Basic Intro to Intellectual Property.
Most of us have heard of IP being applied in the technology sector. What comes to mind when we hear about IP. I think most people will think of some invention by a research team or a research organization. IP stands for Intellectual Property. Since it is a property there is a concept of ownership associated with the term. But we cannot touch IP like we can touch a car. So what kind of asset is this? IP resides in our brain, thus the term intellectual in the acronym IP. This asset is called an intangible asset. Something we cannot touch. I think smell or thinking would fall under intangibility. Ferrari cars would fall under tangible assets. In the 20th century most organizations had tangible assets on their balance sheet. Now, in the 21sr century top organizations have intangible assets that exceed their tangible assets by a large number, especially the technology companies. Most of their value is under IP. Thus this century is said to be a knowledge economy, where intellect is rewarded