Intellectual property (IP) is a crucial aspect of the enterprise activity, protecting its processes, ideas, and inventions to maintain competitiveness. Key IP types include patents, copyrights, trademarks, and trade secrets (Parr, 2018). Although the types of IP are similar in all countries, businesses need to be attentive to international regulations of IP rights since the laws differ depending on the territory – countries and even states.
Considering IP types, one can distinguish the following benefits and drawbacks:
- Patents are exclusive rights to an invention preventing its use or copying without permission (World Intellectual Property Organization (WIPO), 2020). The patent may be advised when the innovation is different from all other developments, have utility, and is subject to the patent law (Parr, 2018). Its advantage is a monopoly on the invention, but the patents are expensive and have a limited validity period. Firms must apply for patents in their country and other territories where they want to be protected. WIPO (2019) operates a Patent Cooperation Treaty (PCT) system whereby a single application can secure a patent in all signatory countries.
- Copyrights defend an embodied creative idea – a book, a painting, and similar things (Stim, 2020). Their benefit is that they are valid for a long time and assume compensation to the author in case of violation. Still, the drawback is that copyrights do not protect the idea itself as a patent. In the US, rights apply throughout the author’s life and 70 years after death (Parr. 2018). On the international stage, copyrights are predominantly regulated by the Berne Convention, protecting for 50 years after death (Stim, 2020).
- Trademarks are words, logos, phrases, or other devices that identify the company. Their advantage is in providing brand protection and recognition, but trademarks may depend on people’s perceptions and change meanings. Trademarks must be registered for safety, and like patents, protection differs geographically, but there is a Madrid System uniting several countries (WIPO, 2020).
- Trade secrets are confidential information necessary for a company’s success and not subject to disclosure, for example, a customer list or a new strategy (Stim, 2020). Secrets provide a competitive advantage, but their drawback is a necessity in significant preservation efforts. Trade secrets protection differs territorially and can be part of privacy protection or laws against unfair competition (WIPO, n.d.).
In addition to mentioned types, there are also sub-types in the IP classification. According to Stim (2020), patents include utility, design, and plant types. Trademarks embrace trade names and service marks and can be classified as fanciful, arbitrary, suggestive, descriptive, and generic (Parr, 2018). WIPO (2020) divides copyright into economic rights, that is, financial benefits and moral rights – recognition of the author. Trade secrets include information of various types – from financial to operating. The IP is closely related to the choice of name for the product, venture, or service.
When I constructed the name for the venture, I followed a few steps. I defined my goal – the title should convey information to potential customers and be memorable. Then I brainstormed, wrote down a few ideas, and checked availability on IP websites. My chosen name for the company “Tru Royalty Travel” is available and can be registered as a trademark of a descriptive type. I followed similar steps to select a name for the new service, ensuring student safety while traveling. Various ways of composing a name may include considering an attribute or characteristic word or using a generic descriptor. I chose the name “Student Watch,” as my service involves creating a watch to track students. With trademarks, trade secrets apply to my business to protect customers’ lists and cooperating parties’ contacts.
Thus, IP is an essential asset of the company, which significantly affects its success and competitiveness. There are four main types of IP, depending on the subject of protection, and each has its advantages and drawbacks. Names for a venture, its products, or services are also the subjects of IP. Business owners need to choose such names to increase brand awareness and check their availability on IP websites before registration.
References
Parr, R. L. (2018). Intellectual property: Valuation, exploitation, and infringement damages (5th ed.). John Wiley & Sons.
Stim, R. (2020). Patent, copyright & trademark: An intellectual property desk reference (12th ed.). Nolo.
World Intellectual Property Organization. (2019). A guide to the main WIPO services. Web.
World Intellectual Property Organization. (2020). What is intellectual property? Web.
World Intellectual Property Organization. (n.d.). Trade secrets. Web.