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InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- 7 How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) Keywords Intellectual property, non disclosure agreement, intellectual property protection, invention, business asset, trade secret After reading this component you will have the capability to explain what the main Intellectual Property tools are and what these protection tools can provide to your business. In this component you will see how Intellectual Property Protection tools could be used to strengthen the innovation potential of an SME. The component explains how non-disclosure agreements allow confidential information to be revealed. The estimated time to go through this component is approximately 45 minutes. Introduction In our everyday life innovation partway occurs. Every product or service that we use is the result of a long chain of innovation, such as a new design or improvements that make a product look or function better. Innovation is the engine of our everyday life. To make this engine successful in our enterprise we have to see clearly what possibilities intellectual property can give us. Along with human creativity and inventiveness, Intellectual Property (IP) is all around us. No matter what product your enterprise makes or what service it provides, it is likely that it is regularly using and creating a great deal of intellectual property. This being the case, you should systematically consider the steps required for protecting, managing and enforcing it, so as to get the best possible commercial results from its ownership.1 There is an example of how common IP process is and how it pervades our everyday life. If you look around on a table, you will surely see a ball-pen. Thanks to an outstanding Hungarian inventor, László Bíró, you can find ballpen everywhere. He protected his invention by patent. Ballpen can bear with elements which act as a trademark. MP3 players are another very good example. The player is protected on a number of levels. Patent protects the use of MP3, the design of the player will bear industrial design 1 www.wipo.int/sme/en/ip_business/importance/relevant.htm © InnoSuTra 1/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- rights, trademarks rights protect the brand of player and of course the music played by the artist bears copyright and related rights 2 If you look around, can you name three products which are protected by patent or trademark? 7.1.1 What are intellectual property protection (IPR) tools? The winds of liberalisation are blowing across the globe. With the formation of the World Trade Organisation (WTO) the rules of doing business have changed.3 Significant effort and investments is made by businesses all around the world to establish a distinctive platform to enable consumers to identify the origin of a product / service. Table 1 illustrates the tools that constitute to the IPR tool kit. It should be realised that each IPR tool protects specific aspects of intellectual creations and it needs to be appreciated that except for copyright (which is governed by the Berne Convention) the rights of the other IPR tools are territorial and therefore need to be registered in the country in which one desires to have the rights. However when combined strategically they help to erect formidable protective barriers with strong enforceability. 4 IP category IP protection style Innovative products and process Patent, trade secret and utility model Cultural, artistic and literary work, computer software and compilation data Copyrights and related rights Design, including textile design Industrial design rights Distinctive sign Trade marks, collective marks, certification mark, geographical indicators Microchips Layout design on topographic of integrated circuits Denomination for goods of given quality Geographical indicators Confidential business and technical Trade secret 2 This information was taken from a European Project under Leonardo da Vinci Programme: http://projects.czu.cz/index.php?shortcut_module=YET 3 This chapter is based on the document of World Intellectual Property Organizations: http://www.wipo.int/edocs/mdocs/arab/en/wipo_ip_mct_apr_04/wipo_ip_mct_apr_04_5.pdf 4 Ibid. © InnoSuTra 2/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- information of commerce Table 1 – Tools of Intellectual Property Protection 7.1.2 Why protect intellectual property? Sooner or later, many small and medium-sized enterprises (SMEs) operate in more than one market selling their products or services or licensing/franchising their intellectual property (IP) rights and know-how beyond their national borders. IP rights, however, are territorial, implying that they are usually only protected in the home country or region where protection has been applied for and obtained. Protecting IP in export markets is therefore crucial so as to enjoy the same benefits of protection abroad as are enjoyed on the domestic market. You should carefully consider applying for IP protection well in time in all countries to which you are likely to export or license your product or service in the foreseeable future5 