Intellectual Property, as a legal concept, may still seem confusing to many. Business organizations who fully understand this law, however, are aware of how to benefit from it and establish a sustainable economy. Progressive nations are also too well conscious of it that they made an industrial property system to encourage technological and economic growth and extend their economic power beyond the national border.
Besides the need to comprehend the legal role of IP, business corporations must also acknowledge its value in making use of non-material assets. Tangible assets, such as buildings, real estate and capital are no longer the primary drivers of business growth and expansion. Rather, it is the intellectual creations of the mind, such as knowledge, information and designs that serve as working guides in promoting economic growth.
The Hidden Value of Intellectual Property
There is, however, a tendency for business enterprises to miss the real worth of IP. This claim is confirmed by a recent study revealing that about 40 percent of the asset of a business is not named on its balance sheet. It is not therefore surprising that intellectual assets are considered hidden treasures.
Intellectual assets are growing more important in conducting business operations, particularly in merging businesses. For instance, business managers organize an IP portfolio for important clients and potential business partners to evaluate. Cross-licensing is beneficial to the merging companies in two ways. First, it enhances both of the companies' IP assets. Another things is, cross-licensing provides mutually benefiting activities.
Governments that are supportive of local and national innovations help business enterprises gain economic stability. In the absence of a national industrial patenting system, a country will have a hard time promoting and at the same time sefeguarding domestic industrial innovations. But of course, nothing compares to a government that establishes a national patenting system.
It is also necessary for the government to raise awareness of foreign technologies and adapt them in legal means if necessary. While it is true that innovations are relevant to every culture, adaptation can also become a powerful driver of economic growth.
Besides the need to comprehend the legal role of IP, business corporations must also acknowledge its value in making use of non-material assets. Tangible assets, such as buildings, real estate and capital are no longer the primary drivers of business growth and expansion. Rather, it is the intellectual creations of the mind, such as knowledge, information and designs that serve as working guides in promoting economic growth.
The Hidden Value of Intellectual Property
There is, however, a tendency for business enterprises to miss the real worth of IP. This claim is confirmed by a recent study revealing that about 40 percent of the asset of a business is not named on its balance sheet. It is not therefore surprising that intellectual assets are considered hidden treasures.
Intellectual assets are growing more important in conducting business operations, particularly in merging businesses. For instance, business managers organize an IP portfolio for important clients and potential business partners to evaluate. Cross-licensing is beneficial to the merging companies in two ways. First, it enhances both of the companies' IP assets. Another things is, cross-licensing provides mutually benefiting activities.
Governments that are supportive of local and national innovations help business enterprises gain economic stability. In the absence of a national industrial patenting system, a country will have a hard time promoting and at the same time sefeguarding domestic industrial innovations. But of course, nothing compares to a government that establishes a national patenting system.
It is also necessary for the government to raise awareness of foreign technologies and adapt them in legal means if necessary. While it is true that innovations are relevant to every culture, adaptation can also become a powerful driver of economic growth.
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