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FAQs FOR BUSINESSES

 

FREQUENTLY ASKED QUESTIONS (FAQs)

FOR BUSINESSES


  1. What is my Intellectual Property (IP)?
  2. How do I organize my IP?
  3. What is the minimum I should do to protect my IP?
  4. What is the maximum I can do to protect my IP?
  5. What about my employees' IP contributions?
  6. What about my independent contractors' IP contributions?
  7. What about my vendors' and customers' IP?
  8. What about my competitors' IP?
  9. Can I sell or lease IP?
  10. Can I buy or rent IP?

1.  What is my Intellectual Property (IP) ?

The IP of your  business can include your company name, your marks (names) of it's products and services,  your marketing material, potential exclusive rights to significant products and manufacturing processes therefor, and customer lists.  Your IP may arise in your business (for example by your employees), be generated by contractors, or may be acquired from others by sale or license.   

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2.  How do I organize my IP ?

IP should be documented (via paper and electronic records, and specimens) in terms of what it is, when it is created, who created it, where it is significant and when it is commercialized.  Documentation should be secure, witnessed, and communicated to significant persons within the business.  If you have multiple items of IP, organization should be centralized if practicable.

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3.  What is the minimum I should do to manage my IP ?

Virtually every business has IP that can be protected by trademark, copyright, and trade secret tools.  You should take reasonable measures to organize your IP (see above), control it's dissemination (i.e. trade secret and security measures, and confidential disclosure agreements), give notice to other parties and the public of your claim of rights (i.e. copyright © notices and trademark ™  designations), and perfect important rights via governmental registration (i.e. apply to register significant copyright material and marks (®)). You should document the substance and timing of inventions (preferably all, but at least those which are significant) with respect to conception, reduction to practice and disclosure activities for potential patent application filing.

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4.  What is the maximum I can do to manage my IP ?

There is no absolute maximum management system.  Examples of substantial management efforts include aggressively filing and prosecuting  patent applications (including applications outside the US when pertinent), filing trademark and copyright registration applications, branding programs, recordation efforts, trade secret and security programs, contract programs, intellectual property audits, due diligence programs, search/monitor systems, and enforcing IP rights via litigation if necessary.  Businesses that have important IP typically utilize the services of IP attorneys (within and outside the business).

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5.  What about my employees' IP contributions ?

In general, copyright rights in employee's creations automatically are owned by the business.  Patent rights require an agreement or special circumstances to transfer ownership from the employee to the business.

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6.  What about my independent contractors' IP contributions ?

In general, copyright rights in a contractor's creations are owned by the contractor unless a written agreement specifies that the business owns them.  Patent rights also require an agreement for ownership transfer. 

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7.  What about my vendors' and customer's IP?

Vendors/suppliers and customers may manage their IP and responsibilities by way of an agreement (contract).  For example, vendors may seek to limit the customer's ability to reproduce or alter a product such as software they purchase.  On the other hand, the customer may obtain an indemnification and hold harmless agreement that the vendor will protect the customer from IP infringement claims of 3rd parties.

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8.  What about my competitors' IP?

Your products or activities may infringe the IP rights of your competitors.  In general, copyrights and trade secrets cannot be accidentally infringed, but trademarks and patents can.  Searching is one means of preventing accidental infringement of trademarks and patents.  Importantly, establishing your own IP does not necessarily protect you from infringing the IP rights of others.

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9.  Can I sell or lease IP?

Yes. Virtually all IP, and portions of IP rights, is freely transferable, by sale (assignment), lease (license) or operation of law (for, example estate transfers). Written transfers are strongly recommended and in many cases required.

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10.  Can I buy or rent IP?

Yes, for the same reason that you can sell or lease. 

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