Intellectual property next global issue

Intellectual property is becoming the greatest renewable resource of our age.

A relatively obscure topic often relegated to the noble few who spend their years at law school pouring over infringement cases and writing claims, intellectual property law consists of patents, copyrights and trademarks, which protect an inventor’s rights to profit from his creation.

Innovation has been incentivized since day one. The seeds of success were sown in the Constitution, with the inclusion of a well-defined intellectual property law. The activity of a country’s patent system is a telling (though imperfect) indicator of overall economic health.

The top three countries in terms of patent filings are Japan, the United States and South Korea. Emerging markets like Brazil, India and China have also seen a sharp increase in the number of patents filed over the last decade.

The concentration of wealth that was once measured in tangible assets now is largely measured in intangible assets.

In an age when value is contained in formless ideas, designs and technologies, one can understand why a system that protects the exchange and use of such value is of crucial importance.

The long-neglected intellectual property system has finally inched its way onto policymaker’s radars. The President even referenced patents in his State of the Union address.

The U.S. patent system is far from perfect. The entire process, from the filing of a claim to granting the patent, takes an average of 32 months.

Patent litigation has seen a whopping 230 percent increase over the last 20 years, according to the U.S. Patent and Trademark Office.

In an interlinking global economy, one country’s problem cannot be cured in house anymore.  Intellectual property reform must be a global event.

Intellectual property theft is still a subject of some rancor between the United States and China, though China’s leaders are taking steps to combat the deep-rooted piracy.

China has the second largest market for computer sales, but ranks a lowly eighth in software sales.  Some point to this as evidence that many Chinese citizens might be illegally downloading software.

There has still been some progress. Software piracy rates have fallen since 2005 (66 percent in 2005 to 47 percent in 2008), according to a 2010 report released by Chinalabs.com, a company commissioned by China’s State Intellectual Property Office.

But the problem is nowhere near a solution, and was a subject of discussion when China’s President Hu Jintao visited the White House last month.

The bottom line: Innovation plus protection equals prosperity.

Governments around the world are beginning to understand the importance of building a strong  intellectual property system.

Likewise, business leaders and innovators must understand the importance of building a solid and diversified patent portfolio, not just in the United States, but overseas.

Jordan Lee is a sophomore majoring in broadcast journalism and Chinese .