Contents


What is Intellectual Property?
Importance of Property Rights
Classifications of Property
Tangible v. Intangible Property
Intellectual Property
     - Copyright
     - Trademark
     - Patent
     - Trade Secret
Overlap of IP
 

INTRODUCTION

TO

INTELLECTUAL PROPERTY


What is Intellectual Property?

Intellectual - refers to things people create with their minds rather than hands

Property - something you can own.

The law gives ownership rights in certain things, in the case of intellectual property, creations originating in the mind.

Copyrights

Patents
Trademarks Trade Secrets

Importance of Property Rights

Property ownership is a foundation of modern business and economic systems. Businesses exist largely based on property and ownership rights and the law provides a means to protect these rights. Property rights include possession and the right to transfer property (by sale, gift, lease) or allow the use of property (license). By allowing ownership of property, the law gives rights that allow people and businesses to control the way their property is used.

Although important differences, reasons for recognizing IP are similar to reasons for tangible property.

  • Property rights exist because we say they do, whether tangible or intangible.
  • If a resource requires labor to create or convert it into something useful, we’re likely to attach property rights to it.
  • Moral Justification (Natural Rights)

  • Philosophy of John Locke  - ownership derived from labor; each person has right to the fruits of his creation
  • "Though the Earth, and all inferior Creatures be common to all Men, yet every Man has a Property in his own Person. This no Body had any Right to but himself. The Labour of his Body, and the Work of his Hands, we may say, are properly his. Whatsoever then he removes out of the State that Nature hath provided, and left it in, he hath mixed his Labour with, and joyned to it something that is his own, and thereby makes it his Property. It being by him removed from the common state Nature placed it in, it hath by this labour something annexed to it, that excludes the common right of other Men. For this Labour being the unquestionable Property of the Labourer, no Man but he can have a right to what that is once joyned to, at least where there is enough, and as good left in common for others." Two Treatises of Government, 2nd Treatise (1690)
     
  • Creativity that results in a non-physical product can be just as valid as someone who builds something
  • Basis for France's copyright law
  • Utilitarian Justification (User’s Rights)

  • Utilitarianism - all action should be directed toward achieving the greatest happiness for the greatest number of people.
  • Society benefits from creation & invention & IP provides incentive to create & invent.
  • People work hardest & produce the most when they can own or profit from what they produce.
  • Money is the ultimate motivator
  • Property rights necessary to incentivize not just creation, but investment.
  • Basis for England's & United States' copyright & patent laws
  • Classifications of Property

    Under Property Law, property is classified into two general categories:

    Real Property - Land & things built on land (real estate). Personal Property - Everything that can be owned other than real property.

    Tangible v. Intangible Property

    Since tangible property is visible and has physical existence, its not hard for people to understand that its property that can be owned. Whether real property such as a house or personal property such as a car, a computer, a CD or a DVD, all of these things can be seen and are easily perceived as having value and being owned as property. People tend to have a much more difficult time understanding intangible property which does not exist physically and cannot be seen.  However, some intangible things such as stock or copyrights, patents and trademarks can still have value. Although its not directly perceivable or visible, the law provides for ownership rights in intangible property to protect its value. While you can't possess intangible property itself, it is possible to possess something evidencing rights of ownership in intangible property. Just as a stock certificates represent ownership shares in corporation, a copyright registration evidences ownership of a copyright (even though registration is not required to own a copyright).

    Intellectual Property

    Intellectual Property (IP) refers to certain types of intangible property that generally provides protection for the results of creativity (products originating from a person’s mind). Intellectual property is similar to physical property in many respects. For example, it can be bought and sold. However, it is also different from tangible property in some respects. Unlike tangible property, a copyrighted work (which is one type of intellectual property) cannot be possessed although it can be owned. While you can posses a physical object a copyright is embodied in (such as a CD or sheet music), you can't possess the copyright (such as a song) itself. This is an important distinction - Copyrighted works are separate pieces of property from any tangible property (e.g., CD, videotape, book) they may be contained in.   

    Physical Objects


    It is important to understand that a copyright is not any particular piece of physical property itself, but the intangible creation that is contained in some physical object..

    Since intellectual property is intangible, the rights that an owner has can easily be infringed. A copyright owner can't really lock up a copyright (although there are some forms of "digital locks") or hide it from people (at least once its been made available).

    Types of Intellectual Property

    Intellectual property is a term used to identify three categories of intangibles for which the law provides ownership rights.

    Copyright

    Copyright protects original works of authorship of many types. Some examples of creations that can be protected by copyright include books, poetry movies, television shows, videos, plays, musical compositions (songs), audio recordings, paintings, drawings, sculptures, photographs, choreographic works (e.g., dance), and computer software.

    Trademark

    A trademark is something which is used to identify a company’s goods or services and to distinguish them from others’ goods or services. Names are commonly used as trademarks as well as slogans and logos.

    Provides guarantee of quality & consistency of products or services.

    Some Famous Trademarks



    Patent

    Patents protect various types of inventions, discoveries & some designs. A patent gives its owner the exclusive right to make, use and market the patented device for a limited time period (i.e., 20 years). At the end of the 20 year patent period, the patent expires and the formerly patented material can be freely copied.

    Example: Edison's Phonograph

    Trade Secret

    Trade Secret law protects certain valuable business information that is kept secret.

    A formula, practice, process, design, instrument, pattern, or compilation of information used by a business to obtain an advantage over competitors or customers.

    Once the secret is lost, trade secret protection is lost as well. For example, the Coca-Cola formula is an extremely valuable trade secret and the Coca-Cola company goes to great lengths to keep it secret. See News Article: 3 Accused in Theft of Coke Secrets

    Overlap of Intellectual Property

    Some items may be protected under more than one type of intellectual property law. For example, a computer program might potentially be protected under copyright, patent and trade secret law. Mickey Mouse is a copyrighted cartoon character used in Disney motion pictures, TV shows, videos, and comics, but Mickey's name and image are also used as trademarks to identify various Disney brand merchandise.

    Mickey IP


    The original Steamboat Willie & modern Mickey are copyrighted characters while Mickey, as used to sell items such as boxer shorts, functions as a trademark.

    Here's a 1928 animated cartoon featuring a very young Mickey.

     
    Question: What, if any, intellectual property rights are involved in this video clip and can it be legally posted on YouTube?

    © 2007 David J. Moser.  Copyrights & trademarks used on this site are the property of their owners. The materials on this site are solely for use of students enrolled in this course and may not be retained or further distributed.