Intellectual Property in Business

Tangible Asset

Physical property that a business owns

ex. furniture, equipment

Intangible Assests

Ideas/creations formed from the human mind (not physical property)

ex. logo, slogan, recipe

Intellectual Property (IP)

When intangible assets are legally protected

The Four Pillars/Types of IP protection

Patents

Trademarks

Copyrights

Trade Secrets

Patent

1. It protects technological inventions and machines

2. Protection lasts for 20 years

3. Need to disclose info publicly in order for a monopoly

Trademarks

1. It protects a brand’s elements (ex. names, logos, slogans) which prevent confusion in the makertplace

2. Can last forever but you must RENEW EVERY 10 YEARS

3. Public disclosure is required

Copyrights

1. Protects artist expressions (ex. music, writing, codes)

2. Lasts for the creator’s full life time + 70 years (ex. 80 + 70 = way longer than anyone can live)

Trade Secrets

1. Protects confidential information (secret recipes, formulas, algorithims)

2. Lasts forever as long as it stays confidential

3. They’re placed on employees by an NDA (non-disclosure agreement)

Modern Value

Describes that up to 80% of the value of any modern company is made of intangible assets

Liscensing

A business can “sell” their IP to other business in exchange for royalty payments

Royalty Payments

The payments that are made when a business uses a popular brand’s IP to kickstart their business

Infringement

When someone copies protected IP (plagarism), which in turn will lead to legal lawsuits

Golden Rule

You must keep you information confidential (no selling either) until you file for a patent