When it comes to intellectual property, or IP, many people's knowledge begins and ends with patents, which grant inventors exclusive commercial use of their creations. And, yes, if you invent something potentially valuable, you may very well want to invest in obtaining a patent. But most companies haven't invented anything -- and yet they still own intellectual property that needs protection.
Their names, for example, are trademarks. Some may copyright written work. And most companies have trade secrets, which include "any formula, method, or information that gives you a competitive advantage," says Susan F. Fisher, an attorney with Denver's Fairfield and Woods. "Anything that takes time, money, or effort to develop and that you don't want your competitors to know about."
Trade secrets are rarely breached as a result of a determined adversary, such as an industrial spy or disgruntled employee. Instead, says James Pooley, a partner in the Palo Alto, California, office of Morrison & Foerster and a past president of the American Intellectual Property Law Association, "the vast majority of instances of loss of confidential information are inadvertent."
A good trade-secrets policy can minimize the chances of that happening. You may want to consult a business lawyer, perhaps an IP specialist, for guidance. But the following pages lay out the basics on protecting your company's trade secrets -- and sketch out the basics of trademarking for good measure.