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Intellectual Property |
What is it? Intellectual Property consists of patents, trademarks, copyrights, and trade secrets. The basis of protection for each form of intellectual property arises from either Federal law, State law, or court formulated law called the common law. Federal and State intellectual property statutes generally give more protection to the owners of intellectual property than is generally available at common law.
Patents
What is a patent?
A patent is a grant of a
property right by the U.S. Government to the inventor. The property right
granted is the right of the inventor to exclude others from making, using or
selling the invention in the U.S. and its possessions. Patents are granted for a
term of 20 years from the date the patent application is filed with the U.S.
Patent and Trademark Office (PTO).
What is patentable?
The subject matter of a patent
may be a product, an apparatus, a method of making, or a method of using. The
subject matter must be useful, novel, and nonobvious.
When is a patent obtained?
A valid patent may not be obtained if the invention was in public use or on sale in this country for more than one year prior to the filing of your patent application. The one year use or sale of the invention bar may arise from either the applicant’s use or sale or from someone else’s use or sale.
Who may obtain a patent?
Only the true inventor(s) may
be granted a patent.
Types of
patents
Utility Patents
are granted to anyone who
invents or discovers any new and useful process, machine, manufacture, or
compositions of matter, or any new and useful improvement thereof. Process means
a process or method such as new industrial or technical processes. Compositions
of matter relates to chemical compositions and may include mixtures of
ingredients as well as new chemical compounds.Design Patents
are granted to any person who
has invented a new, original and ornamental design for an article of
manufacture. The appearance of the article is protected.Plant Patents
are granted to any person who
has invented or discovered and asexually reproduced any distinct and new variety
of plant, including cultivated species, mutants, hybrids, and newly found
seedlings, other than a tuber-propagated plant or a plant found in an
uncultivated state.Why are patents important and valuable assets?
Patents are important and valuable assets because a patent
gives an inventor the right to exclude all others from making, using, or selling
the invention in the U.S. and its possessions. These property rights allow the
inventor to profit from his/her invention for a limited time through the
licensing of these rights individually or in combination. The inventor may also
sell all or part of his/her interest in the patent application or patent to
anyone by a properly worded assignment. The application must be filed in the
U.S. Patent and Trademark Office as the invention of the true inventor, however,
and not as the invention of the person who has purchased the invention from the
inventor.
How long does a patent last?
Utility patents may last for
20 years from the patent application filing date. The total life of the patent
is conditioned on the owner paying PTO maintenance fees at the 3, 7, and 11 year
intervals of a patent’s life. Design patents last for 14 years. Once the patent
expires, the subject matter of the patent enters the public domain for anyone to
use.
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TRADEMARKS
What is a trademark? A trademark is
words or symbols associated with a product. A servicemark is words or symbols
associated with a service. The property right is created by first use of the
mark in the marketplace. Once created, the property right is the right to
prevent consumer confusion as to the source of goods in a given market. In other
words, trademarks or servicemarks are really source indicators. Trademarks can
be registered both at the State and Federal level.
What words or symbols can be used as
a trademark?Most
words or combination of words and symbols can be used as trademarks. However,
the type of mark will determine the amount of protection and thus the extent of
exclusive use of the mark. A mark that is arbitrary and fanciful (Ex. "Apple"
for computers) is the strongest type of mark. Suggestive and descriptive marks
get weaker protection. A mark that is generic gets no protection and thus has no
intrinsic value. Is State registration or Federal registration better? A State registered trademark gives its owner more rights than an unregistered trademark, however, a Federal registration gives the greatest protection and preempts any conflicting State rights. For example, say one company (Company 1) has a common law trademark but is only selling a product bearing their trademark in, geographically, one-half of the State (State 1). Another company (Company 2) selling a similar product bearing the same or similar mark, whose mark is Federally registered, decides to expand their market into State 1. Company 2 because of its superior Federal registration, may prevent Company 1 from expanding the use of its common law trademark into the other geographic half of State 1 due to likelihood of confusion as to the source of the goods. A Federal registration does not supplant pre-existing rights (prior user rights) in a mark. In the above example Company 2 could not prevent Company 1 from continuing to use its mark in the geographic part of State 1 where it had previously marketed its goods prior to Company 2’s Federal registration. Company 1 also cannot prevent Company 2 from using its mark in the same geographic market as Company 1. Furthermore, if
Company 2 had secured a Federal registration prior to Company 1’s use of its
mark, Company 2 could stop Company 1 from using its mark
completely.Should I apply for Federal registration?
A Federal registration requires that the mark be used on goods in
interstate commerce. Marks used on goods for sale only in commerce within a
single State do not qualify for Federal registration. If you are currently
selling goods or offering services in interstate commerce, your mark qualifies
for Federal registration. A Federal registration is highly recommended for those
companies who plan to expand beyond their immediate geographic market and intend
to use their trademarks and/or servicemarks in their
expansion.
How long can a trademark last? A trademark may
last indefinitely provided that it is used and, to retain Federal registration
status, the renewal fees to the PTO are paid.
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Copyrights
What is a copyright? A copyright is the
expression of an idea. It is established when the expression (i.e. product) is
fixed by the author on some acceptable medium. No governmental action is
required. Unlike patents, companies can be authors.
What rights does a copyright give me? A copyright gives the author the exclusive
right to reproduce, adapt, publizice, perform, and display the creative work.
Infringement occurs when any of these rights are violated.
Do I need to register my copyright? No,
registration is not required because a copyright is created when the expression
is fixed by the author on some acceptable medium.
Are there advantages to copyright registration? Yes, Federal registration has
advantages particularly when dealing with remedies to copyright infringement.
Statutory damages are available to registered copyright owners even if actual
damages can’t be proved. These statutory damages can range from $500 to $100,000
per infringement. Attorney fees are also available under the Copyright Act.
Probably the most important characteristic of registration is that, if the work
was created in the U.S., the author cannot bring an infringement action until
the work is registered.What is the cost for copyright registration? The current fee charged by the Copyright
Office of the Library of Congress is $30 per work or collection of
works.
How long does a copyright last? A
copyright lasts for the life of the author plus 50 years UNLESS the work is a
work-for-hire then it is the shorter of 75 years from publication or 100 years
from creation.
TRADE SECRETS
What is a trade secret? A
trade secret is anything with commercial value, ideas
included.
How do I protect trade secrets? Trade
secrets are protected by keeping the information secret. This is accomplished
usually by employment contract agreements, limiting access to the information to
specified individuals in an organization, and retaining control of the
information that is regarded as a trade secret.
How do I know when something is a trade secret? As mentioned earlier, anything of commercial value that is independently discovered or created is a trade secret. A good example of a well-kept trade secret is the formula for Coca ColaÒ (Coca Cola is a registered trademark
of the Coca Cola Company).
What are the limitations of trade secrets? The only protection one has is the threat of
damages for misappropriation of trade secrets. Trade secret law is based on
State common law, State statutory law (Uniform Trade Secret Act) or both. If
someone is able to reverse engineer your product or discovers it through his/her
own independent discovery, you will have no recourse. Anything that can be easily reverse engineered
should be patented.
Additional questions? Please call:
(603) 668-1971
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Mesmer & Deleault, PLLC 41 Brook Street Manchester NH 03104 Tel: (603) 668-1971 Fax: (603) 622-1445
mailbox@biz-patlaw.com
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