The WIPO has defined intellectual property (IP) to refer to creations of the mind such as literary and artistic works, inventions, designs. Intellectual Property rights on the other hand broadly mean the legal rights which result from intellectual activity in the industrial, scientific, literary and artistic fields. Securing intellectual protection not only grants the holder of the IP rights to control the exploitation of their IP asset but also in many ways contributes to business growth for such individual or firm, and economic development on a national level.
For businesses that adequately and efficiently utilize IP protection, tremendous benefits are realized including but not limited to the following;
- Business Reputation and Distinctiveness: Trademarks which help to distinguish products of one company from those of another company dealing in a similar niche enhance distinctiveness and customer assurance. Customers identify products or services by the trademark used and often trust producers and service providers based on the quality of their products. By obtaining trademark registration, businesses in Uganda can protect their brand name, logo and slogan, thereby enhancing the distinctiveness of their product or service. This can lead to increased consumer recognition and trust, which can result in better brand reputation and increased sales.
- Gaining a competitive edge: IP protection provides rights to control exploitation of the holder’s IP assets thereby allowing them to legally prevent others from using protected IP assets without the IP holder’s consent. This can give the business a competitive edge in the market and help them to not only stand out from their competitors but also to maximize value and benefit during the term of protection. For innovation which are protected by patents for a period of 20 years, the patent holder has the benefit of maximizing value within 20 years before the IP falls into the public domain.
- IP Commercialization: By protecting their IP, businesses in Uganda can ably commercialize their IP assets to others and generating additional revenue streams. Businesses can license, sale, open distribution channels and franchises for their IP assets as a means of monetizing their assets and increasing their overall profitability.
- Strategic Investment: In today’s world where intangible assets and goodwill account for most companies value and growth especially after the Covid19 Pandemic, having a strong IP portfolio is a strategic way of attracting investment both foreign and domestic from venture capitalists and other investors who are looking for companies with a competitive advantage. Whereas innovation is still progressing in Uganda, with further investment in technology and education, we shall definitely see growth in intangible asset portfolios for most start-ups, SMEs and large firms. Therefore, it is important that businesses secure IP protection to growth their portfolios and attract investment.
Overall, IP protection is an important tool for businesses looking to gain competitive advantage in this knowledge economy where intangible assets have proved more valuable that the ordinary tangible assets.
