Introduction to Intellectual Property Rights
Handbook topic · Intellectual Property Rights — protecting innovation in the ecosystem
An innovation is only an advantage if others cannot simply copy it. This week explains what intellectual property rights (IPRs) are, the six types the module covers, where IP law comes from and how the UK courts help SMEs enforce it. Because IPRs are territorial, you also learn why protection at home does not travel with you, and how to plan IP protection for the new market in your Individual Report.
The big question
How can an entrepreneur stop others copying the innovation that makes the venture valuable, at home and in a new foreign market?
By the end of this week you can
- Explain what IPRs are, why they are protected and why they are territorial.
- Tell apart copyright, trade marks, designs, patents, trade secrets and geographical indications: what each protects and how it is obtained.
- Name the international sources of IP law and the four main UK IP statutes.
- Describe the role of the Intellectual Property Enterprise Court (IPEC) for SMEs.
- Map the IP assets of a product to the right form of protection (the HOTTA kettle case).
- Plan how an internationalising SME would protect its IP in a target market, and structure a Gibbs reflection for the Individual Report.
What intellectual property rights are and why they exist
IPRs turn ideas, inventions, signs and information into property that the owner can control.
Rights that regulate the creation, use and exploitation of mental and creative labour. They create property protection over intangibles such as ideas, inventions, signs and information.
Four features to remember
- Long-standing: the term has been in use for almost 150 years.
- Territorial: a right exists only in the country (or region) whose law grants it. This single feature drives most of the international challenges later in the week.
- Six types are covered in the module: copyright, trade marks, designs, patents, trade secrets and geographical indications.
- Separate but overlapping: for legal convenience each right is treated on its own, but in practice one product is often protected by several rights at once.
The right is separate from the object that carries it
- Owns the expression in the letter (an intangible right).
- Can control copying of the words even after the paper has left his hands.
- Owns the paper (tangible property).
- Owning the paper does not give him the right to copy or publish the words.
Why should ideas be owned at all? Land and physical objects can only be used by one person at a time, but information can be copied endlessly. The lecture therefore asks two questions: should IPRs be private rights or public property, and what safeguards protect the public interest? It also notes that there is no concrete scientific proof that IPRs either benefit or harm society.
Several theories justify IPRs. The main ones named in the lecture are natural law theory, utilitarian theory, the theory of personality and social policy theory. The slides do not develop each theory; instead they distil all of them into one chain of reasoning, shown below.
The lecture distils the justification theories into three linked ideas.
- 1Reward
The creator is rewarded for the mental or creative labour invested in the work or invention.
- 2Incentive
The prospect of that reward gives people and firms a reason to invest time and money in creating.
- 3Creation / innovation
More creation and innovation follows, which is the outcome society wants from granting the right.
The six types of IP right at a glance
Each right protects a different kind of asset, is obtained in a different way and lasts for a different time.
| Right (UK law) | What it protects | How it is obtained | Duration |
|---|---|---|---|
| Copyright © (Copyright, Designs and Patents Act 1988) | Original expression of ideas: literary, dramatic, musical and artistic works (including illustration and photography), non-literary written works such as software, web content and databases, sound and music recordings, film and TV recordings, broadcasts, and the layout of published editions. | Automatic once an original work is fixed; no registration or fee in the UK. Asserting copyright (for example “© Name Year”) is still important. | Lifetime of the author plus 70 years (post mortem auctoris). |
| Trade mark ™ / ® (Trade Marks Act 1994) | Any word, phrase, symbol, design, combination of colours, product configuration, group of letters or numbers, or combination of these, used to identify a company’s goods or services and distinguish them from others. | Must be registered to be protected, and must meet the registration requirements (see next section). | Described in the slides as indefinite; GOV.UK adds that a registered trade mark must be renewed every 10 years to stay in force. |
| Design [D] (Registered Designs Act 1949) | The design of a product, giving exclusive rights to it. The key test for registration is the design’s “individual nature”. | Registration; the UK also has rights that protect unregistered designs and stop others using them without permission. | Registered design: renewed every 5 years up to a maximum of 25 years (GOV.UK). Unregistered design: not stated in the module materials. |
| Patent [P] (Patents Act 1977) | An invention: the way something works (its functionality), what it is made from, or what it is used for or does. | An exclusive right granted for the invention. It lets the inventor stop others making, using or selling it without permission. | Limited period, usually 20 years from filing. |
| Trade secret [TS] | Confidential business information, for example Coca-Cola’s formula or a list of specialist suppliers. | Not registered. Protection depends on keeping the information secret; a guest post on the UK IPO blog explains that the business must take “reasonable steps” such as non-disclosure agreements and need-to-know access. | Not stated in the module materials. |
| Geographical indication [GI] | A product name showing that the product has a nature, quality and reputation linked to where it is made (often food and drink). You cannot sell something as “Scotch” unless it comes from Scotland and is made in a certain way. | The product name is registered under the UK GI schemes. No single business owns a GI: any verified producer following the product specification may use the name (GOV.UK). | Not stated in the module materials. |
Durations and procedures not in the slides come from the GOV.UK and UK IPO pages listed in this week’s links.
