PROS AND CONS OF PROTECTING INTELLECTUAL PROPERTY

Question 1

What does intellectual property refer to

Answer 1

Intellectual property refers to the ideas and concepts that are generated by an organisation.

Question 2

What does intellectual property include

Answer 2

New products and product innovations

New processes and process innovations

Creative ideas (i.e marketing ideas, logos, brand names)

Artistic creations (books, music, images etc)

Question 3

What are the pros of protecting IP

Answer 3

Encourages businesses to innovate, as original ideas will be more dificult to copy

Patents can be sold or rented out as a source of income

Patents lead to a degree of monopoly power. Seen as a reward for risk taking

Particularly important in some industries - pharmaceuticals, high tech, etc

Can be benefits for the industry and society as a whole. E.g increasing export revenue