Role of IPR in Research and Development

Author : Advocate Rakesh Tiwari and Associate Jennifer Vimal

The term 'Intellectual Property’ (IP) refers to unique, value-adding creations of the human intellect that results from human ingenuity, creativity, and inventiveness. An IP right is hence a legal right based on the relevant national law encompassing that particular type of intellectual property right. Such a legal right comes into existence only when the requirements of the relevant IP law are met and, if required, it is granted or registered after following the prescribed procedure under that law. 

Practically all countries in the world, have a national legal system of intellectual property rights; this has been created over varying periods of time. It has enabled the grant of property-like rights over new knowledge and creative expression and has made it possible to harness the commercial value of the outputs of inventiveness and creativity. 

This is usually achieved by its orderly use by exchanging or sharing it amongst various business partners that generally work together during the new product development process for creating and marketing new and improved goods and services in domestic and export markets.

The legal rights forbid all others from using the underlying IP asset for commercial purposes without the prior consent of the IP right holder. The different types of IP rights include trade secrets, utility models, patents, trademarks, geographical indications, industrial designs, layout designs of integrated circuits, copyright and related rights, and new varieties of plants.

Role of IP in Innovation

The term ‘ip’ refers to unique value-adding creations of the human intellect that results from human ingenuity creativity and inventiveness. As there are many players involved in facilitating the market success of an innovation,  the effective use of IP plays an important role in reducing the risk for the players involved, who may then be able to reap acceptable returns for their participation in the process. IP acts as a key in facilitating the process of taking innovative technology to the market. At the same time, IP helps in enhancing the competitiveness of technology-based enterprises, whether such enterprises are commercializing new or improved products or providing service on the basis of new or improved technology.

For most technology-based enterprises, a successful invention results in a more efficient way of doing things or in a new commercially viable product. The improved profitability of the enterprise is the outcome of added value that underpins a bigger stream of revenue or higher productivity.

Research and Development Stage

Several indicators have been used to measure the efforts of an enterprise in undertaking research and developing innovative ideas. These include expenditure on research and development (R&D), information on innovation, total sales, firm size, innovation strategies, etc. These indicators are directly or sometimes indirectly influenced by IP. The IP tools used during the “conception of an innovative idea” stage continues to be relevant also during this stage. Thus, trade secret continues to be relevant, especially if the enterprise is yet to decide on whether to file a patent application. Keeping trade secrets continues to be relevant during the entire R&D phase, as one would not want the competitors to ever have access to vital information. If used by such competitors it would result in the erosion of competitive advantage, derived from the final product.

During this period, researchers should periodically consult several sources of information that would provide input for the success of their project. Patent documents continue to be a relevant source of information that is often grossly underutilized. Patent documents provide useful information on the state-of-the art, which would enable an enterprise to avoid unnecessary wastage of resources, in terms of money and time, during the R & D process, thereby hopefully reducing the normally high R & D costs. Patent information can also provide useful information, which can lead to product improvement or to design-around inventions, which may help to "short-circuit" the lengthy time frame often required to take a new product to the market.

To sum up, innovation is a process, which begins from the conception of an idea to the launching of a new product/process in the market place. Intellectual property rights can be used effectively to facilitate successful innovation. Innovative technologies stand a better chance of successfully reaching the marketplace if IP is used strategically. Gauging the importance of IP in innovation by merely focusing on patents as input and/or output of innovation, does not do justice to the significant role that can be played by the other tools of IP. A broader approach to the contribution of IP in innovation is therefore needed.

IP also provides access to financing and technical facilities. In addition, IP provides a strong negotiation position when it comes to entering into and maintaining business partnerships.