Why Intellectual Property (IP) Management Is a Vital Part of a Company’s Business Management?
Intellectual property management is a very crucial component in any business due to a number of reasons. First, the protection of the property rights is a means of encouraging further innovations since it allows other organizations to commit further resources for further developments. It worth to acknowledge the fact that the advancement in technology rests on innovations and in order to achieve these developments, there is need to protect the property rights of the innovators.
The success of any company is dependent on the customer loyalty. Intellectual property management enhances customer confidence in the products/services of any organization. When a company protects its innovations, it instills confidence in its customers since they will be assured of the quality of the product or service. Intellectual property protection shields the customers against counterfeits and consequently protects the organization against loss of revenue due to sale of counterfeits to their customers, thus eating their market share.
Finally, intellectual property is good tool for creating a competitive advantage for the business. Intellectual property protection form good source of revenue stream for any business since they can be sold or licensed to other firms.
There are many real life illustrations benefits of intellectual property protection. A good example of benefit of intellectual property protection is the case of software applications manufacture by apple, a leading electronics company in USA. The company protected its rights to its innovations in mobile applications and the company is getting many revenues for licensing its rights to android operating system for mobile devices. A good example of damage caused by intellectual property infringement is the case where Desktop sales, sold its memory boards in counterfeit boxes bearing IBM names, (Classes.soe.ucsc.edu, 2014). This deprived IBM of revenues that could have been generated in sales of its products to the customers who eventually bought the products of Desktop sales in disguise of IBM boxes.