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What is Intellectual Property?

Michael Pollick
Michael Pollick
Michael Pollick
Michael Pollick

Intellectual property, sometimes abbreviated IP, is a legal definition of ideas, inventions, artistic works, and other commercially viable products created out of a person's own mental processes. In the same sense that real estate titles and bills of sale establish ownership of tangible items, intellectual property is protected by such legal means as patents, copyrights, and trademark registrations.

Generally speaking, intellectual property is handled in the same way as any other tangible product or piece of real estate. The Coca-Cola company, for example, has legal ownership of several factories, the bottling equipment, trucks for transporting their product AND the formula for the soft drink itself. The secret recipe for the Coca-Cola® beverage is also "owned" outright. Obviously, other beverage companies can produce a cola-flavored soda, but Coca-Cola's formula is protected by trade secret registration.

The ideas that scientists develop are intellectual property.
The ideas that scientists develop are intellectual property.

Not every idea inside a person's mind can be considered intellectual property, which can only be a good thing in some instances. There is usually a commercial viability angle that needs proper protection to prevent theft of the idea or outright copyright infringement. Hundreds of people throughout history may have conceived of a long-distance communication system, but Alexander Graham Bell needed to establish ownership of his idea, which became known as the telephone. Without a proper patent, dozens of other enterprising businessmen in the 1870s could have legally manufactured their own version of the telephone without penalty.

The formula for Coca-Cola is a type of intellectual property.
The formula for Coca-Cola is a type of intellectual property.

Intellectual property may or may not belong to the original inventor or composer, however. An individual scientist working for a pharmaceutical company or private laboratory may invent a formula for a new cancer drug or a zero gravity machine, but the actual rights to the idea may be held by the company or laboratory as a whole. The inventor could not resign from the laboratory and begin marketing the miracle drug or machine on his own. Often, when a company acquires another company, it receives IP rights as well as the building and equipment.

Coca-Cola's intellectual property is protected by the same laws as its tangible assets.
Coca-Cola's intellectual property is protected by the same laws as its tangible assets.

Many court cases arise over improper use of intellectual property. This is why experts strongly recommend that inventors and those in creative fields seek protection through official registration of their ideas and trade secrets. Infringement can usually be proven if the owner of the idea or creation can establish a date of origination. Although intellectual property laws exist to protect the inventor or creator, court decisions have also made it easier for others to "borrow" similar ideas or concepts. Humorists can parody a trademarked product or a copyrighted work if it is considered social commentary, for example.

Michael Pollick
Michael Pollick

A regular WiseGEEK contributor, Michael enjoys doing research in order to satisfy his wide-ranging curiosity about a variety of arcane topics. Before becoming a professional writer, Michael worked as an English tutor, poet, voice-over artist, and DJ.

Learn more...
Michael Pollick
Michael Pollick

A regular WiseGEEK contributor, Michael enjoys doing research in order to satisfy his wide-ranging curiosity about a variety of arcane topics. Before becoming a professional writer, Michael worked as an English tutor, poet, voice-over artist, and DJ.

Learn more...

Discussion Comments

anon974777

Wise, but does the trade secret offer maximum security to your invention?

anon160003

I brought a computer. can i check if it is stolen by the license number?

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    • The ideas that scientists develop are intellectual property.
      By: KaYann
      The ideas that scientists develop are intellectual property.
    • The formula for Coca-Cola is a type of intellectual property.
      By: RTimages
      The formula for Coca-Cola is a type of intellectual property.
    • Coca-Cola's intellectual property is protected by the same laws as its tangible assets.
      By: Mike Mozart
      Coca-Cola's intellectual property is protected by the same laws as its tangible assets.
    • A trademark is a form of intellectual property ownership that protects various types of business identifiers.
      By: alexskopje
      A trademark is a form of intellectual property ownership that protects various types of business identifiers.
    • Employees should keep information about intellectual property confidential, even from friends and family.
      By: Wrangler
      Employees should keep information about intellectual property confidential, even from friends and family.