Intellectual Property Management And Technology Licensing

“Intellectual property as a policy exists to create an enabling environment for – and to stimulate investment in – innovation; to create a framework in which new technologies can be traded around the world and shared. The economic imperative at the heart of innovation is fundamental to the process of societal transformation that the Sustainable Development Goals aim to achieve.” – Francis Gurry, Director, World Intellectual Property Organization (WIPO)

1. Intellectual Property in the Innovation Ecosystem

An innovation ecosystem is a combination of two distinct economies:

• the knowledge economy comprising knowledge producers, which is driven by fundamental research
• the commercial economy comprising knowledge users, which is driven by the marketplace. Knowledge economy concept was recognized in the 1960s with computers entering the market and changing the way markets worked. The definition of the knowledge economy has been fluctuating with time.

Knowledge economy can be currently defined as production and services based on knowledge-intensive activities that contribute to an accelerated pace of technological and scientific advance. Thus, in this economy, constant innovation is a necessity due to the rapid obsolescence of such knowledge-based products and services. Innovation is a key determinant of long-term economic growth. The development of new products and processes makes businesses earn more profits and be more productive. At the same time the users benefit as new goods and services become available and existing ones become more affordable. Moreover, innovation also contributes to society’s welfare and in refining the quality of life. While it is evident that quality of life may not be easily measured economically. The foundation of an innovation ecosystem is laid down by investment of resources in the knowledge economy which is driven by fundamental research. The resources can be provided through private, government or direct business investment. The other aspect of the innovation ecosystem is the commercial economy which is driven by the marketplace. The two economies are linked as the financial resources needed for a knowledge economy are sourced from the profits of the commercial sector. In the commercial economy, an innovation ecosystem is said to be thriving and healthy when such investments are subsequently replenished by innovation induced profits. At that point, the two economies (knowledge and commercial) exist in balanced equilibrium and the innovation ecosystem is deemed to be healthy.

The World Trade Organization (WTO) has a specific agreement on IPRs, Trade-Related Aspects of Intellectual Property Rights (TRIPS), which has been in force since 1995 and is to date the most comprehensive multilateral agreement on intellectual property. The TRIPS Agreement requires all WTO members, with few exceptions, to adapt their laws to have global minimum standards of IPR protection. In addition, the TRIPS Agreement also requires fulfillment of certain obligations for the enforcement of intellectual property rights. The TRIPS Agreement helps in establishing the general provisions and basic principles of multilateral trading system applicable to international intellectual property without discrimination based on nationality. Further, TRIPS agreement also provides for settling of disputes on intellectual property between members of the WTO. One additional objective of the TRIPS Agreement is that IP protection should contribute to technical innovation and the transfer of technology.

The Nairobi Treaty on the Protection of the Olympic Symbol (1981) restricts the use of Olympic symbol for commercial purposes (in advertisements, on goods, as a mark, etc.) without the authorization of the International Olympic Committee. The Marrakesh treaty (2013) facilitates access to published works for persons who are blind, visually impaired, or otherwise print disabled, thereby having a humanitarian and social development dimension for copyrighted material. The international agreements, which lead to uniformity in the protection and enforcement of intellectual property rights, contribute to the promotion of technological innovation and to the transfer and dissemination of technology. The TRIPS agreement, for example, requires the developed country members to provide incentives to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to the least-developed country (LDC) members. This obligation is to enable creation of a sound and viable technological base for the LDCs. Although TRIPS Agreement did lay a base, there exist other modes of trans-border transfer of technology too, such as:

• Trade
• Foreign direct investment
• Licensing;
• Movement of people
• Cross-border information flows

The existing literature robustly supports the view that trans-border technology transfer increases by growing trade, especially in capital-goods imports, foreign direct investment, and licensing of production rights to share access to intellectual property. Access to global technologies has also found to be enhanced by incoming patent applications and both temporary and permanent migration of technically skilled workers. The Patent Cooperation Treaty has led to the creation of PCT-Patent Prosecution Highway (PPH), for faster examination of patent applications in different PCT countries, as well as led the way to several bilateral PPH agreements between national patent offices.

2. Innovation and Sustainable Development Goals

On 25^th September 2015, the United Nations adopted the 2030 Agenda for Sustainable Development, transitioning from the previous 15-year Millennium Development Goals of 2000. This new agenda is universal with 17 Sustainable Development Goals (SDGs) and 169 targets applying equally to developing and developed countries. The goals balance economic, environmental and social development along with human rights, peace and security. The progress towards reaching the goals is required to be monitored regularly. Innovation is recognized as key to achieving the objectives of Agenda 2030 of the SDGs. To achieve the SDGs, all stakeholder groups need to take ownership. The focus of scientific research in many countries is now aligned towards problem-solving to tackle the pressing developmental challenges. This shift in research priorities can be seen with research funds being allocated to the applied sciences. Also, investments by both governments and businesses are increasing in the development of ‘green technologies’ and ‘green cities. However, basic science and applied science are interconnected and interdependent, complementing each.

The Global Innovation Index (GII) provides comprehensive references for measuring an economy’s innovation performance. Many countries are using its parameters for setting targets for growth and improvement of its rankings. The IP system plays a significant role in helping a business to gain and retain its innovation-based advantage while taking innovative technology to the marketplace with reduced risks. The existence of IP rights provides opportunities to get investors for funding, licensing, and various types of strategic business partnerships or alliances in monetization in today’s global scenario. There are various multilateral arrangements currently in place related to IPRs at the international level. The national/local government’s role in promotion of innovation and creativity could be further enhanced by providing strong IP protection and enforcement legislations, building modern infrastructure for IP administration and creating IP culture of the nation. With innovation being an integral part of the agenda 2030, the national government as well as the stakeholders have a crucial role to play for achieving the SDGs. Intellectual property rights are a small part of the total knowledge produced by an organization. Innovation related knowledge is not only subjective, but it can also be transferred. IP, especially patents, serve as powerful instruments of strategy to share/transfer such innovation and to strengthen an organization’s technological administration.