Part 1: What are Copyrights, Trademarks, Patents, and Intellectual Property Portfolios?

What is an IP portfolio, and what is IP portfolio management?

An intellectual property (IP) portfolio is a collection of a business’s intellectual property rights. Managing the entire collection of a person’s or company’s intellectual property rights on behalf of a business - known as IP portfolio management - allows for better protection of all aspects of that business. IP portfolio management leverages different types of IP rights and other legal protections to defend against competitors or turn them into a source of income.

There are several benefits of developing an IP portfolio. It creates a barrier of entry for competitors, can attract investors, can be used to obtain licensing income, and increases the value of your company in any potential acquisition. Different IP rights in a portfolio may provide different benefits and are stronger together. Developing a collection of IP rights gives you the ability to protect many aspects of your business, while any one type of IP right alone might cover only a portion of what makes your business unique and potentially valuable.

What are copyrights, trademarks, and patents?

Copyrights protect “original works of authorship.” While this may sound like an IP right that only writers would be interested in, “authorship” in this context means essentially any original work of human expression. For example, books, poetry, photographs, music, architecture, movies, and computer software are all protected by copyright law. Copyrights will generally last at least several decades. They are created as soon as you make a copyrightable work, but they can also be registered with the U.S. Copyright Office to obtain certain advantages if you choose to sue an infringer.

A trademark is a name or logo used to identify the source of goods. Technically a “service mark” is a name or logo used to identify the source of services, but most people use the word trademark to refer to a mark identifying either goods or services. Trademark rights give you the ability to stop others from using your name in commerce and also give you the right to sue for another company’s profits if they infringe by using your mark without permission. These rights can last forever as long as the mark is still used. Some trademark rights are created as soon as you start using a mark to sell goods or services. These are called “common law trademarks.” Trademarks can also be registered with the United States Patent and Trademark Office (USPTO) to obtain additional protections. For more on the difference between common law and federal trademarks, click here.

Patents are property rights giving an inventor the right to exclude others from making, using, and selling an invention, for the life of the patent. A U.S. patent can only be issued by the USPTO. There are a few types of patents that cover different types of inventions. Utility patents cover machines, processes, devices, and chemicals, and are the type of patent most people are familiar with. Plant patents cover new varieties of plants. Design patents cover the design and appearance of a product, if the design doesn’t have utility. Utility and plant patents last 20 years from the filing date of the patent application, whereas design patents last 15 years after the patent is issued by the USPTO. Like copyrights and trademarks, a patent gives you the right to sue infringers and recover damages (like profits and licensing fees) incurred when they use your IP without permission.

The benefits of a comprehensive IP portfolio

Building a comprehensive IP portfolio may do several things for your business. IP rights are intangible assets that increase the value of your business in the eyes of potential acquirers or investors. IP rights can also be leveraged to create income from licensing ideas, products, or the goodwill associated with your brand name to other businesses. Finally, a comprehensive IP portfolio means thorough protection from those who seek to profit from the hard work you put into building your business. 

If you have any questions about the different types of IP, how to build a comprehensive IP portfolio, or IP portfolio management, please don’t hesitate to contact the firm!

Written by Benjamin Rothermel and Connor Jaccard.