What is intellectual property

What is Intellectual Property?

Intellectual property (IP) is a legal concept which refers to creations of the mind for which exclusive rights are recognized. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights, trade dress, and in some jurisdictions trade secrets. There are also more specialized varieties of sui generis exclusive rights, such as circuit design rights, plant breeders’ rights, plant variety rights, industrial design rights, supplementary protection certificates for pharmaceutical products and database rights (in European law).

Although many of the legal principles governing intellectual property rights have evolved over centuries, it was not until the 19th century that the term intellectual property began to be used, and not until the late 20th century that it became commonplace in the majority of the world. The British Statute of Anne 1710 and the Statute of Monopolies 1623 are now seen as the origins of copyright and patent law respectively.

The WIPO (world international property organization) treaty and several related international agreements are premised on the notion that the protection of intellectual property rights are essential to maintaining economic growth. The WIPO Intellectual Property Handbook gives two reasons for intellectual property laws:

One is to give statutory expression to the moral and economic rights of creators in their creations and the rights of the public in access to those creations. The second is to promote, as a deliberate act of Government policy, creativity and the dissemination and application of its results and to encourage fair trading which would contribute to economic and social development.

Notes

legal concept –юридическое понятие

to refer –относиться

to recognize –признавать

to grant –предоставлять

intangible assets– нематериальные активы

invention –изобретение

designs –конструкции

сommon types –наиболее распространенные типы

industrial design – промышленный образец

trade dress –товарный вид

jurisdictions –юрисдикции

sui generis –в своём роде

circuit design rights – схемотехника прав

plant breeders’ rights –права селекционеров

plant variety rights –права на сорта растений

supplementary –дополнительный

database rights –права на базы данных

governing –регулирующий

commonplace –обычное явление

respectively –соответственно

WIPO (world international property organization) – всемирная организация интеллектуальной собственности (ВОИС)

the WIPO treaty –договор ВОИС

related –соответствующие

to premise –базироваться

notion –представление

maintaining –поддержание

handbook –справочник

statutory –уставной, законный

deliberate act –преднамеренный акт

dissemination –распространение

application –применение

to encourage –поощрять

to contribute –способствовать

2. Read the text again to answer the following questions:

1. What does the English word ‘intellectual property’ refer to?

2. What types of intellectual property rights do you know?

3. What are more specialized varieties of exclusive rights?

4. What example of intangible assets can you give?

5. In what century was the term intellectual property used?

6. What is seen as the origin of copyright and patent now?

7. What is WIPO treaty?

8. How many reasons does the WIPO Intellectual Property Handbook give for intellectual property laws?

9. What does the first reason for intellectual property laws comprise?

10. What is the essence of the second reason, described in the WIPO Intellectual Property Handbook?

3. Translate the following words and word combinations from English into Russian:

property, concept, law, owners, variety, intangible assets, copyright, trademarks, patents, industrial design rights, circuit, supplementary, certificates, database rights, legal, commonplace, majority, respectively, treaty, several, agreements notion, protection, essential, maintaining, growth, WIPO, handbook, reasons, statutory, expression, creations, access, deliberate act, dissemination, application, fair trading, to contribute.

4. Find the English equivalents for the following words and phrases:

интеллектуальная собственность, юридическое понятие, творения человеческого разума, исключительные права, владельцы, эксклюзивные права, нематериальные активы, открытия, изобретения, конструкции, авторские права, фирменный стиль, юрисдикция, секреты торговли, международные соглашения, экономический рост, моральные права, государственная политика, справедливая торговля.

5. Decide which sentences are true and which are false. Make the false sentences true:

1. Intellectual property is a legal concept which exclusive rights are recognized.

2. Under intellectual property law, owners are granted certain exclusive rights to a variety of tangible assets.

3. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights, but not trade secrets.

4. The term intellectual property became commonplace in the majority of the world until the late 20th century.

5. The WIPO treaty is premised on the notion that the protection of intellectual property rights is essential to maintaining economic growth.

6. The WIPO Intellectual Property Handbook gives four reasons for intellectual property laws.

7. One of the reasons is to promote, as a deliberate act of Government policy and creativity.

What is Intellectual Property?

Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.

IP is protected in law by, for example, patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create. By striking the right balance between the interests of innovators and the wider public interest, the IP system aims to foster an environment in which creativity and innovation can flourish.

IP and mobile applications

Find out how IP mechanisms help mobile application developers and publishers generate more income from their creations.

Types of intellectual property

Copyright

Copyright is a legal term used to describe the rights that creators have over their literary and artistic works. Works covered by copyright range from books, music, paintings, sculpture and films, to computer programs, databases, advertisements, maps and technical drawings.

