Scary Things Can Happen If You Don't

Protect Your Intellectual Property

Since today is Halloween and there are potential unspeakable horrors awaiting those who do NOT protect their company's name, slogans, and other intellectual property (IP) I thought it was a great time to turn over this column to a colleague of mine, Justin Lampel, an IP attorney.

Patents
In a nutshell, a patent is "an exclusive right granted to an inventor of a thing or a process by the federal government to produce, use, import, or offer for sale an invention." A patent is enforceable for approximately seventeen years and must be filed by a licensed patent attorney.

Trademarks
A trademark (or servicemark, if the mark relates to services) is "a word, name, symbol, or device that is used "in trade" with goods, to indicate the source of the goods and to distinguish them from the goods of others." A trademark is protectable as long as the mark is being used in commerce.

Copyright
A copyright is "a form of protection for original works of authorship fixed in a tangible medium of expression," such as a compact disc. Generally, a copyright is enforceable for seventy years after the death of the author.

Trade Secret
Finally, a trade secret is "a formula, pattern, physical device, idea, process or compilation of information that is treated as a secret by a business, and provides the business with a competitive advantage."

How It All Works

Often, there is an overlap between patents, trademarks, copyrights and/or trade secrets. Although many people don't realize it, we are surrounded by intellectual property; in fact, intellectual property is often a company's most valuable asset.

For example, the business name "Boeing", brand names "747" and "757" and the slogan "Forever New Frontiers" are all trademarks of the Boeing Corporation. When Boeing puts images of its planes on their website, those images are protected by copyright law. If Boeing invents a new part for one of their airplanes, that new part might be the subject of a patent. Finally, their method of determining the best aerodynamic shape of the airplane may be a trade secret.

Want to learn more about IP and other important business topics? Be My Guest... For KNOWLEDGE & BREAKFAST What: In the Know Business Resource Seminar sponsored by Consulting Resources Network, a group of Chicago area independent business professionals When: Nov 4th Time: 7:30 - 10:30AM   Where: Rosewood Restaurant 9421 Higgins in Rosemont Why Come: To learn more about a range of business management topics like E-business, unemployment compensation, protecting intellectual property, tax planning strategies, and marketing. There is absolutely NO FEE for this seminar and you are welcome to bring others from your company. The only catch is you MUST RSVP. Simply call or e-mail me for more details- Rose1Walter@MosaicMM.com or 847-483-5018. Hope to see you there!

When Should You Bother Protecting Your IP?

The most important issue in determining when a trademark application should be filed is "how much money is currently, and will be, spent on advertising the business name, product name, logo and/or slogan." For example, if your company mainly relies on word-of-mouth, then filing a trademark application may not be a pressing matter for your business.

On the other hand, if your company is planning on or is currently spending at least a few thousand dollars a year advertising, then your company should probably look into filing a trademark application.

Failing to secure trademark rights could result in your company having to give up its name, logo and/or slogan. As a result, your company would have wasted much of its advertising dollars in an effort to get its name out to potential clients.

The Name Game

The area of intellectual property law that affects most business owners is trademark law, as it relates to the name of the company.

When the Secretary of State's Office issues a Certificate of Incorporation, they are not granting trademark rights to a corporation. In fact, I often receive phone calls from business owners who receive "cease and desist" letters demanding that they stop using the name of their business, well after the Secretary of State's Office has approved their Articles of Incorporation.

These businesses often spend years and thousands of dollars on marketing their business, only to be put in the situation where they have to change their business name or defend their business name in court. Therefore, prior to incorporating or using a business name, logo or slogan, a trademark clearance is often advisable.

If a business has a good faith belief that they have rights to a business or brand name, logo or slogan, they may place the "TM" symbol after their mark. Although there is no requirement to file anything prior to placing the "TM" symbol after your "mark," a business may not place the "®" symbol after a "mark" unless the United States Trademark Office grants registration.

In short, trademark issues revolve around marketing. If you are planning on doing "heavy marketing" then you have the attending "heavy trademark issues" to consider and you should think seriously about protecting your marketing investment.

For more information on IP protection feel free to call Justin Lampel at (847) 845-4345 or email him at jlampel@lampellaw.com or visit with me at the November 4, 2005 event where other colleagues will be covering this issue in one of the sessions.

Remember, Mosaic creates customers for business-to-business companies through specific project work, on-going retainer assignments or marketing coaching sessions.

Until next time...

Rosemary Walter
847-483-5018
Rose1Walter@MosaicMM.com

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