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The market interrelations in terms of IP

Aug. 1, 2019

The exchange of products and services between people originated almost simultaneously with the very mankind. However, the character, objectives and subject matters of these relations were changing depending on the needs and values inherent in the representatives of the particular historical eras. As it was correctly noted by the researcher in the field of trademarks and brands, D. Boorstin, the XX century was marked by the emergence and spontaneous development of the public associations of another kind. Now, the things for people act not only as the consumer products, but they also acquire a new role, allowing uniting in the classes according to a principle of owning the things of a single brand.[1] The mankind moved into the next stage of the development, and over the past two centuries, scientists have been speaking about the predominance of the consumption society, which is characterized by the acquisition of products not so much for the sake of necessity, but for the sake of the opportunity to have one or another subject matter. The market interrelations, which also have used a dominate position the world earlier, have established firmly their leadership now. After all, thanks to them, a person obtains not only a product or a service, but also the right to take a desired place in the hierarchy of the social classes.

The variety and excess of supply of products lead to the fact that it is increasingly difficult for the manufacturers to attract a consumer, to keep an attention and to persuade to buy the products of a particular company. The use of intellectual property for the development of the market relations and the increase in sales has become an original lifeline for entrepreneurs.

Integration of intellectual property into the market relations

Speaking about the role of the subject matters of intellectual property in the modern economic relations, their presence in the majority of the fields and at all stages of the manufacture and sale of products are noted. The world corporations are aware of the value and profitability of the use of the innovative results of the intellectual labour and they prefer to increase their income and popularity through the implementation of new subject matters of intellectual property in various industries of the economic relations. The policy of Samsung, which has an impressive staff of the developers in the field of the electronic technology, can serve as an example. According to the news reports, only over the last six months, the company's employees presented the innovations in the field of health (the diagnostic medical equipment for mammography screening), robotics (related to ecology and health) and agriculture (a device that allows establishing the location of animals).[2] At the first glance, it seems that these industries do not intersect in any way. However, all the proposed inventions are connected with the electronic devices, what will allow Samsung expanding the market for its products.

Depending on the set objectives and tasks, intellectual property can act:

  • Directly as a subject matter of trade. For example, when alienating and assigning for the temporary use of the rights to the results of the intellectual activity or the means of individualization.
  • As a resource that contributes to the functioning of the enterprise, to the manufacture of the products, etc. Manufacture techniques, manufactured products, packaging and a corporate identity – the enumerated refers to the subject matters of intellectual property.
  • As an element to ensure the conclusion of trade transactions. IT-technologies, programs for electronic computing machines, cash registers are the results of the intellectual labour that serve as an invisible assistant while concluding agreements between people and companies.
  • As an instrument to gain a competitive advantage. In the conditions of an oversupply of identical products and services, it is possible to win the attention of a consumer in several methods: to create a bright label, a memorable name, to manufacture the products according to a unique technology or on a particular territory with the use of particular ingredients. At the same time, in order to maintain the competitive advantage, it is important to organize a legal protection regime for the used subject matters of intellectual property.

Thus, it becomes obvious that intellectual property is used in different variants at the space of the economic markets, depending on the functions that are required to be performed.

The market interrelations in terms of intellectual property

It is logical to assume that along with the range of the commodity-money relations, the volume of the use of intellectual property has also expanded. If initially the creative activity was aimed mainly at the development of an aesthetic, spiritual and scientific potential of a person, in the modern world, the intellectual activity is increasingly aimed at obtaining the material benefits.

If to assess the importance and degree of influence of the market relations on the field of intellectual property, it is possible to note a number of aspects. Firstly, the possibility of obtaining the economic benefits from the creation of a subject matter is a powerful incentive and a financial instrument that ensure an opportunity to obtain new results of the intellectual activity. Secondly, the trade market acts as a compass indicating the priority fields of the use and application of the intellectual resources. Thirdly, the scales of the modern economic spaces requires ensuring a regime of protection and defence of the used results of the creative labour, what encourages companies to use the registered results of the intellectual activity in order to prevent their illegal use.

Summarizing the above, it is necessary to emphasize the mutual influence and dependence of the economic markets and their trends and intellectual property institutions, which are used to create the subject matters of the commodity-money relations and which are an instrument to ensure commercial transactions. And it is also possible to note a sort of the merger of the fields under consideration and the dependence of one field on another, as evidenced by the fluctuations in the patenting activity due to the needs of the subjects of the economic relations.

 

[1]Boorstin, D. Consumption Communities //THESIS.1993.No. 3., p. 231–254.URL:http://www.twirpx.com/file/519513/

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Author of article

Olga Plyasunova

Olga Plyasunova

Head of Department / Trademark Attorney