Regardless of what product your enterprise makes or what service it provides, it is likely that it is regularly using and creating a great deal of intellectual property. This being the case, you should systematically consider the steps required for protecting, managing and enforcing it, so as to get the best possible commercial results from its ownership. If you have spent brain and money in the development of your innovative products and you want to avoid others profiting from the fruits of your effort then you should consider using Intellectual Property Protection Tools.6 Please stop and think: What are the products or services in your organisation which need to be protected by IP? Can you identify these products from the following points: • It is a technological innovation • It is a cultural innovation • It can be further developed • After selling this product or service in different markets it can create new jobs in my organisation • My organization is going to operate in foreign markets soon • I want to grow the trust of my customers An efficient and equitable intellectual property system can help all countries realise intellectual property potential as a powerful tool for economic development and social and 5 6 http://www.wipo.int/sme/en/ip_business/ip_protection/international_protection.htm www.wipo.int/sme/en/ip_business/importance/relevant.htm © InnoSuTra 3/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- cultural well-being. The intellectual property system helps strike a balance between the interests of the innovator and the public interest, providing an environment in which creativity and invention can flourish, to the benefit of all.7 7.1.3 Where each of the protection tools can be used? From the moment an enterprise has a potentially innovative idea, it is imperative that the idea or concept be treated as a secret. That is to say that the information surrounding the creation of the idea must be protected carefully as a trade secret. 8 Not all commercially viable ideas can or will be patented, hence the importance of treating ideas as trade secrets, particularly at the inception stage. For an idea that may result in a patentable invention, the final choice between either the trade secret route or the patent route for protection should be seen as a strategic business decision to be taken at a later stage of development when all the requirements of patentability are met. The choice depends on the nature of the invention, its business potential, the competition, how easy it is to reproduce and the ability of competitors to reverse engineer it from the final product. Whatever the ultimate decision, the idea must initially be protected as a trade secret in order to preserve the option of patenting at a later stage. Even after patenting, a part of the idea may remain an associated trade secret.9 Please stop and think. Do you properly manage your trade secrets? How do you think your marketing strategy can support your trade secret and innovation? Intellectual property, when efficiently used, is an important tool in creating an image for your business in the minds of your current and potential customers and in positioning your business in the market. IP rights, combined with other marketing tools (such as advertisements and other sales promotion activities) are crucial for: • Differentiating your products and services and making them easily recognisable • Promoting your products or services and creating a loyal clientele • Diversifying your market strategy to various target groups 7 http://www.wipo.int/about-ip/en/ www.wipo.int/wipo_magazine/en/2005/04/article_0002.html 9 Ibid. 8 © InnoSuTra 4/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- • Marketing your products or services in foreign countries10 7.1.4 How to use intellectual property protection tools?11 12 PATENTS Protect inventions that are novel, non-obvious and useful. Patents have a term of 20 years from the date of filing a complete specification. Trademark and Service Mark ®™ Protect distinctive marks such as words/signs including personal names, letters, numerals, figurative elements (logos), visually perceptible 2D or 3D shapes or their combinations capable of distinguishing the goods or services in connection with which it is used in course of trade. In some countries sounds and distinctive smells can also be registered as trademarks. It can be perpetually renewed from time to time. Industrial Design Registration Protect novel non-functional features of shape, configuration, pattern, ornamentation or composition of lines or colors, applied to any article either in two or three dimensional or in both forms by any industrial process or means whether manual, mechanical or chemical, separate or combined which in the finished article appeal to and are judged solely by the eye. This registration has a specific term (initially 10 years and renewable for another term of 10 years). Copyright © Protect creative works that are musical, literary, artistic, lectures, plays, art reproductions, models, photographs, computer software, etc. It is valid for the lifetime of the author and minimum 50 years after the death of the author. Layout