A patent is basically a right that is usually granted to a person who has made an invention. This allows the owner to bar anybody else from using his invention without having the right permission. In Hong Kong one can apply for a patent if the invention is within the laws of the country. One cannot be granted a patent for inventing something that is not accepted by Hong Kong. The patent application procedure in Hong Kong is direct and follows a series of steps. Before applying for a patent it is necessary to ensure that you read the whole application procedure and research deeply on everything about patents in Hong Kong.
One of the most important things that you should note about patents in Hong Kong is that they are mainly divided into two categories. The first category is referred to as a standard patent and the second a short term patent. The main difference between the two is the protection period. Under the Hong Kong patent law, a standard patent is viable for 20 years. Renewing of the patent is however done annually after the first three years. For the short term patent, it is viable for 8 years but it is renewed after the first four years. The application process is different for the two categories of patents. This is why it is important to make a decision on the type of patent you prefer.
It is important to take note that a patent registered in a different country will not receive protection when in Hong Kong. One needs to get patent protection from Hong Kong in order to label a certain invention as theirs. One of the main advantages of patents is that under the protection you are liable to take legal action to any individual that uses the invention without your authorization.
For the case of a standard patent, the registration process is divided into two sections. The request to record section and the request for registration section are the two main sections. It is important to ensure that you fill all the application sections correctly and wait for a response from the registration office. It does not take a long time for the registration to be completed once you are able to fill the form with the correct information. Ensure that you get the application documents from the government site or from the government offices to avoid being scammed.
Investors have the responsibility of checking out all of the accounting on-goings of a company before they decide to invest in it. Hence it is also important to know about the functionalities of “creative accounting”, as it is being called now. This is a branch of accounts that deals in manipulating accounts in a way that will provide different financial results than what is truthful. Managers of reputed firms get into such malpractices because they ae compelled by the economic reasons to show that they are ahead of the game. But the long term effects of this kind of a practice are very harmful to all involved. Below are a few reason of why creative accounting is resorted to in the first place:
Share price manipulation
It is often seen that to increase the price of the shares and hence the value of the firm, incorrect or distorted figures of accounts revenue generated are published. These inflated figures gain popularity and shows strong financial stability which in turn draws investors to buy more shares of the firm. Although it may work on a short term basis, if revenue is shown to be more than it is, it means that the company’s capacity to handle short term capital is hampered. This firm will have to have more focus on its short term capital because the revenue generated would not match up to the expenses due to increase in the various interest groups. It is fraud and has criminal prosecutions but affects the company’s reputation and goodwill even if it has not closed for business eventually.
Key managers’ compensation
Usually the key managers of the company are paid according to the accounting position of the company. They get shares as bonuses or their incentives depend on worth of the company. This is an added motivation for key personnel managers to try to manipulate the incoming numbers. This occurs especially to cover up a bad revenue patch. The accounting is also interfered with when there are debts to be raised from banks. It is important to show a strong financial backing and this is one route taken to achieve the purpose.
Shareholders vote of confidence
Although shareholders do not participate in the management of the company, they are interested in the accounting numbers. They have the power to replace the board if the company has not been managed well. This hence becomes a motive for accounting manipulation.