FAQs about Intellectual Property

In the context of employment if an employee has an idea, who owns it ?

Generally, if the idea arises from work which forms part of the employee’s duties, the company may well own the IP rights, but it is always better from an employers point of view for an employment contract to make specific provision about this. If the position is unclear  some factors which are likely to be relevant in any dispute include whether the idea or design was :-

  • created during office hours
  • using office equipment

What are the benefits of protecting Intellectual Property ?

  • Potential access to untapped markets
  • Prevents competitors copying  products or services.
  • Avoids loss of time and money spent on research, development and marketing
  • Ideas or products can be licensed, franchised or sold
  • Enhances possibility of raising finance based on product or idea
  • Assists in protecting a  valuable corporate identity and brand

What  are the main legal responsibilities in the Data Protection Act ?

Businesses which are subject to the Act need to note the following :-

  • The Information Commissioner must be notified about  processing and holding of personal data,  the type of information and purposes for which it is used.
  • Any personal data held by a businesst be processed according to the 8 Data Protection Act principles.
  • Sensitive personal data including health records, ethnic origin, trade union membership or political opinions is subject to aditional requirements and restrictions
  • Personal data held on an individual must be disclosed to that individual if an access request is rceived, subject to payment of a nominla fee of up to £10. Requests must be handled within 40 days of receiving the request or 40 days from receipt of funds.

What are the uses of a confidentiality agreement ?

These agreements, also know as non-disclosure agreements are becoming increasingly common bearing in mind the amount of sensitive information now held by business. Such agreements are also common as part of exploratory business discussions. In essence, such agreements protect :-

  • Trade secrets
  • Confidential information
  • Intellectual property
  • Copyrights
  • Trademarks
  • Business plans

In the event legal action is required, this is more secure with a confidentiality agreement, which, in addition to assisting in recovering losses may also include deterrent clauses such as a liquidated damages clause.