Intellectual property is intangible assets that can often be the most valuable thing owned by a business. Whether it is the trademark for a brand name or a device that has been patented, owning or having access to intellectual property can give your business a competitive edge. This is vital, especially if you are in a highly competitive industry. For example, if you own a franchise restaurant, your ability to sell food under a recognizable name helps you draw in new customers in ways that local diners cannot. This is why it is vital to understand the different types of intellectual property agreements, working with an experienced intellectual property attorney to help you use them for your business.
What are the Different Types of Intellectual Property?
There are four different types of intellectual property, with three of them having specific legal protections. Patents are issued by the United States Patent and Trademark Office (USPTO) and grant a 20 year monopoly for the use, sale and production of an invention, such as devices and medications. Trademarks are also registered with the USPTO, but you can assert a common law trademark for a name, phrase, symbol, sound, or scent over a good or service without registration. Copyrights protect the rights of authors for literary, artistic, musical, and dramatic works. In other words, a copyright protects written things. Finally, a trade secret is any other piece of intellectual property, such as the formula for Coca-Cola.
What are the Types of Intellectual Property Agreements?
Whether you own intellectual property or want to use that which is owned by someone else, it is important to understand how to use the different types of intellectual property agreements. This will let you profit off of a patent, trademark, copyright or trade secret you own, or to acquire the rights to use them to make money for your business.
A license agreement provides the rights to use intellectual property by a third party. Under this license, someone that owns a patent, trademark or copyright can grant the right to use this intellectual property in a commercial way, either for a one time license fee or some kind of royalty arrangement. If this is done correctly, both the owner and the user can profit from this license.
If someone who owns intellectual property wishes to transfer these rights, it will enter into an assignment agreement. This transfers some or all of the rights to the patent, trademark, copyright or trade secret to the third party. Sometimes, assignments are permanent, while other times it may only be for a set period of time. Companies will also use an assignment agreement if it wishes to transfer ownership of intellectual property to a subsidiary with limited liability in order to shield it from creditors.
Companies that own intellectual property are going to want to protect items shared with employees and others who may have a need to know in order to do their jobs. In this case, a non-disclosure or confidentiality agreement (often referred to as an NDA) will allow the owner to share the sensitive information with a level of comfort that it won’t be shared or disclosed without prior consent. For example, if a business needs to hire an engineer to build and operate a patented device, it will have the engineer sign an NDA. If the engineer discloses such confidential information in violation of the NDA, he or she can be sanctioned. An NDA will also provide for equitable relief in the event of unauthorized disclosures, such as requiring the party that received the information to destroy all copies at the end of the project.
Franchising is a very common form of intellectual property agreement used by businesses. In exchange for the right to use the brand name, products, and design associated with a successful business, a franchisee will pay a fee and a portion of profits called royalties to the franchisor. In many cases, a franchise will cover the ability to use trademarks, patents and trade secrets of the other business.
Who Needs to Use Intellectual Property Agreements?
The list of businesses that can profit from using intellectual property agreements is very broad. This includes any business that creates or uses intellectual property, businesses looking to go into a joint venture that involves the commercial exploitation of intellectual property, and any business that employs key individuals who will have access to confidential information. Intellectual property agreements are also necessary if you are looking to sell your business or buy an existing business. The key is to use the right kind of agreement to meet your intellectual property type and needs.
Contact an Intellectual Property Attorney Today
The experienced intellectual property attorneys at Jones, Gregg, Creehan & Gerace can help craft the agreements you need to protect your rights and grow your business. Whether you are an owner of intellectual property or a business looking to license the rights to use the patents, trademarks, copyrights and trade secrets of another, our team can help you with preparing the intellectual property agreements that will serve your needs.