Patents

Trademarks

A trademark is a sign capable of distinguishing the goods or services of one enterprise from those of other enterprises. Trademarks date back to ancient times when artisans used to put their signature or «mark» on their products.

Industrial designs

An industrial design constitutes the ornamental or aesthetic aspect of an article. A design may consist of three-dimensional features, such as the shape or surface of an article, or of two-dimensional features, such as patterns, lines or color.

Geographical indications

Geographical indications and appellations of origin are signs used on goods that have a specific geographical origin and possess qualities, a reputation or characteristics that are essentially attributable to that place of origin. Most commonly, a geographical indication includes the name of the place of origin of the goods.

Trade secrets

Trade secrets are IP rights on confidential information which may be sold or licensed. The unauthorized acquisition, use or disclosure of such secret information in a manner contrary to honest commercial practices by others is regarded as an unfair practice and a violation of the trade secret protection.

Training – from IP basics to specialist skills

WIPO runs workshops, seminars and training courses throughout the year, both in Geneva and worldwide.

Year-round roving seminars help businesses, researchers, lawyers and innovators stay on top of latest developments in global IP services.

The WIPO Academy offers distance learning and face-to-face courses. Choose from a rich portfolio of general and specialized courses on IP to improve your skills, whatever your level of knowledge or interest.

Or explore the interactive IP PANORAMA e-tutorial.

What Is Intellectual Property?

Intellectual Property Explained in Less Than 5 Minutes

MoMo Productions / Getty Images

Intellectual property is a type of property owned by an individual or business. It’s not physical property, like a car or home; it’s sometimes called “creations of the mind” or “the product of original thought.” The concept of intellectual property is an old one, going back to ancient times, with the goal of encouraging innovation and creativity to benefit society.

Learn the types of intellectual property and how the rights of their creators can be protected.

Definition and Examples of Intellectual Property

Intellectual property, also known as “IP,” is an overall term for ownership of and rights to creative works. It includes inventions; literary and artistic works; designs; and symbols, names, and images used in commerce and business.

Intellectual property owners have specific exclusive rights to their creations. For example, creators of literary works have the right to:

Included in intellectual property rights is the ability to license a creative work for sale by others. For example, the author of a book may license the right to produce the book in audio format or make a movie from it.

Types of Intellectual Property

Intellectual property laws in the U.S. and internationally set up the processes to grant rights to the originator of a work or creation. The three main protections are copyrights, trademarks, and patents. Each type may be registered with a specific federal agency and lasts for a specific time period.

Copyrights

Copyrights are used to register original works of authorship, including literary, dramatic, musical, and artistic works. The U.S. Copyright Office registers copyrights for the owner’s life plus 70 years, with additional timelines for joint, anonymous, and pseudonymous works.

Trademarks

Trademarks and service marks are used to register names, symbols, words, devices, or combinations to identify and separate the goods or services of a business from those of others.

The U.S. Trademark and Patent Office registers these marks, and the registration continues indefinitely, as long as the design remains unique and distinctive and the trademark owner regularly files paperwork required to show the trademark is in use.

Patents

Patents are used to register inventions and the discovery of new and useful processes, machines, manufactured products, and compositions of matter. Patent registration is handled by a part of the U.S. Patent and Trademark Office that’s separate from trademarks. Patent protection lasts for 20 years.

A creative work doesn’t have to be registered to be protected, but registration gives the owner a stronger case if they need to defend their right to the intellectual property in court.

Some intellectual property can’t be registered to be protected. For example:

Check with the registration agency before you attempt to register a specific item of intellectual property to be certain you can register it.

International Registration for Intellectual Property

Businesses that operate in several countries may register their IPs internationally.

Copyright protection exists in many countries, but check on treaties and conventions for specific countries through the World Intellectual Property Organization.

Patents and trademarks must be filed separately in each country, but several treaties allow you to file patents in multiple countries. The Patent Cooperation Treaty covers patents, and the Madrid Protocol covers trademarks.

Overview of Intellectual Property Protection

Other Types of Intellectual Property

In addition to the three types of intellectual property discussed above, there are some others that may be registered as copyrights, trademarks, or patents.

Trade Secrets

Trade secrets are confidential information owned exclusively by someone that can be sold or licensed. To qualify for protection, the information must be commercially valuable and the owner must keep it confidential, including requiring key people to sign confidentiality agreements.

Some examples of trade secrets are:

Some trade secrets can be registered. For example, a company’s secret recipe for a product can be copyrighted. Registering a trade secret makes it public, but provides protection against use or sale by others.

Digital Assets

Digital assets like phone apps, your social media site, computer programs, and your business website can be protected in the same way as other assets. Some of the digital assets eligible for IP protection include:

Intellectual Property

What Is Intellectual Property?

Intellectual property is a broad categorical description for the set of intangible assets owned and legally protected by a company or individual from outside use or implementation without consent. An intangible asset is a non-physical asset that a company or person owns.

