Intellectual property rights can be incredibly powerful intangible assets to a business. As a cornerstone of modern economies, IP helps drive progress and foster competition.
The patent system adds “the fuel of interest to the fire of genius.” – Abraham Lincoln*
“Intellectual property is the oil of the 21st century.” – Mark Getty
“I knew that a country without a patent office and good patent laws was just a crab, and couldn’t travel any way but sideways or backways.” – American author Mark Twain in A Connecticut Yankee in King Arthur’s Court
From patents and trademarks to copyrights and trade secrets, intellectual property rights—legal rights that protect creative works and creations of the mind—give the creator exclusive rights to their work for a set period of time.
Why intellectual property rights matter?
As articulated by global leaders and scientists, strong intellectual property rights protection is important because they:
- Drive innovation and job creation, bringing new ideas to the marketplace;
- Turn innovation and creative ideas valuable business assets;
- Secure competitive advantages;
- Protect innovators from unauthorized copying for their work; and,
- Promote public health and safety by combating counterfeits.
But not only that, the U.S. Constitution calls for intellectual property rights. Article 1, Section 8, clause 8 empowers Congress “To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”
What are examples of intellectual property rights?
Intellectual property rights safeguard intangible assets, and owners often use them in combination to safeguard their creations. Examples of intellectual property rights include:
Patents
A patent grants the inventor exclusive rights to their invention for a limited period, usually 20 years, unless another party pays royalties to use that patent. Patents can cover new products, processes, machines, and chemical compositions.
There are three types of patents:
- Utility patent: This covers inventions for nonobvious, new, and/or improved process or useful product. Good examples would be a new type of battery with improved energy storage capacity, a novel medical device with a unique function for treating a specific condition, or a chemical compound with unique properties for a specific application.
- Design patent: These cover new and original ornamental designs. A classic example of a design patent is the distinctive curved shape of the Coca-Cola bottle; other examples include the iconic design of an Apple iPhone, the shape of a specific chair design, or the appearance of a computer icon.
- Plant patent: A plant patent is provided to plants that have been asexually produced (through cuttings, grafting, etc.) rather than grown from seed. A example is the Honeycrisp apple, which is a distinct variety of apple with a unique taste and texture that was patented, allowing the breeders to benefit financially from its commercial success; another example is the New Dawn rose, a newly developed variety of rose with specific color and bloom characteristics.
Trademarks
Trademarks protect words, designs, symbols, or a combination of them to identify and distinguish a company’s products or services, and indicate the source (and quality) of the products or services. They can be company names, logos, and slogans. Some of the best examples of a trademark include the Nike swoosh logo, the Apple logo (the apple itself), the McDonald’s golden arches, the Google name and logo, and the “Just Do It” slogan associated with Nike.
Copyrights
Copyrights protect original works of authorship, which could include literary works, music, art, movies, computer software and code, photographs, text, architectural plans, technical specifications for a device, and even the text of a marketing or business plan. A copyright protects the expression of an idea, not the idea itself. As such, to be copyrighted, a work must be fixed in a tangible medium, meaning it needs to be written down, recorded, or otherwise physically expressed.
Industrial designs
Industrial design rights are obtained when a design patent is issued. It protects the aesthetical and ornamental aspects of a product—not how it works, what it is made of, or how it is made. Industrial designs can include shapes, lines, patterns, or colors.
Trade secrets
Trade secrets are pieces of business information that are valuable because they are generally unknown to the public. Trade secrets can include a variety of things, such as formulas and recipes, like Coca-Cola’s secret formula or KFC’s 11 herbs and spices, the process for making a vaccine, methods for calculating pricing, and internal marketing and business plans.
Not every business secret qualifies as a trade secret. To be designated a trade secret, the information must be commercially valuable (not just confidential); the information must be known to only a small group of people and the business must undertake measures to safeguard that knowledge.
How are intellectual property rights recorded?
An intellectual property register is a centralized database that records information about various types of intellectual property assets (e.g., patents, trademarks, copyrights, industrial designs, etc.).
There are several purposes of an intellectual property register. First, it provides a public record of intellectual property rights, making it easier for individuals and businesses to search for and identify existing IP. Second, it helps protect rights by creating a formal record of ownership and preventing unauthorized use. Third, it can be used as evidence in IP infringement disputes. Finally, an intellectual property register facilitates licensing agreements between IP owners and potential users.
The specific content and structure of intellectual property registers can vary depending on the jurisdiction and the type of IP being registered. Examples include:
- The U.S. Patent and Trademark Office maintains a comprehensive database of patents and trademarks.
- The European Patent Office records patents granted within Europe.
- The World Intellectual Property Organization provides a global platform for registering and protecting IP.
How to protect your intellectual property?
To protect intellectual property rights, many organizations adopt a multifaceted approach. Elements include:
- Implementing robust security measures for physical and digital assets;
- Encourage a culture of confidentiality within your organization; and,
- Pursuing patenting inventions, registering trademarks, and copyrighting creative works.
Finally, by regularly reviewing and updating your IP strategy, organizations can optimize opportunities to maximize business value while address evolving threats and legal landscapes.
UnitedLex helps companies and law firms of all sizes effectively align IP strategies to their business realities, resulting in measurable value. To learn more, let’s connect and discuss.
* In 1849, Lincoln received Patent No. 6469 for a device to lift boats over shoals; though never manufactured, he is the only U.S. president to ever hold a patent.
