Smart talk on intellectual property

There are two reasons why business people should care about intellectual property, attorney Jeffrey S. Norman recently told the GSB’s Law and Business class. One, to increase the margin you get on your productyou can charge more for a bottle of Coke than a bottle of Jewel cola, because Coke has stronger intellectual property protection. And two, to provide barriers to entry for others through patent protection, trade secret protection, and customer lock in.

Norman and Tracy L. Reilly, partners at the Chicago law firm Kirkland & Ellis, gave a primer to students on intellectual property. Reilly explained the terms and the basic law involved. People do not understand intellectual property, intangible property, as the actual property right it is, she said. She noted that it is the physical form of the intellectual property that is protectedthe book, the DVD, the CD. It is not the idea that is protected, it is the way the idea is expressed, she said. Until the idea is written down or recorded in some way, it is not protected.

Norman focused on the ways intellectual property is used and he also had succinct words of advice: Read the contract. Talk to your lawyers. You’d be surprised how many business owners don’t do this.

 

Jennifer Vanasco