Who’s going to SXSW in March? Are you an artist, a musician, an inventor, an IT guru? You are the innovators, the people who have ideas and are enthusiastic to introduce the world to who you are and what you are about. At the same time, you need to protect your creativity and to learn how best to bring your ideas to the marketplace.
This is our second year at SXSW, and we cannot wait to go back. We genuinely enjoy the opportunity to meet with you and to share some of our knowledge with you. Over the next several weeks, we will be posting information on intellectual property, what it is, how to protect it, how to sell your creative works and inventions, and common contracts that you can use to grow your business.
To begin, let’s discuss the different types of intellectual property.
Trademarks
A trademark can be a word, name, device, or symbol that is used to represent and distinguish a company or its products. Trademark Rights can be acquired through continued use and the established reputation of a business. The strength of a trademark depends on how unique it is. Always aim to choose marks that will not easily be confused with others. Registration of your Trademark is not required but confers great benefits. It is affordable, filing fees are between $225 and $325; it provides prima facie validity for your mark; it provides constructive notice to others; and provides you with rights regarding importation and web domains.
Copyright
Copyright protects original works of authorship such as art, advertising copy, books, articles, music, movies, etc., both published and unpublished, and templates and software code. As the copyright owner, you have exclusive rights to copy or reproduce the work; to distribute it; to prepare derivative works; to perform publicly; to display; and to play or transmit the work. Importantly, you can also license these rights to third parties using a licensing agreement. Registration of original works is not required, but again confers great benefits: It is affordable, $35-$55 for electronic filing; it allows you to bring a lawsuit if your work is used improperly; you can receive statutory damages and attorneys’ fees on any infringement; and your rights extend for at least the lifetime of the author.
Patents
Patents protect a new, useful, and non-obvious process, machine, article of manufacture or composition of matter (Utility Patent), or ornamental, non-functional design (Design Patent). There are two types of patent applications: provisional and non-provisional. Provisional patents are not reviewed, last for 1 year, and are used only to establish ownership and priority. Non-provisional patents are reviewed (eventually!) and provide protection for 20 years from the filing date. Patents can be expensive. The average cost for a simple non-provisional is over $5,000.
Trade Secrets
Trade Secret protection is the most cost-effective protection available. It protects anything so long as it is kept secret and is something that gives the business a competitive advantage. Examples of trade secrets are the Coke® formula; customer lists; pricing plans; business plans and methods; and computer algorithms. There are no applications or registrations required to maintain a trade secret. Instead, you must take reasonable steps to keep the proprietary information secret. You can do this with internal policies, the use of confidentiality agreements with your employees, and non-disclosure agreements with independent contractors and other third parties.
To learn more, stop by and meet us at SXSW 2016!