Intellectual Property 101

 

 

 

Intellectual Property 101

Intellectual property (IP) is often the most valuable asset developed (or being developed) by a startup company.   Generally speaking, IP comprises various forms of intangible property that are subject to ownership and other rights under US laws and the laws of most other countries throughout the world, such as inventions, data or information, brand names and designs, software, video content, music or works of art.   Laws that protect the ownership and use of IP help promote the development, distribution and use of new technologies, valuable copyrightable works, important information and marketable brands, and help establish the framework in which developers and owners of IP may receive a return on the (often significant) investment of time and resources required to develop useful and valuable IP. 

The table below outlines the basic types of IP that are protected under US laws and the legal framework of such protection.   Additional posts in the future will provide additional detail as to each basic type of IP. 

Type of IP	Legal Framework
Patents: An ownership interest (for a limited term) in an invention that is useful, novel, and not obvious.      Most patents are utility patents, which provide protection for patentable machines, goods, processes, compounds and improvements.  Some patents are design patents, which provide protection for patentable designs of commercial goods, such as certain product packaging.   A very limited number of patents are plant patents, which provide protection for certain new varieties of reproduced plants.	The US Patent and Trademark Office (USPTO – www.uspto.gov) reviews and grants (or denies) patents under authority of the federal Patent Act.    A patent gives the right to exclude others from making, using, offering to sell or selling within the US, or importing into the US, the invention covered by the patent.   A utility patent protects the invention for 20 years after the application is filed, and a design patent protects the inventive design for 14 years after the patent is issued.
Copyrights:  An ownership interest in an original work of “authorship” reflecting the exclusive right to reproduce or copy the work, develop derivative works based on the original work of authorship, distribute the work, and perform and display the work publicly.   Works of authorship cover a broad range of catgories, including books, works fo art, music, performances and, importantly, software, web pages and other audiovisual content.	US Copyright Office  regulates copyrights under authority of the federal Copyright Act. Protection arises automatically upon reducing the work to a tangible form, such as a writing, a computer disk, etc.   Copyright Office registration is available but is not required. Exclusive rights extend for 70 years after the author’s death or, for works made for hire, the longer of 120 years from creation or 95 years from publication.
Mask Works:  An ownership interest in a template collections (photographic masks) used to create complex electronic circuits on semiconductor chips, reflecting the exclusive right to copy the work and to import and distribute semiconductor chips based on the work.	US Copyright Office regulates mask works under authority of the federal Semiconductor Protection Act. Copyright Office registration is required. Exclusive rights run for ten years from registration
Trade Secrets: An ownership interest in important technical, business or financial information that the owner maintains as confidential information through reasonable efforts, and from which economic value is derived by virtue of the owner’s exclusive use.	Governed by state law (the Uniform Trade Secrets Act in many states). Rights are secured and maintained by reasonable efforts of the owner to keep information confidential through security and confidentiality agreements.  No registration required. Rights may be retained indefinitely so long as secrecy is maintained.
Trademarks: An owernship interest in names, designs, logos, marks, packages and other devices used to identify goods and services in commerce.	USPTO regulates trademarks nationally under authority of the federal Trademark Act.  Trademarks are also governed by common law and state unfair competitions laws Trademark rights are secured and maintained by commercial use of trademarks within a given field of use.  Right to exclude others from using, in the owner’s field of use, the same or similar mark for the same or similar goods or services in a way that causes consumer confusion. Rights extend indefinitely, until use of mark is abandoned through non-use or failure to comply with statutory and regulatory requirements.

Advertisement