Intellectual property is an intangible asset of a person or company that creates value. Often, intangible assets can generate more value than tangible assets.
Legal protections exist for intangible assets like patents, copyrights, and trademarks. But what are these legal measures protecting? The lawyers at Omni Legal Group specialize in intellectual property law in the Greater Los Angeles area, and they feel it important to define the types of intellectual property that need protection from use and infringement by others.
The Definition of Intellectual Property
Intellectual property has and creates value and is shown as a line item on a balance sheet under the “Assets” category. Even though extracting a dollar value from an intangible asset is subjective, the value it creates is tangible.
Companies go to great lengths to protect these assets. When the public associates a color to a brand, a logo to a company, or a jingle to a product, these are the basis of a company’s competitive edge for market share. These non-physical assets need protection, as do physical assets.
Intellectual property is created through intellect and skill.
The Types of Intellectual Property
The common types of these non-physical assets are:
- trademarks
- copyrights
- patents
- trade secrets
- franchises
- digital assets
Trademarks
A trademark is the logo, symbol, or design the public associates with a brand or a product. A company’s trademark is exclusive to it and separates its brand from others.
Copyrights
Copyrights protect the artistic creations of musicians, authors, and artists. These creators have the exclusive right to use or duplicate their creations. The copyright holder must authorize any use by others under conditions controlled by a license agreement.
Patents
Patents protect the creations of inventors. The product can be tangible, like a machine, a computer, a smartphone, or software. In addition, the non-physical assets, like technology and the development process, that lead to the invention of a physical asset are also protected by a patent.
Trade Secrets
Trade secrets are closely related to the protections under a patent. Examples are recipes, business models, patterns, or other proprietary information not in the public domain. Trade secrets are the subject of non-disclosure agreements.
Franchises
A franchise is a license agreement granted by a company to third parties to use the trademark, process, and certain other proprietary knowledge for the licensee to operate and provide the products or services under the company’s name. Third-party operators must comply with the company’s policies, procedures, and operations in exchange for the branding and advertising platforms to grow revenue and market share.
This support and access to proprietary knowledge is the consideration for the licensing or royalty fees the operators owe.
Digital Assets
Digital assets are a relatively new category for internet protocol. These are the proprietary codes and algorithms for online content featuring a company’s protected intellectual property.
The Value of Intellectual Property
Copyrights, patents, and trademarks are included as assets on a balance sheet because they have expiration dates. The accounting method of amortization can measure the decrease in value over the useful life of these assets.
Hence, the research and development used to keep these property types relevant and valuable need protections like the physical end product.
The value assigned to intellectual property is subjective even when supported by accounting principles. The value of intellectual property is evidenced by the market, what franchisees and licensees are willing to pay, and the per-share value of the company’s stock.
Want to Learn More About How to Properly Protect Your Intellectual Property? Contact an Experienced Patent Attorney in Los Angeles Today
Creations from ideas, research, and talent are tangible, although only sometimes physical. The end product is real, but the raw materials and the resources that lead to the tangibility of the product must also be protected. The creation itself is static, but the processes that continue to improve and maintain a product’s relevance are valued by the recurring revenue and the company’s price-to-earnings ratio.
If you are an inventor, musician, or author and would like to learn how to properly protect your creations, it is in your best interest to consult with one of our lawyers at Omni Legal Group. Our team of experienced and highly reputable patent attorneys in Los Angeles will work tirelessly to ensure you secure the provisional patent, non-provisional patent, design patent, utility patent, or plant patent application necessary to protect your invention. For further information or to schedule a consultation please contact Omni Legal Group at 855.433.2226 or visit www.OmniLegalGroup.com to learn more.