{"id":753,"date":"2022-01-25T21:49:51","date_gmt":"2022-01-25T21:49:51","guid":{"rendered":"https:\/\/inventedly.com\/?page_id=753"},"modified":"2022-01-25T21:50:36","modified_gmt":"2022-01-25T21:50:36","slug":"pros-cons-of-intellectual-property","status":"publish","type":"page","link":"https:\/\/inventedly.com\/index.php\/resources\/general-intellectual-property-principles\/pros-cons-of-intellectual-property\/","title":{"rendered":"Pros\/Cons of Intellectual Property"},"content":{"rendered":"\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/inventedly.com\/wp-content\/uploads\/2022\/01\/img_18-1024x46.png\" alt=\"\" class=\"wp-image-496\" width=\"1138\" height=\"51\" srcset=\"https:\/\/inventedly.com\/wp-content\/uploads\/2022\/01\/img_18-1024x46.png 1024w, https:\/\/inventedly.com\/wp-content\/uploads\/2022\/01\/img_18-300x14.png 300w, https:\/\/inventedly.com\/wp-content\/uploads\/2022\/01\/img_18-768x35.png 768w, https:\/\/inventedly.com\/wp-content\/uploads\/2022\/01\/img_18.png 1280w\" sizes=\"auto, (max-width: 1138px) 100vw, 1138px\" \/><\/figure>\n\n\n<div class=\"aioseo-breadcrumbs\"><span class=\"aioseo-breadcrumb\">\n\t\t\t<a href=\"https:\/\/inventedly.com\" title=\"Home\">Home<\/a>\n\t\t<\/span><span class=\"aioseo-breadcrumb-separator\">&raquo;<\/span><span class=\"aioseo-breadcrumb\">\n\t\t\t<a href=\"https:\/\/inventedly.com\/index.php\/resources\/\" title=\"Resources\">Resources<\/a>\n\t\t<\/span><span class=\"aioseo-breadcrumb-separator\">&raquo;<\/span><span class=\"aioseo-breadcrumb\">\n\t\t\t<a href=\"https:\/\/inventedly.com\/index.php\/resources\/general-intellectual-property-principles\/\" title=\"General IP Principles\">General IP Principles<\/a>\n\t\t<\/span><span class=\"aioseo-breadcrumb-separator\">&raquo;<\/span><span class=\"aioseo-breadcrumb\">\n\t\t\tPros\/Cons of Intellectual Property\n\t\t<\/span><\/div>\n\n\n<h2 class=\"has-text-color wp-block-heading\" style=\"color:#0461ce\">Pros\/Cons of Intellectual Property<\/h2>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background is-style-wide\" style=\"background-color:#0461ce;color:#0461ce\"\/>\n\n\n\n<p class=\"has-drop-cap wp-block-paragraph\">Effectively balancing and mixing one or more elements of intellectual property (including copyright, patent, trademark, and trade secret) is essential to maintaining a strategy for any company.<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_1');\" onkeypress=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_1');\" ><sup id=\"footnote_plugin_tooltip_753_1_1\" class=\"footnote_plugin_tooltip_text\">[1]<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_753_1_1\" class=\"footnote_tooltip\">See, e.g.,&nbsp; Mazzoleni et al., The benefits and costs of strong patent protection: a contribution to the current debate, Research Policy 27:273-284 (1998); Elhanan Helpman, Innovation, Imitation,&nbsp;&#x2026; <span class=\"footnote_tooltip_continue\"  onclick=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_1');\">Continue reading<\/span><\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_753_1_1').tooltip({ tip: '#footnote_plugin_tooltip_text_753_1_1', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Intellectual property adds significant benefits to a company.&nbsp; First, intellectual property adds to a company\u2019s valuation.&nbsp; For example, intellectual property may increase investor confidence (e.g. venture capitalists, angel investors, the public with an IPO, etc.).&nbsp; Additionally, intellectual property increases a degree of customer confidence which may translate into more faithful customers (i.e. customers assign a high value to the company).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Second, intellectual property adds significant protection to a company.&nbsp; On one hand, the protection may extend from a core product (e.g. the \u201csecret sauce,\u201d the golden nugget, etc.) to any business related activity or information.&nbsp; The name, the text, and the product all need to and should be protected.&nbsp; The protection also extends to defending the company\u2019s research and development efforts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Third, an intellectual property portfolio can be a source of profit.&nbsp; For example, an IP portfolio can generate revenue (e.g. cross licensing, settlement agreements, etc.).&nbsp; Additionally, in some situations, a portfolio may be outsourced to a licensing company to generate revenue for a company.&nbsp; As a last resort, the IP portfolio can be sold.<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_2');\" onkeypress=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_2');\" ><sup id=\"footnote_plugin_tooltip_753_1_2\" class=\"footnote_plugin_tooltip_text\">[2]<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_753_1_2\" class=\"footnote_tooltip\">As an example, Kodak sold its digital imaging portfolio for $525 million.