Risks Arising in Tangible and Intellectual Property

Risks Arising in Tangible and Intellectual Property

Law/531

"Tangible property is property that has physical substance and can be touched. Anything other than real estate or money, including furniture, cars, jewelry and china. Intangible property (example; a check account) lacks this physical quality," (Lectlaw, 2011). In regard to the automotive industry these properties could be identified as the vehicles, the equipment used to manufacture the vehicles, machines, office space for the corporation and office equipment as well. "Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce," (World Intellectual Property Organization, 2011). In regard to the automotive industry these properties can be identified as trademarks, trade names, and trade secrets.

In order to properly secure and protect tangible property rights it is essential that managers obtain a patent. On the tangible property level, the patents will protect machines, processes, any projected machine improvements, and designs. "Abstractions and scientific principles cannot be patented unless they are part of the tangible environment," (Cheeseman, 2010 p 112). In order for any of these items to be patented they must meet certain criteria. "To be patented and invention must be (1) novel (2) useful (3) non-obvious," (Cheeseman, 2010 p 112).

Intellectual property in the automotive agency includes the trademark. Trademarks are utilized to represent the company and promote sales. "In 1946, Congress enacted the Lanham Act to provide federal protection to trademarks, service marks, and other marks. This act, as amended is intended to (1) protect the owner's investment and goodwill in a mark and (2) prevent consumers from being confused as to the origin of goods and services," (Cheeseman, 2010 P 120).

In order to properly secure and protect intellectual property in the automotive agency, namely...