Intellectual property is generally a company’s intangible creations of the mind. It consists of anything from processes, products, trade secrets, customer lists, inventions, names, or creative writings. Intellectual property for many companies may be as much if not more valuable than its physical assets. Because of the very nature of these intangible assets, protection of intellectual property is essential.
There are four general types of intellectual property that state and federal governments protect by law (1) Patents, (2) Trademarks (3) Copyrights and (4) Trade Secrets. Registering an invention as a patent with the government will give companies a legal right to exclude others from marketing or manufacturing the invention. This process is very valuable, yet can take years and significant resources to finalize. It is important to understand that once an idea or invention is patented, it is disclosed to the public. Trademarks on the other hand are names, symbols, phrases or sounds that are used to associate companies with services and goods. For Genera Energy Inc. the very name itself “Genera Energy” is a registered trademark with the United States Patent and Trademark Office affording protection from use by others. Branding for a company will create a valuable asset. Copyrights are similar to Patents and Trademarks in that they can be registered to afford the author more protection. On the other hand, copyright laws protect the tangible written or artistic expression but not the idea itself. Patents, trademarks and copyrights can be protected prior to registration by using symbols and markings that warn others of its ownership. Trade secrets are not registered per se but are protected by state laws if the secret is stolen or misused. Trade secrets may include formulas, devices, compilation of data, know-how and proprietary information that can give a company an advantage over its competitors.
Trade secrets almost always will include proprietary and confidential information. While the law will provide protection for intellectual property, it is important establish protection practices for intellectual property within the company for information that may not be prime for registration or does not fall within one of the classes provided by the law for protection. Such assets may be simply ideas. A company must prove that a “trade secret” is a secret. Reasonable measures must be taken within the company to safeguard the information. As a general policy, employees that have or may have access to valuable information may be required to enter into a confidentiality agreement and in some instances a non-compete agreement. Each state may differ on the requirements of these agreements, but it is good corporate practice to evaluate and determine when these agreements are needed. On a daily basis, employee awareness of the company’s assets and confidential information is effective for preventing intellectual property misuse or leaks to the outside. It is advisable to prioritize to determine what information could harm the company if stolen or lost. If information is confidential label it as such. There are a variety of tools to use for internal protection such as using passwords for access to important files, establishing login requirements for company computers and providing physical protection by locking rooms or files where sensitive information is stored. Software tools may be used to lock documents and track use of sensitive information.
In industries like bioenergy, it is vitally important to protect new and innovative ideas. Confidentiality agreements and non-disclosure agreements with collaborators can be used as a protection for disclosing valuable information to the outside. While it is advantageous to share information for the development of new technologies it is still very crucial to provide barriers for the use of such information. Generally, once ideas and information are made public the value of the asset can be greatly diminished unless it is protected by registration as in the case of patent, trademark or copyright. Protecting intellectual property on a routine basis can help prevent untended leakage of proprietary information. Further, registering intellectual property through the appropriate legal channels will grant companies the right in law to exclude others from using the property. For young companies and industries intellectual property can be one of its most valuable assets. Here at Genera Energy, it is a basic company practice to identify and protect information and ideas for the growth of biomass supply chain and bioenergy technologies while establishing successful partnerships in the industry. Contact us today to learn more about how we can work with you.
By Julie Anderson, Legal Business Analyst
