Importance of Intellectual Property Law

¶ … intellectual property? Why is it called "intellectual" property? Why is intellectual property such an important issue for entrepreneurial firms?

Intellectual property specifically refers to "creations of the mind" which are the protected work of an individual or an organization ("What is IP," 2015). These include "literary and artistic works; designs; and symbols, names and images used in commerce" ("What is IP," 2015). Intellectual property enables people and companies to financially benefit from what they create even if it is not a physical product and to self-identify by a unique image in the marketplace. The concept is important for entrepreneurial firms whose bottom line is dependent upon the creation of new ideas such as inventions and new processes. IP is protected by patents, copyright, and trademarks ("What is IP," 2015).

Identify and briefly describe the three types of patents.

The first type of patent is called utility patient which is used for a "new, useful invention that is not obvious to others in the field of invention" involving "a process, a machine, a manufacture, a composition of matter" or an improvement of an existing form of technology (Stim 2015, "Three types of patents"). A design patent refers to a new and unique design and prevents people from copying its appearance (Stim 2015). A plant patent is the rarest type of patent, granted "for any novel, nonobvious, asexually reproducible plant" (Stim 2015).

Part C: What is a trademark? Why are trademarks important?

"A trademark is a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs, that identifies and distinguishes the source of the goods of one party from those of others" ("Trademark, copyright or patent," 2010). Trademarks are used to identify a company's unique product and can be a critical source of differentiation in the marketplace. Trademarks help identify when a product is being counterfeited. Companies make a great investment in generating their brand image and trademark law permits them to do so.

Part D: What is a copyright? What is protected by a copyright?

Copyright law protects artistic works such as literary, musical, and visual artistic works. It gives the artist the sole right to profit from the work, including the right to sell copies and perform it, to display it, and to produce derivative works. "Copyright protection subsists from the time the work is created in fixed form. The copyright in the work of authorship immediately becomes the property of the author who created the work. Only the author or those deriving their rights through the author can rightfully claim copyright" ("Copyright basics," 2012:1). There are a number of exceptions to this law, however: for example, when an employee produces an original work for an employer, the work belongs to the employer, not the employee, even if the employee was the generator of the actual work. Titles of literary works and songs are not copyright-protected nor are works that have no tangible component or notation such as improvised speech and dance ("Copyright basics," 2012: 3).