Rightsnational governments in increasing awareness and use
Intellectual Property Rights signifies to the bundle ofof the IP system among SMEs across the globe.
exclusionary rights which can be further categorizedEnhancing Competitiveness through IP Protection
into the following heads-o CopyrightMany new products or services embody intellectual
Copyright, one of the form of intellectual propertyproperty in a number of ways. Forward looking
law, offers exclusive rights for protecting theenterprises face the challenge of extracting this
authorship of original & creative work likelatent value and using it effectively in their business
dramatic, musical and literary in nature. Symbolized asstrategy. Companies that dedicate time and
"©", here the term 'exclusive rights' mean thatresources to protecting their intellectual property can
the holder has the right to determine who will beincrease their competitiveness in a variety of areas.
credited with the work, who will perform the workIntellectual propertyprotection will help in:o preventing
and who will be benefited financially from it. However,competitors from copying or closely imitating a
copyright does not extend any protection to thecompany's products or services;o avoiding wasteful
facts, methods of operation, system, ideas exceptinvestment in research and development (R&D)
to the ways in which they can be expressed.oand marketingo creating a corporate identity through
Patenta trademark and branding strategyo negotiating
A patent is termed as the exclusionary rights givenlicensing, franchising or other IP-based contractual
by the government or the authorized authority to itsagreementso increasing the market value of the
inventor for a particular duration of time, in respectcompanyo acquiring venture capital and enhancing
of his invention. It is the part of the intellectualaccess to financeo obtaining access to new markets
property right, which connotes with all those rightsIn addition, a careful search for conflicting existing IP
which are granted to any person for protecting itsrights, and the examination of applications by IP
invention, process, discovery, composition or newOffices can help an enterprise to avoid conflicts and
useful development etc. from its further usageunnecessary litigation.
without any authentication.Effective IP Management
If more than two persons have jointly applied forEffective IP management enables companies to use
patent license, both will own the patent separately.their intellectual property to improve their
The original word 'patent' has come up from the latincompetitiveness and strategic advantage. Acquiring IP
term 'patere', which means 'to lay open' or 'availableprotection is a crucial initial step, but effective IP
for public usage'. Sometimes it is also related to themanagement means more than just protecting an
term 'letters patent', which marks to the royal decreeenterprise's inventions, trademarks, designs, or
granting exclusive rights to patentee. Unlike copyright,copyright. It also involves a company's ability to
patent is not granted on giving mere suggestion orcommercialize such inventions, market its brands,
idea. An idea of mere manufacturing machine doeslicense its know-how to other companies, conclude
not comes under the purview of obtaining patent.ojoint ventures and other contractual agreements
Trademarkinvolving IP, and effectively monitor and enforce its
The trademark or trade mark, symbolized as theintellectual property rights.
â"¢ and ®, is the distinctive signIndeed, a company's portfolio of IP must be viewed
or indication which is used for signifying some kind ofas a collection of key assets that add significant
goods or/and services and is distinctively used acrossvalue to the enterprise. SMEs can also benefit from
the business organization or by an individual forthe wealth of technological and commercial
identifying and uniquely classifying the source or theirinformation available in patent and trademark
products and/or services among consumers anddatabases to learn about recent technological
making a distinction of its products or services frombreakthroughs, identify future partners, and find out
the other entities.about the innovative activities of competitors.
One of the part of the intellectual property law,Managing IP effectively and using it to devise
trademark signifies to the name, word, phrase, logo,business strategies is an increasingly critical task for
image, design, symbol or combination of any or all ofentrepreneurs worldwide.
these elements. The trademark grants rights to theThe Challenge Ahead
owner which in turns may take or can commenceInsufficient information on the relevance of IP in
legal proceedings in case of infringement ofday-to-day business, high costs associated with
trademark. However registration is not compulsory inobtaining and enforcing IP rights, perceptions that the
trademark. The owner of common law trademarkIP system is esoteric, too cumbersome and
can also file the suit but in case of the unregisteredtime-consuming: These are among the reasons why
mark, the protection granted will only be confinedmany SMEs are sometimes slow to protect their
only to that geographical area within which it hasintellectual property. As an international
been used or in that area into which it is expected tointergovernmental organization dedicated to
be expand.o Trade Secretspromoting the creation, use, and protection of
Trade secret points towards a formula, pattern, anyintellectual property worldwide, WIPO draws upon its
instrument, design which is kept confidential andexperience and expertise in IP-related issues to help
through which any business or trade can edge overits Member States to overcome these obstacles and
its rival and can enjoy economic gain. Trade secretstake better advantage of the IP system. Given the
can be anything from a chemical compound,importance of SMEs to theeconomies of all nations -
manufacturing process, design or preserving materialsthey constitute some 90 percent of all enterprises
or even a list of consumers or clients. It is alsoworldwide andaccount for more than 70 percent of
known as "confidential information" or "classifiedthe production of goods and services - effective use
information". To be safeguarded under trade secrets,by
the matter should be 'secret'. Though the definitionSME's of IP assets is a key factor in ongoing
of trade secret is variable as per the jurisdiction buteconomic development.
