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Role Of IPR In Augmenting Growth Of Innovations And Startups
- thelawpinion
- Oct 7, 2023
- 4 min read
Abstract
Sir John Salmond defines right as an interest recognized and protected by a rule of rights. Any piece of information is produced or created with a lot of effort and it consumes a lot of time. The cost factor is also involved with the creation or production of information. The creator of the information is the real owner and the owner has every right to protect his/her intellectual property. To protect one's intellectual property rights one can get the information copyrighted or patented or use a trademark. This protection allows them to reap the benefits of their work, which in turn drives economic growth, technological advancement, and cultural enrichment. It strikes a balance between the interests of creators and the public by promoting innovation while also ensuring that knowledge and ideas can be shared and built upon over time. Intellectual Property Rights (IPR) serve as a critical framework within which startups thrive and innovate. For startups, IPR plays a multifaceted role, acting as a shield, a catalyst, and a strategic asset. IPR's role in revenue generation through licensing and partnerships empowers startups to transform ideas into tangible economic assets. Moreover, IPR nurtures an environment of collaboration, enabling startups to leverage expertise while safeguarding their contributions.
This article explores the symbiotic relationship between IPR and startups, illuminating how legal protection not only safeguards innovations but also fuels economic growth, fosters creativity, and cements startups as pivotal drivers of modern entrepreneurship with recent references.
Introduction
As burgeoning enterprises seek to transform novel ideas into tangible market realities, the strategic utilisation of IPR emerges as a pivotal factor in their success. Intellectual Property Rights encompass patents, trademarks, copyrights, and trade secrets, collectively serving as the legal foundation that safeguards creative and inventive endeavours. Startups, on the other hand, represent the driving force behind technological disruption, economic growth, and the reshaping of industries. This interplay between IPR and startups forms the cornerstone of a dynamic ecosystem where protection, innovation, market differentiation, and economic sustainability intersect. In this exploration, we delve into the multifaceted relationship between IPR and startups, uncovering how these two elements collaboratively shape the landscape of modern entrepreneurship while fostering ethical considerations and propelling the realms of creativity and ingenuity.
Analysis
Firstly, IPR offers startups legal protection for their innovative ideas and creations. This protection encourages startups to invest in research and development, knowing that their intellectual property will be safeguarded. In turn, startups' innovations contribute to the expansion of intellectual property portfolios. Secondly, Investors are more likely to support startups with strong IPR, as it signifies a valuable and defensible market position. Thirdly, Building a robust IPR portfolio can create barriers to entry for potential competitors. This discourages others from replicating the startup's innovations and provides the startup with a period of exclusivity in the market. Fourthly, While protecting their own innovations, startups also contribute to the exchange of knowledge and technology in the broader industry. IPR can encourage startups to share information while retaining control over their core assets. Fifthly, IPR offers startups a strategic advantage in negotiations and collaborations. It provides leverage when forming partnerships, joint ventures, or licensing agreements with established players in the industry.
Recently, in July 2023 the Government of India launched Startups Intellectual Property Protection (SIPP) for encouraging innovation and creativity of startups.
Startups and innovations are easily carried out by business groups as IPR provides a security check in their research. In addition to this, economic incentives are also expected.
India has been making conscious efforts in building and growing its innovation. With the augment of spreading IPR knowledge, the Delhi High court created the first Intellectual Property Division. Following this, the High court of Judicature at Madras also created an IPD in the Madras High Court, having its inception on 13th April 2023. It has been created to deal with matters relating to Intellectual Property Rights to adjudicate on various categories of cases like Appeals, Rectification Petitions, Original Civil Suits, Writ Petitions, etc. With an objective to eliminate ambiguity and to ensure uniformity, IPD led its establishment and is expected to decrease IP cases which results in speedy justice. The tribunal Reforms Act of 2021 abolished tribunals including India's Intellectual Property Appellate Board. It was created in 2003 by the central government with an objective to protect the rights of ip members through technical and scientific knowledge. Despite its overwhelming initiatives, IPAB brought dysfunctioning which led to pending lawsuits.
Source: Bar And Bench
The Boeing Company and Ors. Vs. Advance Technologies and Ors.
Boeing is a leading aerospace company and has the largest production of commercial jetliners. They have successfully operated its business in India through various subsidiaries. The trademark "Boeing" has been from the name of the founder of the company Mr. William Boeing and the logo have been used in India since 1997. In April 2023, a suit was filed by the Boeing Company against the defendant usage of impugned logo. The plaintiff demanded relief of permanent injunction and was later received 5 lakh as compensation. The court concluded that the defendants are infringing the logo of the plaintiff and restrained it from using.
Conclusion
The advent of Intellectual Property Rights has granted security to companies. It encourages individuals and businesses to create new software and applications. It also promotes investment in the national income. Startups contribute to the growth of innovation ecosystems, and IPR protection helps solidify their position in these ecosystems. A thriving startup environment attracts more innovation, benefiting the entire industry. The legal shield of IPR fortifies startups against imitation, enabling them to carve distinctive identities in competitive landscapes. Moreover, IPR acts as a catalyst for attracting investments, forming strategic partnerships, and generating revenue streams through licensing agreements. As startups harness IPR to navigate their developmental journey, they concurrently contribute to the evolution of intellectual property landscapes by infusing them with fresh ideas and solutions. This exchange fuels collaborative innovation ecosystems, where knowledge is shared, protected, and ethically rewarded. Together, IPR and startups epitomize the ethos of modern entrepreneurship, where visionary ideas, legal frameworks, and ethical considerations harmonize to shape industries and impact society at large. By safeguarding creativity, stimulating innovation, and propelling startups forward, the relationship between IPR and startups becomes a beacon of progress in a rapidly evolving world.
Reference
*This article was authored by Wafiya Faiz, Student from Faculty of Law, Jamia Millia Islamia, New Delhi & Samarth Chawla, Student from University School of Law and Legal Studies, GGSIPU, New Delhi and reviewed by Poorvi Madan, Student from Symbiosis Law School, Noida.
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