The Concept ofEntrepreneurship(Inside the

Entrepreneurial Mind)

Lecture-5

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Objectives

• Patents• Steps to Patent• Benefits of Obtaining Patents• Trademarks • Copyrights

outcome

• Ability to comprehend the importance of intellectual property through patents, trademarks and copyrights

Intellectual property: protecting your ideas

• Protect the innovative idea from unauthorized use as it has market potential

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• All the time, effort, and money people invest in perfecting a product, as well as advertising and promoting it, may be wasted if imitators can enter the market easily.

• Moreover, the imitators can cut prices, because they have not incurred the startup expenses the company had.

Patents

• a government authority or licence conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.

• US patent& trademark office gives license to the inventor of a product, giving the exclusive right to make, use or sell the invention in the country for 20 years from the date of filling the patent application

• 20 years of monopoly stimulates creativity & innovation

Patents

• No rule that patents cover only remarkable inventions.

• the idea needs to be different in some way from what came before.

• Idea needs to be Novel and not Obvious• Example:• Single blade screw driver• Double blade Philips Screw Driver

The Steps to a Patent

Establish the invention’s novelty

Document the device

Search existing patents

Submit the patent application

Prosecute the patent application

Study search results

Cases in which Patent will not be Granted

• For an invention, the commercial exploitation of which would be injurious to public order, morality, environment or the protection of human, animal and plant life.

• For plants and animals other than micro-organisms

• For biological processes for the production of plants and animals.

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Cases in which Patent will not be Granted

• For diagnostic, therapeutic and surgical methods for the treatment of humans and animals.

• For a new and consequent use of a known product or process.

• For a change in the physical appearance of a chemical product where the chemical formula or process of manufacture remains the same.

Example

• Apple- Automatic software update• The Volkswagen Beetle Design Patent

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Benefits of Obtaining Patent• A patent gives the inventor the right to stop others from

manufacturing, copying, selling or importing the patented goods without permission of the patent holder.

• The patent holder has exclusive commercial rights to use the invention.

• The patent holder can utilize the invention for his/her own purpose.

• The patent holder can license the patent to others for use. Licensing provides revenue to business by collecting royalties from the users.

Trademark

Trademark – any distinctive word, symbol, design, name, logo, slogan, or trade dress a company uses to identify the origin of a product or to distinguish it from other goods on the market.

• Trademarks do not protect products and services but the names of product

• Service mark is a legally registered name or designation used in the manner of a trademark to distinguish an organization's services from those of its competitors.

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Benefits of Trade Mark Registration Entrepreneur can

• Use registered trade mark as a brand name for the goods and services specified in the registration

• Authorize other people to use registered trade mark for the goods and services specified in the registration

• have a registered trade mark that is personal property and can be sold

• may give the a notice objecting to the importation of goods that infringe your registered trade mark

• can be in a stronger position to stop other people from using your trade mark as their brand name.

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Copyright

• Copyright – an exclusive right that protects the creators of original works of authorship.

• works covered by the copyright include, but are not limited to, novels, poems, plays, reference work, newspapers, computer programs, databases, films, musical compositions, choreography, paintings, drawings, photographs, sculpture, architecture, advertisements, maps, and technical drawings.

• Copyrighted material is denoted by the symbol ©.

Benefits of Copyright Registration

• Sell the copyright

• License your copyright for use by others but retain the ownership.

• Object if your work is distorted or mutilated.

Difference between patents & copyrights

• Copyrights protect the expression of ideas. Artistic works are generally considered to be expressions of ideas – books, paintings, songs, movies, and computer programs are examples.

• A patent is a right, granted by the government, to exclude others from making, using, or selling your invention.