Assessment of Implications of Intellectual Property Rights in Promoting Business Enterprises - Empirical Evidence from India

Abstract

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Intellectual Property Rights (IPRs) are a set of exclusive rights protected by law, which are accorded to creators or persons for their creations for a certain time period. An IP right holder can realise value from their intellectual assets through utilising it internally for its own processes or share it externally through provision of goods and services to customers. The latter can be achieved through legal mechanisms such as licensing or assignment. In today’s globally competitive environment, intellectual property has placed itself on a pedestal in the context of promoting business as well as economic growth, and is becoming increasingly important. Intellectual Property (IP) is the fuel that powers the engine of prosperity, fostering invention and innovation. The increasing significance of intangible assets in the global economy is forcing business organisations to actively manage their IP as a key driver for building and sustaining their competitive advantage and achieving superior performance. IPRs are now being used not only as a tool to protect creativity and generate revenue, but also to build strategic alliances for socio-economic and technological growth. The rationale for the present research is to create awareness about the need of IPRs as a marketable financial asset and economic tool. Present research, however, is systematically designed to find out prime important areas of concern, such as why and how the entrepreneurs should acquire intellectual property rights. What challenges are they facing for its protection and how far are they successful? As a new entrepreneur, what is the duty regarding the protection of IP, with focus on trademark and its implication in business development, as well as in identifying the challenges faced by the business organisations and assessing the degree of its violation? Accordingly, in the present study, factor analysis and bivariate correlation were performed, to identify the factors responsible for the implementation of intellectual property rights, as well as to measure the relationship among the variables considered for the study. For the purpose of the study, ten factors, being primary in nature, had been selected as potential explanatory variables for explaining the variation in the credentials of IPR implementation among the entrepreneurs. The result of principal component analysis has revealed that significant features of IPR depend mostly on four factors – trust, acceptance, safety, and credibility. The empirical analysis explores that if there were any violation in the implementation of IPR by the entrepreneurs, it would significantly affect the business enterprises in terms of branding, promotion, as well as the quality of the product and services, besides the financial benefits.

Keywords: Innovations, Intellectual Property, Industrial Property, Trademark, Patent

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