Hard To Hold

Can you reproduce a cartoon from the daily paper in your company newsletter? Or make 50 photocopies of a magazine article to use at a meeting? Yes, but only if you get permission from the artist or author--and permission may include payment of a fee. Those are just two items that come under the heading of intellectual property, and the rights to such property are protected by law. The term "intellectual property" is somewhat misleading, says Jay Conison, interim dean and professor at Oklahoma City University's School of Law, because it's not property in the physical sense nor is it always intellectual in nature.

Intellectual property law is designed to protect the intangible aspects of business. "An enormous amount of the value of a business is in the form of intellectual property," says Conison. That may include your name, the symbols (or trademarks) that represent your company, items that you have copyrighted or patented, and various trade secrets you've developed. And just as you have recourse if someone steals or misuses your intellectual property, so do others if you do likewise.

Whichever side you're on, be aware that intellectual property litigation can be lengthy, complicated and expensive. But the law is based on common sense, Conison says. "Don't try to take a free ride on someone else's investment. The consequences of a mistake in this area can be quite serious," he says. "Whenever you want to make use of someone else's idea, think about whether or not it's protected."

This article was originally published in the October 1997 print edition of Entrepreneur with the headline: Hard To Hold.