Outline the main arguments for and against patenting.

Definition of Patent: It is a temporary legal right granted by the government as a reward for a unique invention. The main arguments for patenting include: 1. There is a definite period of exclusivity for patenting. During this protected period, it gives the inventor the right to exclude others from using the invention. 2. It helps to establish ownership. When firms look up the patent database, they are able to identify who holds what type of patent. This helps them to identify who to approach if they want to buy the rights to use the patent. 3. It prevents others from filing first. In the modern business environment, time is a crucial factor when it comes to declaring ownership for a certain invention. If an inventor is not careful, his original work may leak out and a third party can take advantage by filing a patent before him, causing him to lose his work. 4. It provides a sense of motivation for inventors to carry on their work. This is related to the establishment of ownership of inventions. Inventors are assured that due recognition is given for their work. 5. Protection against reverse engineering 6. May be valuable in negotiations investors more convinced to invest, or to have a strong position against investors demanding a large share of profit 7. Clarify collaboration agreements may allow the use of each others patents The main arguments against patenting include: 1. It is very expensive to file a patent. Additional costs are also incurred for monitoring and enforcing the patents, such as legal costs and even if someone breaches your patent rights, it cost you money to sue and fight lawsuits. Also expensive to renew 2. You are unable to control the disclosure of your patent. The filing of the patent is a very elaborate process, requiring specific details and in the US, the approval period spans an average of two years. 3. May offer weak protection, depending on certain sectors or country. Some countries may have strong or weak protection. Explain with the use of practical examples when it would be appropriate to use trademarks and copyright to protect a firms intellectual property. Definition of a trademark: It is a type of intellectual property protected by USPTO (United States Patents and Trademark Office) under the rubric of commercial identifiers.

An example of the use of a trademark for protection is when your companys logo is being used by a third party manufacturing for printing on their own shirts without first obtaining rights from you to do so. Definition of a copyright: It is a temporary right giving control over the use of an original work of authorship, which includes text, graphics, musical pieces, dramatic works etc. An example of the use of a copyright for protection is when a scriptwriters work is being used by a third party to produce a movie without obtaining the prior permission of the scriptwriter. Companies involved with technology transfer and licensing activity in China have often experienced problems regarding IPR protection. Briefly explain why this is the case.