YDS-2015-Spring-04
April 5, 2015 • 2 min
It is not just the rights to solid, visible property that need to be protected; ownership of invisible property such as ideas and artistic creations also require protection. An inventor has little incentive to innovate if he knows that his invention will be seized from him – depriving him of any reward for his work – as soon as it is finished. So, for an economy to function properly, governments have to ensure they have a stable system of patents and other intellectual property rights. Copyright, for example, protects writers, for a set period of time, against plagiarism. Intellectual property rights have come under great scrutiny in recent years thanks to the rise of emerging economies such as China and India. In such countries, regulations and laws on intellectual property and common standards have proven hard to uphold. As a result, companies have been able to produce, for example, cheap and unlicensed versions of drugs based on the research and development of Western pharmacological companies. Although consumers initially welcomed such projects, there have subsequently been several scares over whether goods produced in these countries can be trusted. For instance, some counterfeit drugs produced in China have turned out to have no effect, or even to be harmful. Hence, there must be strict regulations regarding both the use and selling of these drugs.