“You need to be careful if you have an idea, to not give it away,“ said attorney Jack Gross of Gross McGinley, LLP at a one-hour seminar on “Protecting Your Most Valuable Asset” held Oct. 16. The Small Business Development Center sponsored the session at Lehigh University’s Mountaintop campus.

Gross explained what is considered intellectual property (IP) and what steps are necessary in establishing and protecting ownership of it. Trademarks, service marks, copyrights, trade secrets, and patents are all considered intellectual property.

Trademarks are only protected through use and should not describe the product or service itself, according to Gross. He cited Apple as the iconic trademark for computers, as well as Apple Records. Since each refers to different classes of goods and services, the companies agreed in 1978 there was no infringement. “They settled that case again 20 years later, for many, many millions of dollars right before Apple Computer, then just Apple, introduced iTunes,” Gross said. He said trademarks can be words, like “Nikon,” or symbols, such as the “Nike Swoosh.” Gross advised that one should research their mark to be sure no one else has already registered it, and work to avoid it becoming a common word ,like what happened to “Zipper.”

A copyright can be applied to “any original work that’s fixed in a tangible medium,” said Gross, citing the act. As soon as the idea is “out of your head” and rendered in a tangible medium, it is legally copyrighted. “Registration lasts the author’s life plus 70 years,” said Gross. If a company W2 employee creates something that is copyrighted, the employer owns it as a work for hire. If a contractor’s original idea is created for a client, the contractor owns it, unless it is assigned by the author over to the client, usually for a higher fee. A photo, for example, can be licensed for one-time use, multiple use, use only in the U.S. or outside the U.S., while the photographer still retains the copyright. Coding for software would be considered copyrighted material.

Patents are secured through the U.S. Patent office for products, machines, devices and pharmaceuticals. “If you have a patentable idea,” said Gross, “you really want to speak to a patent lawyer.” He warned about what he called “patent trolls.” They buy up patents to put themselves in a position to “sue everybody” for potential patent infringement.

Trade secrets, such the recipe for Kentucky Fried Chicken, or processes and customer lists, get protected with non-disclosure contracts signed by business partners or employees. Sensitive company information should only be contained on company-owned cell phones, computers, and other devices which stay with the employer.

Gross advised, when registering a new trademark do not use the ® symbol; use a TM or SM symbol for trademark or service mark.

Data security is of vital importance to small businesses, as well as large corporations. Gross cautioned that hackers usually target the large companies through their vendors.

The SBDC at Lehigh University provides education and consulting services to Pennsylvania entrepreneurs and small business owners at no charge. This center and others throughout the state are funded by federal and state grants.

For information, visit sbdc.Lehigh.edu