Product lifecycle

The Product Lifecycle and Intellectual Property

The product lifetime refers to the steps that a product goes through from early research to sales and, finally, market exit (Stark, 2005). The technology lifecycle is concerned with the cost and time needed in producing the technology, methods of making the product profitable in relation to the risks and costs involved, and the schedule for recouping the expenditure. These processes take place during the four major product lifecycle stages depicted.

The Importance of Intellectual Property Rights

The length of a product's lifecycle determines its commercial value. By maintaining their intellectual property rights on the items, innovators can extend the lifecycle of their technologies. Some of the strategies for protecting the rights include the use of patent rights, trademarks, and trade secrets.

Patent Rights and Technology Lifecycle

Patent rights lengthen the lifecycle of new technologies by protecting them. According to Hawk (2005), patent rights give the inventor the right to exclude other people from making, importing, selling, or using the invention within a specified period. The period allows the innovator time to recover the cost and make profits. The patent also speeds up the introduction of a particular product in new markets to exploit the commercial advantages.

Trademarks for Brand Identity

On the other hand, trademarks which include pictures, designs, words, or symbols allow innovators to identify their products and distinguish them from products made or sold by other people (Shilling, 2002). The trademark allows the owners to enjoy market benefits without unnecessary competition from counterfeits. According to Shilling (2002), trademark influence buyers’ goodwill and act as a guarantee of quality. As such, customers become loyal thus allowing the owner to maximize sales.

Trade Secrets for Exclusive Advantage

The other strategy is trade secrets. The secrets include processes, formulas, instruments, or programs that are not known by others and offer economic advantage over competitors (Bouchoux, 2013). Unlike patent and trademark, trade secrets are short-term protections of products that become unreliable once the information or secrets leak to competitors.

Innovation, Lifecycle, and Intellectual Property

In conclusion, innovation tends to be costly especially for products with short lifecycles. Duplication of ideas and products reduce commercial gains and discourages innovators. However, trade patent, trademarks, and trade secrets can increase product lifecycle thus allowing the innovator recover costs and make profits.

References

Bouchoux, D. E. (2013). Intellectual property for paralegals: The law of trademarks, copyrights, patents, and trade secrets. Clifton Park, NY: Delmar Cenage Learning.

Hawk, B. E. (2005). Annual proceedings of the Fordham Corporate Law Institute: International antitrust law & policy. Huntington, NY: Juris Pub.

QuickMBA. (2010). The product life-cycle. Retrieved from http://www.quickmba.com/marketing/product/lifecycle/

Shilling, D. (2002). Essentials of trademarks and unfair competition. New York: Wiley.

Stark, J. (2005). Product lifecycle management: 21st century paradigm for product realization. London: Springer-Verlag London Ltd.