Designs for Integrated Circuits Geographical Indications (GI) Scope of protection not only includes the protected chip but also the articles incorporating it. The term of protection is 10 years. Trade Secrets and Undisclosed Information Protect the distinctive names of goods that can be identified as originating or manufactured in the territory of a country, or a region or locality in that territory where a given quality, reputation or other characteristic of such goods is essentially attributable to its geographical origin. The term is initially for a period of 10 years and can be renewed perpetually. Protection to persons/institutions on information lawfully under their control from being disclosed to, acquired by or used by others without their consent in a manner contrary to commercial practices so long as the information is secret and has commercial value because it is secret. 10 InnoSupport: Supporting Innovations in SME. 7.1 Intellectual Property Protection Tools. 2005 http://projects.czu.cz/index.php?shortcut_module=YET 12 Please have a look at chapter 7.2 International Regulation of IPR of this guide. 11 © InnoSuTra 5/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- Competitive Practices in Contractual Licenses Protection against incorporation of restrictive clauses in licensing deals such as exclusive grant back conditions, conditions preventing challenges to validity and coercive package licensing, etc. That may have adverse impact on trade and impede transfer of technology. Think it over, do you properly respect the above mentioned IP tools when working with the knowledge or products of others! Costs of IP tools may vary widely from country to country but basically it can be divided into four types of costs. • Firstly, the costs relating to the application fees and other legal fees paid to the national or regional patent offices. • Secondly, the costs relating to patent attorneys/agents who assist in drafting the application. • Thirdly, costs of translation. Such costs are only relevant when seeking IP protection in foreign countries whose official language is different from the language in which the application has been prepared and may prove to be high, especially for highly technical patent applications. • Fourthly, the cost of maintaining applications and patents through payments to the patent office. Such fees are usually paid at regular intervals (e.g. every year or once every five years) in order to maintain the application or the patent.13 A business perspective of IPR is essential and several factors must be taken into consideration to effectively utilise the system. This should be based on a sound and well-crafted institutional Intellectual Property Policy that supports and integrates with the business mission of the organisation. Enabling institutional support on IPR issues and individuals’ awareness of the IPR essentials are imperatives for innovation management.14 The various steps towards using IPR in business involve the creation of value-added innovations, their identification and timely protection using diverse tools of IPR in various countries of business interest making best use of international conventions15, exploiting the IPR in the products / processes / services, enforcing them against infringements and/or by their transfer through assignments, renting the rights 13 http://www.wipo.int/sme/en/faq/pat_faqs_q2.html www.wipo.int/edocs/mdocs/arab/en/wipo_ip_mct_apr_04/wipo_ip_mct_apr_04_5.doc 15 For further information please see chapter 7.2 International Regulations of this guide. 14 © InnoSuTra 6/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- through licenses, selling trade secrets in the form of know how at their appropriate value or even bartering the rights through cross licenses, and in several cases acquiring IPR from others to strengthen one’s IPR portfolio and ensure freedom of use etc. The relation between strategic IPR and revenues of a business has been demonstrated especially by correlating the patenting activity and the turnover of various companies.16 Patent and trademark are territorial rights and are granted for a particular countries and they last specific period of time (i.e 20 years for a patent), while duration of copyright is 50 years after author death. The community patent and the community trademark (Administrated by OHIM Office in Alicante, Spain) are titles giving protection in all Europen countries with one single application. Due to this fact, it is cheaper to protect a European patent in 25 countries with one application (community patent) than to make 25 different patent applications for all E.U state members. 7.1.5 Non-disclosure agreements Now we are going to learn about non-disclosure agreements which are a formal method of protecting trade secerets. This chapter of the component is based on the Nondisclosure agreement documents of World Intellectual Organisation. 