As part of the recent celebration of Intellectual Property Day, April 26, it is important to reflect on the economic benefits it provides to its owners.
Intellectual property encompasses rights associated with human creations. The creator may obtain an indirect recognition in favor of its creation by registering it within a specialized office within a country; usually, a patents and trademarks office. The registry grants exclusive rights to its owners and protects them against the use from third parties.
Registries represent intangible assets that add value to companies.
It is estimated that, currently, these represent the largest source of market capitalization for the most important publicly traded companies, Apple, Alphabet, Microsoft, Amazon, and Facebook.
Recently, on March 3, 2021, the Mexican Institute of Intellectual Property, IP Key Latin America, and the European Union in Mexico published a study of the economic impact of intellectual property in Mexico.
The study shows the beneficial economic impact associated with companies that, compared to other companies in the same industry at a national level, rely on the rights provided by intellectual property. Specifically, the study highlights that, by 2019, companies that make intensive use of intellectual property participated with 47.8%of gross domestic product in Mexico, contributed 20.5% of the total paid jobs, provide up to18.1% higher wages for their workers, and contribute 74.7% of the value of exports.
Thus, there is a causal relationship between companies that use intensive use of intellectual property rights and an economic beneficial impact. It is also possible to argue that the correct management of intellectual property adds value to any company.
In Mexico. Mexico’s National Institute of Geography and Statistics estimates that there are around 4.4 million SMEs. These companies play a key role in the country’s economy, as they are responsible for most formal employment, around 70%, and contribute a significant share of GDP, around 52%.
SMEs that consider intellectual property within the start and growth of their company are more likely to survive and have a better economic outlook. Further, the intellectual property also supports any company as a leverage instrument during any negotiation.
While intellectual property is not the determining tool for many SMEs, it is clear that they need to consider it to increase their capitalization and economic outlook.
Sources: IMPI, IP Key, EUIPO, “The Economic Contribution of Intellectual Property in Mexico”, published on 03/03/2021.Read More