With the rise of technology and online competitors, understanding intellectual property is crucial for any business owner. According to the United States Patent and Trademark Office’s Small Business Education Campaign, intellectual property based businesses and entrepreneurs drive more economic growth in the United States than any other single sector. The importance of becoming familiar with the process of protecting intellectual property as well as the benefits of strong intellectual property protection is at an all time high. There are several avenues one may seek when securing protection for their works making it is essential to anyone who seeks to protect their intellectual property to understand the basics of when to apply, what type of protection to apply for, where and how to apply.
1. The Process of Securing a Patent is Favorable and Less Costly for Small Businesses.
A patent is a grant of a property right to the inventor that is issued by the United States Patent and Trademark Office. The span of protection for a patent is 20 years from the application filing date. Patents provide the inventor the right to exclude others from making, using, importing or selling his or her invention during the 20 year protection period. Therefore, the owner (inventor) may license, market, produce, improve the property and make profit from the invention. A United States patent only protects and provides exclusive rights in the United States.
The cost of filing a patent varies; however, small businesses are at a great advantage due to the more efficient pricing applied to small business entities. For instance, for a provisional patent filing, the fee is $110.00 for small businesses compared to $220.00 . This lower fee applies to all filings, but the price varies according to the type of patent application filed. Additionally, during the patent prosecution (filing) phase, it is fairly common to need to pay the USPTO additional fees. When applying for patents, it’s in the inventor’s best interest to seek professional assistance with the process.
2. Trademarks are Essential to Securing your Brand
Trademarks protect words, names, symbols, sounds or colors that distinguish goods and services. Unlike patents, trademarks protection lasts the entire time the trademark is in use. Similar to patents, trademarks are filed with the United States Patent and Trademark Office. After obtaining the trademark, the owner may use the mark to prevent others from using a similar mark. Current fees for filing a trademark start at $275 per class. The trademark filing process requires contact with the USPTO, therefore when applying for the trademark, seek professional guidance.
3. Copyright Protection is a Must in Protecting Works of Authorship
Copyrights protect original works of authorship such as writings, music and works of art which are fixed in a tangible medium of expression. Works are considered fixed whenever it is stored on a medium that can be perceived, reproduced, or otherwise communicated. For instance, software code is considered fixed whenever it is stored on a disc; the disc is the medium which the software can be perceived, reproduced or otherwise communicated. The moment the work is created and fixed in a tangible form, it is automatically protected under Copyright laws.
Copyrights can be registered with the US Copyright Office. Copyright protection provides the owner with the authority to reproduce the work, create derivative works and sale, rent or license the work. Copyright protection lasts the life of the author plus 70 years.
4. Trade Secrets are a Less Costly, yet Effective Way of Protecting Intellectual Property.
Trade secrets are information that companies keep “secret” or internal to provide an advantage over competitors who do not know the secret. Trade secrets may include formulas, patterns or compilations of information (i.e. chemical formula, recipes, patterns, lists of partners). Further, anything that is public knowledge in an industry may not be claimed as a trade secret.
Trade secrets may be established through contractual agreements which limit the parties to secrecy.
5. Licensing Produces Benefits for Intellectual Property Owners to enjoy.
Licensing intellectual property allows for the owners to capitalize from the work. When companies turn to licensing its intellectual property, it opens a new world of customers. A licensing agreement allows the owner of the intellectual property rights to grant a license to use those rights in exchange for the agreed fee or royalty. Copyrights, patents, and trademarks are each areas of intellectual property that can be licensed.
Whenever seeking to license intellectual property, it is important to pair it with a non-disclosure agreement (NDA) to the potential licensees. Since contract law governs license agreements, it is important note that any license agreement that is drafted under US law is only legally enforceable in United States courts.
There are multiple areas one can take to secure intellectual property rights. For more information please contact us
here.