17 Worldwide, the law protecting confidential business information (or trade secrets) is very varied. What can be protected? All companies have secrets. Some are technical such as the detailed specification of a manufacturing process; some are business-related such as a list of customer names and addresses, which would be useful to a competitor. Some are of enormous value, e.g. the recipe for Coca Cola; others are less valuable. Some are simple, even one word long, such as the name of a company takeover target, others are complex, such as the details of a planned advertising campaign. The common factor is that all can be protected. In recent years, many countries have introduced laws on the protection of confidential business information along the lines proposed by the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), which states that for information to be legally protectable: 16 17 www.wipo.int/edocs/mdocs/arab/en/wipo_ip_mct_apr_04/wipo_ip_mct_apr_04_5 http://www.wipo.int/sme/en/documents/disclosing_inf.htm#P53_4509 © InnoSuTra 7/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- • the information must be secret, i.e., not generally known or readily accessible to persons that normally deal with that kind of information; • it must have commercial value because it is secret; • the owner must have taken reasonable steps to keep it secret. The most important thing is for SMEs to have a basic understanding and sensible internal rules, so that their valuable information retains that value and remains confidential. An important factor in protection is proper management control. Managers should restrict access to secrets to the staff who need to know them - the biggest loss of confidential information from a company occurs when its staff leave and move to another firm in the same area of business. Also it is important to mark documents with a word such as "confidential" if this is the case, but avoid the tempting mistake of marking every document, because such marking will have no real meaning and will be ignored. Other security precautions may be needed, such as imposing password protections on access to information. Please take 10 minutes to name the people in your organisation who you should involve when setting up your proper management control. Why do you want to involve them in handling confidental information? Make sure that not all the information is available to every member of the staff: for example on company server! Sharing a secret – The non disclosure agreement In a normal business it is sometimes necessary to share a secret with another company. A manufacturer may need to have specialised tests carried out on a prototype, and does not want competitors to know details of the new product. An assembly company may wish to know if a supplier can meet a new, tough specification which will give a quick market advantage, but does not want anyone else to use the same specification. In both of these examples the prototype and the new specification must pass out of the owner's hands, but the owner will of course wish to retain control. The solution is to get the company to which the confidential information is to be disclosed to sign a Confidentiality Agreement, sometimes called a Non-Disclosure Agreement (NDA)18 Model Non-Disclosure Agreements 18 http://www.wipo.int/sme/en/documents/disclosing_inf.htm#P53_4509 © InnoSuTra 8/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- To download a simple example of an NDA with instructions it is available in the online guide only (www.innosupport.net ). You can also use it as a model. Two-way NDAs Sometimes the flow of information is two-way, with both parties disclosing confidential information to the other, such as when a joint venture is being set up between them. A few changes to the model one-way NDA can cover such an arrangement. When to use NDA Companies should not use a Non-Disclosure Agreement too often. The best way to keep a secret will always be: don't tell anyone. If a secret really must be shared, tell as little as necessary to achieve the commercial objective; sometimes a general outline is all that is needed, although for a technical appraisal the full detail of the knowhow will need to be passed over for review. Sometimes an NDA sets out a period of time so that information disclosed, say within a defined year, falls within the agreement. This is useful for complex technical deals, such as joint ventures (JV), although a separate JV agreement will eventually be needed. Also, chose the recipient very carefully - are you as sure as you can be that a promise of secrecy will really be kept? One weakness of legal protection for secrets is that once they have been published in some way they cannot be "made secret" again. Even if the owner of the secret goes to Court and wins a payment for the damage suffered, this will not be as good as having the information kept confidential. Your competitors will be free to use your hard-won secrets. So the best practice is to make sure that the secret is kept in the first place. This summary of confidential information, what it is, and how it can be protected, is based on English law. However, the principles of English law in this context can be applied to good effect in many other countries.19 7.1.6 Examples of using Intellectual Property Protection Tools 19 http://www.wipo.int/sme/en/documents/disclosing_inf.htm#P53_4509 © InnoSuTra 