Introduction
In the current competitive business world, most managers encounter day to day challenges concerning decisions revolving around intellectual property, which comprises of patents, copyrights, and trademarks. These challenges vary from legal to management risks because of the rising levels of cyber-crime as well as piracy in improved technological world. Hence, more often than not, companies will always face the risks of IP while engaging in different business activities be it in the domestic or international markets. As a member of the board of a company that is planning to spread its undertakings outsides their neighborhoods, the paper will explore various threats associated with intellectual property and the activities the administrators can take to preserve an upright corporate setting.
Actions for Protecting Tangible Property Rights in Domestic and International Business
It is important that the business understands the importance of intellectual property protection when making their trade internationally. Today, many companies are becoming competitive more than they were in the past years (Mossinghoff, 1984). Therefore, to survive this competition and become successful, a business should invest in both domestic and international protection of trademarks and patents. Any firm has a duty in protecting its ideas and secrets in the trade. Due to frequent trade, intellectual property theft has become a common thing. Intellectual property theft through piracy and cyber-crime is a stressful; situation to any merging and established businesses, especially due to profits. In cases where sub-standard knock-offs, intellectual property theft is involved it can result to health and safety concerns for the consumers, thus, making such companies to face liability risks (May & Sell, 2006).
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Summary of the actions for identification and protection of IP rights.
More often than not, managers are often faced with the task of identifying and protecting the tangible property rights of their companies. It requires thorough evaluation and sound decision- making skills. In this case, the first step that can be employed by the managers is to adopt a management systems approach. For instance, the management can identify a cross-divisional IP protection team, which comprises of top executives who are responsible for every IP practice domestically and internationally.
Actions to Protect an Organization from Violating IP Rights of others
Therefore, the manager of the firm is able to form an intellectual property department. This department aids in coordination of the firm’s IP procedures as well as make sure correct policies and strategies are used in protection. Then, the manager is bale to launch preventive practices swiftly and react quickly to violations and threats made of the intellectual property. Threat mitigation is successful if the firm has a reliable IT system, and a way to ensure that the firm’s trade secrets are not exposed to third parties or family members who might sabotage the information. Again, different tools can be used to encrypt data that is sensitive and confidential. Additionally, formation of electronic documents needs limited time as well as safety measures such as firewalls that cannot be infiltrated. Unique codes should be created to protect the data and restrictions enhanced to limit the documents from being forwarded or printed by unauthorized people.
In summary, from the above discussion it is clear that numerous actions can be taken by the manager to protect IP rights of both domestic and international businesses. They include adopting a management systems approach through selecting an IP team, establishing preventive practices, the establishment of an effective IT system, and creating visibility into IP practices and the potential problems.
Legal Risks Associated with IP in Domestic and International Business
Moreover, it is essential for our company to avoid violating other businesses’ intellectual properties. Infringement of other businesses rights is morally wrong and can result to legal problems, which might destroy the brand or bankrupt the company. Nevertheless, it is possible to infringe the intellectual rights of other firms mistakenly. However, ignorance of the law is not an excuse legally. Therefore, the manager of the company needs to set up laws and regulations firmly because IP litigation is the worst place a company can spend time and resources on.
There are several principles that the manager can put into place to ensure they avoid infringing on the rights of others. First, the IP department should engage in extensive research of logos, brands, and products before going public. Secondly, contracts that should be properly drafted and they should clearly outline the requirements of the employees towards respecting the IP rights of other companies. On the other hand, managers should ensure full attainment of the permission or license whenever they intend to use a property belonging to another company. All employers and employees must keep in mind that prevention is better than cure, and the only way to attain it is gaining knowledge through training.
Special problems of property rights when going international.
When taking the business global, companies will experience issues with the infringement of rights such as unauthorized use of their websites by unknown individuals. Therefore, companies should do a market inquiry and understand the type of problems they might encounter, how to avoid them or deal with them . Some of the legal risks associated with going international include going for a trademark name that already exists. Before going international, companies should choose their domain name carefully. Therefore, firms should be involved in thorough brand searches because whenever they conflict with someone else’s trademark or other patents, they may face the risk of a lawsuit.
Risk management process to mitigate legal risks.
When planning to extend a business internationally, it is always advisable for the company managers to establish measures of countering risks. Hence, a conceptual framework of risk management approaches should be created. In the current times, property valuations and protection rights are crucial factors that must be included during the mitigation of risks. First, managers should be aware of the shifting risk management approached due to globalization. As a result, any risk management procedures employed by the company will encompass identification as the first step. According to Cornish et al. (2013), the process of identification should include all the risks associated with the intangible assets. Secondly, it is the responsibility of the company to tackle any rising issue as well as threats concerning intellectual properties. On the other hand, enough resources should be assigned for the threat moderation procedures. Finally, business administrators should safeguard and strictly follow the legal conventions as well as the agendas while engaging in business ventures.
Contract Formation and the relationship with IP
There is a very important association concerning the terms agreement and assets in any business venture. Nimmer (1998) believes that a symbiotic relationship between the two terms these two terms have a symbiotic relationship. In a more inclusive way, contracts offer a network for development and business advantage especially for the informal assets. In a majority of contractual relationship involving respect to information assets, transactions are often definite by market aspects and deliberations of any obligation threat or any other commercial action. More frequently, the underlying property rights are comparatively irrelevant during the negotiating procedure. Most times, they are treated as avoidance procedures defining an authorized locus existing between the contracting parties. As a way of contract formation and dispute resolution, the IP contract should define the product by defining the terms of what rights are granted and what other assurances and commitments are made.
Conclusion
In conclusion, Intellectual property valuation has become an important concept in the competitive business world that needs to be taken very seriously by firms. The three fundamental ways to value IP include engaging in cost-based valuation, market-based valuation, and income-based valuation. Moreover, companies should be very keen when going international to prevent any infringements or lawsuits.
References
Cornish, W., Llewelyn, G. I. D., & Aplin, T. (2013). Intellectual property: patents, copyright, trade-marks & allied rights.
May, C., & Sell, S. K. (2006). Intellectual property rights: A critical history. Boulder: Lynne Rienner Publishers.
Mossinghoff, G. J. (1984). The importance of intellectual property protection in international trade. BC Int'l & Comp. L. Rev., 7, 235.
Nimmer, R. T. (1998). Breaking Barriers: The Relation between Contract and Intellectual Property Law. Berkeley Tech. LJ, 13, 827.
