Intellectual property (IP) refers to creations of the mind and proprietary knowledge. It can include inventions, trade marks, designs and the practical application of ideas.
Protecting your IP is important because it can be a valuable business asset. Taking steps to protect your rights early can also make it easier and more cost-effective to take action if someone breaches them.
This article provides an overview of the different types of intellectual property and explains the basics of protecting your IP rights.
Trade Marks
A trade mark can include a letter, number, word, phrase, sound, smell, shape, logo, image, packaging feature or a combination of these. It helps distinguish your goods or services from those offered by other businesses.
A trade mark identifies your products or services and helps customers recognise your brand as different from competitors.
You do not have to register a trade mark by law. However, registration gives you stronger legal rights, including the ability to use, sell or licence your trade mark and take action against others who use it without permission.
If you do not register your trade mark, you may need to rely on other legal protections, such as passing off under common law or misleading and deceptive conduct. These claims can be complex, costly and time-consuming.
Copyright
Copyright protects certain creative works, including written material, art, literature, music, films, broadcasts and computer programs.
A single item may contain multiple copyright-protected elements. For example, a website may include copyright in its written content, images and computer code. It is important to identify who owns each of these rights.
The rights provided by copyright depend on the type of material involved. Generally, copyright gives the owner the exclusive right to copy, publish and use the material in various ways.
In Australia, copyright protection applies automatically. You do not need to register copyright to receive protection.
The creator of the material will usually own the copyright. However, exceptions can apply. For example, when an employee creates material as part of their employment, the employer may own the copyright.
When selling a business, it is particularly important to confirm that you own any copyright assets included in the sale.