Intellectual Property 101
Different types of ideas or creative products receive different types of legal protection and must be handled in unique ways. There are four key categories of intellectual property, or IP:
Patents
A patent can be obtained for any new or improved machine, article of manufacture, chemical composition, process, and computer software or business method. Examples vary widely, from a new type of lawnmower blade to an electronic commerce business model. The issuance of a patent grants the patent holder the right to control whether—and under what circumstances—others may use, produce, or sell the patented innovation. In other words, a patent grants the inventor the opportunity to control the fate of an invention in the marketplace.
Just as important to remember, however, is that patent rights are not enforced by the U.S. Patent and Trademark Office or any other organization. It is up to the patent holder—sometimes through a court of law—to enforce the rights granted by the patent.
A patent grants the patent holder the right to control the use of the product for a 20-year period under U.S. law (U.S. Code, Title 35: Patents). A revision of the patent law in 1995 lengthened the term of a patent from 17 to 20 years. Maintenance fees also apply, though only to "utility" patents. Small entities, which include all individuals and most small businesses, are charged 50 percent less than large entities. Maintenance fees must be paid during the term of the patent, or the protection will be lost. The first maintenance fee comes due three and a half years following the date of issue. The current first maintenance fee is $450 for individuals and small businesses. More information on current fees is available from the Patent and Trademark Office.
Trademarks and Service Marks
Trademarks identify the source of goods, and service marks identify the source of services. Words, symbols, numbers, slogans, designs, features of packaging, color combinations, animations, and even sounds may be used as trademarks or service marks. Such marks are used to create an identifiable brand or firm identity. The law prohibits firms from taking advantage of another firm's customer loyalty by emulating its branded identity. Like patent rights, however, the owner of the IP is responsible for seeking enforcement.
Copyrights
A copyright establishes ownership of original work of authorship in any tangible medium of expression. A copyright applies to the expression of an idea, whether published or not. Once an original work is created and fixed, copyright exists. Examples of work where copyright applies include: books, poetry, plays, short stories, articles, comic books, musical scores, lyrics, audio and video recordings, choreographic works, pantomimes, motion pictures, filmstrips, TV programs, photographs, paintings, drawings, prints, maps, architectural plans, scale models, sculpture, craft works, jewelry designs, fabric designs, computer programs, and databases.
Trade Secrets
In addition, ideas can be protected by designating them as trade secrets. A trade secret is any information that:
- derives independent economic value from not being generally known to other persons who can obtain economic value from its disclosure or use; and
- is the subject of efforts to maintain its secrecy.
Many types of information can qualify as trade secrets, including formulas, patterns, compilations, programs, devices, methods, techniques, or processes.