January 13th 2020

Mr. Dimiter Gantchev

Deputy Director, Copyright.

WIPO                    

Making a living in the creative industries means different things to different people. For some, it represents an ideal of creative freedom, for others a business strategy. Individual motivations and roles are as varied as the activities that make up the creative industries – a sector that includes a range of activities from architecture to production of video games.

The creative industry is the fastest developing part of the economy. They link culture and creativity to economic objectives and policies and have an enormous outreach potential.

Intellectual property (IP) is a fundamental building block of creativity. IP refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce. The creators of those works can protect them and control their use. Copyright, design rights, patents, and registered trademarks are all recognized ways for creatives to secure their rights.

The law grants rights to creators in order to incentivize them to create and disseminate their works. It does this by enabling them to achieve a monetary reward for the use of their creations by others, thus enabling them to make a living and spend time creating new works.

Copyright protects the creative or artistic expression of an idea, not the idea itself. Copyright law allows the owner of the rights in literary or artistic works to control how those works are used. The copyright owner has the exclusive right to use or lend the work or to permit others to reproduce or adapt the work for commercial gain. Copyright protects every original work, regardless of its literary or artistic merit.

Mobile technology has become an integral part of everybody’s life. And with this, comes a demand for mobile applications and the advancement of mobile technology has helped in transforming our lives meticulously and has catered to meet the emerging demands of collaboration, communication, efficiency, and entertainment from mobile devices.

People spend more time using smartphones and mobile than they do on laptops or desktops. The sole reason being it’s easy-to-carry and consists of everything that you need to know. The tech industry has experienced a gradual yet sudden shift of focus and the mobile phone has grabbed the center-stage.

There are tremendous opportunities in the new digital ecosystem for monetizing creativity because the power balance is shifting.

Mobile apps are a key creative sector and deserve a strategic consideration, this, therefore calls for the need to understand IP in developing mobile applications.

Intellectual Property Rights functions in the creative economy;

ECONOMIC FUNCTIONS

Intellectual property rights have little value on their own; they gain value by successfully securing economic benefits for the owner in the marketplace. So Intellectual Property Rights is a mechanism that helps creators earn a living. Its purpose is to make it possible for authors to make a living from creative activities services.

The exploitation of Intellectual Property Rights is the process by which creators achieve the market value of their works. Content creators must be sufficiently compensated for their literary or artistic work, or they will cease to produce it and be forced to find alternative employment.

Products created within the creative economy are highly differentiated and there is often no direct substitution as each product offers a unique experience. Two songs, even with the same lyrics, performed by different musicians, will sound different and can be sold as such; for example “I Will Always Love You” which was originally by Dolly Parton but enjoyed further success when covered by Whitney Houston.

With the proliferation of internet-enabled devices, the barrier to entry and distribution to a global marketplace is significantly low and the ability to earn across currencies provides many people with the opportunity to earn a livelihood

Creative products tend to be inexhaustible resources. As natural resources continue to deplete and the world seeks sustainable and eco-friendly alternatives, the creative industry shows itself to be a viable alternative.

SOCIAL FUNCTIONS

IP rights support innovation by making it a more worthwhile investment and encouraging knowledge diffusion.

It is also important to note that IP results from innovation based on existing knowledge. lt is the result of creative improvements on what has worked well in the past, or of creative new expressions of old ideas and concepts

Intellectual Property Rights is a means of promoting progress; and not an end in itself. Much like freedom of expression and new innovations are not ends in themselves, Intellectual Property Rights protection is not for its own sake.

Freedom of expression is often heralded as a means of fostering democratic self-governance, truth, and happiness. Innovation is seen as a means of fostering economic growth, prosperity, development, and happiness. Similarly, Intellectual Property is a means of fostering human progress and enriching the shared social body of knowledge from which others can be inspired to create.

CULTURAL FUNCTIONS

Intellectual Property Rights is an important part of cultural policy. Culture is the soul of a people, the reflection of society’s essence. By protecting the stories and oral tradition, the dances and performance art, sculptures, fashion and other unique expressions of cultural identity, we not only ensure the posterity of our unique identity but also demonstrate its inherent value.

 By attaching an intellectual property right to our cultural heritage, we are able to enshrine certain moral rights such as attribution and integrity. These rights are critical in protecting the dignity of the community.

Individuals within these communities gain a sense of dignity and identity in cultural heritage. The concept of cultural independence is not seen as a divisive issue but as a means of enriching the society’s cultural ecosystem.

The intellectual property rights associated with creations have the ability to balance the scale between the owner, creator, and society, each of whom serves an integral part in the process of creativity and the production of intellectual property

ROLE OF IP IN DEVELOPMENT

 A recognition, 

A guarantee of your investment. Intellectual property (IP) assets may help you to strengthen your case for obtaining business finance from investors/lenders. IP ownership is thus important to convince investors/lenders of the market opportunities open to the enterprise for the commercialization of the product or service in question.

An economic asset with multiple uses and long term effects.  IP assets have economic value because of their ability to enhance the value and financial return from technologies, products and services. By using the word “assets”, business managers and policymakers recognize that IP is not only a legal right but also an economic benefit enjoyed by its owner. Intellectual property is part of a larger economic context in which human capital is a productive and skilled workforce or a generation of scholars and researchers.

A mechanism to participate in the global IP market, Adding value through the use of IP helps these economies expand their participation in global value chains and reduces their dependence on the traditional low value-added commodities.

An indicator of development. There is a growing interest in broadening the measurement scope of innovation and considering “creative” activities, meaning that the usual indicators of innovation satisfy neither scholars nor policymakers.

 CONTRIBUTION OF the COPYRIGHT INDUSTRY TO GDP

The total contribution to GDP is the aggregate of core copyright industries (2.9%) and interdependent copyright industries (1.1%), which makes 4.0%. In comparison, the corresponding figure for the EU-15 industries in 2000 was 5.3%.

CONTRIBUTION OF the COPYRIGHT INDUSTRY TO EMPLOYMENT

The contribution of the copyright industries to national employment is slightly higher than the share of GDP and stands at an average of 5.32%. Nearly three-quarters of the countries fall in the range between 4% and 7% contribution to national employment.

POLICIES THAT SUPPORT THE CREATIVE INDUSTRY

Standard cultural policies, which cover cultural diversity quality and distribution and innovation.

Economic policies, which cover Entrepreneurship, Access to market venture, market development, creative clusters, and intellectual property rights.

Non-Economic policies, which cover Education and other relevant institutions

MOBILE APPS INDUSTRY

The mobile Apps industry is a continuously growing industry of 20 million app developers. Which is expected to generate $189 Billion in revenue by 2020. It is a huge part of the startup economy, it is Job and value-generating industry, which has a huge distribution channel.

There are 2.8 million downloadable Apps in Google Play Store, 57% of all digital media use come from mobile apps. Out of 7.7 billion world population, 5 billion of the population use smartphones, each smartphone user, uses an average of 30 apps per month.

Mobile apps have become popular because of the career prospect, but to some, it’s an income-generating hobby, Income Potential, work-life balance (flexibility).

DEVELOPING APPS AT A COST

THE COST OF MOBILE APP DEVELOPMENT MAY DEPEND ON:

·         Types and number of platforms supported

·         Complexity, newness, and number of features

·         Backend infrastructure and application programming interfaces

·         Customization and visual designs

COST DEPENDS ON THE TYPE OF APP

·         Music apps -$25,000

·         Magazine apps -$34.000

·         Book Apps – $37,000

·         Interactive apps – $49,000

·         Film & TV apps -$114,000

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