Protecting your ideas and concepts isn't something most businesses think about until it's too late - so what do you need to know about intellectual property?
The primary purpose of laws that surround the protection of intellectual property is to encourage the creation of a wide variety of intellectual goods. In order to achieve this, the law gives people, brands and businesses property rights to the information and intellectual goods they create, although it’s usually for a limited period of time.
This gives economic incentive for their creation, as it allows people to profit from the information and intellectual goods they create. In turn, these economic incentives are expected to stimulate innovation and contribute to the technological progress of countries, which depends on the extent of protection granted to innovators.
The Basics Of Intellectual Property
Ever wondered what that little “™” means on the end of logos or email signatures for large scale businesses? That would be a trademark, which is just one example of using intellectual property as a defence based weapon when it comes to protecting your brand or business.
Intellectual property, or IP, is relevant to just about any brand or business. IP can be anything from a name, creation, concept or even just an idea. Understanding the different types of intellectual property can be tricky, which is why many businesses routinely ignore it.
Some forms of intellectual property require formal application and examination before you can claim a right to ownership, while others do not. Beware of pre publicity, as it’s important to not publish your patent or design until your ownership has been confirmed - that means no tweeting, no ‘gramming and more or less keeping it off the internet until it’s wholly yours, as publishing your idea in any form may jeopardise your ability to claim a patent or design.
Ultimately, as a business owner it’s your responsibility to ensure that your assets are protected. If all of the above - or even some of it - is striking a chord with you, it might be time to get started with navigating the legalities involved with intellectual property.
Four Common Types of Intellectual Property
While Australia has its own set of laws and statutes that relate to intellectual property, it is also a signatory to a number of international agreements that protect IP in other countries. IP Australia is the government body that administers IP rights and legislation, with the most common forms being copyright, patents, trademarks and registered designs.
Copyright - Copyright protects the original way in which facts or ideas are expressed, for example in writing, source code, a drawing, painting or photograph, but not the ideas, names or slogans themselves. In order to be protected by copyright, material/subject matter must be original and in material form. Protection is automatic, and copyright exists for literary, dramatic, musical or artistic works when it is first written down or reduced to material form, film, sound or television broadcast. From 1 January 2005 in Australia, the duration of protection for literary, dramatic, musical and artistic works is 70 years from the year of the author’s death, or the year of first publication after the author’s death.
Patents - Used to essentially protect the way things work, a patent is a right granted for an invention that is new and useful. A registered patent provides the owner of the invention with the exclusive right to more or less exploit it commercially for the life of the patent. The owner also has the right to license others to make, use or sell the invention or products made using the invention. This protection encourages the undertaking of further research, testing, effort and expenditure to develop a new product, method or process, and offers you a monopoly for the duration of your patent registration. These are not automatically granted though, and an application must be made through IP Australia.
Trademarks - The owner of a registered trademark has the exclusive right to use the trademark for the goods and services for which it is registered, primarily as a means to make themselves easily recognised and distinguishable from potential competitors. A registered trademark can protect words, symbols, letters, numbers, names, signatures, phrases, sounds, smells, shapes and aspects of packaging, or a combination of these items. If your trademark is made up of a combination of items, your trademark registration will only protect the trademark as a whole. It will not provide protection against another party using one item without the others. A registered trademark can assist in preserving a business's advantage and developing strong brand loyalty.
Registered Designs - While the term may sound quite open ended, registered designs protect the overall appearance of a product so that you can use that shape exclusively, and protect your brand image. Think along the lines of the shape of a Coca-Cola bottle, the body of a Holden Monaro, or even the pattern on the Brisbane Broncos football jersey. However, design registration only protects the visual appearance of your product. It does not protect what the product is made from or how it works, although the materials and function can be protected by patents. Although a registered design protects the visual appearance of a product, there is no requirement for the design to be aesthetically or artistically attractive - only new and distinctive.
Although not as common as the above, other types of intellectual property to consider include geographical indications, plant variety rights, trade dress, circuit layouts, industrial design rights, and even trade secrets.
Sourcing Further Advice On Intellectual Property
Whether you’re starting a business, purchasing an existing one, or even reevaluating where your current one stands - all require some form of asset protection, including a well thought out plan of attack when it comes to navigating intellectual property.
However, if understanding the legalities that surround your business or finances isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many businesses (big and small) enlist the services of an accountant in order to free up their time while knowing that their financial obligations are already taken care of by the professionals.
Ultimately, the team at Muro believe that every business owner is an entrepreneur. However, accounting does not discriminate - finances break down barriers and are not territorial. If you would like to take a deeper look into your finances, please get in touch with us at Muro today to ensure that you’re on the right path for success.