9/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- Example 1 - Turning an IP Dispute into a Business Opportunity as reported in the WIPO SME website There is a small firm of goldsmiths at Chikpet, Bangalore in the Southern Indian State of Karnataka. Over the years, the goldsmith, assisted by his son, has been creating new designs, making ornaments, and selling them directly to customers. One day, while visiting an upmarket road in downtown Bangalore, he happened to stop at a famous Jewelry retail outlet of a large Indian industrial conglomerate and was horrified to find on display items of jewelry based on some of his original designs. The goldsmith was shell-shocked and did not know what to do. His son, however, decided not to take things lying down. He approached an intellectual property rights (IPR) Attorney at Bangalore. Although the goldsmith had not registered his novel designs under the Design law in India, he was able to produce before the Attorney number of paper-based sketches and drawings (protected automatically by copyright) that he had made earlier in respect of the design in question, which clearly indicated the evolution of the designs. A legal notice was sent to the large Indian industrial conglomerate. In reply the large Indian industrial conglomerate’s lawyer argued that there was no malafide and, in fact, the designs had been developed independently by their employees and were co-incidentally common. On receiving this reply, the goldsmith’s son went through the records of sales. In the sale register, he was able to locate the details of sale to the large Indian industrial conglomerate who had purchased from them a few pieces of this presentation item for distribution as New Year gifts. This turned out to be clinching evidence and the large industrial conglomerate agreed to settle the matter out of court. As a part of the settlement, a lumpsum payment was made to the goldsmith. It was also agreed that the large industrial conglomerate would stop manufacturing this item and would outsource its entire requirements over the next five years from the small firm. This case study provides a number of important insights. Firstly, it shows the importance of keeping good records of any drawings, designs and business transactions that may be used in future as evidence in case of an IP dispute. Admittedly, the case would have been simpler had the goldsmith registered his design under the design law of India in the first place. However, having preserved the drawings in a systematic manner (dated, numbered, signed and properly filed) of the gold ornaments in question and having made proper entries in the sale register showing that the large company had once purchased the items proved crucial in turning the case in the goldsmith’s favor. Secondly, it illustrates the importance of relying on qualified IP advice. Thirdly, it shows how an IP dispute, may © InnoSuTra 10/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- be turned into a business opportunity, as the large company has now become a key client of the small firm of goldsmiths.20 A second case study that shows the importance of IP regulation can be downloaded from the online guide only. (www.innosupport.net ). 7.1.7 Summary of Key Points Intellectual Property is an important tool for the economic, social and cultural development of all countries. It is very important to know how to use and protect effectively IP. Intellectual property refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. For SMEs and its innovation it is crucial both to protect IP and to properly choose with whom to share innovations and trade seceret among the staff and partners. If you want to operate on foreign markets you have to be aware of international regulations and different patent regulations. With this component you have studied how to use IP as a business asset and understand how IP relates to business. In this module you have learnt the most important intellectual property protection tools which you can now implement in your own business. For improving your business effectiveness you have also learned how you can use non disclosure agreement to protect your business secret and contracts. BIBLIOGRAPHY Young Enterpreneurs Training 2007, University of Prague, http://projects.czu.cz/index.php?shortcut_module=YET - viewed 5 September 2008 Vision-IPR, Mumbai, India Prof.Ganguli, Prabuddha. (2004) Intellectual Property: A business tool (WIPO Introductory Seminar on Intellectual Property) 20 The case study was taken from: http://www.wipo.int/edocs/mdocs/arab/en/wipo_ip_mct_apr_04/wipo_ip_mct_apr_04_5.pdf pg.9-10. © InnoSuTra 11/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- http://www.wipo.int/edocs/mdocs/arab/en/wipo_ip_mct_apr_04/wipo_ip_mct_apr_04_5.pd f -viewed 5 September 2008 World Intellectual Property Organization (2004): http://www.wipo.int/sme/en/documents/disclosing_inf.htm#P53_4509 - viewed 5 September 2008 World Intellectual Property Organization (2004): http://www.wipo.int/sme/en/ip_business/ip_protection/international_protection.htm viewed 5 September 2008 World Intellectual Property Organization (2004): www.wipo.int/export/sites/www/freepublications/en/general/450/wipo_pub_l450faq.pdf viewed 5 September 2008 World Intellectual Property Organization (2004): http://www.wipo.int/export/sites/www/freepublications/en/general/450/wipo_pub_l450faq.p df - viewed 5 September 2008 InnoSupport: Supporting Innovations in SME. 7.1 Intellectual Property Protection Tools. 