The Ins and Outs of Intellectual Property

In today’s era of global sourcing knowing the ins and outs of intellectual property can certainly be an advantage to all tiers of the supply chain. Intellectual property can take several forms, such as patents, trademarks, copyrights and trade secrets (also know as confidential/proprietary information).

The ISM Glossary describes a patent as a monopoly created by law that gives the patent holder the sole right to make, use and/or sell the patented articles and to prevent others from doing so without the holder’s permission (license) for a set amount of time. Did you know before you can file for an application, you need to have a legal firm perform a patent search?  How was this done before the computer age and how long did it take?  Today, if a person uses an inventory before the public (puts the product on the market) then after one year the person forfeits all of their patent rights in that invention.

The ISM Glossary describes a trademark/servicemark as an identifying label, symbol or word(s) for exclusive use with a particular product (trademark) or service (servicemark). 
Look around you, just in the things you use daily, see how many things have an identifying trademark. We recognize products by the trademark alone.

The ISM Glossary defines a copyright as protection provided by U.S. law granting the authorized creators of original literary, dramatic, musical, artistic, and other intellectual property, published or unpublished, the exclusive right to publish, reproduce, display, sell, perform, transmit or prepare derivative works from the original work. A copyright protects the ownership of written material from unauthorized use. Filing for a registered copyright gives the owner of the copyright statutory damages against all infringers (treble damages). Did you know a copyright filed today will last the creator’s lifetime plus 70 years?

The ISM Glossary defines a trade secret as commercial information, usually a plan, process, or mechanism, known only to the owner and a limited number of others to whom it is necessary to confide it; commonly protected by use of a confidentiality agreement. 

In purchasing, we are all familiar with confidentiality agreements and non-disclosure agreements. Many of our suppliers are asked to sign an agreement when working with us on new products and other issues. As employees, some of us are asked to sign a confidentiality agreement. In the old days, some had to sign that they would not go to work for a competitor within two years of leaving the company. It is always something
I have hated in the business world, when a company lets someone go, they escort
them to the door. It does not seem to matter if they quit, get laid off or fired. They
claim it is a security precaution. Companies use the security issue to avoid things
they don’t want to deal with. It is just easier to say for security reasons. 

The ISM Glossary of Key Supply Management Terms is a valuable reference tool for supply professionals, academics, researchers and students. A glossary will refer to words and phrases that may not be found in the dictionary, they are industry specific. Most professional organizations publish a glossary for their membership in terms used in their field.  It is great to go on the website and be able to look something up so quickly that relates to our supply management field. 

Take note also of the Export Administration Act. Various laws and regulations govern, and sometimes even restrict, the export of goods, information and services. Supply management professionals may not perceive that they are engaged in exporting.  However, the law views certain types of drawings specifications, and prototypes forwarded to a foreign entity as restricted exports of technology. Supply management professionals are urged to seek the advice of an expert when questions arise in this area.