Commercial Exploitation Of Intellectual Property Rights

Commercial Exploitation Of Intellectual Property RightsNowadays, businesses need to be aw are that the value of their enterprises is not ground only on physical assets but also on intangible assets, and intellectual property (IP) is the key to protect the value of those assets. It has been estimated that in more(prenominal) or less technology companies, intangible assets form over 60% of their business value (Shirmon, 2006). The most recognised intellectual property protection is brand, while businesses protect their brands to heighten their value. But in the increasingly competitive environment, the success of m whatsoever businesses is now based on innovation and naked technology. There are four study types of IP including plain, copyright, trademark and trade mystery.In general, IP is every about ideas skilfully expressed resulting in innovation and creative works (David, 2009). Innovation in technology is characterised by a process that produces a variety of goods that d iffer in quality and performances (Cornish, Llewelyin and Aplin, 2010). Ernfried (2003) describes the development of most technologies as an evolutionary rather than a revolutionary process (Suzanne, 2004). It can be identified as a process of creative destruction, in which new technology evolve on the ruins of their expert predecessors.In the essay, I forget discuss how each IP could arise by using Psylock excogitation and in section two I get out point out the Commercial Exploitation of IP and some criticism of Intellectual property rights (IPRs).Show me how you type, and I will tell you who you are, this is the concept of Psylock. The beau monde Psylock develops and markets information technology solutions helping businesses to improve security on IT applications. The concept is based on keystroke biometrics technology and has been tested and certified by TV SD for functionality, data security and privacy (Psylock, 2010). Keystroke biometrics technology deals with dynamic ch aracteristics of a persons keystroke behaviour. The system collects numerous individual characteristics such as left or right-handedness, typical typing error, the use of shift keys, dexterity, and assesses these on a person specific basis. In general, Psylock technology is a process of government agency individuals based on their typing pattern. Applications of Psylock range from e-commerce and online banking to security for ready reckoner systems and are available for private users and enterprises (Psylock, 2010).Intellectual Property ApplicationPatentThe primary address of the patent system is to stimulate innovation and commercialisation of technology advances. It provides economic incentives to inventors by granting them monopoly rights for a limited period, normally 20 geezerhood (David, 2008). Basically, invention patent is the most valuable and to competitors, potentially the most dangerous of all intellectual property, as it prevent all others from including any form o f the invention in their products and serve (Alexander, 2008). Any new machines use to manufacture Psylock products and the technology itself can be protectable with patents. A patent may be secured for the United Kingdom either done the British Office (UKIPO) or the European Patent Office (EPO), established under the European Patent Convention 1973 (EPC). Additionally patent can be register internationally through the World Intellectual Property Organisation (WIPO). An international registration could take around 41 months (WIPO, 2010). According to the Patent figure out 1997, Psylock invention essential meet four basic requirements in order to be granted.It must be novel. The present law requires a patented invention to be new (must not rush been done before in a way that was available to the public) and may not have been disclosed in any way to the public. In other words, Psylock technology must not previously used or described in any single publication.It must involve an i nventive step and non-obvious. In the EPC and the Patent Act 1997, an inventive step is considered to be present if the invention has something which is seen as an invention by an positive examiner who is skilled in that subject area.It must be capable of industrial application. In other words, an invention can only be granted which can be made or used in some kind of industry, such as manufacturing, agriculture and any other commercial enterprise. In order to pass this proviso, Psylock technology also must offer some positive benefits to society.It must not fall within any of the categories of subject-matter. This category arose in 1998 when the Court of Appeal for the Federal Circuit clarified the status of business method patents (Cornish, Llewelyin and Aplin, 2010).Most company hires a registered patent attorney or ingredient to file their patent application. To file a provisional patent application (PPA), Psylock have to pay a filing fee including search fee and trial run fe e. Cost can run from 1,500 to 3,000 not including annual maintenance fee (APO, 2003).CopyrightCopyright aims to protect artistic and literary works, such as books, photographs and phonograms. different from patent, it gives right holders the exclusive right to copy, reproduce, distribute, perform or display their works and copyright are not granted or issued by a federal agency, instead rights are created as soon as the work is produced (Garima and Avih, 2002). This right is much narrower than a patent, because copyright only protects expression. Copyright law also protects computer programs, user interface, and in some situation design features of manufactured products (David, 2009). Psylocks operating software uses to implement computer system with the technology and the instruction manual could be copyright protected. Under the law, protection of computer programs shall last at a minimum for fifty years, and shall include exclusive rights to rent the programs (Eland, 2008). Sof tware protections affect nudity of standards and interfaces, which could be important components of Psylock competitive strategy in the IT industry.Courts have recognised a defence to a charge of copyright infringement since the 1840s, and its codified in the Copyright Act of 1976 (Eland, 2008). However, Psylock must still register their worked with the government before filing suit for infringement. If infringement occurs, Psylock can seek actual damages based on the higher of own lost of profits (Alexander, 2008).TrademarksTrademarks provide protection to the owner of the mark by ensuring the exclusive right to use it to indentify goods or services. It earlier deals