2005. <http://archive.innosupport.net> - viewed 5 September 2008 World Intellectual Property Organization (2004) http://www.wipo.int/sme/en/faq/pat_faqs_q2.htm - viewed 5 September 2008 World Intellectual Property Organization (2004) http://www.wipo.int/sme/en/case_studies/enterprise_s.htm - viewed 5 September 2008 World Intellectual Property Organization (2004) www.wipo.int/sme/en/ip_business/importance/relevant.htm - viewed 5 September 2008 World Intellectual Property Organization (2004) http://www.wipo.int/about-ip/en/ - viewed 5 September 2008 World Intellectual Property Organization (2004) www.wipo.int/wipo_magazine/en/2005/04/article_0002.html - viewed 5 September 2008 Further reading Yo Takagi, Larry Allman, Mpazi A. Sinjela (2008). Published by: World Intellectual Property Organization, Cambridge Universtity Press: Teaching of Intellectual Property Principles and Methods Websites © InnoSuTra 12/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- www.european-patent-office.org viewed 5 September 2008 The European Patent Office (EPO) provides a uniform application procedure for individual inventors and companies seeking patent protection in up to 38 European countries. It is the executive arm of the European Patent Organisation and is supervised by the Administrative Council http://oami.europa.eu/ows/rw/pages/index.en.do viewed 5 September 2008 The trade mark and designs registration office of the European Union. OHIM is the official European Union agency responsible for registering trade marks and designs that are valid in all 27 countries of the EU. http://www.wipo.int/directory/en/ viewed 5 September 2008 In this page you will find the contacts of all the countries members of World Intellectual Property Organization. GLOSSARY Trade secret: Business information that is the subject of reasonable efforts to preserve confidentiality and has value because it is not generally known in the trade. Such confidential information will be protected against those who obtain access through improper methods or by a breach of confidence. Infringement of a trade secret is a type of unfair competition. (source: http://en.wikipedia.org/wiki/Trade_secret) Utility model A utility model is a statutory monopoly granted for a limited time in exchange for an inventor providing sufficient teaching of his or her invention to permit a person of ordinary skill in the relevant art to perform the invention. The rights conferred by utility model laws are very similar to those granted by patent laws, but are more suited to what may be considered as "incremental inventions". Terms such as "petty patent", "innovation patent", "minor patent", and "small patent" may also be considered to fall within the definition of "utility model". (Source: http://en.wikipedia.org/wiki/Utility_model) Intellectual industrial property Industrial property legislation is part of the wider body of law known as intellectual property. Intellectual property is usually divided into two branches, namely industrial property and copyright. The broad application of the term “industrial” is clearly set out in the Paris Convention for the Protection of Industrial Property (Article 1 (3)): “Industrial property shall be understood in the broadest sense and shall apply not only to industry and commerce proper, but likewise to agricultural and extractive industries and to all manufactured or natural products, for example, wines, grain, tobacco leaf, fruit, cattle, minerals, mineral waters, beer, flowers, and flour.” (Source: http://www.wipo.int/freepublications/en/intproperty/895/wipo_pub_895.pdf ) Community patent, also known as the European Community Patent or EC patent and sometimes abbreviated as COMPAT is a patent law measure being debated within the © InnoSuTra 13/14 2008-10-06 InnoSupportTransfer – Supporting Innovations in SME 7. How to protect innovations and intangible assets 7.1 Intellectual Property Protection Tools (including Non disclosure agreements) --------------------------------------------------------------------------------------------------------------------------------------------------------------- European Union, which would allow individuals and companies to obtain a unitary patent throughout the European Union. The Community patent should not be confused with European patents which are granted under the European Patent Convention. European patents, once granted, become a bundle of nationally enforceable patents, in the designated states. This can be expensive for the patentee in that enforcement must be carried out through national courts in individual countries, and for a third party in that revocation cannot be accomplished centrally once the nine-month opposition period has expired. (Source: http://en.wikipedia.org/wiki/Community_patent) © InnoSuTra 14/14 2008-10-06
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