Business has not changed but the way of doing the business has changed and infact the change is on fast track mode thanks to Technology. Due to this fast track mode, many of the traditional business who never changed the way of doing the business have either wind up their business or have been forced to change with bad impact on their business future. In today’s business production of goods / providing of services is not enough but how it reach in market on time i.e., thereby giving rise to a good transportation system, delivery system and if this system is given on real time then it only adds to the revenue in small margin. This is where most of the business fill the gap and ensure proper system and revenue model. There is no doubt that in this era new technologies have changed the way business has to be done. New business model has come up wherein the people are now becoming the Admin of the Whatsapp Group or Telegram Group and are allowing marketing the goods once the payment is made for using the group. This is the totally new model of business since good years now. This new business model can be taken as new concept but surely not a work to get registered under Copyright or Patent Act. It is important to note that the markets are getting shrink due to technology and the best example is that you can see how the manufacturer are now directly connect to the end consumer. The change in technology, way of doing the business, is nothing but in business sense intangible assets of the business owners. For ex.., Tribhovandas Bhimji Zaveri is a brand and is the best example of well-known mark in Jewellery Business, Kalyan Jewellers are making their way in terms of branding of your products, etc. The markets are now being branded with brands and infact the branding has become a major source of saleable goods source in the market. Conventionally, Indian Micro, Small and Medium Enterprises (MSMEs) have relied on creating and protecting tangible assets-from land, machinery to office equipment-together with their revenue and receivables, to boost their valuation and prestige among their peers and in the industry. MSME means the micro, small and medium business owners and they are the backbone of Indian Economy. Within MSME itself, there are new start-ups and traditional business which is going on since more than 100 years. Herein the intention of this Article is to share the relevance of Intellectual Property amongst the Business Owners specially Traditional and those who still have not realised the importance of Intellectual Property Rights. The best illustration to share is of Waman Hari Pethe a Jewellery store. They have marketed their products and created a brand with their brand name, Waman Hari Pethe and this is enough to give best and tough competition to any other Retail Jewellery store. Today the valuation itself of the brand Waman Hari Pethe in Jewellery market can be valued than more than 50 unbranded retail jewellery store and they can only earn by selling their brand. This itself is a way to earn but sadly most of the MSME and unorganised are not taking this branding and valuation as their business strategy and hence losing out to competitors.
What is Property and importance of Property as Asset for any Business Owners?
Property is of two kinds:
- Corporeal Property i.e., property in material or physical form such as land, building and chattel. Corporeal property is tangible and can be seen through eyes since it has got certain corpus (physical structure).
- Incorporeal Property i.e., property in immaterial form or non-physical property which results out of intellectual efforts like patents, trademarks, copyrights, designs, etc. It is the latter category of Incorporeal Property which is called as Intellectual Property Rights popularly. Incorporeal Property is intangible. Property, which is intangible in the sense, cannot be seen through eyes is classified as intangible property like lease, mortgages, patents, copyrights, trademarks, etc.
In Today’s Competitive global knowledge economy, all businesses irrespective of their size and scale are bound to create ‘intangible assets’ of various kinds and their value may even exceed their ‘tangible assets’.
What is Intellectual Property?
Intellectual Property refers to creation of mind such as inventions, designs for industrial articles, literary, artistic work, symbols which are ultimately used in commerce and in turn is a profitable asset in many manners. Intellectual Property rights allow the creators or owners to have the benefits from their works when these are exploited commercially. These rights are statutory rights governed in accordance with the provisions of corresponding legislations. Intellectual Property rights reward creativity & human endeavor which fuel the progress of humankind.
Intellectual Property is an Integral Part of Business Growth:
Traditionally, physical assets have been considered responsible for the overall value, competitiveness and growth of a company. In recent years, however, the situation has dramatically changed. Due to the growing importance of information technology based products, automation and an upcoming service industry, the intangible assets are often becoming more valuable than the physical assets of the companies.
What is the important of Law in Business?
It is well known fact that law plays a key role in the business development process in general and a pivotal role in the growth of private business in particular. In all countries, law, which is often used to maintain the status quo, has also had an essential role in guiding and legitimizing the processes of change. It is the instrument for introducing orderly development and reconciling diverse interests.
Intellectual Property Law is like a basket of eggs laid by several legal species and common gene. Patent, Copyright, trademark, design, passing-off, confidential information and others have common dominant characteristics. They deal with the knowledge based economy-cum-industry. The law concerning them governs the creation, use and exploitation of the creative efforts of the mind
Intellectual Property Rights exists in different works involving Intellectual or mental labour. Generally, speaking any Intellectual efforts having commercial value could be given protection. Intellectual efforts in the field of literature, artistic, science, engineering, manufacturing, business, agriculture, etc., gives rise to Intellectual Property rights. Depending upon the nature of the Intellectual work and field of application Intellectual Property rights have been classified into different kinds which is as under:
- Industrial Design
- Geographical Indications
- Semiconductor chips and integrated circuits; and
- Trade secrets
The objective of enactment of statutes, governing IPRs is to ensure adequate standards of protection exist in member countries.
What function does Intellectual Property do for Business?
- It identifies the Product/Services and its origin
- It guarantees its unchanged quality
- It advertises the Product/Services
- It creates an image for the Product/Services.
- Link between Manufacturer/Service Provider and Customer
- Instrument of publicity – “the silent salesman”
- Symbol of Goodwill
- Intellectual Property is a Asset
How Intellectual Property is an Asset?
It is not far away the fact that Bank will start giving the Loans only on basis of valuation of IPR and most prior usage and well-known mark is the Loan will be accessible.
Administration of Intellectual Property Rights in India
Patents, designs, trademarks and geographical indications are administered by the Controller General of Patents, Designs and Trademarks which is under the control of the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry. Copyright is under the charge of the Ministry of Human Resource Development. The Act on Layout Design of Integrated Circuits will be implemented by the Ministry of Communication and Information Technology
How Can Intellectual Assets Help MSME?
The assets of an enterprise may be broadly divided into two categories: a) physical assets – including buildings, infrastructure, machinery, working capital and other financial assets and b) intangible assets – including human and intellectual capital comprising of creative and innovative capacity, ideas, know how, patents, designs and brand reputation. Thus, during the course of business, a firm may create and own various intangible assets that include customer goodwill, human skills embodied in its workers, good management practices as well as IPRs in the form of patents, designs and trademarks. These IPRS are particularly seen as means of providing returns to innovation and creative activities.
Today Intellectual Property is more valuable than the physical property. Business entrepreneurs invest huge amount of their funds in research and development to acquire and protect Intellectual Property.
The protection of Intellectual Property Rights is important for the economy and for its further growth in areas such as research, innovation and employment. Understanding the importance of Intellectual Property Rights, it shall be always taken as an integral part of its Business Strategy. To remain ahead of competitors, business entities must either continuously introduce radically new products and services or make small improvements to the quality of existing products and services. Changes are also made in response to customer needs; therefore almost every product or service used in daily life gradually evolves as a result of a series of big or small innovations, such as changes in design or improvements in a product’s look and function.
The time is already moving fast for those business entities who have still not acted on protecting their IPR and more they delay, be ready for winding uo your business very soon and if not now then surely not far also