Intellectual Property - Essay Example

The economic theory dictates that the value of the property is dependent on its demand. This also encompasses the intangible property. According to Sople (2003), the brainchild of human intellect and wisdom is IP. IP is generally divided into two categories. Industrial property is that which encompasses patents, trademarks, industrial designs, and geographic indications of source (WIPO 2010). On the other hand, copyright, the second class of IP, covers all literary and artistic works that are to be protected; copyright includes poems and plays, musical compositions, paintings, photograph, and sculptures (WIPO 2010).

The protection of IP is a major concern for policymakers. Countries like the US, Japan and the Netherlands attach great importance to the safeguard of IP. As discussed in detail in the following paragraphs, the protection of IP is important for economic growth and stability. Protection of IP also provides channels for the sustainment of technological advances, and in attracting investments in the country; this in turn leads to the creation of more jobs. The World Bank's Global Economic Prospects Report for 20recognizedzed the growing importance of IP in the economic sector and how it is necessary for today’s globalized economies. It was observed in the report that “across the range of income levels, intellectual property rights (IPR) are associated with greater trade and foreign direct investment flows, which in turn translate into faster rates of economic growth” (Field 2008).  For instance in the US researches conducted over the last few years have established that about half of the exports are now dependent on the protection of IP, as compared to only 10% exports 50 years ago (Field 2008).

At the national level, the system of intellectual property is regarded as one of the most important foundations of the current economic policy. Over the time, its importance has been recognized in sustainable development in the modern, literacy-oriented society of the new millennium (Sople 2003). For comprehending the increasing significance of the IP in the new era and the various factors that regulate it, it is necessary to gain insight into the foundations and the various attributes of IP. At the national level, IP is also seen to have contributed to socioeconomic development as well as causing an upsurge in competitiveness (Sople 2003). Countries are starting to recognize the importance of IP as an integral commercial asset, and as a necessary factor for advancement in technology and promotion of the socio-economic status of the country. Moreover, IP has also started to play a crucial role in broad-based sustainable improvement in the lifestyles of the people, including not only the quality but also the standards of living (Sople 2003).