2.4 Copyright, Patents and Trademarks

Protecting ones intellectual property is always vital, especially in the early stages. This is because it can be copied and used by third parties with no recompense to you. The idea of protecting business concepts is not just restricted to fundamental ideas. Businesses of various sizes endeavour to make sure that all original ideas are exclusively restrained by them. For this reason, copyrights, patents and trademarks are used across the globe.

Confidentiality agreements are signed between parties when a business idea is in its early stages and there is the need to divulge the idea to someone else. This agreement provides some level of security for the inventor and initiator of the idea because if the other party breeches the agreement of confidentiality and tries to reproduce the idea in any format, they are liable and the inventor can bring legal action.



Copyrights

This is the right of the inventor (or creator, writer etc) to retain exclusivity of the original work that they have established to last for at least the entire lifetime of the creator of the work. The holder of a copyright may choose to grant another individual the right to make copies of their original work. While it protects the original work, it's not applicable to the protection of the idea which can be adapted elsewhere. Artists, singers and writers for example, tend to use copyrights.

Intellectual property rights are granted to designers and do not need to be registered. The inventor of the design would have to provide proof of originality for instance where the design was created and the period it was made. The UK Intellectual Property Office provides the opportunity for designers to register their design rights and they are protected for up to 25 years for a minimal fee.

Patents

Patents are used to protect the functional or technical part of a product idea or process. The patent covers every aspect of the functionality from its design stages to completion. The UK Intellectual Property Office provides protection for patents for a minimal fee which is payable within a year from making an initial patent application. This initial patent application needs to be made for new designs. The patent lasts for 20 years during which period the exclusive rights to the patent are retained by the patent holder. It is possible for the patent holder to sell the patent rights to another business.

Trademarks

A trademark is used to protect business processes and brand image. It can be registered or unregistered and provide protection for products and services. Obtaining a trademark has the benefit of deterring competitors for using such names for themselves or any of their business processes. To register a trademark is relatively cheap and eliminates the risk of having a business name imitated by another business. The consequences of such include having one's customers poached bu another business that pretends or passes itself off as your business.

Self-assessment questions

1. In what ways can an enterprise source opportunities for finding business ideas?
2. Explain the methods of creating a product niche
3. What is the importance of copyright, patents and trademarks and how do they affect businesses?