What Is Intangible Property and Why It Matters to Your Business

Intangible property is any asset that lacks physical form and is not fixed in a specific location. These types of property include such things as trademarks, patents, copyrights, branding, computer software, literary works and more. Intangible property rights are typically protected by intellectual property laws in the form of patents, copyrights, trademarks, and in some cases, trade secrets.

Patents

A patent is an exclusive right issued by a sovereign government granting the patent holder exclusive rights to a invention for a period of time. Patents can be used to protect a variety of inventions from a new product or process to a new design. These rights can then be bought, sold, or licensed in a variety of ways. With a patent, the inventors have a guarantee that their invention is not replicated by their competitors.

Copyrights

Copyright is a form of protection provided by governments to the authors or owners of “original works of authorship,” including literary, dramatic, musical, artistic and certain other intellectual works. Copyrights enable creators to protect their works, and receive payment when their works are used by others.

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Trademark

Trademark law protects words, names, symbols, logos, or any combination of them, used in commerce, and is used to distinguish the source of goods or services from other companies. Trademarks provide value to companies by creating consumer recognition and loyalty and by preventing competitors from using similar marks to confuse customers.

Trade Secret

Trade secrets are confidential business information, such as manufacturing techniques and processes, customer lists, pricing information, or other information that gives an edge over the competition. Trade secrets can be protected indefinitely as long as the company takes reasonable steps to maintain the secrecy of the information.

Importance of Intangible Property

Intangible property is an important asset of many businesses. Protecting intellectual property can often mean the difference between success and failure. Through registering and protecting their intellectual property, companies gain an extra layer of security that helps them to protect their ideas, processes, and products, thus reinforcing the long-term success and value of their business.

Related Legal Concepts

Understanding intangible property often requires distinguishing it from tangible personal property and real property, which have physical form and location. While personal property encompasses both tangible and intangible assets, the classification affects how these assets are valued, transferred, and protected. Property rights in general form the foundation for all ownership concepts, whether dealing with private property interests or exempt property protections in various legal contexts.

The Bottom Line

Intangible property represents valuable assets without physical form that can be owned, protected, and transferred through intellectual property laws. These rights—including patents, copyrights, trademarks, and trade secrets—often constitute significant business value and require proper legal protection to maintain their worth. For guidance specific to your situation, always consult a qualified, licensed attorney.