Intellectual property is often among the most valuable resources a business possesses. Whether a company patents a new production process, buys an original work of art from a creator or has trade secrets, the intellectual property (IP) owned by the organization can provide a valuable competitive advantage.
Unfortunately, misinformation about IP rights is commonplace. Organizations may fail to take the right steps to protect their most valuable IP holdings or may believe that there is no way to enforce organizational rights after a violation occurs. A lot of the confusion about IP stems from misinformation about IP registration.
Do organizations have to pay to register IP holdings with the federal government to have legal protection and the option of enforcing IP rights?
Registration is useful but not always mandatory
Depending on the type of intellectual property an organization has, formal registration might be necessary or might make enforcement easier. A new product or concept that may qualify for a patent typically requires formal registration.
Innovations are often not easy to protect if a business doesn’t invest in the prosecution of a patent. Similarly, companies usually need to officially register trademarks if they want to prevent competitors from duplicating company logos and images that may serve as trademarks.
When it comes to copyright, formal registration is less important. Businesses typically receive basic copyright protection when they initially publish creative works for public consumption. Uploading a song to streaming platforms or sharing visual art on social media can constitute publication for the purposes of copyright protection. That being said, formal copyright registration typically makes it easier for organizations to combat copyright infringement by other parties.
Trade secrets often do not require registration but can also be relatively difficult to protect after infringement occurs. Organizations may need to be very protective of trade secrets by limiting who has access to the trade secrets that give them a competitive advantage.
Enforcement is different in every case
When an organization discovers that other companies have infringed on a patented idea, reproduced copyrighted materials or duplicated trademarks, enforcement actions are typically necessary. In most cases, the enforcement process begins with formal communication with the infringing party. What happens from there depends on the circumstances.
For many organizations, IP holdings provide a competitive advantage and play a key role in company branding. Having support identifying what forms of IP require registration and enforcing IP protections can help organizations protect their profit margins and market shares. Business owners and executives often need to consult with outside professionals to ensure they properly protect their IP holdings and take the right enforcement actions if infringement occurs.
