This article is written by MS SHAHEEN HIRANI, a 4th year student from Keshav Memorial College Of Law.
Inventions and Creations have a major impact on global scale. An inventor has all the rights to market his creation and get all the benefits and protection under Intellectual Property Rights.
One innovative creation affects economic development and growth. That’s the reason IPR functions in favour of increase economical growth gaining positive change and improving development.
In this competitive environment today, innovation has become the backbone and necessity to carve a niche for any business. Innovation creates path for the involvement of IP and this IP provides business competitive edge and also contributes to success. IP is valuable for each resource especially for big business investing large sum of money in research and development in order to create unique product.
To get the hold of the economic benefits of IPR, major large firms and companies should implement IP solutions. This notices the novelty, uniqueness and helps in creating and increasing their revenue. IP goals must be clearly explained which helps companies achieve their objectives.
The global part strengthens due to the functioning of some international convention and one of it is- TRIPS. Numerous queries arises about the impact on prospects of economic growth. It is not easy to tell whether new regime will raise economic growth for two reasons- firstly, many elements affect the growth in ways that dominate impact of TRIPS. Secondly, economic theory points out that IPR could have a lot of effects on growth, some positive and some negative.
MECHANISM OF IPR AND ECONOMY
There are two main objectives for the working of economics in relation to Intellectual property protection. Firstly, it is to promote investment in creating inventions and also granting exclusive rights to the creator or the inventor. If such rights are not provided this will lead to inappropriate use of economically valuable information by competitive rivals. Secondly, it is to promote widespread of new knowledge by encouraging the holders to publicly showcase ideas and inventions in market. Once they are developed it can be efficiently accessed at marginal cost production.
However there is a contrast of opinion in both the objectives. As overly protection of IPR limits the social gain from invention. And weak system reduces innovation by not providing adequate return on investment. Therefore a policy balance is needed to fix appropriate market conditions and promote to growth.
Various IPR functions differently.
1.Patent, it provided rights for 20 years for unauthorised marketing and it must consist novelty and utility. Therefore patent creates a protected market benefitting in return for revealing technological knowledge.
2.Trademark, protects rights to goods and services under registered symbols and names. The firm invest in recognition and product quality. Thus economists predicts that danger of market dominance through abuse of trademark will diminish incentives for maintaining quality.
A final element of IP system is enforcement. It operates functioning two tasks- punishing infringers and discipling the firms. These objectives are required for development of extensive legal and scientific expertise.
POSTIVE IMPACTS AND ECONOMIC BENEFITS OF IPR
IPR stimulates economic growth and development as they are interdependent. IPR plays an important role in encouraging innovation, product development and technical alternatives. As all the IP are under the framework of licensed innovation there is rise in monetary development and emerges advantageous which helps in dynamic challenges.
The functioning of Trade-related aspects of Intellectual Property Rights, effects on the financial development. There are two significant point of view over monetary development and advance process. Primarily, numerous factors influence the development of TRIPS. Secondly, monetary hypothesis predicts that licensed innovative rights would undergo lot consequences for development either positively or negatively.
For the economic benefit of IPR, organisations must execute licensed innovative arrangements. This allows them to differentiate between novel and one of a kind characteristic increasing the income. Thus the commencement of TRIPS started changing the dynamics of market. It started to provide space for its functioning and opportunities to companies to innovate.
DRAWBACKS OF IPR ON ECONOMIC DEVELOPMENT
Biggest drawback is IPR sometimes restricts the best usage of technology. The individual holding rights misuses them. Competition is most important factor for development of economy. The spirit of competition keeps check and balance on price along with the quality of product. But IPR laws are against the principle of competition.
IPR creates monopoly in market. Competition considers that producer must think about the benefit and satisfaction of consumer is not content or satisfied they move to other competitors in the market. The product is charged by any price and it directly affect the consumer and market. This is the law of demand and if the price rise, demand is low. But this isn’t applied in monopoly. Due to competition the producer is forced to charge not much more than marginal cost.
A case law in depicting about the concept of IPR and economic importance is-
.MASCUS AND MCDANIEL(1999)
It considered how Japanese patent system affected post war progress, by increase in total factor productivity. Japanese patent system was designed for incremental and adaptive innovation of technology know in economy. The authors found that this encouraged large number of utility model application and utility positive impact of total factor product while patent application became weaker.
It was concluded that utility model were important source of technological change, patent provided stimulus to productivity. Thus patent system moved from encouraging difference to protecting fundamental technology.
.TRADEMARK IN LEBANON
Lebanon has extensive set of intellectual property law but are weakly enforced. Firms apparel industrial claimed to have strong interest in design and style aimed at middle eastern markets. Such changes are bought by trademark infringement in Lebanon and neighbouring countries. Therefore local product development and establishment new firms have been stifled by trademark infringement targeted largely at domestic enterprise.
.PANDEMIC AND IPR
Leaders around the world formed the proposals to expand access to IP Rights pertaining to COVID-19. Like EU considered buying COVID-19, related rights to set up fund of publicly owned patents.
This is an important step in IP sector and it is an extraordinary attempt by policymakers to ensure that the battle against pandemic is not obstructed by patents.
Several countries are now considered compulsory license scheme whereby got permit a 3 party to perform or a certain procedure without the patent owner consent.
Economic theory represents that IPR plays either positive or negative job in cultivating development and improvement. As needs are present day IPR frameworks are not adequate without anyone else to energize compelling innovation progress. The law id made for society not vice versa. All the laws are made for the benefit and betterment of society.
In the interest of public health in case of national emergency anti-competitive practice. So in India, the Intellectual Property Right law doesn’t make the market rigid at the same time dynamic in nature.
Accordingly modern IPR systems are not sufficient by themselves to encourage effective technology transition. Instead they modern form part of a coherent and broad set of complementary policies that maximize the potential for IPR to raise dynamic competition. This policies include strengthening human capital and skill acquisition, promoting flexibility in enterprise organisation, ensuring strong competition on domestic markets, and developing a transparent, non-discriminatory and effective competition regime.
REFERNCES
1.iptse.com
2.legalservicesindia.com
3.ipleaders.com
4.lexpeeps.in
5.economictimes.com
6.researchgate.net
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