Three rights students often confuse
- Protects the expression of an idea, not the idea.
- Arises automatically.
- Example: the original wording of an instruction leaflet (not the facts it states).
- Protects the external appearance of a product, which may or may not relate to its function.
- Registered design needs “individual nature”.
- Example: an unusually shaped kettle.
- Protects how something works: its function or utility.
- Granted for a limited period, usually 20 years.
- Example: a double-walled, gas-filled kettle that stays cool.
For each asset ask: is it a sign that tells customers who made it (trade mark)? A look (design)? A working mechanism (patent)? Content someone wrote or recorded (copyright)? Information that is valuable because it is secret (trade secret)? Or a place-linked product name (GI)?
Inside the main rights: copyright tests and trade mark rules
The lecture goes deeper on copyright and trade marks, the two rights almost every new venture needs.
To be protected by copyright a work needs fixation, originality and expression. No registration is needed.
The creative idea must be locked in a permanent state, “in a tangible medium”.
Example — A song is protected once it is written on paper or recorded.
Ideas cannot be copyrighted; only the expression of an idea can. Expression goes hand in hand with fixation.
Example — The idea of a cooking app is free to use; the app’s written code and screens are expression.
The work must reach a basic level of originality to count as the product of an author. Direct copies, facts, short phrases and titles cannot be copyrighted.
Example — Names and addresses in a phone book are not protected, but the photo on its cover is.
A registered trade mark does more than stop copying; it performs four commercial functions.
Identifies the product and where it comes from.
Promises a consistent quality to buyers.
Advertises the product; the mark comes to represent the product.
Creates an image of the product in the minds of consumers and prospective consumers.
Requirements for a valid trade mark registration
- It must be capable of graphic representation.
- It must be able to distinguish one company’s goods and services from another’s.
- It must not fall within the absolute grounds for refusal.
- It must not fall within the relative grounds for refusal.
An exclusive right granted for an invention. It protects the way something works, what it is made from or what it is used for, usually for 20 years from filing, and lets the inventor stop others making, using or selling the invention without permission.
A common error in business plans. Copyright never protects an idea or a business concept, and it does not protect names, titles or short phrases. Protect the name with a trade mark, a new mechanism with a patent, a distinctive look with a design, and know-how with trade secret measures.
Where IP law comes from and how SMEs enforce it
International treaties shape national IP law, but each country must enact them; in the UK a specialist court helps smaller firms enforce their rights.
| Body | Based in | Role |
|---|---|---|
| World Intellectual Property Organisation (WIPO) | Geneva | Named in the lecture as a source of IP law. GOV.UK adds that WIPO lists all national IP offices and offers services for businesses protecting IP internationally. |
| United Nations Educational, Scientific and Cultural Organisation (UNESCO) | Paris | Named as an international source of IP law. |
| World Trade Organisation (WTO), 1995 | — | Administers TRIPS, which brings Most Favoured Nation treatment and a dispute settlement mechanism to IP. |
| Council of Europe | Strasbourg | Monitors the Strasbourg Convention on patents (1963), the European Patent Convention (1973) and the Universal Copyright Convention, an alternative route to copyright protection for developing countries. |
UK law has also been influenced by European Community legislation. None of these international treaties or conventions is self-executing.
