Intellectual Property Basics

Business 3215
Slide 2
CAUTION:
This information is to be considered solely as a guide and
should not be quoted as or considered to be legal authority. It
may become obsolete in whole or in part at any time without
notice.

This seminar is not to be construed as legal advice.

Do not use sample agreements (if any) provided during this
seminar as legal precedent. See a lawyer for an agreement
suitable for your own uses and particular circumstances.
Intellectual Property for
Entrepreneurs
3215
Business 3215
Slide 4
Intellectual Property
can be protected by:
patent
copyright
trademark
industrial design
integrated circuit topography
plant breeders rights
trade secret
SEE Canadian Intellectual Property Office for more
information (http://cipo.gc.ca/)
Business 3215
Slide 5
Types of Intellectual Property Protection
Type Covers Rights Terms Examples

Patent
Device, process,
composition of matter
Inventor 20 years
Copyright Material form of
composition
Author, creator Authors life + 50
years
Books, software,
music
Trademark Identifiable mark
15 years
(renewable)
Logo, slogan
Plant Breeder
Rights
Variety of plant Breeder 18 years Quantum Canola
Industrial
Design
Aesthetic design of
product
Designer 10 years Rug, cutlery
design/shape
Integrated Circuit
Topography
Integrated 3D design in
semi-conductors
Designer 10 years Custom chips
Trade Secrets Anything n/a Indefinite Secret sauce,
coca-cola recipe
Business 3215
Slide 6
Types of Intellectual Property Protection
Type Covers Rights Terms Examples

Patent
Device, process,
composition of matter
Inventor 20 years
Copyright Material form of
composition
Author, creator Authors life + 50
years
Books, software,
music
Trademark Identifiable mark
15 years
(renewable)
Logo, slogan
Plant Breeder
Rights
Variety of plant Breeder 18 years Quantum Canola
Industrial
Design
Aesthetic design of
product
Designer 10 years Rug, cutlery
design/shape
Integrated Circuit
Topography
Integrated 3D design in
semi-conductors
Designer 10 years Custom chips
Trade Secrets Anything n/a Indefinite Secret sauce,
coca-cola recipe
Business 3215
Slide 7
Business 3215
Patent System is a compromise
Government wants to reward innovation, as new
products lead to the formation of new companies
which drives the economy
Government wants to limit monopolies, as these
restrict trade and lead to high prices, thereby limiting
growth of the economy

Business 3215
What is a Patent?
A patent is an exclusive right to the property in an
invention. Usually lasts for a period of twenty years
A limited monopoly granted by the government to an
inventor for preventing others from practicing the
invention in exchange for the inventor making the
invention public in sufficient detail so that one skilled
in the art could reproduce the invention after
expiration of the patent.
Business 3215
What can be protected by Patents?
Patent protection applies to inventions only. For an
invention to be patentable it must be:
An art, process, machine, manufacture or
composition of matter or an improvement to
such that is:
New
Useful, and
Non-obvious
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What is NOT Patentable?
Works of art, novels, poems, drawings - copyright.
Ornamental appearance of an object - industrial
design
Words, phrases or logos - trademarks
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IS IT PATENTABLE?
Is it NEW?

Is it USEFUL?

Is it NONOBVIOUS?
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IS IT PATENTABLE?
Is it NEW?
Invention must be novel and not have been
previously disclosed.

Is it USEFUL?

Is it NONOBVIOUS?
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Novelty means that:
at least one aspect of the invention is novel
the invention is a combination of known elements
not previously seen together
new use for an existing product
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What Constitutes Disclosure?
Releasing important, novel details of the invention.
Loss of control of who learns about the invention.
Discussions under a non-disclosure agreement or
within the same institute are not disclosure.
Business 3215
Most countries (except USA and Canada) require
absolute novelty for patent protection, meaning
that the invention cannot have been previously
disclosed.
Canada and USA allow a one year grace period
following disclosure for filing for patent protection
with some restrictions.
Business 3215
IS IT PATENTABLE?
Is it NEW?

Is it USEFUL?
Must perform a function.

