Understanding Intellectual Property Rights

In today’s knowledge economy, protecting your ideas, brand and creativity, is just as important as protecting physical property. Intellectual property (IP) law gives creators and businesses the legal tools to do just that. This article breaks down three important types of IP protection – trademarks, copyrights and trade secrets – and explains why each matters for business owners, content creators and entrepreneurs. Trademarks: Your Brand’s Identity A trademark is a word, logo, phrase or symbol, that identifies the source of goods or services, and distinguishes them from others in the market. Trademarks help consumers recognize the quality and reputation associated with your brand. Think Nike’s swoosh or McDonald’s golden arches. Why register a trademark? • Gives you exclusive rights to use the mark, in connection with your goods/services. • Helps protect against copycats and brand confusion. • Builds business value over time. • Allows you to use the symbol after federal registration. State vs. Federal Registration In Wisconsin, you can register a trademark at the state level, with the Department of Financial Institutions. This offers some protection, but federal registration through the U.S. Patent and Trademark Office (USPTO), provides broader nationwide rights and stronger legal remedies. Keep in mind, rights in a trademark generally begin when you first use the mark in commerce, but registration strengthens those rights and is essential for enforcement. Typical costs and attorney’s fees required to apply for a federal trademark registration, run between $1,200 to $1,500. Copyright: Protecting Creative Works A copyright protects original works of authorship, that are fixed in a tangible medium. That includes things like books, songs, software, paintings, blog posts, videos and architectural designs. What does it protect? • The right to reproduce your work. • The right to distribute, perform or display it. • The right to create derivative works, like adaptations or remixes. These rights are automatic upon creation, but registration with the U.S. Copyright Offi ce is highly recommended. Registration allows you to sue infringers, claim statutory damages and establish a public record of ownership. What’s the cost to apply for a copyright and how long do they last? The cost to register a copyright in the U.S., varies depending on the method of filing and the type of work. Online registration is generally $65, for a single work, not including attorney’s fees. In most cases, for works created today, copyright lasts for the life of the author, plus 70 years. Trade Secrets: Confidential Business Know-How A trade secret is information that gives your business a competitive edge and is kept confidential. Examples include a secret recipe (like Coca-Cola’s formula); a unique manufacturing process; customer lists; pricing strategies; and software code not released to the public. What qualifies as a trade secret? Under Wisconsin and federal law, a trade secret must be generally unknown to others and not easily ascertainable; have economic value from remaining secret; and be subject to reasonable efforts to maintain secrecy (such as non-disclosure agreements or restricted access). No registration is needed, and unlike trademarks or copyrights, there is no public registration system for trade secrets. Instead, protection comes from contracts and security measures, and you enforce your rights through lawsuits, under the Uniform Trade Secrets Act or federal Defend Trade Secrets Act, if someone misappropriates your secret. If you’re a business owner, having a clear internal policy to identify, mark and protect trade secrets, is critical to enforce your rights, if the information is ever stolen or leaked. Final Thoughts Whether you’re starting a business, writing a book, developing a new app or inventing new manufacturing techniques, your intellectual property is often your most valuable asset. Protecting it requires registering trademarks and copyrights, where appropriate; keeping trade secrets secure through contracts, NDA’s and internal controls; and monitoring for infringement and acting promptly, when violations occur. A consultation with an intellectual property attorney can help ensure you’re using the right legal tools for your goals. With proper planning, your ideas and innovations can stay protected – and profitable – for years to come. Joel Huotari is a partner at WilliamsMcCarthy LLP. He specializes in intellectual property and business litigation for clients, ranging from individuals to multi-national corporations. He is a member of the State Bar of Wisconsin Lawyer Referral Service, which connects Wisconsin residents with lawyers throughout the state. To learn more, visit wislaw.org.