A treaty does not protect anyone by itself; each country must turn it into its own national law. That is why IP rights are territorial and why an entrepreneur has to look at the law of each target market rather than rely on the home-country right.
| Act | Rights it covers |
|---|---|
| Copyright, Designs and Patents Act 1988 (CDPA) | Copyright in original works; the lecture points to Parts I and II. |
| Trade Marks Act 1994 | Registration and protection of trade marks. |
| Registered Designs Act 1949 | Registration of designs, such as a product’s shape. |
| Patents Act 1977 | Grant and protection of patents for inventions. |
A specialist court established in 2013 to provide affordable justice to SMEs and individuals in IPR cases. Claims follow either a multi-track or a small claims track procedure.
Cases IPEC can hear
- Infringement of patents, designs, trade marks, copyright and other IPRs.
- Revocation or invalidity of patents, registered designs and trade marks.
- Patent amendments.
- Declarations of non-infringement.
- Misuse of trade secrets and other breaches of confidence.
GOV.UK explains that IPEC’s small claims track handles certain IP disputes worth £10,000 or less. For a UK-based SME, IPEC offers an affordable route to act against a copier at home. Abroad, you can only enforce rights you hold in that country, so enforcement belongs in your market-entry and funding plans.
Territoriality: protecting your IP in a foreign market
A UK right stops at the UK border. An SME entering a new market must secure protection there, ideally before it launches.
The lecture stresses that IPRs are territorial. The UK Intellectual Property Office puts it plainly: rights only give protection in the countries where they are granted or registered, so if you only have UK protection, others may be allowed to use your IP abroad without infringing your rights. A granted UK patent, for example, has no influence outside the UK.
To protect IP outside the UK you usually need to apply in each country where you want protection. Copyright is the main exception: because the UK belongs to international copyright conventions such as the Berne Convention, protection abroad is usually automatic in the same way as in the UK.
Timing matters. Business.gov.uk warns that most countries use a “first to file” system, so a business that delays may find someone else has registered its mark or invention in the target market first.
Two routes to protection abroad
- Apply to the IP office of each target country.
- Suits a venture entering one or a few markets.
- You may claim priority from your UK application if you file abroad within 6 months (trade marks, designs) or 12 months (patents), so the foreign filing counts from the UK date.
- Trade marks: the Madrid Protocol, run by WIPO, lets you apply for protection in over 130 countries through one application based on a home application or registration.
- Patents: the Patent Co-operation Treaty (PCT) lets one application seek protection in more than 150 countries; the application later enters a “national phase” in each chosen country.
- Designs: the Hague System, run by WIPO, allows one application designating several countries.
- EU: an EU trade mark or Registered Community Design covers all EU member states.
| Challenge | Where it appears | What it means for your plan |
|---|---|---|
| Home protection does not travel | Week 11 lecture; UK IPO guidance | Register the relevant rights in the target country, not only at home. |
| Someone files first | Business.gov.uk export guidance | Apply early, before someone else does. |
| Fakes and weak enforcement | Week 7 TNA case (Indonesia) | Budget for monitoring and local advice; registration alone may not stop copying. |
| Partners gain access to your know-how | Week 7 licensing drawbacks | A licensee can become a competitor; use confidentiality agreements and clear licence terms. |
| Entry mode changes the IP risk | Week 7 wholly-owned subsidiary benefits | Full ownership gives more control over IP than licensing or franchising, at higher cost. |
| Investors look for protectable advantage | Week 9 Sources of Finance reading | Venture capital investors prefer a patent or protectable idea; show in the funding plan which rights you hold or will apply for. |
Planning how your business will protect its IP in the new market
- 11. Audit your IP assets
List everything that makes the product or service distinctive: name and logo, product shape, working mechanism, software and content, recipes, know-how, supplier or customer lists. Use the six-type table to match each asset to a right.
