Question

1. Explain, with the use of examples, when it would be appropriate to use trademarks and copyright to protect a firm’s intellectual property. Other than through the use of patents and copyright, how can a firm prevent its competencies from being imitated?

2. How can late entrants win the innovation race? Please give two examples.

3. Considering the case study, discuss some of the wider strategic reasons why firms may wish to enter a strategic alliance. What are some of the risks involved?

Answer 1

1. Explain, with the use of examples, when it would be appropriate to use trademarks and copyright to protect a firm’s intellectual property. Other than through the use of patents and copyright, how can a firm prevent its competencies from being imitated?

Intellectual property can be protected through following options:

a. Copyrights: When author writes a book or a musician composes a song then it is copyrighted and unless royalty is paid, others cannot use it .

b. Patents: This is a new innovation and a firm or a person protects product and unless royalty is paid to owner commercial use is not possible. eg. a drug on swine flu.

c. Trademarks: These are used to protect a logo or a symbol of a product so that no other firm imitates it. eg. Nike sign.

d. Geographic indicators- These are the separate identification marks given to goods from a particular area and no other producer can claim the origin. eg,. Alphonso mangoes from Ratnagiri (a district in Maharashtra state of India).

d. integrated circuits- applicable for electronics industry and industries that use circuits to run a machine.

Hence by claiming geographic indicator tag or integrated circuits awarded a firm can protect competency.

Firm can also protect competency by continuous evolution and diversifying products in different markets.