The advent of technology has given us many new things, new business models being one of them. E-commerce is one of the outcomes of this and is one of the most beneficial things. E-commerce is nothing but an online marketplace where buyers and sellers come to exchange goods and services. One of the things that matter a lot in an e-commerce business is intellectual property.
What Is Intellectual Property?
Intellectual property (IP) can be simply defined as intangible property created by the thinking and innovation of humans. It is a product, idea, or creation of a person that is used virtually and doesn’t have a physical existence.
Examples of intellectual property are patents, trademarks, copyrights, etc. Whether you develop a unique website or have trade secrets of doing business in a unique manner, it all comes under the definition of IP. It makes your e-commerce website unique from your competitors.
How Is It Important In E-Commerce?
Having intellectual property is important for any e-commerce website. It prevents other businesses from exploiting your unique ideas and innovations in the internet space. It helps the innovator be rewarded for his/her unique ideas and protect his intellectual assets.
Things in an e-commerce business that have intellectual property rights:
- The technical tools and systems developed by an e-commerce business can be protected with patents.
- The text-based HTML code or the user interface of an e-commerce website can be protected with copyrights or patents.
- The creative design of the website, which includes text, graphics, videos, etc, and the database used by them, can be protected by copyrights.
- The name, logo, symbol, or other things that identify the e-commerce business should be protected by trademarks.
- Online business methods can be protected with patents.
How Is Intellectual Property Important To E-Commerce?
Intellectual property rights protect your trade secrets or things that are unique to your business and important to its identity. It protects against the unfair trade practices that copy your ideas. Intellectual property is an intangible asset that is more powerful than tangible assets, in the case of e-commerce businesses.
The two main reasons why intellectual property rights are important are:
- Safeguarding your own intellectual property
- Violating other people’s intellectual property
The Role Of Intellectual Property In E-Commerce:
- Many businesses try to exploit the other’s unique business methods to profit from it. The Intellectual Property Law safeguards the business from this exploitation and protects the interests of the business from unfair competition.
- Software, music, images, and design are some important components of e-commerce. Intellectual property rights protect the creator of these so that they get paid for the use of their unique creation and rightfully so.
- IP is the most valuable asset in E-Commerce. Owning trademarks of unique aspects of the online business helps to boost the value.
E-commerce businesses are often involved in selling goods and services that are based on IP and licensing. Hence, e-commerce businesses should ensure their activities are free from IP risks because its violation can lead to a slow down or shut down of the business.
