Since we entered into the digital era, the way we conduct business has changed dramatically. Assets no longer have to be tangible and can be intangible and hard to identify. Intellectual property plays an important role in an increasingly broad range of areas of business and asset protection. Understanding the role of intellectual property requires significant new research and study and an understanding on what is capable of protection. Intellectual property, often known as IP, allows people to own their creativity and innovation in the same way that they can own physical property.

The owner of IP can control and be rewarded for its use, and this encourages further innovation and creativity to the benefit of us all. In some cases IP gives rise to protection for ideas but in other areas there will have to be more elaboration of an idea before protection can arise. It will often not be possible to protect IP and gain IP rights unless they have been applied for and granted, but some IP protection such as copyright arises automatically, without any registration, as soon as there is a record in some form of what has been created.

The four main types of IP generally accepted worldwide are:

• Patents: for inventions of new and improved products and processes that are capable of industrial application;

• Trade marks: for brand identity of goods/services allowing distinctions between different traders;

• Designs: for product appearance of the whole or a part of a product resulting from the features of, in particular, the lines, contours, colours, shape, texture or materials of the product itself;

• Copyright: for literary and artistic material, music, films, sound recordings and broadcasts, including software and multimedia.

Transactions about IP such as licence agreements and transfer of ownership will involve the making of contractual agreements. In many cases, but not always, a contractual agreement will be able to override any provisions in IP law that might conflict with what is to be agreed. A contractual agreement is usually particularly important where you have commissioned someone else to create something protected by IP since, without a contract, you may not know whether you are licensed to use the IP. Even where IP is not to be licensed or ownership transferred, there may be situations where a contractual agreement about IP is important, such as:

• An agreement where a person investing in the development of IP who will not necessarily own it, but who may become entitled to some form of payment at some point in the future.

• An agreement between a creator of IP and a potential partner in its exploitation to discuss what might be possible under a confidentiality agreement.

• An agreement between right holders and a collective licensing body over administration of some of the IP rights.

In every case, general provisions in law about what contractual terms are acceptable need to be considered carefully as well as the nature of the IP that is the subject of the contract. In particular, competition law and company law may be relevant.

Intellectual property rights are plainly assets. They have value, and they can be bought or sold. It is important to get the right advice to ensure your assets are protected.

For more information about protecting your intellectual property please contact Emily to see if we can assist you.

The content of this article is intended in the nature of general information, and cannot be relied upon as legal advice. You should seek specialist advice about your particular circumstances.