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Intellectual Property: Currency of the New Economy

By Keith Bergelt
December 28, 2007

As Peter Drucker predicted, so has it come to pass; the new economy companies that proliferate in the United States and across the Group of 8 ('G8') countries are predominantly fueled by human capital, and enterprises participating in advanced economies are service-based and knowledge-driven.

The knowledge resident in our people that manifests itself in codified (patents, trademarks, and copyrights) and non-codified (know-how, trade secrets) intellectual capital is the single most significant source of value in the new economy. When codified, intellectual capital is transformed into intellectual property ('IP'), which conveys an ownership right in inventions that quite often serve as the foundation upon which entire businesses are built.

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