The Future of IP in Circular Economy

According to a World Bank research, 3.4 billion tonnes of garbage would be produced annually around the world by 2050, up 70% from 2018. This alarming statistic highlights the necessity of fundamentally altering our economy and making a difficult transition to a more sustainable one. Additionally, eco-efficiency and green manufacturing ideas like the circular economy, an industrial system meant to be restorative or regenerative, are being stressed along with sustainable living and production. In order to establish sustainable innovation, it is essential to have strong intellectual property rights (IPR). By removing institutional barriers, promoting cross-industry dissemination, and conducting in-depth research on IPR issues for the circular economy, IPRs structurally assist businesses in making the transition to sustainability.

Recognizing the Circular Economy
The linear economy of today uses natural resources as raw materials, transforms them into goods, consumes them, and then discards them, which is extremely harmful and unsustainable. The idea of the circular economy places a strong emphasis on the “Make, Use, and Return” principle. By promoting the use of today’s commodities as resources for tomorrow, it seeks to bridge the gap between artificial and natural ecosystem cycles. As a result, it represents the concept of sustainable development.

A circular economy is based on the notion that there ought to be no product waste. We should aim to achieve this goal by making products built to last and optimized for a cycle of disassembly and reuse, making them easier to handle, re-purpose and renew. The circular economy model provides new potential for innovation and integration amongst the natural ecosystems, businesses, people’s daily lives, and waste management.

Now that we know about the circular economy, we will move forward to a comprehensive view of the relationship between the circular economy and IP, and how this relationship can be leveraged to attain a sustainable future.

IP and the circular economy
Humans are dependent on expansion, whether it is economic, political, or social. However, this rush for progress has increased materialism, which is no longer the wisest course of action. The path of materialism has gotten more divisive and harmful as we get closer to its economic ceiling. Whether or not they increase, the fact remains that we need economies that allow us to prosper. “A good economy should be structured to thrive, not grow,” famous economist Kate Raworth once said.

This new goal pushes us to develop economies that are redistributive and regenerative. Intellectual property enters the scene in this situation. While open sourcing knowledge and sharing it with others can help use technologies to reach everyone, which is encouraged wherever appropriate, climate-related IP helps create an economic system and currency for incentivizing technology players to deeply collaborate in addressing environmental challenges and working towards a healthy and sustainable future. The adoption and advancement of clean technology across all industries and regions can be aided by the wise and effective use of IP assets.

Characteristics of Sustainable IPTM
Change is unavoidable, and it fosters innovation and creativity, which help to produce sustainable intellectual property (IPTM). It includes both IP that advances sustainability and supports it as well as IP assets that are more commercially viable, justifiable, and advantageous to the IP-owning company. The development of a greener economy and maximising efficiency frequently require these IP assets. Sustainable IPTM is advancing as more people become aware of and accept the need to consider future generations. It does not, however, displace the conventional model. By implementing sustainable IPTM, we are only supplementing the current strategy rather than concentrating on and enhancing it to advance the sustainability agenda. Here are some essential characteristics of sustainable IPTM:

• Transparent ownership to facilitate cooperation.
• Uses IP to accelerate sustainability by regulating and incentivizing.
• Enables the creation, adaptation, and distribution of green technology.
• IP is intended to drive innovation that is meant to be shared.
• Includes social sustainability and Environmental, Social, and Governance (ESG) screening.
• Helps achieve zero carbon mission by building recyclable products with new materials. Hence, fueling the need for new technology, and patents to protect such enhanced functionalities.
• Inventions revolve around available/recyclable/sustainable materials.
• Makes it a win-win situation for everyone, including the government, consumers, and corporations.
• The development of new products requires a significant investment in IP. Sharing it with everyone for a fair license can help create more impact from the innovation.
• Trade secrets are the biggest obstacle. There is an increasing need to urge corporations to open trade secrets to patenting and disclose IP to others for the greater good.
• Introduces a new paradigm in which customers are charged for typical, non-sustainable usage, and not for sustainable usage.
• Employs a business model that generates profits while providing social benefits. To achieve this, innovations are licensed at a minimal cost to establish social benefits and use these patents to keep market pricing in check.

It is clear how implementing the sustainable approach will help our economy. To create a low-carbon future, however, the route to sustainable IPTM still requires a lot of work.

To know more, read the entire article about Sustainable IP in Circular Economy.