By this analytical study, the author aims to develop recommendations on the formation of an intellectual property management system in the creative sector of economy

Khvorostyanaya, A.

Kvint, V.

Digital Library of Polotsk State University (Репозиторий Полоцкого государственного университета)

PolotskSUELECTRONIC COLLECTED MATERIALS OF XI JUNIOR RESEARCHERS’ CONFERENCE             2019 Economics  83 UDC 330.341  STRATEGIC FOUNDATIONS FOR BUILDING A STRATEGIC SYSTEM FOR MANAGING  INTELLECTUAL PROPERTY IN THE FASHION INDUSTRY  ANNA KHVOROSTYANAYA, VLADIMIR KVINT Lomonosov Moscow State University, Russia  By this analytical study, the author aims to develop recommendations on the formation of an intellectual property management system in the creative sector of economy.   In the XXI century the global economic system has undergone a number of global and qualitative changes. Social institutions have a growing influence on the development of post-industrial economy. Long has been intellectual activity of people a criterion of economic efficiency as creativity of a human can be a factor enhancing innovation capacity and expanding the technological capabilities of production. The post-industrial economy is inextricably linked to the development of creative industries [2]. Many companies in the fashion industry attained exalted aims on their origin market – reaching new heights in economic development while constructing high bandwidth retail network and building intense customer communication. Though once they had faced the stagnation trend caused by market over- saturation posing a serious challenge to the ability to undertake previous tasks and gain new goals. Purposely to preserve financial stability and amplify sales pace the new markets dilation could be the best way out. Cultural and creative industries (ССI) help to drive the digital economy, form creative multipolar world, structure creative hubs, boost cities’ attractiveness and bring forth talents. The creative economy deals with intangible assets, which values reflect in the brands and services. Over the past decade, structural transformational processes have taken place in the economy, as a result of which the role of intellectual activity has significantly increased, which, in turn, has led to the rapid development of creative industries. The high potential of creative industries today is not only noted by experts, but is also being actively discussed in society. The global market for the fashion industry continues to evolve: new design projects are emerging, markets for retailer and supplier networks are forming, and local centers for regional fashion are being created. Currently, the issues of building a successful local business are the most acute in the conditions of macroeconomic instability and fluctuating trends in customer preferences. In the domestic fashion industry, there is a huge potential for development that can give impetus to the acceleration of the transition of the traditional commodity economy to an innovative development model based on the commercialization of intangible assets. Fashion economics is a set of economic tools used in conjunction with creativity to create new forms and works, as well as to translate creative images and ideas into real products, the formation of public opinion and demand for them, the organization of advertising companies that promote their future purchase.The management of modern fashion business, in other words, the business of fashion goods, and, in particular, the key asset for it, designer brands, is an independent scientific and practical problem, the importance of which has steadily increased over the past decade. For a successful company operating in the fashion industry and the luxury goods market, a clear understanding of the price segment and business model for building an investment strategy is necessary [3]. Also there is a vital need to highlite the role of intellectual property. Intellectual law in the fashion industry is a legal field that covers a wide range of issues that arise throughout the life cycle of a commercial product — a piece of clothing or an accessory. Legal aspects of the fashion industry also include such areas as textile manufacturing, modeling and design, the media, as well as the cosmetic and perfume industries [4]. The issue of protection of intellectual property in the creative economy, and in particular in the fashion industry is increasingly becoming the subject of discussion of scientific discussions and the practical side of business in connection with globalization, the development of emerging markets and entrepreneurial expansion. For successful existence in the conditions of increasing international competition, it is vital for fashion industry companies to explore their competitive advantages, which for this field of activity are mainly expressed in intangible assets. Intangible assets are strategic resource necessary to improve competitiveness, as well as the economic and information security of the enterprise. Specifying the main strategic objects of intellectual property of enterprises of the industry are commercial product, brand and technical innovations. PolotskSUELECTRONIC COLLECTED MATERIALS OF XI JUNIOR RESEARCHERS’ CONFERENCE             2019 Economics  84 The following intellectual property objects, which contain the main competitive advantages of the industry, have strategic importance for the activities of companies in the modern fashion industry: − Commercial product - a unique result of applied intellectual creativity, associated with significant financial investments that must be justified in terms of the market and customer satisfaction; − A brand (including trademarks and trademarks) is a communication tool that plays a central role in shaping the image and business reputation of the company, building its relationship with consumers; − Technical innovative solutions - in the conditions of modern trends are key factors influencing the intensive economic growth of an enterprise [5]. The issues of monitoring and controlling the use of a trademark are of great importance, especially in the fashion industry, due to the fact that they are directly related to reputational risks. For fashion products with a long service life, the application for a registered industrial sample can be the best way to build a unique design protection system. Brand characters play