Monetization as the best driver for the development of the intellectual property market
It is commonly known that the subject matters of intellectual property are divided into two large categories: the results of the intellectual activity and the means of individualization. At the same time, despite the fact that the latter are distinguished as a separate group, and the protection certificates lack an indication to the author, who has created the designation, the means of individualization are also a result of the human creative labour.
Any action, as a rule, is carried out for some purpose. The creation of the subject matters of intellectual property is not an exception. At the same time, the idea that a person is guided by is due to a variety of the circumstances and peculiarities: both external and internal, both material and spiritual. Undoubtedly, the guidelines, values and tasks of any individual are influenced by the society, in which he exists and the moral norms accepted in it. Thus, in the era of the USSR, the ideology of the human service for the benefit of the person and the state was strongly developed. The inventors were engaged in the innovative activities in order to make the country superior to other ones in terms of the level of the technology development, the degree of the outer space exploration and the volume of the manufacture of various products.
As the researchers in the field of trademarks and brands point out rightly, the theory of consumption is currently the closest one to the mankind. That is, the life of the overwhelming majority is aimed at achieving and satisfying the personal desires. The famous phrase says: “Where there is demand, there is supply.” A characteristic feature of the consumer society is the growth of the consumer demand for a particular product depending on its popularity, quality characteristics, publicity and other factors.
Are the intellectual property institutions capable of existing and developing in such conditions? Absolutely, yes. What is the purpose that the creator of intellectual property can be guided by now? It is worth assuming, that in the modern world, gaining benefits is in the majority of cases the actual purpose for which an invention, an industrial design, a trademark or other subject matter is created. The ability to monetize the result of the creative labour, that is, to gain profit from its use or sale – this is the main driving force for the creation of a variety of the subject matters of intellectual property. The positive consequences of the monetization of the results of the creative labour are obvious: the creator gets a possibility to be engaged in the scientific, creative activities, to develop the sphere in which he works, and he also gains income for the labour done.
Due to the excess and variety of products, the intangible subject matters start to be appreciated higher and higher every year: IT-technologies, manufacturing secrets, trademarks, patents for inventions and so on. It is the possession of the modern and unique subject matters of intellectual property that allows the enterprises and entrepreneurs winning and keeping a competitive advantage. Thus, despite the fact that the humanity lives in the era of consumption, the demand for the subject matters of intellectual property, and therefore their cost, is constantly increasing.
Is monetization considered as a driver of the development of intellectual property, or is intellectual property considered as a source of the improvement of the commodity-money relations?
Monetization is the ability to gain profit for the use or sale of some subject matter. The benefits of the use of intellectual property are a powerful motivation for its creation by the person and for the further use by the enterprise.
The advantages of the monetization of intellectual property are confirmed by the constant introduction of new technologies by the international and well-known companies. Thus, the world leaders in the manufacture and sale of household and electronic appliances, in order to maintain the competitive advantage, every year, and sometimes more often, manufacture new modifications of the best-selling products using the unique technical solutions. For example, Samsung Electronics, which annual income reached 53.65 trillion wons in 2017 and 58.89 trillion wons in 2018, manufacturers the advanced models of smartphones, LCD TVs and household appliances every year. This, as noted in the official report, contributes to strengthening a stable leading position of the company in the market with a high level of competition and a regular increase in profits based on the results of the annual reports.
However, in a detailed study of the issue, it is possible to notice that it is the development of the intellectual property institutions that has made the very process of monetization possible. For example, in the electronic networks; what, of course, has become a result of the creation and use of the achievements in the field of IT technologies.
If we consider the influence of intellectual property on the development of the economic markets, including the improvement of the monetization methods, we can note that:
- Intellectual property is a tool that allows improving the manufacture performance of the firms and the quality characteristics of the products.
- The results of the creative labour and the means of individualization can be directly a subject matter of purchase and sale. For example, when it comes to the acquisition of a trademark, an invention, an audiovisual work or other subject matter.
- The correct use of intellectual property leads to an increase in the consumer demand and it increases the cost of the company assets.
Thus, it can be asserted that monetization and intellectual property are dependent and complementary fields. The result of their interaction is the progress of both directions, what leads to their popularization and active development.