Should There Be a Market for Intellectual Property - Assignment Example

Topic: Should there be a market for intellect property. Does this promote efficiency? Does the presence of firms exclusively dealing in intellectual property promote efficiency? Are patent holding companies essentially a tax on innovation, or do they obtain a fair or just return for innovators who would otherwise go unrewarded? Introduction Intellectual property is a term commonly used in reference to a creation that results from an individual’s creative thinking. Therefore, intellectual property might refer to inventions, designs, images, names, literary and artistic works. Given that intellectual property is commonly used in commerce, it is always important to make sure that the creators of intellectual property are not exploited.This kind of protection usually comes in the form of trademarks, patents, and copyrights, thus enabling people to gain financial reward or recognition from their intellectual creations. However, there has been a debate about whether or not trademarks, patents, and copyrights are doing enough to ensure that people get the most from their creations (Li and Correa 121). Some people believe that there should be a market for intellectual property so that professionals with knowledge of the market can be entrusted with the responsibility of making sure that the creators of intellectual property are not exploited. On the other hand, others believe that the existence of intellectual property will only lead to further exploitation of creativity. Given the fact that intellectual property is an important aspect of the modern business environment, a market for the same will make sure that the creators get what they deserve for intellectual property. Intellectual property has grown to become one of the most important resources of 21st century business. Intellectual property has proved to be just as important as financial capital, labour, and commodities. However, what makes intellectual property unique is the fact that it is intangible. If not properly protected they might end up being used without the creators being credited. This is the reason governments all over the world are striving to make sure that people who create ideas are protected from exploitation (Torremans 101). Trademarks, patents, and copyrights have the ability of making sure that once a person registers a creation or idea as his or her own, people will not be allowed to use it commercially. This has been successful in making sure that people do not unfairly benefit from other people’s creativity. There are measures that have been put in place to prevent creativity from being stolen or being used without the knowledge of the owner. It should be noted that this does not mean that these ideas will be implemented to their potential. There are a number of reasons as to why many people with brilliant ideas might not be able to get what they deserve from their creativity. One of the reasons is that they might not be able to get the resources that are required to turn their creativity into actual projects (Cottier and Mavroidis 201). This implies that sometimes these ideas might end up being unused. Even in cases that they are used, there is always the question as to whether the people who generated the ideas are fairly and effectively compensated. Many people who come up with commercially viable ideas often do not know how much their creations are worth. It takes someone who has experience in business and the markets to know exactly how much a creation or idea will be worth on the market. It is only after many years that people start realizing that indeed their creation was worth more than they were given initially. However, the unfortunate part is that by the time they come to this realization, it is usually too late for them to do anything to reverse the situation. In many circumstances, they sign a contract making the creation or idea property of the organization or individual that they are selling them to. The trick in this case is that people with sound knowledge have the ability to estimate the potential of an idea or creation even before the creation or idea is put into practice (Maggiolino 99). Most creators might be brilliant, but might lack knowledge of the market, thus are not able to estimate the worth of their intellectual property. It is also clear that having a market for intellectual property can enhance efficiency. People in the business environment know exactly where to go for innovative ideas. Many business organizations usually spend many resources trying to get fresh, innovative ideas and creations (Greenhalgh and Rogers 217). This might save time and other resources that are always at stake when seeking intellectual property. As a result, they are likely to be willing to pay more for innovative creations. Given the fact that they will be dealing with professionals who have an idea of the potential of the creations, they will have no option but to be realistic with the offer that they make for intellectual property (Christie and Gare 167). Not being able to talk to the innovators directly will lead to a great change in professionalism in these deals because they will not be able to take advantage of their naivety of market matters. Tax innovation A common argument is that patent holding companies will be essentially taxing innovation. Some also argue that they obtain a fair or just return for innovators However, the question in this case would be the impact that such development would bring, especially regarding the manner in which intellectual property is handled at the moment. These companies will create a “You need it, we’ve got it” situation where business organizations or investors hoping to use innovation to get to the next level will be able to get the same without much hassle (Dratler 187). On the other hand, people with innovative ideas will also have people to go to in case they want to get the best out of their creations. Like talent management that assists people in getting the best from their talents, this will be an excellent way in which creativity can be appreciated. Sports celebreties have agents who make sure their talents are given what they deserve even though it is always at a cost (Correa 142). However, it is the sports celebrities who gain from being represented by agents because of the agents’ considerable knowledge of the market. In every industry pricing is always very important. There is always variance in prices depending on a number of factors. Intellectual property will bring some sanity to the pricing of property. Participants in the business environment should come to the realization that intellectual property is an asset just like the many other assets that are always used in the production of goods and services. This implies that intellectual property can be bought and sold, and therefore, there is a need for it to be given the financial value that it deserves (Maskus 118). This can only happen if everyone appreciates the value that intellectual property has in the 21st century business organization. Having companies dealing exclusively in intellectual property will make sure that people appreciate intellectual property and those who come up with them, by making sure that any creation is valued and compensated in a manner that the people involved will not regret having undervalued the creation later. The development of the intellectual property market can also be helpful in enhancing transparency in the acquisition of intellectual property. It is a common scenario to encounter an individual complaining that he was tricked into signing a deal that ended up giving him less than he deserved for his creations or ideas. This is because he went into the deal not knowing the possibility of this happening. However, with companies dealing with exclusively intellectual property, such cases can be analyzed and reviewed because these companies would have the necessary records and resources for tracking all the relevant information about the deal (Abbott, Correa and Drahos 212). In such cases, owners of intellectual process would not have to worry about how they will go through the long process that involves pressing for what they deserved because this will be done through these companies. It is clear that having a market for intellectual property will be of great benefit. One of the conclusions that can be drawn from the herein discussed reason is that companies dealing exclusively with intellectual property will lead to efficiency. More brilliant ideas and creations will be put into practice. They will also make sure that business organizations and investors do not take advantage of the fact that most innovators might not be well informed of the value of their ideas or creations when used commercially. As discussed herein, this knowledge can only result from proper knowledge of the market. References Abbott, Frederick M, Carlos M. Correa, and Peter Drahos.Emerging Markets and the World Patent Order. , 2013. Internet resource. Christie, Andrew, and Stephen Gare.Blackstones Statutes on Intellectual Property. , 2014. Print. Correa, Carlos M. Research Handbook on the Protection of Intellectual Property UnderWto Rules. Cheltenham, UK: Edward Elgar, 2010. Internet resource. Cottier, Thomas, and Petros C. Mavroidis.Intellectual Property: Trade, Competition, and Sustainable Development. Ann Arbor: University of Michigan Press, 2003. Print. Dratler, Jay. Licensing of Intellectual Property. New York: Law Journal Press, 2001. Print. Greenhalgh, Christine, and Mark Rogers.Innovation, Intellectual Property, and Economic Growth. Princeton: Princeton University Press, 2009. Internet resource. Li, Xuan, and Carlos M. Correa.Intellectual Property Enforcement: International Perspectives. Cheltenham, UK: Edward Elgar, 2009. Internet resource. Maggiolino, Mariateresa. Intellectual Property and Antitrust: A Comparative Economic Analysis of Us and Eu Law. Cheltenham: Edward Elgar Pub, 2011. Internet resource. Maskus, Keith E. Intellectual Property Growth and Trade. Amsterdam: Elsevier, 2008. Print. Torremans, Paul. Intellectual Property and Human Rights: Enhanced Edition of Copyright and Human Rights. Alphen aan den Rijn: Kluwer Law International, 2008. Print. Read More