1. GET YOUR WORK DONE BY
www.TopGradePapers.com
Introduction:
past decades, it has been seen that most of the economies are moving towards economies where
the ownership of the assets are in private hands, but now the trend has transformed its pace and it
rs
has taken turn to move to the new system which is intellectual capitalism. (Vassiliadis, B &
Fotopoulos, V, 2007, p 84) interpreted intellectual capitalism as a knowledge or information
economy in which intellectual capital (Non Tangible Capitalized Assets) in some sense is
pe
dominant. This industry, these days especially, has become the most important and vital for all
the developed economies, on the whole, because this is the most growing and feasible industry;
as it has highest potential for growth both domestically and internationally, as well. According to
(Carnes, R & Hudgins, C, 2009, p 1) indicate that there has been always a debate that copyright
Pa
is harming a culture but in reality it is not true. Actually the pirates are the ones that are harming
culture. Emergence of the culture comes when the rights of the radical innovators are secure. The
evidence of this can be seen from the American music and movies industry where the rights of
de
creators are preserved (Carnes, R & Hudgins, C, 2009, p 1). The Intellectual capital industry,
with its highest growth prospects, is also prone to many important issues related to creation, use,
and distribution of the digital content through e-commerce channels.
ra
pG
To
1
GET YOUR WORK DONE BY
www.TopGradePapers.com

2. GET YOUR WORK DONE BY
www.TopGradePapers.com
Intellectual Capital needs Intellectual Property Rights (IPRs), to motivate and secure the return
of the person behind the innovation of the product or producing a valuable document or coming
up with amusing sound tracks. The argument by (Carnes, R & Hudgins, C, 2009, p 1) goes with
the discussion that intellectual property rights are causing harm to the society as a whole because
rs
they restrict the flow of products which are representation of our culture so they restrict the flow
of sharing the culture. On the contrary, it is argued that IPRs are the baseline for motivating the
individuals to come up with the innovative products and hence they contribute to the well being
pe
of whole of the society in the form of growth and newer technologies (Vassiliadis, B &
Fotopoulos, V, 2007, p 86).
Pa
This issue is apart, initially the main problem is discussed which is the protection of this industry
and safety from the malpractices which surpass the security barriers and misuse or steal the
material from online libraries or wherever they are stored (Form: B2C or B2B). This has been
de
done with the use of technology, as technology provides opportunities for convenience and
growth, at the same time it also pose threats because new technology brings new methods of
malpractice with it. The digital media in the form of still images, video, sound, and multimedia
shows potential for growth and improvements in their use because of higher enhance human
ra
machine interaction in almost all the form of business. ‘E-commerce channels have become a
primary distribution channel for the digital media market. This thing has brought a dramatic
growth and as well as losses in terms of transferring and sending illegal copies (Vassiliadis, B &
pG
Fotopoulos, V, 2007, p 79). According to the U.S intellectual property rights, the motion picture
industry of U.S has faced the loss of $1.5 billion, record and music industry faced the loss of
$2.3 billion due to piracy issues for the year 2003. The significant amount of loses have come
due to the exchanging of pirated or illegal copies through internet (Vassiliadis, B & Fotopoulos,
To
V, 2007, p 80). IPR has been emerging as safety measures of the intellectual capital from all
malpractice activities in order to save the intellectual capital market. There are three major
categories of IPR protection are: copyright protection, trademark and digital products. There are
various protection techniques such as prevention systems, digital watermarking (a technique used
for copy detection), are becoming extremely popular (Article 2). These techniques can not
eliminate the piracy but rather discourage it by supporting detection of stolen copyrighted
GET YOUR WORK DONE BY
www.TopGradePapers.com

3. GET YOUR WORK DONE BY
www.TopGradePapers.com
material. Data Rights Management systems have been proposed for the efficient and complete
protection of digital content and management of licenses (Article 2).
In order to manage, a new and complete system to protect the online content has provided the
rs
opportunities and complete solution to IPR (Article 2). The benefit of this system is that it can be
used with the software a company uses to manage its online selling business, so the DRM system
integrates with the current corporate system easily offering opportunities for growth and
pe
increasing efficiency. This is also very cost effective because to implement this software, there is
no need for process reengineering, current system is well integrated and the software costs less;
payments for the software are paid according to the usage of the service like the content which is
Pa
saved for the company, instigate cost savings of the company in the form of saved content
misuse and steal of the product available online, further distribute costs for the usage of the
software; the cost incurred for safety is minimal compared to the costs and misuse saved. DRM
woks as independent software, because the DRM service provider authority gets the data from
de
the company to be sold on net and then takes on the responsibility of safety and proper
distribution with the usage of tailored business model. According to Rossenbalt (2002), there are
two major definitions of DRM systems; one encompasses the encryption techniques mainly,
ra
which is referred as narrow technique, and the other one is broader one which extends to the
rights management by using the techniques.
pG
There are some new techniques introducing in the market that are related to the image processing
which can also seen as a perfect solution for images and videos related content on the web
(Article 1). These methods can be used to discontinue the illegal attempts to access the digital
content available on net. Sometimes watermarks are visible to the humans and sometimes they
To
are hidden and not brought on screen but the software confirms its authentic source and access
the site which initiates the illegal usage. One of the main concerns that each company has in a
decision to adopt DRM system is security. There is no DRM system which can offer perfect
security from the misuse and malpractice of the content available online, especially due to high
costs associated with perfection. Some technologies either prevent the illegal use and other the
reuse of digital Content, so total protection is a challenge most of the time with the usage of one
selective technology keeping in view the cost constrains (Article 2).
GET YOUR WORK DONE BY
www.TopGradePapers.com

4. GET YOUR WORK DONE BY
www.TopGradePapers.com
Watermarks offering the advantage by offering multiple watermarks which run check more than
once, but they are not always reliable alone. It is necessary to work with other procedures, and
companies’ business model must adapt and check for durability. The major problem with
rs
security and protection is related to the deadlock, when a fake watermark is inserted and it
becomes difficult to track the true ownership (Article 2).
pe
The extensive growth of digital media usage has offered a lot of challenges for security
problems, related to distribution and sales, most of the time. This need has given birth to the
extensive need of the development of new security methods, which extensively adapt to the
Pa
current business model and reduce the costs to its optimum level.
The recommendations to improve the IPR are as follows;
 According to the research, B2C model has facing more challenges. In order to cope up
de
with this issue, businesses should implement the proper and reliable systems.
 Businesses should not give more attention to software costs, because these are
ra
significantly less than the losses that a business might face due to the piracy or other
issues. If companies use relatively cheap software and its reliability is below satisfactory
than they might have to bear low net income and more losses as compared to the
pG
expensive software.
 Intellectual Capital provides us with many advantages, therefore different countries
should form an international council or committee that provides IPR services
To
internationally to the companies. Especially it would be very helpful to Multi – National
Companies.
GET YOUR WORK DONE BY
www.TopGradePapers.com

5. GET YOUR WORK DONE BY
www.TopGradePapers.com
References:
Rick Carnes & Coley Hudgins, (August 2009), COPYRIGHT IS CRUCIAL FOR CULTURE;
Strong Intellectual-Property Rights Have Helped The Arts And The Economy, Nielsen Business
rs
Media.
Bill Vassiliadis & Vassilis Fotopoulos, (2007), IPR Protection for digital media distribution:
Trends and solutions in the E-Business domain, Hellenic Open University, Greece.
pe
Pa
de
ra
pG
To
GET YOUR WORK DONE BY
www.TopGradePapers.com