Understanding Intellectual Property

What is Intellectual Property?

Intellectual property (IP) is a category of property that derives from human creativity and invention.

IP covers creations of the human mind or intellect that have commercial value and are legally protected from unauthorized use by others.

Types of Intellectual Property

Copyrights

protect original creative works like books, movies, music, art, photographs, software code. Copyright protection lasts for the life of the author plus 70 years.

Patents

Protect novel and useful inventions, machines, manufacturing processes, and compositions of matter.

Patents provide an exclusive right to make, use, and sell the invention for a limited period of time, typically 20 years.

Trademarks

Protect words, phrases, symbols, designs that identify and distinguish the source of goods and services. Trademark protection lasts as long as the mark is being used in commerce.

Trade Secrets

Protect confidential and proprietary information like customer lists, manufacturing processes, algorithms, that provides a competitive advantage.

Trade secrets remain protected as long as the information stays confidential.

Protecting intellectual property encourages innovation and creativity by allowing creators to benefit financially from their work. Intellectual Property protection also safeguards brands and company reputations built on IP.

Forms of Intellectual Property

Copyrights

Copyright law protects original works of authorship like books, movies, music, art, photographs, video games, and software code. The creator automatically obtains copyright protection once the work is fixed in a tangible medium, but can register the copyright to establish evidence of ownership.

  • company names

  • logos

  • slogans

  • package designs

  • product shapes

  • sounds

Copyright owners have the exclusive right to reproduce, adapt, distribute, publicly display and publicly perform their works. Copyright infringement occurs when someone violates these rights without permission. Copyright protection lasts for the life of the creator plus 70 years.

Patents

A patent provides an inventor with the exclusive right to make, use, and sell an invention for a limited period of time in exchange for public disclosure of the invention. Patents protect the conceptual aspects of inventions, not the physical embodiments.

Types of things that can be patented include:

  • Machines and devices

  • Manufacturing processes

  • Compositions of matter

  • New compounds and chemical formulations

  • Software algorithms

  • Methods of doing business

  • New plant breeds

To obtain a patent, an inventor must file an application with the patent office. The application is reviewed by an examiner to determine if the invention meets the standards of patentability. If approved, the patent owner has legal recourse against anyone who makes, uses, sells or imports the patented invention without permission.

Trademarks

A trademark protects any word, phrase, symbol or design that identifies the source of a product or service. Trademarks help consumers identify and purchase from trusted brands.
Examples include:

  • Words

  • Logos

  • Symbols

  • Sounds

  • Product packaging

  • Product design

  • Color

  • Slogans

  • Fictional characters

Registering a trademark establishes exclusive nationwide rights to use the mark for specific products or services. Trademark owners can sue for trademark infringement to prevent the unauthorized use of identical or similar marks that cause consumer confusion. Owners must actively use their marks in commerce to maintain protection.

Trade Secrets

Trade secrets encompass confidential and proprietary business information like formulas, manufacturing techniques, algorithms, customer lists, pricing strategies, that provides an economic advantage.

As long as the information remains secret, the trade secret owner can sue for misappropriation against anyone who improperly acquires, uses or discloses their trade secret.
Common trade secrets include

  • Secret Recipes

  • Source Code

  • Drug Formulas

  • Manufacturing Processes

  • Customer Databases.

Companies use non-disclosure agreements, password protections, encryption and other measures to protect trade secrets.

How to Protect Intellectual Property

Copyrights

Copyright protection is automatic once a work is fixed into a tangible medium like paper, film, or digital file.

Registration with the U.S. Copyright Office establishes public evidence of ownership.

Copyright notices (© Year, Owner) should be placed on published works.

Patents

To obtain a patent, an inventor must file an application with the U.S. Patent and Trademark Office or a national patent office in other countries.

The application undergoes examination to ensure the invention meets the standards of patentability - novelty, non-obviousness and usefulness.

Once granted, a patent gives the owner recourse against patent infringement.

Trademarks

Trademark owners should register their marks with the USPTO or other national trademark office.

Registration certifies the registrant as the lawful owner and provides evidence of nationwide priority if a dispute arises. Trademark owners should use the TM (unregistered) or ® (registered) symbols and actively monitor their industry for infringement.

Trade Secrets

Companies must take reasonable measures to keep trade secrets confidential through non-disclosure agreements, password protections, encryption, and access controls. Essential personnel should be trained on proper security protocols to prevent leaks. Trade secret audits can identify risks.

How to Register Intellectual Property

Patent Registration

To obtain a U.S. patent, an inventor must file either a provisional or non-provisional utility patent application with the USPTO.

A provisional application is less formal and establishes an early filing date, while a non-provisional application begins the formal examination process. The application must include background information, patent claims defining the invention, detailed specifications, diagrams if applicable, and a filing fee.

Trademark Registration

To register a trademark with the USPTO, an applicant must file an application identifying the proposed mark, applicable goods/services, evidence of current use in commerce, and a filing fee. The USPTO examines the application to determine if the mark is distinctive and approvable. Once approved, the mark is added to the trademark registry database.

Copyright Registration

While copyright protection is automatic, registration with the U.S. Copyright Office provides legal benefits. To register a copyright, an applicant completes an online application, uploads a copy or phonorecord of the work, pays a fee, and receives an official registration certificate.

IP Licensing and Monetization Strategies

Intellectual property owners have several options for generating revenue from their IP assets

Licensing

The IP owner grants permission to another party to use the IP in exchange for royalties or other licensing fees.

Licensing allows IP owners to realize profits without having to manufacture and market goods themselves.

Assignment

The IP owner transfers some or all ownership rights to another party, often through a sale. The assignee becomes the new legal owner and has full rights to exploit the IP.

Litigation

IP owners can sue infringers for damages and lost profits resulting from unauthorized use. Successful litigation provides financial remedies and deters future misappropriation.

Joint Ventures

The IP owner partners with other companies best positioned to fully commercialize the IP. The partner develops, manufactures and markets products based on the IP and shares resulting profits.

Protecting IP from Abuse

It is critical for IP owners to actively protect their rights from unauthorized use, theft, and infringement.

Recommended best practices include:

• Monitoring for infringement through watch services, online searches, and industry connections

• Sending cease and desist letters to suspected infringers demanding they stop unauthorized use

• Implementing digital rights management controls for copyrighted works

• Filing DMCA takedown notices to remove infringing online content

• Pursuing litigation against defiant infringers to recover damages

• Using non-disclosure and non-compete agreements to prevent IP and trade secret leaks

• Training employees on security protocols for protecting confidential information and trade secrets

• Conducting IP audits to identify areas of vulnerability and risk

• Obtaining patent, trademark and copyright registrations to strengthen legal rights

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