What are the arguments for and against allowing temporary monopolies by allowing intellectual property rights? What forms of intellectual property exist for designs, and how are these different from patents and copyright? Knowledge and creativity are essential components in product innovation, and significantly contribute toward sustaining a competitive edge.
Allowing temporary monopolies by allowing intellectual property rights have both pros and cons. Advantages of allowing a temporary monopoly by allowing intellectual property rights offers the benefit of protection from other competitors from benefiting from the innovation, and provides the opportunity to research and develop a product, and regain the costs involved in the process, to include make a profit.
Disadvantages of allowing a temporary monopoly by allowing intellectual property rights include a decrease in potential in optimal creativity and innovation simply because no challenge exists typically produced when there are competitors. In addition, the consumer does not have the ability to explore and compare like and similar products, eliminating the opportunity to purchase the product of choice, to include purchase at a lower cost.
Various forms of intellectual property exist for design.
These include patent, copy and trade rights. A patent right allows for exclusive design and manufacturing, and protects the product from being sold by another competitor without license. Copyrights protect the original creativity of the inventor, and Trademark protects the design, the uniqueness of the product when sold in the competitive market.
Reference: Tidd, J. & Bessant, J. (2009). Managing Innovation Integrating Technological Market and Organizational Change, 4th Edition. (John Wiley & Sons Ltd).