Is it NONOBVIOUS?
Business 3215
IS IT PATENTABLE?
Is it NEW?
Is it USEFUL?

Is it NONOBVIOUS?
Is the invention obvious based on what has
already been done or is there a degree of
inventiveness or cleverness involved?
Business 3215
Slide 19
Patent Deadlines: one strategy
US Provisional Application
Max. 1 year later: WIPO PCT Filing (or direct to National
Phase)
Max. 1.5 years later: National Phase of Applications must be
entered

REMEMBER: if you disclose your invention prior to filing an
application, you have 1 year to file your application in Canada
and USA, and YOU LOSE THE RIGHT TO FILE IN THE
REST OF THE WORLD!
Business 3215
Slide 20
Infringing
Since a patent is a grant of a monopoly, anyone that
uses, produces, sells, distributes, etc a patented
invention is likely infringing the patent rights owners
rights
HOWEVER in Canada at least, some exceptions
MAY exist:
The law is unclear regarding a research
exemption
Business 3215
Slide 21
Types of Intellectual Property Protection
Type Covers Rights Terms Examples

Patent
Device, process,
composition of matter
Inventor 20 years
Copyright Material form of
composition
Author, creator Authors life + 50
years
Books, software,
music
Trademark Identifiable mark
15 years
(renewable)
Logo, slogan
Plant Breeder
Rights
Variety of plant Breeder 18 years Quantum Canola
Industrial
Design
Aesthetic design of
product
Designer 10 years Rug, cutlery
design/shape
Integrated Circuit
Topography
Integrated 3D design in
semi-conductors
Designer 10 years Custom chips
Trade Secrets Anything n/a Indefinite Secret sauce,
coca-cola recipe
Business 3215
Slide 22
Integrated Circuit Topography
topographies are innovative, three-dimensional
circuit designs
Protection against copying of registered
topographies, but does not prevent development of
different topographies providing same electronic
function
Registration application must be filed within 2 years
of first commercial exploitation of topography
Business 3215
Slide 23
Types of Intellectual Property Protection
Type Covers Rights Terms Examples

Patent
Device, process,
composition of matter
Inventor 20 years
Copyright Material form of
composition
Author, creator Authors life + 50
years
Books, software,
music
Trademark Identifiable mark
15 years
(renewable)
Logo, slogan
Plant Breeder
Rights
Variety of plant Breeder 18 years Quantum Canola
Industrial
Design
Aesthetic design of
product
Designer 10 years Rug, cutlery
design/shape
Integrated Circuit
Topography
Integrated 3D design in
semi-conductors
Designer 10 years Custom chips
Trade Secrets Anything n/a Indefinite Secret sauce,
coca-cola recipe
Business 3215
Slide 24
Brief intro to Intellectual Property
Copyright
What does it cover?
How to obtain protection
Who owns copyright
Copyright duration
What rights are protected by copyright
Limitations on copyright
How is copyright violated? Remedies for violation
Exploitation of copyright
Using someone elses copyright materials
Specifics associated with digital copyright and electronic rights
Business 3215
Slide 25
Theory
Copyright does not protect IDEAS
Copyright does protect the EXPRESSION OF
IDEAS
Consequence of this:
Anyone can follow and use the ideas set out in
copyright protected thing: i.e. build a deck out of
a How to Build a Deck book
Business 3215
Slide 26
Copyright
Applicable to all original literary, dramatic, musical and
artistic works provided that the work is fixed in a material
form.
what is worth copying is worth protecting
Applies to a: Song, Novel, Play, Magazine Article, Computer
Program, performers performance, broadcasts,
choreography, translations, paintings, arrangements of
other works, letters, office memos, sculpture, web page,
etc
Doesnt Apply to a: Title for a Song, Idea for a Plot, Method
of Staging a Play, Work in Public Domain (I.e. Hamlet),
Facts of an Article, Name of a Program
Business 3215
Slide 27
Two main categories of things
protected by Copyright Act:
Traditional works have copyright (literary,
dramatic, musical and artistic work), and
Other subject mater (or non-traditional material)
such as performers performances, sound
recordings, and broadcasts (or communication
signals) have neighbouring rights
works and other subject matter are both
protected by the Copyright Act, but a bit differently
Business 3215
Slide 28
Why register copyright?
Copyright arises as soon as the subject matter of
the copyright is created.
There is no need to mark your works, but it is
recommended
There is no need to deposit your works with
anyone, but it can help in enforcing your rights
Registration is not required, but is recommended
Registration is prima facie evidence of ownership
Business 3215
Slide 29
Types of Intellectual Property Protection
Type Covers Rights Terms Examples