with names, logo, slogan and colour, smell, virtually anything that is used to identify the source of the product distinguishes it from competitors (Garima and Avih, 2002).Trademarks are very useful in combination with inventions. For example, Psylocks logo and slogan could be trademarked. It will be a mark that clea rly distinguishes Psylock products from those of his competitors, as it will be instantly recognisable by their customers. Basically, a trademark could provide brand-name recognition to products and a patent provide a tool to enforce a monopoly on its utilitarian function (Muzahidul, 2009). Since trademark right last indefinitely as considerable as it is been used in commerce, it can be a powerful tool of extending a monopoly, initially created by a patent (David, 2009).Trade secretTrade secret protects any confidential formula, or a piece of information which gives its holder a competitive advantage as long as it remains secret. It can include any formula, pattern, device, or compilation of information that is used in business (Suzanne, 2004). Different from patent, trade secret need not be essentially new, novel, or unique and have an unlimited life time (David, 2008). As a result, Psylock could keep source programs as a secret. hostile all other forms of IP, trade secret allows Psylock to suppress knowledge. Nevertheless, the law encourages the sharing and sale of secrets (Eland, 2008).The court will look at several factors in find out whether information is a trade secret, including the secret holders effort to protect secrecy of the information, how widely the information is known within and outside the holders organisation and whether information provides a commercial, competitive advantage over others (David, 2008). For example, Psylock can share the secret with potential buyers under a nondisclosure agreement (Suzanne, 2004). In general, if any employees without Psylocks permission disclose or sell that trade secret to someone else, then Psylock is entitle to bring an action in court for misappropriation.Commercial Exploitation of IPInstead of commercialising the new invention by the company itself, Psylock may consider taking other ways of exploiting its Intellectual Property Rights (IPRs). IPRs may be assigned, whereby the ownership in the complet e or part of the right is transferred, or licences may be granted. One option is to use IP as a security for loan. Ownership of the IP, including all the exclusive rights in the IP, can be transferred to another owner for a price (Catherine, 2009). For example, in 1996, Enid Blytons copyright was sold for 13 Million. One potential worry with sell IPRs is that Psylock will lose the ability to control how the IP is used and developed and hence, Psylock will be unable to prevent the IP from being exploit in a manner prejudicial to the interests of its stakeholders (Donald, 2010). However, parties are free to impose tallys in assignments as to reassignment in the event of certain circumstances (Catherine, 2009).As Psylock is selling security software, he can also enter into a non-exlusive licensing agreement with other IT companies in order to commericalise the invention. Licences dont transfer ownership of the IPRs and can restrict commercialisation geographically (Darrel, 2005). I n general, commercialising partners will pay a royalty, fee, or dividend in return for the right to use the IP. Commercialisation may assist Psylock economic harvest-feast and can generate profit, but risks could arise from the process of commercialisation and failure to pursue commercialisation.Criticism of IPIt is debatable whether IP is necessary to encourage the deed of inventions. Hettinger argues that this is built on a contradiction, namely that in order to promote the development of ideas, it is necessary to reduce peoples freedom of using them. (Stephan, 2001). Simons (2006) argues that there would be more innovation, if there were no patent law because more money for research and development would be available if it were not being spent on patents and lawsuits (Brain, 2008). It is accomplishable that companies would have an even greater incentive to innovate if they couldnt rely on a twenty year monopoly.As mention before the idea slow patents is to give the inventor e xclusive rights for a limited of period to make, use or sell the invention. But there are some cases in which patents have been used to suppress innovation (Stephanie, 2001). Some companies may take out a patent, or buy someone elses patent, in order to inhibit rivals from go into the market. For example, in 1875, the US company ATT collected patents in order to ensure its monopoly on telephones. The result is that the introduction of radio was retarded for some 20 years (Brain, 2008).Charlie (2008) argues many opponents of IPRs typically support only contractual arrangements to protect ideas and innovation. Assume for example, Psylock creates a Security manual for enterprises and sell it to Company A1 and A2, with a contractual condition that each Company is obligated not to reproduce or sell a copy of the manual to a threesome party. Under the contract law, any buyers become liable to Psylock, if he breaches these provisions. But the advocates of the contractual approach to IP a re mistaken if they believe that private contract can be used to recreate the same type of protection afforded by modern IPRs (Stephan, 2001). Patent and copyright are good against all third parties, regardless of their consent to a contract. Steven(2008) argues a contract, by contrast, binds only parties to the contract not third parties as it is like private law among individuals (Stephan, 2001). Thus if company A relates to third parties the plot of the purchase manual, these third parties are not bound, by the original contractual obligation between Psylock and company A (Stephan, 2001).Intellectual property rights are key elements needed for companies to gain competitive advantage in their marketplace. The benefits of IPRs are multifaceted as they can assist the business in its marketing, product development, top financial resources and expanding the existing business through licensing and franchising. However, IPR protection is purely economic. IPR laws are generally inappro priate for defending the rights of local communities. There is a conflict between intangible works and free expression and exchange of ideas. For an enterprise like Psylock, it must have a system that can minimise the opportunity comprise of this trade off. A system whereby the company is secured in the knowledge that all IP are protected without infringing on someone elses IPRs.Words Count 1999