Owning the Intangible
A firm's most valuable assets weigh nothing: an invention, a name, a shape, a song. The law fences these intangibles with exclusive rights: temporary monopolies that make it rational to invest in creating them.
Industrial property requires registration:
- Patent: protects an invention (new, inventive step, industrially applicable). Duration: 20 years from filing, non-renewable. Falls into the public domain after.
- Trademark (marca): protects a distinctive sign (word, logo, shape) telling goods apart. Duration: 10 years, renewable indefinitely.
- Industrial design: protects a product's appearance. 5 years, renewable up to 25.
Copyright (intellectual property in the strict sense) protects original works (texts, software, music, images) automatically from creation, no registration needed. Economic rights last the author's life + 70 years.
Fences and Pitfalls
| Right | Term | Registration |
|---|---|---|
| Patent | 20 years, non-renewable | Required |
| Trademark | 10 years, renewable forever | Required |
| Industrial design | 5 to 25 years | Required |
| Copyright | Life + 70 years | Automatic |
Matching asset to fence is the manager's job. An algorithm's code gets copyright automatically; the invention needs a patent; the name needs a trademark; its look, a design.
Trade secrets are the alternative fence: no registration, no expiry, but protection lasts only as long as the secret does.
Common pitfall: Keeping an invention as a trade secret and assuming it is protected like a patent. A secret has no exclusivity, and a rival who reverse-engineers it owes you nothing.