there are following elements that are found to beMain Objectives
same -WIPO's SME initiative aims to:o Encourage SMEs to
- is not known by the public.more effectively use IP as part of their business
- provides some financial sort of gain to its holder.strategy;o Promote a greater use of the intellectual
- involves reasonable efforts from the holder side forproperty system by SMEs;o Strengthen the capacity
maintaining secrecy.of national governments to develop strategies,
- importance of data or information to him or for hispolicies ando programs to meet the intellectual
rivals.property needs of SMEs;o Improve the capacity of
- the ease by which information could be learned orrelevant public, private and civil society institutions,
duplicated by others.such asbusiness and industry associations, to provide
- Utility ModelIP-related services to SMEs;o Provide comprehensive
The utility model is the intellectual property right forweb-based informtion and basic advice on IP issues
protecting the inventions. It is somehow described asto SMEsupport organizations worldwide.
the statutory monopoly which is bestow upon forWIPO's SME Activitieso WIPO is identifying existing
the fixed duration of time in exchange to theprograms and activities designed to enhance SME
inventor for the offering of the sufficient teaching ofcompetitiveness at national, regional and international
the invention and permitting the other person,levels to help assess the needs of SMEs, identify and
possessing the ordinary skills of the relevant art, ofdisseminate information on best practices, and forge
performing the invention.partnerships with appropriate institutions. Cooperation
The rights granted under the utility model arewith these institutions and strengthening their IP
somewhat identical to those conferred upon by thecomponent is a key focus of WIPO's SME program.o
patent but are more considerable for using the termWIPO's outreach activities include distance learning
'incremental inventions'. Sometimes words like 'pettyprograms, distribution of publications, self-help kits,
patent', 'innovation patent', 'minor patent' and 'smallpilot training workshops, web-based dissemination of
patent' are used in reference of the utility model.information, press campaigns, and direct support to
Such models are considered to be more suitablebusiness associations in their own outreach activities.o
particularly for the small scale enterprises, which inInformation on the role of intellectual property rights
turns make the 'minor' improvements with thein the overall business strategy of an enterprise are
adaption of the existing products. Utility models arepresented from a managerial perspective, with an
more commonly used for the mechanicalemphasis on the role of patents in product
innovations.o Geographical Indicationdevelopment strategy, as well as the use of
Geographical Indication (GI) signifies to the name ortrademarks, designs and geographical indications as
sign, used in reference to the products which aremarketing tools.
corresponding to the particular geographical area orWorkshops, seminars, and information materials focus
somewhat related to the origin like town, region oron:
nation. Thus GI grants the rights to its holder which- Introduction to IP concepts from a business
acts as the certification mark and shows that theperspective
specified product consists of the some qualities and is- IP management for business success
enjoying good reputation due to its origin from the- Use of patent and trademark data as a source of
specified geographical location.technological and commercialinformation
The Trade Related Aspects of Intellectual Property- Exploitation of IP assets through licensing,
Rights (TRIPs) Agreement has defined thefranchising, technological alliances and joint ventures
'geographical indications rights' as the exclusionaryTo conclude we can say that Intellectual property
rights for the indicator which identify the goodsrights help in providing exclusive rights to creator or
originated within the member nations territories, orinventor, thereby induces them to distribute and
area or region of that territory, where the reputationshare information and data instead of keeping it
or other attributes of the goods is essentially relatedconfidential. It provides legal protection and offers
to the geographic origin of the place. Geographicalthem incentive of their work. Rights granted under
indications are the part of the intellectual propertythe intellectual property act helps in socio and
law therefore like any other law the regulation andeconomic development. Intellectual property
govern conditions of GI also varies from one countryprotection is the key factor for economic growth
to another as high differences have been found outand advancement in the high technology sector. They
in the use of generic terms across the world. Suchare good for business, benefit the public at large and
case is prominent for food and beverage which moreact as catalysts for technical progress.