Intellectual Property (IP)
Legal rights protecting creations of the mind — patents (inventions), trademarks (brands), copyrights (creative works), and trade secrets (confidential business information).
Intellectual property law protects four distinct types of intangible assets. Copyright arises automatically at creation and protects original expression (books, music, software, art) for the life of the author plus 70 years; registration ($45–$65 online) is required before filing an infringement lawsuit. Trademark protects brand identifiers (names, logos, slogans) used in commerce; federal registration through the USPTO provides nationwide priority and the right to use the ® symbol ($250–$350 per class per application).
Patents protect inventions and processes: a utility patent covers how something works (20 years from filing, $15,000–$30,000+ to obtain through the USPTO); a design patent covers ornamental appearance (15 years, $2,500–$7,000). Patents require disclosure of the invention and grant a limited monopoly in exchange. Trade secrets protect confidential business information that derives value from secrecy — formulas, methods, customer lists. Unlike patents, trade secrets have no registration and last indefinitely as long as secrecy is maintained.
IP disputes are expensive. Patent infringement litigation commonly costs $2–$5 million per side through trial. Trademark infringement suits are more moderate ($100,000–$500,000 for a contested case). Copyright infringement can trigger statutory damages of $750–$150,000 per work without proving actual damages.
Real-World Example
The startup registered its brand name as a federal trademark and discovered a competitor using a confusingly similar name in the same product category; the cease-and-desist letter, backed by a federal registration, prompted the competitor to rebrand within 60 days.