What are the pros and cons of intellectual property?

What are the pros and cons of intellectual property?

I'd say that patents are a bit of a different beast than trademarks and copyrights, so I'll focus on that. Firstly patents require access to an administrative arena, i.e. patent prosecution (often through fairly expensive patent agents/attorneys) as well as being quite expensive on their own.

Regardless patents (and all IPRs in fact) ONLY give you the right to stop others, there is no inherent grant to produce your product (partly as your product might not equal your IPR and partly as your product might infringe other IPRs).
So in essence you can pay money for a registered patent to make sure you can stop (i.e. have right to sue) others, should they infringe your patent.

Nowadays I don't think there's such a strong correlation between always having patents and success, just two different strategies and types of cash management. Look at HTC for example. They had 80 patents or so (for reference Samsung filed for roughly 3000 patents last year), once they started becoming a force to reckon with people started suing them and HTC dealt with it then (by settling, buying patents etc.). Probably same or lower cost compared to having internally generated IPRs over a long time.
Apple however, uses the other strategy, focusing much money and resources on patenting over time and now they can start making up for all those sunk millions by stopping Samsung and others from selling their products in key markets.


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