- 22. Secure the home base first
Register the rights that need registration (trade mark, design, patent) under the UK Acts. An international trade mark application through the UK office must be based on an existing UK application or registration.
- 33. Check the target market’s rules
Because rights are territorial and most countries are first-to-file, research how protection works in the chosen country. The UK IPO publishes country guides and runs an overseas IP attaché network.
- 44. Choose the filing route
File nationally for one or two markets, or use the Madrid Protocol (trade marks), PCT (patents) or Hague System (designs) for several. Note the priority windows. Explain why the route fits your market choice and budget.
- 55. Protect secrets and partner relationships
Keep formulas, processes and supplier lists as trade secrets with non-disclosure agreements and need-to-know access. If you enter through licensing, franchising or a joint venture, set out in the contract who owns and may use the IP.
- 66. Monitor and enforce
Watch for copies and fakes in the new market, name the enforcement route (IPEC at home; local courts with local rights abroad), and include the cost of registration and advice in the funding plan.
Markers reward specific, reasoned protection, not a generic “we will patent it”. Name each asset, the right that protects it and the UK Act (CDPA 1988, Trade Marks Act 1994, Registered Designs Act 1949, Patents Act 1977), then explain how you will obtain protection in the target country and why that route suits your entry mode. The good sample reports model this: one combined copyright for website and advertising content with a trade mark for the name and logo and noted the need to monitor infringements; another registered its trade mark in the UK first and planned an EU trade mark as it expanded into Europe. Keep it concise and cite only module sources and official pages.
Assignment 2 briefing: reflecting with Gibbs’ cycle
The Individual Report ends with a reflection on your learning in the module; the tutorial briefing sets out Gibbs’ Reflective Cycle as the structure.
A framework for learning from experience. Its cyclic shape suits repeated experiences: you learn from what went well or badly and plan for next time.
- 1Description
Describe what happened in detail: when and where, who was present, what you and others did, the outcome, why you were there and what you wanted to happen. Keep feelings and conclusions for later stages.
- 2Feelings
Explore what you felt and thought before, during and after the experience, what others may have felt, and how those feelings affected what happened.
- 3Evaluation
Judge honestly what went well and what did not, including what you and others contributed, positively or negatively.
- 4Analysis
Make sense of the situation: why things went well or badly. This is the natural place to bring in academic literature and module theory.
- 5Conclusion
Summarise what you learned, how the situation could have been more positive, which skills you need to develop and what else you could have done.
- 6Action plan
Plan what you will do differently next time and how you will make sure it happens, for example how you will build the skills you need.
| Stage | Key question from the briefing | What it could look like in your reflection |
|---|---|---|
| Description | What happened? | The tutorial case studies you worked on, such as mapping the HOTTA kettle’s IP, and the part you played. |
| Feelings | What were you feeling before and after? | For instance, unsure at first how to tell a design right from a patent, more confident after the group discussion. |
| Evaluation | What went well, and what did not? | What your group identified correctly and what it missed. |
| Analysis | What knowledge can help me understand the situation? | Explain the result with module theory, for example the difference between protecting expression and protecting function. |
| Conclusion | What skills do I need to develop? | The lesson you take away for analysing a venture. |
| Action plan | How can I make sure I act differently next time? | A concrete step, such as auditing IP assets at the start of any new business plan. |
The examples are illustrations of the type of content, not model answers; reflect on your own experience.
The handbook asks you to reflect, using Gibbs, on your learning throughout the module, including tutorial case studies and how they helped you write the report, and to discuss difficulties, lessons learned and steps you will take to improve. Move beyond description: the Analysis, Conclusion and Action plan stages are where you show critical reflection.
Tutorial activities
Videos: what intellectual property can do for a business
The tutorial links two short videos: “What can Intellectual Property do for my business” from the Latin America IP SME Helpdesk, and “IP BASICS: What is Intellectual Property?” from the UK Intellectual Property Office. Watch them before the group task and note how each type of IP relates to a small business.
- 1.Which of the six types of IP right does each video mention, and what business asset is each one linked to?
- 2.Why would an SME, rather than a large firm, need to think about IP early?
- 3.Which of the rights shown would matter most for the venture you are planning for the Individual Report?
