IP_An Intangible Atty Antonio Aldrin R. Mendoza

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Foundation Course on IP

IP: An Intangible PropertyBy:

Antonio A.R. Mendoza

Legal and Policy Consultant

7 February 2011

Cebu City, Philippines

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OUTLINE

Intellectual Property as an Intangible

Types of Intellectual Property Rights

Economic Rationale of the Patent System

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TANGIBLE VS. INTANGIBLE

Tangible property± discernible by

the senses

Intangible property ± incapable of

being perceived by the senses

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Intellectual property is a set of legal

rights that results from intellectual

activity in the industrial, literary, scientific

and artistic fields; they do not apply tothe physical object but instead to the

intellectual creation as such.

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Civil Code of the Philippines:

Article 712. Ownership is acquired by occupation

and intellectual creation.

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Intellectual property is governed by a special law,

Republic Act 8293 (IP Code). Under the IP Code,the term intellectual property right consists of:

1. Copyright and Related Rights

2. Trademarks and Service Marks3. Geographic Indications

4. Industrial Designs

5. Patents

6. Layout-Designs or Topographies of IntegratedCircuits

7. Protection of Undisclosed Information

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Trademark

A trademark is a sign or symbol that

distinguishes the goods or services of one

enterprise from another in commerce. It is a

word, device, symbol used to indicate the origin,

quality and ownership of a product or service.

Purposes of trademark: (1) indicate the source or

origin of goods or services; (2) distinguish the

goods or services from those offered by another;

(3) assure that the goods are of a certain quality;

(4) provide consumers with a tool in making

decisions about the purchase of goods. 7



Businesses use marks to indicate that thegoods came from them and that the goods

are of a certain quality.

The decision of consumers to purchaseone product over another depends mostly

on the marks carried by such goods, hence,

the importance of providing a legal

infrastructure for the protection of marks.

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Copyright

Copyright consists of a bundle of rights granted to

authors and artists to protect expressive works

against unauthorized reproduction or distribution by

third parties. It protects original works of authorship,

including literary, artistic and other works.

Copyright is based on the principle of

idea/expression dichotomy, which means that while

the authors have the right to their original expression,

the public is encouraged to build upon ideas

conveyed by a work.

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Patent

A set of rights granted to the inventor of a product

or process that is new, involves an inventive step

and is capable of industrial application.

A grant from the government that permits theowner to exclude others from making, using, or

selling an invention.

A negative right since it affords the right to exclude

others from making, using, selling or importing a

patented invention.

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Examples of inventions

door lock, by Linus Yale, 1844

sewing machine, Isaac Singer, 1855

telephone, Alexander Graham Bell, 1876

electric light, Thomas Edison, 1880

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Examples of inventions

roll film camera, George Eastman, 1888

shaving razor, King Gillette, 1904

airplane, Wilbur and Orville Wright, 1906

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The mobile phone was invented by Motorola in 1973.

The current mobile phone that we are using now may

contain hundreds of patents for the internal antenna, the

screen, the keypad, the battery, etc.

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³He refuses to make such machine available

to the public in order that the fruit of his

genius and skill may not be reaped byanother without his will and consent; and that

if he enjoyed some prerogative concerning

this, he would open up what he is hiding, and

would disclose it to all.´

Preamble to Filippo¶s patent reads:

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Why was there a need to demand state intervention

before the inventor agreed to release knowledge or

information about his invention?

Isn¶t it that knowledge or information is a public goodthat is available to everyone?

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Non-Rivalrous

Non-Excludable

Fundamental nature of information

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Information may be enjoyed by others at the same

time.

Non-rivalrous

Consumption of a public good by one person doesnot leave less for any other consumer.

Consumption of the good by one individual does

not reduce its availability for consumption by

others.

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Information cannot be provided

privately, as it would be difficult, if not

entirely impossible, to exclude others

from enjoying a public good.

Costs of excluding non-paying

beneficiaries who consume the good are

so high that no profit-making firm wouldsupply the good.

Non-excludable

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The non-rivalrous and non-excludable characteristics

of information give rise to the problem of free riders.

Free riders are those who exploit the information

without contributing to its creation.

Once information is out, you cannot take it back.

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What is the significance of IP as an intangible

property?

In today¶s knowledge economy, intangibles

represent 80% of a company¶s assets, while

tangibles represent only 20%.

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IP_An Intangible Atty Antonio Aldrin R. Mendoza