Local authorities, of course, provide police protection from theft of inventory and other company property by customers, employees, or outsiders. Yet there is another property that many businesses have that is at least as valuable which is also protected by law—secrets, patents, copyrights, and trademarks/names.
Business Secrets. Businesses frequently keep secret information that is the heart of this business. Customer lists for an insurance company or a stockbroker are examples. State and federal law severely punishes anyone who steals or makes use of such property. The most famous secret in the world might be the formula for Coca-Cola. If any person or company can duplicate Coca-Cola, they may produce and sell it under their own name. The law protects the secret from theft but not from duplication.
Patents. Patents are a protection given by the federal government for inventions. A patent gives the inventor the exclusive rights for seventeen years to use or license the invention. Anyone infringing on the patented product is subject to fine and imprisonment.
Copyrights. Copyrights give authors protection for their works for their lifetime plus fifty years. Works include literary works, musical compositions, and, very important today, computer programs, which includes software. While there are exceptions for classroom use, it is illegal to copy tapes, CDs, or software. This is theft and is punishable by fines. It is important for business today to set high legal standards for employees for proper business use of copyrighted material.
Trademarks and Trade Names. There has been substantial growth in this area in recent years. Trademarks and trade names can be of enormous value, and businesses work hard to protect their property. Coca-Cola and Coke, both the names and the distinctive script, are among the best known of these. Names and logos are now registered in large numbers, and protection is shown by the by the name. Universities, for example, often make substantial money by licensinguse of their name, logo, or other associated symbols on clothingand other items. Tramarks and trade names are registered with the federal government. Exclusive use of them lasts as longas they are used.
