What Value is Intellectual Property?

As we morph more to a demand responsive services economy, products software and process fuse. This makes software ubiquitous and therefore of less Intrinsic value on its own.

As the market itself continues to change and reshape at a great rate this makes investment in ideas quickly redundant as it finds even smarter and more integrated ways to deliver product and services.

This post relates to a web discussion question, “What is the future of Intellectual Property rights in the New Economy?

With delivery and logistics capability now global and supply chains and services unrelenting in their goal to get flatter, the demand is for merged software innovation and knowledge products to be delivered as services.

As this occurs and products mature, brand sensitivity of the respective parts is diminishing with barriers to entry lowered. For example engines for web services are no longer visible and hence have a different value on their own with much more plug and play procurement choices. Open platform integration products and open source software projects to resolve business problems are also changing the value and positioning of intellectual property.

With services moving more into the mass market of business and consumer bases process itself, it cannot be protected by conventions, intellectual property rights patenting or related copy right laws.

And as knowledge products mature and become part of common practices relying on licensing and the law to guard them is less effective and less relevant. To protect its investments in innovation, business leaders, developers and inventors need to look to re-engineering other barriers.

Selling of Knowledge based products is now be seen to be moving akin to the way most omnipresent industry is. For example, the motor vehicle Industry now has shared reproduction, supplying to separately branded product. This in turn is delivered in an end to end service model replacing the “Acquire and Maintain” model. This shift sees much of the end product delivered as a cycle based operating product based on fully serviced rights of use rather than ownership. In large industries such transport and logistics it even goes a step further as these outsource service providers have and continue taking this to the next level.

In the end like market itself, which will continue to change at a great rate, natural mechanisms such as speed to market, process maturing and brand loyalty, comparative advantage and quickly achieving critical mass usage will become the only real mechanisms for protection of ideas.

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