a very important role not only for a large but also for a start-up company in the fashion industry. Strategic branding in the fashion industry is the process of creating a successful brand that will force potential customers to see the company as the sole supplier of solutions to their problem or need. The strategic goals in branding will be the creation of a strong emotional bond between the client and the commercial product of the company, the creation of motives for making a permanent or periodic purchasing transaction. For example, some people buy certain brands to build and maintain their personal or professional image. Most of the agents in the fashion industry communicate with their customers through their trade names and fiercely protect them by officially registering trademarks. Technical innovation solutions can in a fair degree provide strategic competitive advantages for the industry. The strategic use of new tools of the intellectual property system can play a decisive role in establishing dominance and strengthening positions in the market. The protection of intellectual property is particularly relevant in such an industry, as fashion, the development and development of which is a masterpiece of intellectual property. The protection of intellectual capital in the form of intangible assets serves to increase revenue through the sale, licensing and commercialization of new products in order to increase market share, increase profitability and reduce the risk of intellectual property violation by third parties [6]. In the business environment, creative solutions and innovations are the main source of competitive advantages for many enterprises, especially from creative industries. Given the modern aspects of competitive behavior, the strategic priority of fashion industry companies is to minimize the risks associated with the unfair use of the results of their intellectual activities, which could potentially or really damage the image and business reputation of an enterprise. Therefore, leaders and fashion strategists of companies specializing in the production and sale of wardrobe items must promptly identify the most valuable intangible assets, determine their importance for the business, and also identify those that form the basis of the company's intellectual property system and should be carefully protected. In other words, it is necessary to develop an intellectual property management strategy within the company. As part of this study, the strategic foundations for building an intellectual property management system is based on the use of the financial engineering methodology of the well-known Russian economist and strategist V.L. Kvint [7].  The system is proposed to build a strategic management system for the intellectual property in the following functional blocks - Strategic planning, strategic motivation and strategic monitoring and control. The list of tasks for strategic planning is quite extensive:  − Management and financial accounting of non-material assets (further - NMA);  − Identification of the NMA; − Determination of priority results of intellectual activity for further evaluation; − The economic valuation of the value of a company for the installation of a balance;  − Market valuation of the value of nm for determining the price of the transaction in the NMA;  − Financial calculation of compensation for potential damage, assigned to the owner of exceptional rights. The assessment aspect is especially relevant mainly for American companies in the fashion industry, the production and marketing complex of which is not fully integrated and calculated on licensing activities. By accounting for intangible assets in the balance of the enterprise, the assets of the enterprise increase, liquidity and creditworthiness increase, and the tax burden is optimized (the profit tax decreases due to the amortization of assets).  In aspects of strategic motivation a set of motivational measures or author's remuneration for employees should be developed who are employed in the company in the department of creating new designs of the PolotskSUELECTRONIC COLLECTED MATERIALS OF XI JUNIOR RESEARCHERS’ CONFERENCE             2019 Economics  85 design, which will play a significant commercial role in market conditions in the future. The list of issues to be addressed in the last block is also extensive:  − Conducting patent research;  − Ensuring the direct protection of the NMA [5]. The study of the strategic aspects of intangible assets and the formation of the intellectual property management system is of scientific and practical interest in order to develop effective strategies for the development of companies in the fashion industry.  REFERENCES  1. Ernst & Young. Official Page. Cultural times. The first global map of cultural and creative industries [Electronic resource] / Ernst & Young. – Р. 15. – Mode of access: http://www.ey.com/Publication/vwLUAssets/eycultural-times-2015/$FILE/ey-cultural-times-2015.pdf. – Date of access: 25.01.2017.  2. Хворостянaя, A.C. Индустрия моды — яркий пример рaзвития креaтивной экономики / A.C. Хворостянaя // Экономикa и упрaвление. – 2014. – № 06 (104). – C. 62–65. 3. Хворостянaя A.С., Теоретические основы стрaтегировaния индустрии моды / A.C. Хворостянaя К.В. Кузнецовa // Экономикa и упрaвление. – 2016. – №4 (126). – С. 33–38. 4. Le droit du luxe. Revue Lamy. Droit des affaires. Mai 2004. – № 71. – 66 p. – Mode of access: https://crefovi.com/Droit%20du%20luxe.pdf. – Date of access: 21.09.2018. 5. Хворостяная А.С. Стратегические аспекты управления интеллектуальной собственностью в индустрии моды / A.C. Хворостянaя // МИР (Модернизация. Инновации. Развитие). — 2018. — Т. 9, № 4. 6. Jimenez, G.С. Fashion Law: A Guide for Designers, Fashion Executives, and Attorneys / G.С. Jimenez, B. Kolson. – 2nd ed. – New York : Fairchild Publications, 2014. – 416 p. 7. Kvint V. Strategy for the Global Market. Theory and Practical Applications / V. Kvint. – Routledge NY, London, Sydney : Routledge Taylor&Francis Group, 2016. – Р. 520.                         

Strategic foundations for building a strategic system for managing intellectual property in the fashion industry

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Strategic foundations for building a strategic system for managing intellectual property in the fashion industry

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