Intellectual property (IP) law controls and protects assets that cannot be physically touched. Their importance is seen in industry, especially when protecting the rights of creative people and businesses. Key intangible assets handled by IP law include the following:
1. Trade Secrets
A company's trade secret is confidential information that gives it an advantage over rivals. This group involves hiding formulas, specific practices, procedures, designs, or tools a business uses so competitors won't learn of them. To secure trade secrets, businesses use methods for keeping them secret, not by officially registering them. Examples of these steps are signing NDAs, limiting who has access to sensitive data, and training staff.
Trade secrets are essential for companies as they allow them to outperform competitors who do not have the same private information. Coca-Cola's secret recipe for its famous drink is recognized as one of the most renowned trade secrets around the globe. Some laws, such as the UTSA and regulations based on the International Trade Secret Association, ensure legal safety for trade secrets.
2. Copyrights
Under copyright law, those who create original literary, artistic, musical, and dramatic works are given legal protection. With this kind of intellectual property, creators can duplicate, distribute, perform, or show their work and make adaptations from it. Copyright protection is put in place automatically by creating and recording work.
Although copyright protection time can differ according to each country's laws, it usually lasts for the creator's life and another 70 years in the United States. Copyrights aim to protect the exact form of an idea, not the idea itself. An author can copyright only a novel, not its basic ideas or central themes. The U.S. Copyright Office gives more details on copyright protections.
3. Trademarks
A trademark ensures that any special mark, label, or design identifying goods or services belongs only to a business or person registered as the owner. A business can register a trademark as its brand name, logo, slogan, sound, or color exclusive to its company. Because of trademarks, customers can easily recognize and rely on the businesses and services they buy.
A trademark is legally protected only if it is unique, not used for everyday items, and does not resemble any other marks. You can secure a trademark by registering with a federal agency such as the U.S. Patent and Trademark Office (USPTO). Alternatively, you may earn some trademark rights by using your brand in trade, even if you don't register it.
4. Franchises
A franchise is when one party (franchisor) permits another party (franchisee) to run a business using their brand, methods, and intellectual property. These industries include fast food, retail, and hospitality, and by using franchises, companies can proliferate and monitor all aspects of their brand and the running of the business.
Franchises use contract and IP laws since the franchisor's trademarks, copyrights, and trade secrets are necessary for the franchise. The franchisor charges a fee to the franchisee to utilize its trademarks and receive support and marketing; for more details, look up the International Franchise Association.
Intellectual property law includes trade secrets, copyrights, trademarks, and franchises. All of these security measures work to preserve unique creations and business ideas, which encourages progress and increases the economy. Those who want to guard their intellectual property rights need to know the details of IP law and how IP is protected
