Intellectual Property

What is Intellectual property?

Intellectual property may be broadly defined as a creation or product of the mind, encompassing inventions, literary and artistic works, designs, labels, trade names, logos, and the like, which in turn are used in business and commerce. The source of intellectual property protection is its lawful recognition through patents, copyrights, trademarks, and trade secrets, which allow individuals or enterprises to protect the legal use of their intellectual applications from unauthorized ones.

Patents are often the endowment to the inventors' and innovators’ knowledge, exclusive for a specified period. Copyrights will defend the privilege of literary and artistic works of their author, since the author has the right to have sole ownership of their original work. Trademarks are used to identify and differentiate among the goods or services in the market. Marketers can use them to build a consistent brand image that consumers can rely on. Trade secrets include confidential information legally protected from unfair competition by restricting disclosure or use as the business needs. It possibly consists of formulas, processes, or customer lists.

Example

Through intellectual property, a great example is the Coca-Cola formula, a sole proprietor that has never been subjected to disclosure since its invention in the nineteenth century. By formula, we mean here a carefully crafted mix of ingredients and flavors, which makes Coca-Cola all the more special. Coca-Cola Company has strived to safeguard this valuable information by maintaining restricted access to the formula, distributing non-disclosure agreements to their employees and suppliers and ensuring their manufacturing is confidential.

Developing a super secret formula for the Coca-Cola brand has given it a great differential edge which can be contested for over a century by rivals who cannot duplicate its original flavor profile. This intellectual property has certainly significantly contributed to Coca-Cola's brand worth and its hegemony on the market, dramatically showing how key it is to protect creations of intellect. The Coca-Cola formula epitomizes why trade secrets are seen as valuable intellectual property holdings, which help businesses profit due to innovation and competitiveness.