Protecting your IP: Copyright versus Trademark

You’ve probably heard these terms related to your business, but do you know the differences? Copyrights and trademarks are two distinct types of intellectual property. Many people confuse the two types of protections and think that the two are one-in-the-same. While both are extremely useful business tools and both are extremely valuable business assets, it is important to understand the difference. It is also important to include the appropriate trademark and copyright registrations with all of your other business protections (such as incorporating).

Copyrights

A Copyright is a form of "intellectual property." The government affords protection to original works of authorship fixed in a tangible medium – this protection is called a "Copyright." Copyright protection is given to "works," including literary, dramatic, musical, and artistic works, such as poetry, novels, movies, songs, computer software, and architecture. A copyright gives the owner the exclusive right to reproduce, distribute, perform, display, or license a work, and derivatives to the work. Limited exceptions to this exclusivity exist for types of "fair use", such as teaching, scholarship and research.

Copyrightable works include the following categories:

• literary works
  
  
• musical works, including any accompanying words
  
  
• dramatic works, including any accompanying music
  
  
• pantomimes and choreographic works
  
  
• pictorial, graphic, and sculptural works
  
  
• motion pictures and other audiovisual works
  
  
• sound recordings
  
  
• architectural works

There are many benefits of Copyright Registration. These include the following:

• Registration provides third parties with notice as to a claim of ownership of the work.
  
  
• If someone copies the work, you may not file a copyright infringement suit in court until copyright registration is obtained. Registration can also enable statutory damages in the event of proven copyright infringement.
  
  
• If copyright registration is made before or within 5 years of publication, registration will establish prima facie evidence in court of the validity of the copyright and of the facts stated in the certificate.
  
  
• If copyright registration is made within 3 months after publication of the work or prior to an infringement of the work, statutory damages and attorney's fees will be available to the copyright owner in court actions. Otherwise, only an award of actual damages and profits is available to the copyright owner.

Copyright registration allows the owner of the copyright to record the registration with the U. S. Customs Service for protection against the importation of infringing copies.

Trademarks

A "trademark" is a word, name, symbol, or device, or any combination, used, or intended to be used, in commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured or sold by others, and to indicate the source of the goods. In short, a trademark is a brand name.

Trademarks might include:

Word marks, such as: MyCorporation.com®, which is used in connection with online business filing services.

Phrases, such as "Business Starts Here!"

The following is a list of just a few of the benefits enjoyed by owners of REGISTERED trademarks:

• The legal right to display the "®" symbol with your trademark.
  
  
• Provides third parties with notice of your claim to the trademark.
  
  
• Domain name conflicts are often solved QUICKLY, economically (without judicial proceedings), and in favor of the trademark owner.

The owner of a registered trademark can, in many cases, receive a court-awarded judgment for THREE TIMES the amount of damages suffered.

Summary of Comparison:

In summary, trademarks are used to protect words, logos, or phrases. Copyrights are used to protect original works of authorship, such as a book, website content, or photograph. Both types of "intellectual" property, if adequately protected, are assets to a business. If a business is sold, it is far more valuable with successfully protected trademarks and copyrights. While it is easy to forget to protect these business assets, it can save time and money to protect your trademarks and copyrights right away.

Submitted by: Mycorporation.com, from the makers of QuickBooks, who helps small businesses file for a Trademark or Copyright Application in an easy and affordable way.