Week 7 - IP for Business'

Intellectual Property (IP) is a very extensive area which can be very important for businesses, either in buying or selling IP, or simply using it. Most businesses come across IP daily in their dealings, with some of the more common forms below:

·         Copyright – Music, movies, computer programs, other media related works

·         Patents – inventions, devices

·         Trademarks – Company specific words, names, signatures, logos

·         Confidential information – Trade secrets, knowledge

 

And yet, for the commonality of IP, some areas can be very complicated, and the ramifications of getting it wrong can be extensive, financially and otherwise. The main problem businesses face with IP is determining ownership and rights. For example, when a business purchases Microsoft Office, they are acquiring a license to use the program, which brings along copyright laws they could unknowingly infringe upon (e.g. distributing copies to friends). If an advertising company designs a logo for you, they actually own the rights to that under trademark law, and can reproduce or change if wanted.

 

Businesses should always be extremely careful when engaging others in regards to IP, and contracts should always set out and define IP relationships. License contracts should set out the rights of the licensee and licensor with provisions if necessary, for example sub-licensing, termination of license and restrictions. Generally, the creator of IP owns it, but employment and contractor & other third party contracts should set out clearly the ownership of any work. IP can also be assigned, effectively selling or giving the IP ownership to another party. Assignment contracts should always be in writing, and need specific words to be included to make it lawful.

 

An entity should always be extremely cautious when buying another business. Due diligence should always take place to assure all IP assumed owned is actually owned, proper contracts and provisions are in place and that there are no infringement actions currently in place. Finally, companies should always seek expert advice in any dealings with IP.

 

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http://www.ipaustralia.gov.au/ - Great information & help with IP

 

http://www.business.gov.au/BusinessTopics/Intellectualproperty/pages/default.aspx - Great information & help with IP