DECEMBER 17 — As per the World Intellectual Property Office (WIPO) “Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.”
The importance of intellectual property was first recognised in the Paris Convention for the Protection of Industrial Property in 1883 and the Berne Convention for the Protection of Literary and Artistic Works in 1886. Both treaties are administered by WIPO.
Why is it important to protect IP? Why bother?
The first and foremost fact to understand is that for many businesses, IP protects more than just an idea or a concept. It must be borne in mind that IP protects genuine business assets that may be integral to the core services of the business and overall long-term viability of it.
IP can consist of many different areas, from logos and corporate identity through to products, services and processes that differentiate your business offering from the rest of the market offerings. It’s when these ideas are used without permission (or in more popular terms ‘copied’) that an organisation can suffer. Almost all businesses have undoubtedly benefited from the internet, where products, services and marketing communications can reach vast audiences at relatively low costs but this very technology has also increased the chances of IP theft. Not only small companies but companies of all sizes are at risk of having their unique ideas, products or services stolen, even if they are on the other side of the world, making intellectual property protection more important than ever.
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Firstly, when you have a great idea for a product or service, there will always be people who will want to duplicate your success and sell your ideas as their own. Depending on individual circumstances, you can use patents, trademarks or copyrights, all of which cover different areas of IP. These can be used to prevent competitors or anyone else from using your ideas for their own profit without your permission. IP protection applies to businesses of all sizes and it is to be noted that even huge corporations have had their ideas infringed upon and have made multi-million dollar lawsuits. The on-going disputes between Apple and Samsung over their smartphones are a fine example of this.
Secondly, if you are a small business, it’s very important to protect any unique products or services that you own as competitors can use your success to take away market share, resulting in slow growth or loss of revenue. Losing market share early on in a business’s development can be devastating and time consuming if trying to chase up the guilty party without any legal protection. It’s important to remember that no one else will check to see if your intellectual property has been infringed. It is your responsibility to ensure that no one else is using your assets.
Thirdly, IP rights are intangible assets that carry value. IP can thus be used to raise investment, as an additional source of collateral to obtain funding and spur more investments for companies with technology capabilities, in turn encouraging innovation. There are many more facets to your IP in addition to protection. IP portfolios are also valued during mergers and acquisitions and joint venture formation.
Forms of IP rights
Although it may seem initially daunting or time consuming, protecting your IP is well worth the time and effort and isn’t as difficult as you may think.
Patents protect products and processes. A patent is a right granted to the owner of an invention that prevents others from making, using, importing or selling the invention without his/her permission. A patentable invention can be a product or a process that gives a new technical solution to a problem. It can also be a new method of doing things, the composition of a new product, or a technical improvement on how certain objects work. Once it is granted, the term of a patent is 20 years from the Date of Filing, subject to the payment of annual renewal fees. If you want to apply for a patent, this can be done through MyIPO via a Registered Patent Agent.
Copyright protects works like novels, computer programmes, plays, sheet music and paintings. Generally, the author of a copyright work has the right to reproduce, publish, perform, communicate and adapt his/her work. These exclusive rights form the bundle of rights that we call copyright and enable the owner to control the commercial exploitation of his work. Copyright although do not protect an idea itself, it protects the way an idea has been represented such as books and articles written, recordings on video, music recordings etc. When dealing with copyrights, there is no actual registration procedure to follow, as protection is usually automatic. There is no system of registration for copyright in Malaysia; however, copyright owners can choose to apply for ‘Voluntary Notification of Copyright’ at the Malaysian Intellectual Property Office (MyIPO). For this, the applicant must be a Malaysian citizen or a permanent resident.
Trademarks are rights that are granted for a logo, picture, letter, number, word, phrase, sound, smell and/or aspect of packaging. Sometimes called a brand, your trademark is your identity and the way you show your customers who you are. A trademark can be a letter, number, word, phrase, sound, smell, shape, logo, picture, an aspect of packaging or any combination of these.
Trade Secrets are information that is important to the business or company and is not known to the public and is a term often used to cover information that has commercial value. A trade secret can include, for example, a method or technique that would give a business or company an edge over its competitors. The law on the protection of confidential information protects ideas and information not in the public domain, including trade secrets. Thus, the law on trade secrets is really about the protection of confidential information.
Industrial Design Rights refer to the features of shape, configuration, pattern or ornamentation that gives a product a unique appearance. Design registration is intended to protect designs, which have an industrial or commercial use. Once examined and certified, a registered design gives you, the owner, exclusive rights to commercially use it, licence or sell it.
Geographical Indications are signs used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. In order to function as a Geographical Indication, a sign must identify a product as originating in a given place.
Plant Breeders’ Rights are legally enforceable rights for new variety of plants you have created and give you, the owner, exclusive rights to commercially use it, sell it, direct the production, sale and distribution of it, and receive royalties from the sale of plants.
What’s next?
As is evident from above, there are many forms of IP available to protect your ideas, creations and inventions. In next week’s issue, we will look at how Malaysia is performing in the IP protection domain in comparison to our neighbouring countries and some other nations in benchmarking ourselves.
Your feedback is very welcome at [email protected]
* Dr Viraj Perera is CEO of PlaTCOM Ventures Sdn Bhd.
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail Online.
