Intellectual Property Rights Essay

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MONETIZATION OF INTELLECTUAL PROPERTY RIGHTS
Intellectual Property Rights (“IPRs”) have played a significant part in the world’s economy map. It accounts for “almost 39% of total economic activity (GDP) in the EU” and “26% of all jobs in the EU – around 56 million direct jobs. With the addition of 20 million indirect jobs, one in three of all EU jobs – 35% of all jobs – rely on IPR intensive industries” . The main subject of IPR, Intellectual Property (“IP”) asset is normally defined as the product of the mind, consisting of “inventions, literary and artistic works, and symbols, names, images, and designs used in commerce” . To maximize the use of this kind of assets, owners always fully focus on recognizing and exploiting them. Commonly
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Monetarization of IPRs
1.1. Overview on exploiting different types of IPRs
There are mainly four types of IPRs: patents, trade marks, designs and copyrights. In which, “patent to protect new inventions; trademarks that are used by businesses that may define brands, logos, and the shapes of products; design rights and registered designes; and copyright, which provides the owners with protection against unauthorized use of his/her literatery, artistic, and dramatic works, sound recordings, and software and database and so on”.
Patents
Among IPRs’ forms, patent is significantly important since it invents new things which bring innovations to the society. Patent as define in the Article 27.1 of the TRIPs Agreement is the technology innovation. Normally technical changes happen every day. However, the right of the patent holders to exclude others from commercially exploiting his or her invention is usually limited up to 20 years. That means “patents tend to be exploited in a relatively short protection period, after which they lose most of their economic value” . Technical change is rapid while the effective life of innovation is short, patents might not reward innovators adequately. This circumstance urges the patents owners to exploit the properties in varied and efficient
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For example, a patent which never being used in the production would turn out has no business value Economic value is the combination of the three main factors: creating income, being valued and promoting innovation. First, IPRs are probably capable of trading, cooperating or producing. Second, IPRs have value, which is not simply the transition price but also the important potential profit. The transaction of HERE is an example for the fact that the acquirers tend to target on the future benefits or “how IP can “drive” value” . IPR’s valuation is defined as the “process which aims to collect important information in order to determine the actual monetary value of particular intellectual property assets as well as the future economic benefits that they will bring”. The three essential methodologies to value IPRs include “the cost, the income and the market-based methods” . Last, IPRs plays a significant role in encouraging and promoting innovation, especially in patent industry. For example, an inventor is rewarded for all of the skills and hard work that has been put into the convention. The WIPO 2011’s report said “in recent decades, economists and policymakers have increasingly focused on innovation and its diffusion as critical contributors to economic growth and

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