Intellectual property

Intellectual property (IP) is original work created by an organisation or individual that the law can protect. It might be creative, such as a game character, or identify a business, such as a bottle's distinctive shape.

Why organisations protect their intellectual property

Original work usually has commercial value: it is what an organisation sells, what makes its brand recognisable, and what gives it an advantage over competitors. Protection stops others benefiting from that work without permission, so a rival cannot copy the game character and sell it as its own.

Protection gives the owner control over how the work is used and lets them make money from it, either by selling the work or by charging someone else to use it.

Protection is also an incentive. A studio will only spend two years and a lot of money developing a new game if it knows the finished work can be protected. Without that reassurance, fewer organisations and individuals would invest time and money in creating and innovating.

The main methods of protection

There are three main methods of protecting intellectual property:

Intellectual property is not the same as the data an organisation holds. Firewalls, encryption and passwords protect data, but do nothing to stop a rival copying your logo.

Infringement and the drawbacks

Infringing intellectual property rights means using protected work without permission. An organisation can take legal action against anyone who infringes its copyright, trademarks or patents, and can seek fines and compensation. If a small studio finds a rival selling T-shirts with its game character, it can go to court to stop the sales and claim the rival's profits.

Protection has drawbacks: registering trademarks and patents, and enforcing rights, is costly and slow, hitting small organisations hardest. Protection can hold back improvement: while a patent is in force, others cannot use or improve the invention without permission, so better versions may be delayed.