Intellectual Property

What Does Intellectual Property Mean?

Intellectual property refers to creations of the mind, such as a book or an invention, for which ownership can be legally attributed to a person. The use of these creations by others without permission is considered illegal.

Insuranceopedia Explains Intellectual Property

Intellectual property can refer to intangible creations—such as the contents of a book, a song, a slogan, a short story, or a scientific innovation—that can be copyrighted, patented, or trademarked for commercial purposes. The laws surrounding intellectual property are designed to protect its creator and owner.

For example, it is illegal for a singer to record a version of a song composed by another artist without first obtaining permission or paying for the recording rights. Businesses that produce creative or technical work often carry professional liability insurance, which can help pay for legal defense if a client claims their work copied someone else’s protected material.

The owner of intellectual property can purchase insurance that covers the legal process if their property rights are infringed. Some general liability insurance policies also include “advertising injury” coverage, which applies when a small business is accused of infringing a copyright or trademark in its marketing materials.