Sooner or later every small-business owner must tackle the issue of intellectual property rights. Some examples:
Copyright for your Web site content
Trademark for your business name and logo
Trade secrets such as a client or supplier list
Patent for a manufacturing process or an invention
Intellectual property is what makes your small business unique. Think about the Golden Arches as a symbol of McDonald’s.
Nike’s “Just Do It” slogan. The name Windows claimed by Microsoft. Each of these is protected.
Protecting the intellectual property generated by your small business is just as important – and easier than you might
think.
Here are guidelines and resources you can use to guard your intellectual property.
Copyrights
The moment you create an original, unique work and fix it in a physical, tangible form, it’s protected under copyright.
Your Web site content and marketing brochures are copyrighted. This article is copyrighted. Musical scores, photographs, greeting cards, plays, illustrations
and a host of other works of authorship are copyrighted the moment they come into existence.
The creator owns the copyright. Copyrights last for the life of the creator plus 75 years. You’re not required to
register your copyright. You’re not even required to post a copyright notice. If you create something unique and fix it in
tangible form, the law says you own the copyright.
Still, it’s better to be safe and display your copyright protection. To do this, simply post a copyright notice on your
work. It must contain three elements:
1. The symbol © or the word copyright
2. The year of first publication of the work
3. The name of the copyright owner
So your copyright notice should look like this, “© 2004 Jane Doe” or like this, “Copyright 2004 Jane Doe.”
Registering your copyright is an optional legal formality. But it can come in handy. First, registration establishes a
public record of your copyright claim. Second, you must have registered your copyright before you can file an infringement
suit in court.
To register your copyright, go to the U.S. Copyright Office at www.copyright.gov.
Trademarks
According to the U.S. Patent and Trademark Office (USPTO), a trademark is a word, phrase, symbol or design, or a
combination of words, phrases, symbols or designs, that identifies and distinguishes the source of the goods of one party
from those of others.
That means your business name, logo and tag line can all be trademarked.
You can use the trademark symbol, TM, without registering your trademark at the USPTO. However, you can’t use the
federal trademark registration symbol, TM, unless you register with the USPTO.
To register a trademark, go to the USPTO Web site at www.uspto.gov.
Trade Secrets
The Uniform Trade Secrets Act defines trade secrets as information that has independent economic value because it is
not generally known. Most states have adopted the law. Your small-business trade secrets might include:
The act also stipulates that you must reasonably protect your trade secrets through confidentiality.
A non-disclosure agreement (NDA) is the best way to legally protect your secrets. Anytime you disclose your trade
secret to another person (including an employee), have that person sign an NDA. An attorney can draft a non-disclosure
agreement for you. You can learn more about NDAs at www.nolo.com.
Patents
You might think that small businesses would seldom need to know about patents. You’d be wrong.
In 2003 the Office of Advocacy of the U.S. Small Business Administration released a study entitled “Small Serial
Innovators: The Small Firm Contribution to Technical Change.” The study revealed that America’s technological innovators
are found in small firms, and those inventors are more productive than their counterparts in large corporations.
That means your small business could discover the next medical breakthrough or develop the next hot technology. If you
do, you’ll want to get a patent.
A federal patent prevents others from using your machine, invention or process without your permission. But getting a
patent requires diligence, patience and a strong stomach for detail. To arm yourself with patent knowledge, check out these
resources:
The U.S. Patent and Trademark Office, www.uspto.gov.
The National Congress of Inventors Organizations (NCIO), www.inventionconvention.com/ncio. The Web site offers free
articles, special reports and online classes for inventors.
Terry M. Blair is a freelance writer specializing in small-business issues
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