By Rima Arrach
Intangible assets such as intellectual property rights, customer data, and software now make up over 90% of the value of S&P 500 companies. In contrast, tangible assets, like real estate and equipment, represent only 10% of a company’s worth. Over the past two decades, the value of intellectual property assets in these companies has nearly tripled, indicating the growing importance of technology and innovation in business competition. As the global economy gradually shifts away from an industrial base to focus on services and knowledge, we enter the age of intangible assets, an increasingly integral component of corporate value. Looking ahead, Visual Capitalist suggests that the influence of technology and intangible assets, particularly intellectual property rights (IPRs), will likely continue to gain prominence in the future.
In principle, Intellectual property (IP) encompasses intangible creations of the human intellect. Such inventions can include literary and artistic work, designs, symbols, etc., used in commerce. There are various types of intellectual property, each recognized and protected differently by the laws of different countries. Intellectual Property Rights (IPRs) essentially serve two main functions: (i) to protect innovative behaviour by granting creators exclusive rights to their innovations and forbidding others from using, copying, or selling the innovation without official permission; and (ii) to help diffuse knowledge. While IPRs provide exclusive rights, they also require that the details of the invention or creation be disclosed to the public as part of knowledge diffusion, which is crucial for further innovation and advancement in society. IPRs create incentives for innovative behaviour by encouraging creators to invest time, money, and effort into new ideas and products, knowing they will be able to profit from their inventions.
There has been a long debate about the significance of IPRs in the context of modern law practice. Over the past decades, it has become clear that the power of IP law goes beyond just the protection of ideas. IP drives economic growth by allowing creators to monetize their innovations. In other words, companies can profit from their inventions, which in turn leads to job creation, higher levels of research/development, and increased competitiveness in the marketplace. Moreover, Strong IP protection is essential for countries engaged in international trade as it ensures that domestic and foreign companies can compete fairly, promoting global trade and encouraging foreign direct investment (FDI). Beyond the corporate context, IP rights extend to artistic and cultural works, such as literature, music, and films. By protecting these creations, IP laws help preserve cultural heritage and promote continued production and distribution of cultural goods.
Types of Intellectual Property in Morocco
The most prevalent forms of IPRs include patents, trademarks, copyrights, and trade secrets. This section will go into several of these types individually:
A patent is an intellectual property (IP) right for a ‘technical invention’. It allows an individual or a company to prevent others from using their invention for commercial purposes for up to 20 years. In this regard, the inventor decides who is allowed to produce, sell or import their invention in countries where the patent is valid. An individual or company can patent products and processes. Nonetheless, the invention must solve a problem in a new, non-obvious and technical way. In return for the exclusive right to use a particular invention, the creator must divulge its basic technical concept. This means that experts can understand how the invention works and develop the technology further. This way, both patent owners and society benefit from it.
Copyrights protect original works of authorship and typically safeguard the original expression of an idea. The benefits of copyrights include providing the owner with the right to reproduce the work and any derived works, distribute copies, publish, display, and perform the original work. Copyrights last for the duration of the author’s life plus an additional 50 years.
Trademarks provide protection for brand names and symbols that a company uses to identify its products in the market. The main goal of trademarks is to avoid confusion among consumers regarding the source of the product. As consumers become familiar with specific trademarks and the goods they represent, they become a quality symbol. Therefore, well-known trademarks of reputable companies are valuable business assets and deserve legal protection.
Finally, Trade secrets encompass a range of confidential and valuable business information, including sales, marketing, pricing, and advertising data, as well as lists of customers and suppliers and manufacturing techniques. For information to be considered a trade secret, it must not be generally known in the industry, its confidentiality must provide a competitive advantage, and efforts must be made to prevent its disclosure (such as including confidentiality clauses in employment contracts or implementing other company security measures). Examples of trade secrets include the formula for Coca-Cola and bids on government contracts.
Common Intellectual Property Issues addressed by Westfield
The most common types of intellectual property disputes are likely related to copyright, trademark, or patent infringement. These disputes arise when individuals or businesses, including small businesses, discover others are using their intellectual property without permission. Michelle Kaminsky, J.D., clearly defines each type of infringement; additionally, this article adapts these issues to the Moroccan context.
Copyright infringementoccurs when someone uses another person’s creative work—words or images, most likely—without their permission. In Morocco, if an author has not already registered their copyright with The Moroccan Industrial and Commercial Property Office (OMPIC), they should consider doing so to recover damages in court.
Trademark infringementoccurs when someone uses the same word, phrase, mark, symbol, or logo as the creator is using to sell similar products, potentially confusing consumers. Registering a trademark with The Moroccan Industrial and Commercial Property Office (OMPIC) would help the creator gain additional legal protection.
Patent infringementoccurs when someoneis making, using, selling, or offering to sell something that contains every element of an inventor’s patented claims. Because patented inventions often contain several different parts and give rise to more than one patent, an infringement claim could become increasingly complicated.
Trade secrets may also be the subject of an intellectual property dispute, although these tend to arise in corporate contexts. That said, even small businesses can keep trade secrets.
intellectual property (IP) has become a cornerstone of modern economic value, particularly as the global economy shifts towards a knowledge-based paradigm. The rising importance of intangible assets, such as intellectual property rights, reflects the growing significance of technology, innovation, and creativity in driving business success. By protecting these assets, IP laws not only incentivize innovation but also promote economic growth, enhance global trade, and safeguard cultural heritage. Therefore, understanding the various types of intellectual property is essential for individuals and businesses to navigate the complex legal landscape and protect their valuable creations.
As intellectual property gains prominence in the modern economy, it prompts important considerations about its role in fostering innovation and competition. One key issue is the balance between protecting creators’ rights and ensuring that innovation remains accessible to the broader public. The question remains: How can we ensure that intellectual property laws do not suppress creativity by making knowledge too exclusive or expensive to access? Additionally, the growing influence of multinational corporations raises concerns about the concentration of IP ownership in the hands of a few powerful entities. This concentration could potentially limit opportunities for smaller businesses and individual creators to compete effectively. As we move forward, it is essential to explore how intellectual property frameworks can be designed to promote not only protection but also inclusivity, fairness, and equitable growth across all sectors of society.