Capitalizing on Innovation: The Fundamentals of Intellectual Property

Economists have estimated that two-thirds of the value of large businesses in the United States can be traced to intangible assets,including intellectual property (IP). Even for smaller businesses, IP will likely form at least a part —if not a significant part —of the overall value of a business. Intellectual property encompasses several distinct types of “mental products,” and exclusive rights are recognized under the law to help protect IP. Business owners and managers are well advised to understand how IP impacts the business, how to protect it, and how it can be used to add value. A starting point is to understand the types of IP and how they fit together.

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