The Importance Of Intellectual Property

29/01/2010

By Chris Barling, CEO of ecommerce software supplier, Actinic (www.actinic.co.uk)

For many people, Intellectual Property (IP) law is the most confusing of the generally complex legal field. However, if you are running or starting a company with big ambitions, protection of IP is crucial. For instance, whenever you raise finance or try to sell your company, the investors will want to be sure that all of your assets are protected.

The principle of IP protection is that the output from research, writing, establishing a brand name and the creative arts is valuable and others shouldn't be allowed to benefit free of...

...charge.


Patents

When it comes to IP, popular thought turns to patents, but patents are the most difficult, and within retailing, wholesaling and ecommerce, the least useful.

Patents in the UK cover inventions of a technical nature, and business process ideas can't be protected. They cover how things work, what they do and how they do it. The idea must be new and never have been public in any way. Once granted, a patent stops others making, using or selling the idea for up to 20 years. The advantages are protection, keeping competitors at bay, credibility to investors and customers, and the ability to license or sell patents.


Contracts and copyright

In contrast to patents, copyright applies to writing (including computer programs) and is recognised internationally in a consistent way. It's also granted automatically and can be sold or licensed. So if you or your staff create IP covered by copyright law, it's good news.

The big hole in this protection is when someone who is not an employee creates the IP. Unless you explicitly cover this in a contract, you will merely possess an implied license to use the IP. To protect yourself, you should have... continued on page two >

 

 

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