The document discusses various forms of intellectual property including patents, trademarks, copyrights, and trade secrets. It provides information on establishing legal protection for intellectual property, selecting lawyers, applying for patents, types of patents, patent infringement, registering trademarks, copyrights, ensuring trade secret protection, and licensing intellectual property.

1. (Intellectual Property
(Chapter 7material)

2. INTELLECTUAL PROPERTY
(MUCH OF THIS DISCUSSION IS
IN YOUR TEXTBOOK)
Any patents, trademarks, copyrights, or trade secrets
held by the entrepreneur.
Intellectual property can be a significant source of
sustainable competitive advantage (SCA).
Depending on the type of intellectual property you
may need to hire a lawyer.

3. ESTABLISHING LEGAL PROTECTION
- A new product
- A new method
- A process
- A new service
- A new promotional or merchandising approach
- New packaging
- A new design

4. SELECTING A LAWYER
Lawyer may work on a:
Retainer basis.
One-time fee.
A good working relationship with a lawyer:
Eases some of the risk in starting a new business.
Gives the entrepreneur necessary confidence.
Entrepreneur can offer lawyer stock in exchange for
the services.

5. PATENTS
A contract between the government and the inventor which
gives the inventor an exclusive right to produce and market
a product (creates a legal monopoly for a set period of time).
Apply to the U.S. Patent and Trademark Office (PTO)
(before trying to patent a product, do a search on the
PTO website).
Patent holders are responsible for defending them – not the
government. Can sell or license patented technology.
You have international protection through GATT.

6. OTHER PATENTS
Utility Patents are the most common form of patent.
Design Patents cover only the new design of an object
– its ornamental appearance (last 14 years). Examples
include designs for shoes by Nike and Reebok
Plant Patents are used for biotechnology inventions
Provisional Patent Applications are less expensive
ways to quickly protect your concept. Must then file a
full application within the next year.

7. PATENT INFRINGEMENT
Many businesses, inventions, or innovations are results
of improvements on, or modifications of, existing
products.
Copying and improving on a product:
May be perfectly legal
A good business strategy.
Products can be licensed from the patent holder.
Advisable to hire a patent attorney to ensure no
possibility of patent infringement.

8. TRADEMARKS
Protection is obtainable for any word, name, symbol, or
combination thereof that is used on goods to indicate
their source (music tones/jingles can also be
trademarked)
Four types:
4. Coined marks denote not relationship between the mark
and the goods or services (e.g., Polaroid, Kodak).
5. An arbitrary mark (e.g., Apple Computer)
6. A suggestive mark (e.g., Pampers)
4. A descriptive mark (e.g., Rollerblade)

9. TRADEMARKS
Technically, you do not have to formally register
trademark; however, must keep using it (3 year nonuse
constitutes abandonment)
Can register trademark in a state or with the Federal
government (must use mark across State lines).
Registering it gives you greater legal recourse and
protection
Cannot sell trademark w/out selling company or
goodwill associated with the trademark

10. COPYRIGHTS
Protects original works of authorship. Cover writings
– “writings” broadly defined
Includes: books, ads, brochures, spec sheets, catalogs,
manuals, parts lists, promotional materials, packaging,
and decorative graphics, fabric designs, photographs,
pictures, film and video presentations, audio
recordings, architectural designs, and software and
databases

11. COPYRIGHTS
Utilitarian object (physical invention) cannot receive a
copyright
Term of copyright extends for the life of the author
plus 70 years. For works made for hire or by
institutions , The period is 75 years from first
publication or 100 years from creation, whichever is
shorter
Copyright owner can recover $500,000 w/out proof of
deliberate copyright infringement

12. TRADE SECRETS
Knowledge which may include business or technical
knowledge that is kept secret for the purpose of
gaining an advantage in business over competitors.
Covers everything that patents cover but are
protected eternally. (example: Coke formula)
Disadvantage is that there is no protection against
discovery by fair means (accident, independent
inventions, reverse engineering).

13. TRADE SECRETS
4 PRIMARY STEPS FOR ENSURING SECRECY:
3. Confidential disclosure agreements
5. Security precautions to prevent outside parties
from gaining information
7. Stamp specific documents dealing with trade
secrets as confidential and limit access
9. Make sure that everyone concerned knows that
they are trade secrets

14. LICENSING
Contractual agreement giving rights to others to use
intellectual property in return for a royalty or fee.
Some questions to be considered by an entrepreneur:
Will customers recognize licensed property?
How much experience do I have with the licensed
property?
What is the long-term outlook for the licensed
property?
What kind of protection does the licensing agreement
provide?
What commitment do I have in terms of payment of
royalties, sales quotas, and so on?
Are renewal options possible and under what terms?