THE INTEGRATION OF INTELLECTUAL PROPERTY & CROWDFUNDING PLATFORMS - A TWO-STAGE STRATEGY FOR ENTREPRENEURSHIP

Abstract

Crowdfunding has grown in popularity over the past couple of years. It is anticipated to implement a new index fund that will transform how development stage and micro enterprises financing transactions are completed by merging the Internet/social media with equity-based financing. Crowdfunding provides start-ups as well as other micro-businesses with easier access to finance through the Internet/social media. A deep and connected urge in our human society is to support and feel involved in the types of initiatives and businesses that we care about. Until the recent crowdfunding craze, our more centralized and intermediary capital formation and funding processes seldom recognized the social force of crowds that create affinities around any type of cause. Crowdfunding is a reflection of our true social will and a legitimate systematic reaction to filling this gap. It is, probably, one of the most significant advances in contemporary socioeconomics, promising to transform the capital creation landscape while also providing a pathway for intellectual and artistic rebirth. The objective of this article is to describe the key legislation or initiatives linked to crowdfunding, with the aim of comparing the various regulatory structures as much as feasible. This article analyzes the perceived advantages and drawbacks by limiting the examination of the legal difficulties that afflict crowdfunding to the EU and USA. The article specifically tries to investigate the basic intellectual property problem that arises from the disclosure of ideas before protection. The article then examines the various dimensions of crowdfunding that can be examined under present intellectual property rights regimes in the process to facilitate that industry players on crowdfunding platforms do not endanger their commercial value. Because of the uncertainty that surrounds the crowdfunding process, particularly because certain platforms may not release funds if the objective is not fulfilled, the article emphasizes the necessity for an IP owner to tread cautiously while deciding on a business plan.