Group case: the HOTTA kettle
In groups, examine Household Appliances Ltd’s new kettle, the HOTTA. Work through every feature described in the case and decide which IP right could protect it.
- 1.Identify the categories of IPR protection that should be considered by the company in the case study.
- 2.Identify the legislation under which such protection will be received.
Assignment 2 briefing: draft your Gibbs reflection
Part 3 of the tutorial briefs the Individual Report and introduces Gibbs’ Reflective Cycle. Use the helpful questions for each stage to draft the outline of your reflection on the module.
- 1.Which tutorial case or activity in the module will you describe, and what was your role in it?
- 2.What went well and what did not, and which module theory helps explain why?
- 3.What will you do differently in a similar task, and how will you make sure it happens?
Cases
Key terms
- Intellectual property rights (IPRs)
- Rights regulating the creation, use and exploitation of mental and creative labour, giving property protection over intangibles such as ideas, inventions, signs and information.
- Territoriality
- An IP right only protects in the country or region whose law grants it; UK protection does not extend abroad.
- Copyright
- Automatic protection for the original, fixed expression of ideas (not the ideas themselves), lasting for the author’s life plus 70 years.
- Fixation, originality, expression
- The three elements a work needs to attract copyright.
- Trade mark
- A registered sign (word, symbol, colours, shape, letters or numbers) that identifies a company’s goods or services and distinguishes them from others’.
- Patent
- An exclusive right granted for an invention, protecting how something works, usually for 20 years from filing.
- Design right
- Exclusive rights to a product’s design; registration depends on the design’s individual nature, and the UK also protects unregistered designs.
- Trade secret
- Valuable business information protected by being kept confidential, such as a formula or a supplier list.
- Geographical indication (GI)
- A protected product name showing a quality or reputation linked to its place of origin, such as Scotch.
- TRIPS
- The WTO’s IP agreement (1995), bringing Most Favoured Nation treatment and a dispute settlement mechanism to IP.
- Not self-executing
- International IP treaties do not apply by themselves; each country must enact them in national law.
- Intellectual Property Enterprise Court (IPEC)
- A UK specialist court set up in 2013 to give SMEs and individuals affordable justice in IP cases, with multi-track and small claims track procedures.
- First to file
- The system in most countries under which the first applicant to register a right gets it, so a business should act early, before someone else does.
Check your understanding
Household Appliances Ltd wants to protect the unusual shape of its HOTTA kettle. Which right and statute fit best?
Flashcards
References and sources
As cited in the module materials. Check each against the original before using it in an assignment.
- Copyright, Designs and Patents Act 1988, c. 48. Available at: http://www.legislation.gov.uk/ukpga/1988/48/contents
- Exxon Corp v Exxon Insurance Consultants International Ltd (1981) Chancery Division, 22 January 1981.
- Gibbs, G. (1988) Learning by doing: a guide to teaching and learning methods. Oxford: Further Education Unit, Oxford Polytechnic.
- Patents Act 1977.
- Registered Designs Act 1949.
- Trade Marks Act 1994, c. 26. Available at: http://www.legislation.gov.uk/ukpga/1994/26/contents
Written from these course files
External pages used
- Copyright, Designs and Patents Act 1988 (legislation.gov.uk)
- Trade Marks Act 1994 (legislation.gov.uk)
- Video: What can Intellectual Property do for my business (Latin America IP SME Helpdesk)
- Video: IP BASICS — What is Intellectual Property? (UK IPO)
- Protecting your UK intellectual property abroad (UK IPO)
- Protecting your trade mark abroad (UK IPO)
- Protecting your patent abroad (UK IPO)
- Protecting your design abroad (UK IPO)
- Protecting your copyright abroad (UK IPO)
- Protecting your intellectual property when exporting (Business.gov.uk)
- Register a trade mark (GOV.UK)
- Register a design (GOV.UK)
- Protected geographical food and drink names: UK GI schemes (GOV.UK)
- Intellectual Property Enterprise Court (GOV.UK)
- Shh! The importance of keeping your trade secrets, secret (UK IPO blog)