THE BENEFITS OF A STRONG IPR POLICY IN EUROPE:
EU IP action plan and the view of innovative start-up
Introduction
In recent times, Intellectual Property (IP) has taken on a central role in discussions about innovation and entrepreneurship. This could be attributed to the fact that we live in an information or knowledge society wherein immaterial goods are often as important as material goods. Intellectual Property Rights (IPRs) can be classified into five main categories: patents, copyrights, trademarks, designs, and trade secrets.
Patents protect technical inventions, which can be described as products or processes, which have not been disclosed to the public, can be applied in industry, and offer a new manner of doing something or a novel technical solution to a problem.[2] For instance, magnetic levitation, virtual reality, and 5G-enabling technologies are protected by patents.
Copyright protects original artistic intellectual creations. Some examples are books, photographs, paintings, music, computer programs, technical drawings and advertisements.[3]
Trademarks protect distinctive signs capable of representing a product’s business origin.[4] Brand names such as Nike or the world-famous logo of LEGO are typical examples of valid trademarks being applied in the course of trade.
Designs protect the visual appearance of a product, and they may consist of three-dimensional or two-dimensional features.[5] A design can be, for example, the particular shape of a wine bottle, or the material used to build the lampshade of a table lamp.
Trade secrets protect confidential information that is deemed to be commercially valuable and known only to a limited number of persons who have taken reasonable steps to keep it secret.[6] An example of a trade secret is the formula for Listerine or Coca-Cola.
Despite their particularities, all share a common goal: to protect the owner from unauthorised exploitation of its creations.[7] IP also increases social welfare and significantly contributes to the economy of a country. In fact, IPR intensive industries generate 45% of gross domestic product (GDP) – EUR 6.6 trillion – in the European Union (EU) annually and account for 63 million jobs (29% of all jobs).[8]
This article will explain the importance of a solid IPR policy by first addressing the latest measures adopted by the EU aimed at incentivising the use of IPRs by small and medium size enterprises (SMEs). Subsequently, it will describe the correlation between IP and innovation. Then, it will emphasize the importance of having the right IPR strategy and a strong IPR system for SMEs by way of reference to the advantages it brings to research and development, competition, and business growth. Finally, a conclusion will be provided.
[1] Cecilia Sofia Ruta is researcher at 4iP Council. The views expressed in this article are those of the author and do not necessary reflect the opinions of 4iP Council or any of its supporters.
[2] 4iP Council, ‘What is intellectual property and which types do I need?’ available at <https://www.4ipcouncil.com/4smes#what-is-ip>. See also: WIPO, ‘Patents’ available at <https://www.wipo.int/patents/en/>
[3] 4iP Council, ‘What is intellectual property and which types do I need?’ available at <https://www.4ipcouncil.com/4smes#what-is-ip>. See also: WIPO, ‘Copyright’ available at <https://www.wipo.int/copyright/en/>
[4] 4iP Council, ‘What is intellectual property and which types do I need?’ available at <https://www.4ipcouncil.com/4smes#what-is-ip>. See also: WIPO, ‘Trademarks’ available at <https://www.wipo.int/trademarks/en/>
[5] 4iP Council, ‘What is intellectual property and which types do I need?’ available at <https://www.4ipcouncil.com/4smes#what-is-ip>. See also: WIPO, ‘Industrial Designs’ available at < https://www.wipo.int/designs/en/>
[6] 4iP Council, ‘What is intellectual property and which types do I need?’ available at <https://www.4ipcouncil.com/4smes#what-is-ip>. See also: WIPO, ‘Trade Secrets’ available at <https://www.wipo.int/tradesecrets/en/>
[7] This is possible thanks to the ‘exclusivity rights’ granted to the IPR owner. 4iP Council, ‘What is intellectual property and which types do I need?’ available at <https://www.4ipcouncil.com/4smes#what-is-ip>. All links have been on accessed on June 1, 2022
[8] European Patent Office and European Intellectual Property Office, ‘IPR-intensive industries and economic performance in the European Union: Industry-Level Analysis Report, September 2019 – Third Edition’ available at <https://documents.epo.org/projects/babylon/eponet.nsf/0/9208BDA62793D113C125847A00500CAA/$File/IPR-intensive_industries_and_economic_performance_in_the_EU_2019_en.pdf>