&nbsp; See, e.g., Natash Lomas, \u201cKodak Agrees to Sell Digital Imaging Patent Portfolio for $525M To Consortium of 12&nbsp;&#x2026; <span class=\"footnote_tooltip_continue\"  onclick=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_2');\">Continue reading<\/span><\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_753_1_2').tooltip({ tip: '#footnote_plugin_tooltip_text_753_1_2', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script> &nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fourth, intellectual property gives a positive public image.&nbsp; Such a public image may bolster a company\u2019s market position.&nbsp; Additionally, the public image may be some proof of the company\u2019s novelty and ingenuity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fifth, last but not least, intellectual property comes down to leveraging your company or product.&nbsp; IP increases your power of leverage during negotiation, during potential litigation (e.g. if you don\u2019t sue me, I won\u2019t sue you, etc.), and\/or for business exit options (e.g. do we liquidate our IP, assert our IP, etc.).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Of course, the above examples are just some of the reasons that intellectual property can benefit a company.\u00a0 That being said, lest I be accused of only indicating the \u2018benefits\u2019 of intellectual property, recognize as well that asserting rights to IP is not always an easy process.\u00a0 It can be expensive,<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_3');\" onkeypress=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_3');\" ><sup id=\"footnote_plugin_tooltip_753_1_3\" class=\"footnote_plugin_tooltip_text\">[3]<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_753_1_3\" class=\"footnote_tooltip\">Particularly patent litigation. <\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_753_1_3').tooltip({ tip: '#footnote_plugin_tooltip_text_753_1_3', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script> take years to resolve, be unpredictable,<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_4');\" onkeypress=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_4');\" ><sup id=\"footnote_plugin_tooltip_753_1_4\" class=\"footnote_plugin_tooltip_text\">[4]<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_753_1_4\" class=\"footnote_tooltip\">Your case may be transferred to another venue, the jury selected may not be what you expected, etc.<\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_753_1_4').tooltip({ tip: '#footnote_plugin_tooltip_text_753_1_4', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script> and may be at the mercy of the then-current state of legal affairs<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_5');\" onkeypress=\"footnote_moveToReference_753_1('footnote_plugin_reference_753_1_5');\" ><sup id=\"footnote_plugin_tooltip_753_1_5\" class=\"footnote_plugin_tooltip_text\">[5]<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_753_1_5\" class=\"footnote_tooltip\">Compare, for example, the patent licensing market prior to and after the passage of the American Invents Act. The laws directly influence ownership rights \u2013 including the right to assert.<\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_753_1_5').tooltip({ tip: '#footnote_plugin_tooltip_text_753_1_5', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script>. In short, it is not an all-rosy field without issues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That being said, it is my experience that notwithstanding the potential negative considerations, the positive benefits consistently and historically far outweigh the negative.&nbsp;<\/p>\n<\/div>\n<\/div>\n<div class=\"speaker-mute footnotes_reference_container\"> <div class=\"footnote_container_prepare\"><p><span role=\"button\" tabindex=\"0\" class=\"footnote_reference_container_label pointer\" onclick=\"footnote_expand_collapse_reference_container_753_1();\">References<\/span><span role=\"button\" tabindex=\"0\" class=\"footnote_reference_container_collapse_button\" style=\"display: none;\" onclick=\"footnote_expand_collapse_reference_container_753_1();\">[<a id=\"footnote_reference_container_collapse_button_753_1\">+<\/a>]<\/span><\/p><\/div> <div id=\"footnote_references_container_753_1\" style=\"\"><table class=\"footnotes_table footnote-reference-container\"><caption class=\"accessibility\">References<\/caption> <tbody> \r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" id=\"footnote_plugin_reference_753_1_1\" class=\"footnote_plugin_index pointer\" onclick=\"footnote_moveToAnchor_753_1('footnote_plugin_tooltip_753_1_1');\"><a role=\"button\" tabindex=\"0\" class=\"footnote_plugin_link\" ><span class=\"footnote_index_arrow\">&#8593;<\/span>1<\/a><\/th> <td class=\"footnote_plugin_text\">See, e.g.,&nbsp; Mazzoleni et al., The benefits and costs of strong patent protection: a contribution to the current debate, Research Policy 27:273-284 (1998); Elhanan Helpman, Innovation, Imitation, and Intellectual Property Rights, Working Paper No. 4081, National Bureau of Economic Research (May 1992).