By Riju Chowdhury
Intellectual property is defined as property created by the human mind and intellect. Intellectual property, as well as the rights linked to it, is becoming increasingly valuable. For the protection of intellectual property rights in India, there are well-established administrative, legislative, and judicial structures. India must implement the appropriate legislation to comply with the Agreement on Trade-Related Intellectual Property Rights (TRIPS). Trademarks, Copyrights, Patents, and Geographical Indications of Goods are all manifestations of intellectual property rights.
Intellectual property rights are critical to a country's development. Every country's intellectual property legislation is distinct. The strong implementation of the IPR function contributes significantly to economic growth in many industrialised nations. Intellectual property rights encourage innovation, which leads to economic prosperity. Every firm in the world today is the result of innovation. The relevance of IPR laws has been recognised in the modern period. In today's world, it is not just innovation that matters, but also the name. The name has a lot of goodwill attached to it. Some businesses just sell their brand name for a large sum of money. Intellectual property rights have a significant impact on a country's economic development. In terms of economic development, the IPR may play both a detrimental and a beneficial role. The significance of intellectual property rights on economic growth is examined in this article. The link between intellectual property rights and the economy is investigated in this article. The influence of IPR on the economy is both beneficial and bad. Protecting people's interests and rights to evolve in invention and creativity, which is closely related to the country's development and progress, is critical.
The connection between economy and intellectual property
Intellectual property plays the following roles in the economy:
To provide the creator exclusive rights and to safeguard the creator's interests, as well as to promote investment in research and information production;
Prohibit competitors or anyone else from abusing or misusing the property without the creator's consent; and
To develop a market for the invention so that it may be put to good use and inspire others to innovate and create.
It is now more cost-effective to employ fresh creations and ideas since they have a direct impact on the product's material cost. As a result, it is critical to stay up with technological advancements and innovation. If there is a solid IPR legislation in place to safeguard people's interests, it will deter others from exploiting the same. Not only does a good law matter, but so does its enforcement. It's pointless to have a strict rule if it can't be adequately enforced. Loopholes and weak rules can be abused and exploited, resulting in a lack of innovation. Individuals must be discouraged from exploiting intellectual property under IPR legislation. Now the owner or creator of the property has exclusive rights under IPR. The owner has complete control over the fair market value and can sell them to anyone. A healthy return to developers will motivate him and others to come up with new ideas, and we can all benefit from it. This privilege, however, can be exploited by the owner, who can charge far more than the marginal cost. This exclusive privilege has the potential to form a market monopoly. Monopoly results in market inequity and imbalance in both consumption and production. IPR and antitrust provisions exist in the legal system. Competition plays a vital function in the market; it keeps the market in check and has an impact on consumers.
There are a few market behemoths who wield complete market dominance. They have the resources and capacity to influence and control the market. The market is made up of consumers, producers, and developers, and IPR provides developers more rights and protection, which keeps competition alive. In the market, there must be a balance between the two. IPR may be used as a tool to keep the market in check. IPR not only grants the owner exclusive rights, but it also allows him the ability to transfer his right of use to others, allowing him to permit anybody to use it in exchange for money.
The Economic Impact of Intellectual Property Rights
A country like India, which is one of the world's most developing economies, must concentrate on increasing market productivity. India has a long history of providing exceptional services to the rest of the globe. Improved technology and methods can help to boost productivity. Innovation necessitates investment, and it necessitated a significant amount of expenditure. These are costly, but they play an essential part in the investment. We may learn from industrialised countries like the United States and Japan, where the rate of development rose fivefold when intellectual property rules were implemented. There are now several hypotheses claiming that IPR has a negative impact on the economy. In the 1980s, trademark infringement in China had a detrimental impact on Chinese creative businesses. Local businesses began to take advantage of the well-known firm by creating counterfeit items and releasing them into the market.
Copyright infringements have a similar effect. In nations with lax copyright rules, pirate businesses begin to take advantage of the law and the market. Even if low-quality or pirated versions are accessible on the market, technical advancement would be impeded, which will have a direct impact on the economy. Producers and consumers should both be enticed to invest in the market by IPR rules. This also ensures quality, which is critical for protecting consumers' interests. Customers may be at risk from counterfeit or fraudulent drinks, food goods, cosmetics, and medications. The market began to shift after the establishment of Trade-Related Intellectual Property Rights (“TRIPS”). The legislation began by providing operating space and an opportunity for businesses to innovate. In recent years, the private sector has begun to invest in research and development. The number of patents filed in India has grown since TRIPS was implemented.
The main disadvantage of IPR is that it sometimes prevents technology from being used in the most appropriate way. The holder of rights can occasionally abuse his or her position. They may charge whatever they want, and their innovation is protected by IPR, so it cannot be used by competitors. The most essential component in an economy's development is competition. The spirit of competition maintains a check and balance on both pricing and product quality. IPR laws, on the other hand, are anti-competitive.
PR legislation creates a market monopoly. It is pro-monopoly. Copyright, trademarks, and patents are all examples of laws that make it difficult for a rival to utilise an idea. Competition forces producers to consider the benefit and contentment of the customer since if the consumer is dissatisfied, he or she will seek out other market rivals. The manufacturer may set any price he wants, and this has a direct impact on the customer and the market. This is the law of supply and demand, which states that if the price is high, demand will be low. When there is a monopoly in the market, however, this legislation does not apply.
The law is created for society, not the other way around. Every legislation is enacted for the benefit and improvement of society. Every law has both beneficial and bad consequences for society. In the interest of public health in the event of a national emergency, pursuant to Article 31 of the TRIPS Agreement, obligatory licences may be granted. This is a form of anti-competitive behaviour. As a result, the Intellectual Property Right law in India does not make the market inflexible while still keeping it dynamic.
Author: Riju Chowdhury
Course: B.A. LLB, 2nd Year
Collage: Amity University Kolkata