Intellectual Property Guide: Rights, Protections, & Landmark Cases

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Intellectual property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names and images used in commerce. Intellectual property is divided into two categories:

Industrial property includes patents for inventions, trademarks, industrial designs and geographical indications. Patents provide the patent owner with protection for their inventions. Trademarks distinguish the goods and services of one company from another. Industrial designs protect the visual design of objects that are not purely utilitarian. Geographical indications identify a good as originating in a place where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin.

Copyright covers literary works (such as novels, poems and plays), films, music, artistic works (e.g., drawings, paintings, photographs and sculptures) and architectural design. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and broadcasters in their radio and television programs.

The owners of intellectual property can control and be rewarded for its use for a certain period of time. By striking the right balance between the interests of innovators and the wider public interest, the intellectual property system aims to foster an environment in which creativity and innovation can flourish.

More about IP Parts

Patents – A patent provides the inventor with exclusive rights over an invention, like a new product or process, for a limited time period (typically 20 years). Patents provide incentives for companies to invest in research by allowing them to recoup R&D costs. Some examples of products/technology that are or were patented – smartphone touchscreens (Apple), lithium ion batteries (Sony), Google’s PageRank search algorithm.

Trademarks – Trademarks protect distinctive names, slogans, logos or designs that identify the source of a product or service. For example, famous trademarks include the Nike “swoosh” logo, McDonald’s golden arches, Apple’s apple shape logo. Marks indicate to consumers that products come from a trusted source.

Copyright – This protects original creative works like books, artwork, music, films and more. The creator has rights over reproduction, distribution or adaptation for a period of usually 70+ years beyond the creator’s death. Examples of protected creative works include Marvel comic books, Harry Potter books, Starry Night painting by Van Gogh.

Trade Secrets – Trade secrets can be business information that has commercial value and is kept confidential, like the formula for Coca-Cola or KFC herbs and spices recipe. There is no set time limit on protection of trade secrets. As long as companies protect the secret, their rights remain.

Advantages

Promotes innovation – IP rights provide incentives for individuals and companies to invest in research and development by ensuring they can profit from their innovative ideas. Knowledge of IP protection often drives innovation.

Economic growth – By commercializing protected inventions, designs or creative works, IP supports economic development and job creation. Studies show IP-intensive industries drive higher economic growth rates.

Establishes legal ownership – Having IP rights like patents, trademarks and copyrights establishes legal certainty over ownership of intangible assets and provides means to protect against infringement.

Access to markets – The exclusive rights of IP provide opportunities to access markets or commercial partnerships. Startups with protected technology can attract investor funding.

Competitive advantage – Companies can use patents, trademarks and trade secrets to gain an advantage over competitors and prevent copying. This differentiation helps them establish brand reputation.

Additional revenue streams – IP assets like patents and copyrights can generate licensing revenue, royalty payments or through selling the IP. Musicians earn royalties on their copyrighted works.

Deter infringement – The ability to sue for damages and injunctions if IP rights are infringed acts as a deterrent to copying. Enforcement protects market exclusivity.

Disadvantages

Hinders innovation – Some argue that overbroad patents or copyright can inhibit innovation if basic ideas, concepts or technologies are locked up. Could force alternate design around existing IP.

High costs – Obtaining and enforcing intellectual property rights like patents and trademarks requires significant legal and administrative costs. These can deter smaller players. Maintaining trade secrets also requires expense.

No guarantees – Just because IP rights exist doesn’t guarantee economic success or commercial viability of an invention or creative work in the marketplace.

Ownership complexity – As products integrate multiple technologies and innovations, there is complexity in determining IP ownership. Could require intricate licensing deals between multiple parties.

Limited access or affordability – While IP rights incentivize innovation, it can also limit widespread affordable access to new technologies or creative works for consumers or follow-on innovators who have to pay licensing fees.

Low public awareness – Research shows general public has limited knowledge of how intellectual property functions, leading to misconceptions and lack of support for well-balanced IP policies.

Territoriality – IP rights are territorial. Separate rights must be obtained in different countries. This adds to costs and complexity of international commerce.

Case Examples

• Apple v. Samsung (2012) – This landmark patent case between the two tech giants centered around design patents that Apple held for smartphones and tablets. Apple accused Samsung of infringing their patents on iPhone design and user interface. After years of litigation globally, Samsung was ordered to pay Apple over $539 million in damages.

 

• Marvel v. Kirby (2014) – Legendary comic book artist Jack Kirby’s estate sued Marvel Entertainment arguing that Kirby held copyright ownership over characters he created for Marvel like the X-Men, Iron Man and The Incredible Hulk. After appeals, the Supreme Court upheld Marvel’s ownership rights adhering to the copyright work-for-hire doctrine.

 

• Google v. Oracle (2020) – Google was accused of copyright infringement by Oracle for using Java APIs in the Android operating system without permission leading to a decade long court fight. Ultimately the Supreme Court ruled 6-2 in favor of Google’s fair use protections allowing use of Oracle’s APIs.

 

• Blurred Lines v. Marvin Gaye (2013) – The composers of Robin Thicke’s “Blurred Lines” were sued for copyright infringement by Marvin Gaye’s family over similarities between the hit and Gaye’s song “Got to Give It Up”. They won a $7.4 million judgement against Thicke and Pharrell establishing infringement of Gaye’s copyrighted work.

 

• SCO v. IBM (2003) – SCO sued IBM for $1 billion, claiming IBM’s Linux operating system copied protected UNIX source code that IBM developed under contract in 1980s. After a legal marathon, courts ruled largely in favor of IBM, dismissing SCO’s unfounded copyright claims.