The concept of intellectual property relates to the fact that certain products of human intellect should be afforded the same protective rights that apply to physical property, which are called tangible assets. Most developed economies have legal measures in place to protect both forms of property.

Key Takeaways

Understanding Intellectual Property

Companies are diligent when it comes to identifying and protecting intellectual property because it holds such high value in today’s increasingly knowledge-based economy. Also, producing value intellectual property requires heavy investments in brainpower and time of skilled labor. This translates into heavy investments by organizations and individuals that should not be accessed with no rights by others.

Extracting value from intellectual property and preventing others from deriving value from it is an important responsibility for any company. Intellectual property can take many forms. Although it’s an intangible asset, intellectual property can be far more valuable than a company’s physical assets. Intellectual property can represent a competitive advantage and as a result, is fiercely guarded and protected by the companies that own the property.

Types of Intellectual Property

Intellectual property can consist of many types of intangibles, and some of the most common are listed below.

Patents

A patent is a property right for an investor that’s typically granted by a government agency, such as the U.S. Patent and Trademark Office. The patent allows the inventor exclusive rights to the invention, which could be a design, process, an improvement, or physical invention such as a machine. Technology and software companies often have patents for their designs. For example, the patent for the personal computer was filed in 1980 by Steve Jobs and three other colleagues at Apple Inc.

Copyrights

Copyrights provide authors and creators of original material the exclusive right to use, copy, or duplicate their material. Authors of books have their works copyrighted as do musical artists. A copyright also states that the original creators can grant anyone authorization through a licensing agreement to use the work.

Trademarks

A trademark is a symbol, phrase, or insignia that is recognizable and represents a product that legally separates it from other products. A trademark is exclusively assigned to a company, meaning the company owns the trademark so that no others may use or copy it. A trademark is often associated with a company’s brand. For example, the logo and brand name of «Coca-Cola,» is owned by the Coca-Cola Company (KO).

Franchises

A franchise is a license that a company, individual, or party–called the franchisee–purchases allowing them to use a company’s–the franchisor–name, trademark, proprietary knowledge, and processes.

The franchisee is typically a small business owner or entrepreneur who operates the store or franchise. The license allows the franchisee to sell a product or provide a service under the company’s name. In return, the franchisor is paid a start-up fee and ongoing licensing fees by the franchisee. Examples of companies that use the franchise business model include United Parcel Service (UPS) and McDonald’s Corporation (MCD).

Trade Secrets

A trade secret is a company’s process or practice that is not public information, which provides an economic benefit or advantage to the company or holder of the trade secret. Trade secrets must be actively protected by the company and are typically the result of a company’s research and development (which is why some employers require the signing of non-disclosure agreements, or NDAs).

Examples of trade secrets could be a design, pattern, recipe, formula, or proprietary process. Trade secrets are used to create a business model that differentiates the company’s offerings to its customers by providing a competitive advantage.

Digital Assets

Digital assets are also increasingly recognized as IP. These would include proprietary software code or algorithms, and online digital content.

Intellectual Property Infringement

Attached to intellectual property are certain rights, known as Intellectual Property Rights (IPR), that cannot be infringed upon by those without authorization to use them. IPRs give owners the ability to bar others from recreating, mimicking, and exploiting their work.

Patents infringement occurs when a legally-protected patent is used by another person or company without permission. Patents filed before June 8, 1995, are valid for 17 years, whereas patents filed after this date are valid for 20 years. After the expiration date, the details of the patent are made public.

Copyright violations occur when an unauthorized party recreates all or a portion of an original work, such as a work of art, music, or a novel. The duplicated content need not be an exact replica of the original to qualify as an infringement.

Similarly, trademark infringement occurs when an unauthorized party uses a licensed trademark or a mark resembling the licensed trademark. For example, a competitor might use a mark similar to its rival’s to disrupt business and attract their customer base. Also, businesses in unrelated industries may use identical or similar marks in an effort to capitalize on other companies’ strong brand images.

Trade secrets are often protected by non-disclosure agreements (NDA). When a party to the agreement discloses all or parts of a trade secret to uninterested parties, they have violated the agreement and infringed upon the trade secret. It is possible to be guilty of trade secret infringement when an NDA is not present.

Penalties for intellectual property infringement range from fines to prison sentences.

Tips to Avoid IP Infringement

Many times, infringement is done unwittingly. To avoid being sued for infringement on intellectual property, make sure that your business is not using copyrighted or trademarked material, and be sure your brand or logo is not too similar to that of others that it could reasonably mislead somebody to think it was the other brand. Also, do a patent search to ensure that any ideas are your own, and if not that you are able to license them through the proper channels. There are IP lawyers that specialize in this process to make sure that you are not using anybody else’s protected IP.