<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" id=\"footnote_plugin_reference_753_1_2\" class=\"footnote_plugin_index pointer\" onclick=\"footnote_moveToAnchor_753_1('footnote_plugin_tooltip_753_1_2');\"><a role=\"button\" tabindex=\"0\" class=\"footnote_plugin_link\" ><span class=\"footnote_index_arrow\">&#8593;<\/span>2<\/a><\/th> <td class=\"footnote_plugin_text\">As an example, Kodak sold its digital imaging portfolio for $525 million.&nbsp; See, e.g., Natash Lomas, \u201cKodak Agrees to Sell Digital Imaging Patent Portfolio for $525M To Consortium of 12 Licensees, Including Apple, Google, Facebook,\u201d December 19, 2012, available at <span class=\"footnote_url_wrap\">http:\/\/techcrunch.com\/2012\/12\/19\/kodak-to-sell-digital-imaging-patent-portfolio-for-525m\/<\/span> <\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" id=\"footnote_plugin_reference_753_1_3\" class=\"footnote_plugin_index pointer\" onclick=\"footnote_moveToAnchor_753_1('footnote_plugin_tooltip_753_1_3');\"><a role=\"button\" tabindex=\"0\" class=\"footnote_plugin_link\" ><span class=\"footnote_index_arrow\">&#8593;<\/span>3<\/a><\/th> <td class=\"footnote_plugin_text\">Particularly patent litigation. <\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" id=\"footnote_plugin_reference_753_1_4\" class=\"footnote_plugin_index pointer\" onclick=\"footnote_moveToAnchor_753_1('footnote_plugin_tooltip_753_1_4');\"><a role=\"button\" tabindex=\"0\" class=\"footnote_plugin_link\" ><span class=\"footnote_index_arrow\">&#8593;<\/span>4<\/a><\/th> <td class=\"footnote_plugin_text\">Your case may be transferred to another venue, the jury selected may not be what you expected, etc.<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" id=\"footnote_plugin_reference_753_1_5\" class=\"footnote_plugin_index pointer\" onclick=\"footnote_moveToAnchor_753_1('footnote_plugin_tooltip_753_1_5');\"><a role=\"button\" tabindex=\"0\" class=\"footnote_plugin_link\" ><span class=\"footnote_index_arrow\">&#8593;<\/span>5<\/a><\/th> <td class=\"footnote_plugin_text\">Compare, for example, the patent licensing market prior to and after the passage of the American Invents Act. The laws directly influence ownership rights \u2013 including the right to assert.<\/td><\/tr>\r\n\r\n <\/tbody> <\/table> <\/div><\/div><script type=\"text\/javascript\"> function footnote_expand_reference_container_753_1() { jQuery('#footnote_references_container_753_1').show(); jQuery('#footnote_reference_container_collapse_button_753_1').text('\u2212'); } function footnote_collapse_reference_container_753_1() { jQuery('#footnote_references_container_753_1').hide(); jQuery('#footnote_reference_container_collapse_button_753_1').text('+'); } function footnote_expand_collapse_reference_container_753_1() { if (jQuery('#footnote_references_container_753_1').is(':hidden')) { footnote_expand_reference_container_753_1(); } else { footnote_collapse_reference_container_753_1(); } } function footnote_moveToReference_753_1(p_str_TargetID) { footnote_expand_reference_container_753_1(); var l_obj_Target = jQuery('#' + p_str_TargetID); if (l_obj_Target.length) { jQuery( 'html, body' ).delay( 0 ); jQuery('html, body').animate({ scrollTop: l_obj_Target.offset().top - window.innerHeight * 0.2 }, 380); } } function footnote_moveToAnchor_753_1(p_str_TargetID) { footnote_expand_reference_container_753_1(); var l_obj_Target = jQuery('#' + p_str_TargetID); if (l_obj_Target.length) { jQuery( 'html, body' ).delay( 0 ); jQuery('html, body').animate({ scrollTop: l_obj_Target.offset().top - window.innerHeight * 0.2 }, 380); } }<\/script>","protected":false},"excerpt":{"rendered":"<p>Pros\/Cons of Intellectual Property Effectively balancing and mixing one or more elements of intellectual property (including copyright, patent, trademark, and trade secret) is essential to maintaining a strategy for any company.[1]See, e.g.,&nbsp; Mazzoleni et al., The benefits and costs of strong patent protection: a contribution to the current debate, Research Policy 27:273-284 (1998); Elhanan Helpman, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":510,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"class_list":["post-753","page","type-page","status-publish","hentry"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.8 - 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