Key Terms
Intellectual property (IP)
Intangible property representing the commercially valuable product of the human mind. Can be abstract (a musical sound)
Four types of IP protection
Patents, trade secrets, copyrights, trademarks. Multiple types can attach to the same product simultaneously.
Source
Article I, Section 8 of the US Constitution. Text: Congress may "promote the Progress of Science and useful Arts, by sec
PUBLIC DOMAIN
Works with expired IP protection. Can be used, performed, reproduced, or modified by anyone without permission or royalt
Examples
Shakespeare's Hamlet, Beethoven's Fifth Symphony.
Patent
Exclusive right to make, use, or sell an invention for a specified period, granted by the federal government. Patent hol
Two requirements
Novel AND non-obvious.
Business method patent
Seeks to monopolize a new way of conducting a business process. Example: Amazon's one-click ordering patent.
Compulsory licensing
International treaty procedure allowing governments to force drug companies to license formulas to generic manufacturers
Patent infringement
Making, using, selling, or offering to sell a patented invention without the patent holder's permission.
Most common defense
Challenge the validity of the patent.
Patent troll
Entity that acquires patents solely to extract licensing fees or litigation settlements without producing goods or servi
Trade secret
Formula, process, device, or other business information kept confidential to maintain competitive advantage.
Misappropriation
Wrongful acquisition, disclosure, or use of a trade secret — through corporate espionage, bribery, or other improper mea
Law
Primarily state law. The federal Economic Espionage Act may provide federal protection depending on the facts.