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Licensing is a business agreement in which one company gives permission to another company to manufacture its product for a specific payment. Here is a breakdown of four common examples of intellectual property and advice on how to protect these assets. You can learn more about trademarks and patents from the U.S. Patent and Trademark Office and about copyright from the U.S. Copyright Office. Investopedia defines a monopoly as “a situation in which a single company or group owns all or substantially the entire market for a particular type of product or service”. Without significant competition, monopolies are generally very profitable. While companies are constantly struggling to increase their market share, it is not easy to achieve true monopoly status. Patented inventions have permeated every aspect of human life, from electric lighting (Edison and Swan patents) and plastic (Baekeland patents) to ballpoint pens (Biro patents) to microprocessors (Intel patents, for example).

A copyright grants legal rights to anything you create that expresses or embodies an idea. It gives you the exclusive right to copy, distribute, reproduce, display and license the Work. While monopolies are great for companies that enjoy the benefits of an exclusive market without competition, they are often not as good for consumers who buy their products. Consumers who buy from a monopoly often find that they pay unduly high prices for inferior products. Licensing usually involves another company using patents, trademarks, copyrights, designs, and other intellectual products for a percentage of sales or fees. It`s a quick way to generate revenue and grow a business, as there`s no manufacturing or distribution involved. Instead, licensing typically means using an existing company`s pipeline and infrastructure in exchange for a small percentage of revenue. When a company fully controls a product or service, it can charge whatever price it wants.

Consumers who are unwilling or unable to pay the price will not receive the product. For good and bad reasons, the desire and conditions that monopolies create will continue to exist. Traditional rules that “printed matter” and “business methods” are not patentable have recently been challenged. In 1998, the Federal Circuit found that a system of doing business can be patentable as a process, even if it does not affect anything tangible. See State Street Bank & Trust Co. v. Signature Financial Group, 149 F.3d 1368 (Fed. Cir. 1998). The rule prohibiting the patenting of printed matter retains its force, although printed matter may be patentable if its relationship to the physical invention is either new and useful, or new and not obvious. Intellectual property rights can help you establish your brand identity, benefit from your unique assets, and prevent others from using your creations.

If you don`t patent your invention, competitors can benefit. If the product is a success, many other competing companies will be tempted to manufacture the same product using your invention without having to get your permission. Large companies can use economies of scale to produce the product cheaper and compete at a cheaper market price. This can significantly reduce your company`s market share for this product. Even small competing businesses may be able to manufacture the same product and often sell it at a lower price, as they would not have to recoup the initial research and development costs incurred by your business. In most countries, if an employee has developed an invention in execution of his employment contract – that is, usually during his working hours in the company – the invention (and the associated patent rights) belongs to the company. To avoid confusion and possible disputes, employers often include intellectual property issues in employment contracts. However, depending on the merits, the employee may be entitled to appropriate remuneration in accordance with the legal provisions or the employment contract. In any case, the employee always reserves the right to be designated as the inventor, unless he expressly waives this right.

In addition, the customer service associated with monopolies is often poor. For example, if the water company in your area provides poor service, it`s not like you have the option of using another provider to help you shower and wash your dishes. For these reasons, governments often prefer that consumers have a choice between a variety of providers where possible. A trade secret is confidential business information, the secrecy of which gives you an advantage over your competitors. Currently, you cannot obtain a universal “global patent” or an “international patent”. Patents are territorial rights. In general, in each country where you are applying for patent protection for your invention, a patent application must be filed and the patent granted and applied in accordance with the law of that country. Therefore, one way to obtain patents in a number of countries is to file a national patent application with any competent national patent office. Patents can be granted for inventions in any field of technology, from everyday kitchen utensils to nanotechnology chips.

An invention may be a product – such as a chemical compound or process – or a process for producing a particular chemical compound. Many products contain a number of inventions. For example, a laptop can contain hundreds of inventions that work together. There are many ways to create a monopoly, and most of them depend on some form of government support. Perhaps the easiest way to become a monopoly is for the government to grant a company exclusive rights to provide goods or services. The Centralized Access to Search and Examination (CASE) system allows patent offices to securely exchange search and examination documents related to patent applications, allowing for a more effective and efficient international examination process. Finally, you need to consider the possibility that someone else could first patent your invention. The first person or company to file a patent application for an invention is entitled to the patent. This can actually mean that if you don`t patent your inventions or inventions made by your company`s employees, someone else – who then developed the same or an equivalent invention – can do so. Thus, they could legally exclude your company from the market, limit your activities to the continuation of previous use (if patent law provides for such an exception), or ask your company to pay a royalty for the use of the invention. An international licensing agreement allows foreign companies, exclusively or not exclusively, to manufacture an owner`s product for a specific period of time in a particular market.

Learn more about the different types of intellectual property rights. The U.S. government filed charges against the AT&T phone company under the Sherman antitrust law in 1974, citing it as a monopoly. The company was divided into small regional businesses in 1984. The granting of exclusive rights to the inventor is intended to encourage the investment of time and resources in the development of new and useful discoveries. In return for this limited monopoly, immediate disclosure of patented information to the U.S. Patent and Trademark Office (PTO) is required. At the end of the term of protection, the patented innovation is made public. A patent is an exclusive right granted for an invention.

In other words, a patent is an exclusive right to a product or process that typically provides a new way of doing something, or provides a new technical solution to a problem. In order to obtain a patent, technical information about the invention must be made available to the public in a patent application. Examples: Formulas, models, techniques or processes that are not known or easily accessible to others. The competency requirement is directly related to the specification or disclosure that must be included in each patent application. “The description shall contain a written description of the invention and of the nature and method of its manufacture and application in such a complete, clear, concise and precise form as any person of art in the field to which it relates. to manufacture and use the same thing, and to determine the best mode that the inventor should consider for the execution of his invention. See 35 U.S.C.