November 19, 2018
Originally posted 2018-11-19 11:17:03
Why Having an Intellectual Property Strategy is Important
Intellectual property is a very important resource, and it is no surprise Forbes Magazine has called it among the most important resources in the 21st century. Despite what product or service a business makes or provides, intellectual property is being created and used in some way. Whether it be a trademark or confidential information, it is important for a business to protect its intellectual property.
Businesses that pursue market segmentation should especially be concerned about intellectual property rights, since few protections exist to keep competitors from duplicating a company’s products and selling them at cheaper prices.
Market segmentation is pursued to maximize profits and to appeal to a larger base of consumers, but those benefits will be stripped if there is no way to prevent a competitor from entering a particular product market segment and infusing it with their cheaper duplicates.
This practice of duplication then becomes a dilemma, because why should others bother to innovate when it is much easier to merely replicate? Less money would be spent on new innovations, which hurts consumers as well as businesses. Intellectual property addresses this problem by forcing competitors to innovate instead of copying the competition.
In addition, some companies invest a substantial amount of time and money in researching and developing products, in patent protection, and other forms of intellectual property help recuperate these costs. An intellectual property owner could also license his or her rights for royalties, which would also increase income.
Intellectual property holds numerous benefits, but it is up to the business to take advantage of the system. While some businesses might not see the benefits of pursuing an intellectual property strategy, it can be the key to the success of many businesses.