ENTREPRENEURSHIP Part A
Intellectual property refers to a collection of ideas that are usedfor commercial and moral value (Bouchoux, 2013). It is called“intellectual” property because they are creations of the humanmind that an individual invents. The intangible assets aresignificant to entrepreneurial firms as they help in minimizing thestiff competition among enterprises in the same industry. The firmsget to developing unique ideas and techniques that are guarded astheir secret of trade as they enable them to continue thriving in themarket (Dietrich, 2012). Intellectual property is also a criticalelement among entrepreneurs because it encourages innovation andrewards them for their developments. It legally recognizes theirinventions and gives them rights that allow them to continue with newprojects and improve the existing ones that may have beenineffective.
A patent refers to protection or a right that is granted to anindividual for inventing a product or a procedure that is non-obviousand useful (Bouchoux, 2013). Entrepreneurs tend to focus on thepurpose of the patent, the nature of the invention, and the presentsituation when determining the type needed for the business as theycome in various categories. The first kind includes the utilitypatent that covers the process, machine and composition of anythingthat is manufactured or improved with a useful and defined function.It lasts for twenty years from the application date. The second typeis the design patent that is issued to protect the appearance, shape,design or the ornamental value and is valid for 14 years from when itwas granted. The last category is the plant patent that is given tothose who discover asexually reproduced plants and lasts for 20 years(Bouchoux, 2013).
A trademark refers to a distinct graphic symbol or word whosepresence can be used to differentiate among products, individuals ororganizations (Bouchoux, 2013). They are valuable, particularly amongentrepreneurial firms because they serve as tools of communication.The sign or word sends a message about the company, its products, andservices, as well as its reputation to its potential market.Trademarks are also significant as they help in distinguishingorganizations and individuals in the same industry. Competition hasmade the businesses to steal one another ideas’ resulting inimitations of products that are of poor quality. Therefore, thesymbol enables consumers to differentiate between the actual and fakeproducts. Trademarks are considered to be valuable assets toentrepreneurs as they help to them to develop brands that contributeto business growth. Besides, they serve as security interests whenthe firm needs to obtain financial aid to facilitate theirdevelopments.
Copyright refers to the protection that is granted to a person or abusiness entity by law, for the original works they produce(Bouchoux, 2013). For instance, novels, poems, plays, computerprograms, paintings, architecture, and maps are among many works thatcan be copyrighted by their authors. The law provides certain rightsto people who protect their productions. Firstly, it prohibits anyform of reproduction of the material either in print or soundrecording. Copyright also protects any public performance,communication, or broadcasting of the work without the authorizationof the original owner. It guards the content against being translatedinto other languages without their consent as well as its adoption inother forms such as presenting a novel as a screenplay (Bouchoux,2013).
Bouchoux, D. E. (2013). Intellectual property: The law oftrademarks, copyrights, patents, and trade secrets. Clifton Park,NY: Delmar Cengage Learning.
Dietrich, M. (2012). Handbook on the economics and theory of thefirm. Cheltenham: Edward Elgar.
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