If you hire somebody to do creative work for you or your company, make sure the contract explicitly states that any creative works generated would become the property of the company and not the person you hired.

Special Considerations

Many forms of intellectual property cannot be listed on the balance sheet as assets since there aren’t specific accounting principles to value each asset. However, the value of the property tends to be reflected in the price of the stock since market participants are aware of the existence of the intellectual property.

Some intangible assets are recorded as property, such as patents because they have an expiration date. These assets are recognized by a numerical value through the process of amortization. Amortization is an accounting method that decreases the value of an intangible asset over a set period of time. This process helps the company to reduce its income by expensing a set amount each year for tax purposes as the useful life of the intangible asset winds down.

For example, a patent might only have 20 years before it’s registered as public domain. A company would assign a total value to the patent. Each year for 20 years, the patent would be expensed or amortized by the same amount by dividing the total value by 20 years. Each year the amortized asset amount would reduce the company’s net income or profit for tax purposes. However, intellectual property that is considered to have a perpetual life, such as a trademark, is not amortized since it doesn’t expire.

Real-World Example

In 2017, there was a widely publicized intellectual property case in which a company called Waymo sued Uber over alleged stealing and implementation of technology relating to Waymo’s self-driving car program. The plans for the technology, although not yet completely viable, constituted significant intellectual property for Waymo. When they alleged that Uber had obtained their intellectual property, they were able to take action through the court system to attempt to keep Uber from utilizing the information to enhance their own self-driving car program.

What Are the 4 Main Types of Intellectual Property?

The four main types of intellectual property are patents, trademarks, copyrights, and trade secrets.

Who Owns Intellectual Property?

Generally, the creator of a work is deemed its owner. However, intellectual property ownership can be determined differently for different types of property and under varying circumstances. For example, if work is created for an employer, the employer is the owner of that intellectual property. Also, ownership rights can also be transferred to other parties.

What Is Intellectual Property Used for?

Intellectual property can be used for various reasons, such as branding and marketing, as well as to protect assets that give a competitive advantage.

What Is Intellectual Property?

IP protects original works of the mind, such as literary and artistic works, inventions, designs, and company names.

by Rudri Bhatt Patel
updated June 24, 2022 · 3 min read

Intellectual property (IP) is everywhere. It can be a piece of music, a novel, an advertising slogan, a formula, or an invention. The most common categories of intellectual property rights are trademarks, copyrights, patents, and trade secrets.

And just like physical property, intellectual property needs to be protected.

Intellectual Property Laws

Intellectual property laws are created to obtain, protect, and enforce IP rights. «Most IP laws come from the U.S. Constitution and relate to patents, trademarks, copyrights, and trade secrets,» says Kevin Bell, a Washington D.C. intellectual property lawyer.

The United States Patent and Trademark Office («USPTO») grants patents and trademarks, while the United States Copyright Office («Copyright Office») allows people to register works of art, literature, software code, etc., as copyrights.

Trade secrets involve specific information for formulas or recipes, intentionally maintained as a secret because it gives the owner a competitive edge in the marketplace. Federal and state laws protect trade secrets.

Trademarks, Copyrights, Patents, and Trade Secrets

Trademarks, copyrights, patents, and trade secrets are the main categories of intellectual property rights and they work differently under the law. Bell explains how each intellectual property right works:

Trademarks

Trademarks normally protect brands and the logos used on goods and services. For instance, the word «Coca-Cola» in its cursive script is a trademark. These are the steps to obtain a trademark:

Copyrights

An author has immediate copyright as soon as he or she writes, draws, or designs a respective work. An individual may file an application to receive a federal registration for a copyright via mail, online, or in person. A registered copyright normally lasts for the author’s lifetime plus an additional 70 years.

Patents

Patents protect novel ideas, processes, and inventions. After inventors file a patent application with the USPTO, an examiner reviews it and determines if the invention is patentable and has not been previously invented by another individual.

The examiner and patent seeker engage in several back-and-forth rounds debating on whether or not the patent should be granted. If the owner receives a patent, it is valid for 20 years from the application’s filing or 17 years from the patent’s issuance, whichever is longer.

Trade Secrets

A trade secret is private, specific information that provides its owner an economic edge over competitors. To maintain a trade secret, the owner must do the following:

Protecting People and Encouraging Innovation

If you invented a novel product like an air fryer or if you come up with a catchy slogan, then you should receive credit for your idea. Intellectual property law mandates «others cannot use IP without the owner’s permission,» says Bell.

IP laws protect people and companies from others stealing their intellectual property and impacting their financial interests. But ultimately, Bell says that IP laws «encourage more people to come up with new ideas, inventions, works of art, literature, and music, which fosters to create new things and improve old things.»