IPR IN BUSINESS AND SOFTWARE INDUSTRY
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IMPORTANCE OF IP IN BUSINESS STRATEGY
In the past, intangible assets were not given as much credit for the development as it is today and its role in the success of the business was also not adequately recognised.
It was considered that only physical assets lead to the overall growth of the business. However, with the advancement and increased use of information technology and growing significance of IT based products and upcoming service industry, the intangible assets have gained significance importance and value as compared to the physical asset of any corporation.
Owing to the fact that slowly AI is taking over human employment and eminent software and advanced technologies taking the place of factories and warehouses, significant IP and intangible asset of MSMEs have helped them emerge stronger than big firms with physical assets. In the light of it, it can be said that acquiring, creating and protecting IP can make it as valuable as other tangible assets which can be traded in the market, for if the ideas and IP of MSMEs are not legally protected by IPR, it can be copied and misused by any third party or rivalry without giving any credit and benefit to the real owner of the said IP.
INTELLECTUAL PROPERTY AS AN ASSET TO BUSINESS
Broadly, commercial enterprise belongings may be labelled as tangible and intangible. While tangible or physical asset consists of infrastructure, capital, machines and equipment, and different economic belongings, intangible belongings consists of know-how and progressive and innovative ideas, patents, designs and similar, collectively forming the intellectual capital of the company, thereby improving its ‘brand reputation’.
Various intangible assets are acquired and created by a company during the business that plays the role of enhancing the goodwill of the company. This can be in the form of patents, trademarks and designs. In order to enhance the creative and innovative potentiality of the unit, MSMEs tend to invest the funds in Research and Development. Such investment enables them to design new outputs and thus, gain profits out of the same. Having invested so much on the idea and the invention, the enterprise may move to IPR as a recourse to protect their Intellectual Property, so that the efforts made do not get wasted because of someone copying their idea or invention.
OWNERSHIP AND VALUE OF INTELLECTUAL PROPERTY TO INDIAN SOFTWARE DEVELOPERS
In the past couple of years, Indian organizations made Intellectual Property as a part of an altered/customized programming advancement contract with a distant customer. It had been a one of a kind commitment to satisfy the genuine necessities of the client. However, this had two results for an Indian programming provider.
The first is the Software that is made or created by the Indian organization was the idea of the client for whom it had been made and who got it. It didn’t relate to the Indian merchant and, on a fundamental level, couldn’t be utilized again inconsiderately being given to the primary client. Thus, regardless of whether important to the client, the product administrations weren’t of much future business use to the Indian Company. Secondly, the adjusted Software was unmistakable to the business application for which it was made and in this manner didn’t have a lot of significant worth in other business applications.
IP PROTECTION IN INDIA IN THE CONTEXT OF SOFTWARE – IPR IN SOFTWARE INDUSTRY
The security of intellectual property was of little enthusiasm to Indian software companies inside the past. To some extent this absence of intrigue in clarified by the small “new knowledge” content of Indian software services; there wasn’t a lot of property to monitor. Indian companies didn’t own the customized intellectual property they could have created since their work product fell under work for hire standards or ownership was explicitly transferred to the hiring company. Be that as it may, regardless of whether Indian companies created software services that had new knowledge value, they didn’t genuinely find a way to protect it. The main intellectual property protection available for software in India is copyright protection. India’s copyright law conforms to the requirements set out by the TRIPs agreement and thus software is protected as a literary work in India. Over the last ten years, India has implemented several legislative measures to bring it into compliance with TRIPs requirements.
In the era in which the economies are mainly driven with the aid of using knowledge, any commercial enterprises or busineses, be it massive or small, will have to rely upon intangible assets for its survival and growth. It is crucial to be aware that from a progressive and innovative concept to an invention, at every stage of the chain IP enhances the value of the business enterprise. It is high time now, that we recognize the actual value of our intangible assets and shield those assets from being infringed, legally, to accumulate intellectual capital of the company or the organization. From time to time, the business method for Indian Software will be challenging, and the advantages of labour are education, skill development, low cost, more people speak in English, etc. These wages are growing day by day and more in nations like Ireland, China, etc., are attempting to develop broaden or expand their labour departments.
The Indian software program industry calls for a greater level of development in terms of building a purchaser base, creativity, more domain knowledge, etc., it will lessen the growth rate among the rest. In a few companies in India, they are trying to enhance the enormous market of packaged software program products. They need to develop a competitive spirit in marketing, enhancing and improving technologies, skilled labour, etc. These requirements will make an extraordinary and newly advanced Intellectual Property in the imminent future. This may be an improved version IP framework so one can be innovative and cost-effective and may be utilized in exclusive ways.
The function of IPR in the software program enterprise and associated enterprise is significant. The regulation indicates exclusive strategies for shielding the rights of the agencies’ ownership. The sturdy safety of IPR is in a country, the higher encouragement the technology & innovation region receives main to higher monetary boom. But, it’s also believed that IPR safety can also additionally cause the dominance of Patent holders, and the scope for innovation is decreased.
The role of IPR in the software industry and related industry is significant. The law shows different methods for protecting the rights of the companies’ ownership. The robust protection of IPR is in a country, the better encouragement the technology & innovation sector gets leading to better economic growth. But, it is also believed that IPR protection may lead to the dominance of Patent holders, and the scope for innovation is decreased.