Chapter 12. The Importance of Intellectual Property

Chapter 12. The Importance of Intellectual Property

·         The Importance of Intellectual Property

Intellectual property is any product of human intellect that is intangible but has value in the marketplace. The four key forms of intellectual property is patents, trademarks, copyrights, and trade secrets. There are common intellectual property mistakes entrepreneurial firms make :

A.      Not Properly identifying all their intellectual property

B.      Not fully recognizing the value of their intellectual property

C.      Not legally protecting the intellectual property that needs protecting

D.      Not using their intellectual property as part of their overall plan for success

There are 2 primary rules of thumb for deciding if intellectual property protection should be pursued for a particular intellectual asset;

A.      A firm should determine if the intellectual property in question is directly related to its competitive advantage

B.      Determine whether an item has value in the marketplace

·         Patents

A patent is a grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for the term of the patent.

1.       Types of Patents

A.      Utility Patents

Utility patents are the most common type of patent and cover what we generally think of as new inventions. A utility patent cannot be obtained for an “idea” or a “suggestion” for a new product or process.

B.      Design Patents

Design patents are the second most common type of patent and cover the invention of new, original, and ornamental designs for manufactured products.

C.      Plant Patents

Plant patents protect new varieties of plants that can be reproduced asexually.

2.       Who can apply for a patent?

Only the inventor of a product can apply for a patent.

3.       The process of Obtaining a Patent

A.      Step 1 : Make sure the invention is practical

B.      Step 2 : Determine the type of application to file

C.      Step 3 : Hire a patent attorney

D.      Step 4 : Obtain decision from U.S Patent and Trademark Office

E.       Step 5 : File a patent application

F.       Step 6 : Conduct a patent search

4.       Patent Infringement

Patent infringement takes place when one party engages in the unauthorized use of another party’s patent. The tough part about patent infringement cases is that they are costly to litigate

·         Trademarks

A trademark is any word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those products or services from others.

1.       4 Types of Trademarks

A.      Trademarks

Include any word, name, symbol, or device used to identify and distinguish one company’s products from another’s.

B.      Service marks

Service marks are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a business’s physical product.

C.      Collective marks

Collective marks are trademarks or service marks used by the members of a cooperative, association, or other collective group, including marks indicating membership in a union or similar organization.

D.      Certification marks

Certification marks are marks, words, names, symbols, or devices, used by a person other than its owner to certify a particular quality about a product of service.

2.       What Is Protected Under Trademark Law?

These items is protected under the Trademark law which falls under Lanham Act, passed in 1946; words, numbers and letters, designs or logos, sounds, fragrances, shapes, colors, trade dress.

3.       Exclusions from Trademark Protection

These are notable exclusions from trademark protection that are set forth in the U.S Trademark Act; Immoral or scandalous matter, deceptive matter, descriptive marks, surnames.

4.       The Process of Obtaining a Trademark

A.      Step 1 : Select an appropriate mark

B.      Step 2 : Perform a trademark search

C.      Step 3 : Create rights in the trademark

·         Copyrights

A copyright is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work.

1.       What is Protected by a Copyright?

The primary categories of material that can be copyrighted follow; literary works, musical compositions, computer software, dramatic works, pantomimes and choreographic works, pictorial, graphic, and sculptural works.

2.       Exclusions from Copyright Protection

These are exclusions from copyright protection. The main exclusion is that copyright laws cannot protect ideas.

3.       How to Obtain a Copyright

Copyright protection can be enhanced for anything written by attaching the copyright notice. Second, further protection can be obtained by registering a work with the U.S. Copyright Office.

4.       Copyright Infringement

Copyright infringement is a growing problem in the US and in other countries, with estimates of the costs to owners at more than $25 billion per year.

5.       Copyright and the Internet

Copyright laws, particularly as they apply to the internet, are sometimes difficult to follow, and it is easy for people to dismiss them as contrary to common sense.

Theodorus Tanusaputra

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