Spring 2012
Entrepreneurship (MGT602)
Assignment No. 02
Due Date: June 07, 2012
Lesson: 15 to 27
Marks: 30
Topic: Legal issues for the entrepreneurs.
Objective of the assignment:
The fundamental objective of the assignment is to review the importance of legal
concerns for the entrepreneurs of Pakistan.
Background:
To recognize and to reward the creative efforts of a person/organization are major
determinants of the motivation of an innovator. Entrepreneur, being innovative in nature, also
has an inclination to be rewarded for his efforts. This reward can be in terms of the legal
protection of its innovation as well as in terms of increasing profits. Following case of cottage
industry presents a raw vignette of the importance and impact of the legal protection of
entrepreneurial innovations.
The Case:
Cottage industry in Pakistan is a major source of earning for a vast majority of
inhabitants particularly the residents of the remote areas of Pakistan. This industry is also a major
source of employment as well as a marvelous contributor in the economic uplift of the country.
Most of the entrepreneurial ventures in Pakistan have their grass root beginning from cottage
industries.
Unfortunately these industries mostly serve as a supplier/vendor for large corporations and this
convention inherits from one generation to the other. Marketing and innovation practices are not
profoundly observed in this sector. One of the major hindrances is the less formalized procedures
and reasonably low legal support/knowledge of the entrepreneurs of this sector. Majority of the cottage industry entrepreneurs do not have sound knowledge of the intellectual property rights
and its potential benefits.
Requirements:
1. What are the potential disadvantages a cottage industry entrepreneur has to face in
Pakistan as compared to other countries where intellectual property rights are fully
incorporated? (15 marks)
2. Does any innovation regarding the cottage industry by an entrepreneur will be secured as
copy right or patent? Justify with an example. (15 marks)