Patent
Device, process,
composition of matter
Inventor 20 years
Copyright Material form of
composition
Author, creator Authors life + 50
years
Books, software,
music
Trademark Identifiable mark
15 years
(renewable)
Logo, slogan
Plant Breeder
Rights
Variety of plant Breeder 18 years Quantum Canola
Industrial
Design
Aesthetic design of
product
Designer 10 years Rug, cutlery
design/shape
Integrated Circuit
Topography
Integrated 3D design in
semi-conductors
Designer 10 years Custom chips
Trade Secrets Anything n/a Indefinite Secret sauce,
coca-cola recipe
Business 3215
Slide 30
Trade Secret
Keep the details to yourself i.e. Coca-Cola formula or
Colonel Sanders recipe.
Impractical approach in academic environment - too much
pressure to publish and too many public interactions.
University research lab is not a corporate skunk-works -
cant keep under wraps until fully ready...
Business 3215
Slide 31
What to keep secret?
Patentable IP, at least until patent app. Filed
Trade secrets
Copyright & trademarks? Not necessarily

Business question with some is: do you have the
resources to enforce your IP protection? Police it?
Business 3215
Slide 32
How to keep a secret
Confidentiality Agreements (CDAs, NDAs)
Government FIPPA & Privacy legislation
Certain professionals have confidentiality duties

Often is a need to disclose to some to get the
assistance needed to commercialize
Business 3215
Slide 33
Coca-Cola Secret
Deep in a bank vault somewhere in Atlanta is a piece of paper with 17 or 18
common ingredients on it. Mix those items in the right proportions under the
proper conditions, and you re-create the world's most popular soft drink:
Coca-Cola.
rumour has it that only 3 or 4 company executives, including the company's
chief chemist, know the exact formula from that piece of paper in that
mysterious vault
Special undisclosed measures are taken to ensure the safety of these
individuals, as if they were royalty. They rarely travel together, and when
one dies, the others must approve his successor.
Bill Poundstone published a recipe based on an analysis of coke, and
among the 17 ingredients in his recipe are nutmeg oil, lemon oil, cassia oil,
alcohol and coca leaves from which the cocaine has been extracted (that
last ingredient might be hard and illegal to do at home)
Confidential Disclosure Agreements
(Also called
Non-Disclosure Agreements)
Business 3215
Slide 35
Confidential Disclosure Agreement (CDA)
A tool to allow discussion prior to (or while determining
the justification for) filing for a patent or other IP
protection, or to keep a trade secret a secret
Use with: other institutions, companies, evaluators,
consultants
Defines issues: what is being discussed, when, what the
responsibilities are, and the length of time it will be kept
confidential
Business 3215
Slide 36
Essential Elements of CDA
Define the confidential information, including exemptions
What is recipient to do with confidential info?
What uses can they make of it?
How should they store it?
Does the info have to be given back, and when?
What remedies does provider of info have?
How long does secrecy obligation continue?
General legal terms (governing law, etc.)


Business 3215
Slide 37
Non-Disclosure Statement
Confidentiality Agreement

The undersigned reader acknowledges that the information provided by XXXXXXX in this
business plan is confidential; therefore, reader agrees not to disclose it without the express
written permission of the author.
It is hereby acknowledged by the reader that information furnished in this business plan is in all
respects confidential in nature and that any disclosure or use of same by reader, may
cause serious harm or damage to the author. The reader certifies that the information is
not to be copied or disclosed or disseminated in any form or fashion without the express
written consent of the author.
Upon request, this document is to be immediately returned to the author.
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