Patents, Copyrights, and Trademarks The degree to which a firm can capture the r
ID: 423747 • Letter: P
Question
Patents, Copyrights, and Trademarks
The degree to which a firm can capture the rents from its innovation efforts is largely determined by the degree to which competitors can quickly and easily imitate the innovation. Some innovations are inherently difficult to copy; others are difficult to copy because of the mechanisms the firm uses to protect its innovation. The three primary legal mechanisms used to protect innovation in most countries are patents, trademarks, and copyrights. Each mechanism is designed to protect a different type of work or good.
QUESTIONS
What are the differences between patents, copyrights, and trademarks?
When are trade secrets more useful than patents, copyrights, or trademarks?
Explanation / Answer
1. A patent can be considered as a technology or research that an organization has developed which allows them the exclusive right to be the proprietor to the technology and utilize it or sell it up to 17 years when the patent dissolves.
Copyright can be considered as a form of protection that is granted to the owner, the author which has created the work be it artistic, architectural or musical and protect their rights against the use and claim of their own material by another.
Trademark can be considered as a design, word or even a symbol with which we can recognize a particular organization/individuals, which are patented or trademarked at the trademark office.
2. Trade secrets allow an organization a strategic advantage over their competition by being used in the production of proprietary technology, design or product which cannot be replicated in any capacity by any other individuals without the consent of the owner, which would not allow its use by another in the fear of losing the strategic advantage. It is regarded as a well-kept secret and organizations have protocols in place to protect their trade secret, something that gives them a distinct advantage. It is much more important than a patent or a trademark because those copyrights can be copied in some capacity by the competition, by paying a fine or royalty and things like patent even expires in a set amount of time which would mean that it will then become free for everybody to use.