Employee Made: Who Controls IP?
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1 When Is It Theirs; and Who Controls Intellectual Property? Jim Sawtelle Intellectual property: A category of intangible rights protecting commercially valuable products of the human intellect. Property (as an idea, invention or process) that derives from the work of the mind or intellect. 1
2 Industries where IP ownership issues Manufacturing Energy Electronics Medical/Bioscience Creative Industries Technology & Information Higher Education Agribusiness Job functions where IP ownership issues Research & Development Engineering Software Development Journalism (photo and print/digital) Marketing/Sales 2
3 Stages of a business life cycle where IP ownership issues Formation Inventors/Founders Capital Raise Bank financing or venture capital funding Equity positions Founder Exits Assignment Maturity Competitors Patents Copyrights Trademarks Trade Secrets 3
4 Patent What is it? A grant of property rights by the U.S. Government through the U.S. Patent and Trademark Office The grant excludes others from making, using or selling the invention in the United States for a limited duration Patent What kinds exist? Utility Patents (the way something is made)» Process, machine, article of manufacture, composition of matter, new and useful improvement» Design Patents (the way something looks) New, original and ornamental design for an article of manufacture» Plant Patents 4
5 Copyrights (U.S. Copyright Office vs. USPTO) What is it? Body of law designed to protect original works of authorship» Literary» Pictorial, graphic and sculptural» Sound recordings» Architectural» Motion pictures and other A/V» Dramatic, pantomimes and choreographic Copyrights When is the work protected? The moment it is created and fixed in tangible form Registration with U.S. Copyright Office is not necessary common law protections Registration will entitle the owner to additional protection in an action for infringement» Prima facie evidence of control» Statutory damages» Attorney fees 5
6 commonly arise Trademark What is it? A word, phrase, or symbol or design that identifies and distinguishes the source of goods Also, applies to services (service mark) Registration with U.S. PTO is not necessary common law protections Registration will entitle the owner to additional protection in an action for infringement» Prima facie evidence of ownership» Increased ability to prevent importation of foreign infringing goods» Right to use the federal registration symbol: Trade secrets What is it?... Any scientific or technical information, design, process, procedure, formula, improvement, confidential business or financial information, listing of names, addresses or telephone numbers, or their information relating to any business or profession which is secret and of value. C.R.S (Colorado Uniform Trade Secrets Act) 6
7 Trade secrets How are they protected? Must take measures to prevent the information from becoming generally available to others Must demonstrate that the information is not already widely known in the industry Damages available» Injunctive Relief» Actual loss» Reasonable Royalties» Exemplary Damages» Attorney Fees Clear policies Uniformly applied Widely disseminated 7
8 Patents Invention assignment agreements Disclosure of prior patents Assignment of ownership over patents awarded while employed Possible agreement regarding licensing or royalties Copyright Does it matter? Work for hire agreements Licensing Limited/unlimited Exclusive/non-exclusive 8
9 Trademarks Not a common issue Written agreement similar to copyright issues Trade secrets Non-disclosure agreement Non-competition agreement 9
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