In order to protect and enhance the value of corporate assets, a business manager must know what property needs to be protected.
There are differences between the ways the law protects the different types of property: real property, personal property, and intellectual property.
Select one type of property. Explain two legal risks with that type of property. Why is it important for a manager to be aware of these specific risks?
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One type of property that can be focused on is intellectual property. Intellectual property refers to intangible creations of the human mind, such as inventions, designs, artistic works, symbols, and names. Two legal risks associated with intellectual property are infringement and theft.
1. Infringement: Intellectual property infringement occurs when someone uses, copies, or reproduces someone else's protected intellectual property without permission. This can include patents, trademarks, copyrights, or trade secrets. Infringement can lead to financial loss, damage to brand reputation, and even legal consequences. For example, if a company's logo is copied and used by a competitor, it can confuse customers and harm the original company's business. The manager must be aware of the risk of infringement so that they can take appropriate steps to protect their company's intellectual property by obtaining necessary patents, trademarks, and copyrights.
2. Theft: Intellectual property theft involves unauthorized acquisition or usage of protected intellectual property. It can occur through physical theft or by theft of digital copies of copyrighted material. This risk is particularly prevalent in the digital age, where unauthorized downloading, sharing, or piracy of music, movies, or software is widespread. Managers need to be aware of the potential theft of their company's intellectual property, as it can result in lost revenue and market share. By implementing security measures to protect digital assets and educating employees about intellectual property rights, a business manager can reduce the risk of theft.
It is vital for managers to be aware of these specific risks related to intellectual property because it is an intangible asset that can significantly contribute to a company's competitive advantage and overall value. Understanding the legal risks associated with intellectual property allows managers to make informed decisions about protecting their company's inventions, brand names, creative works, and confidential information. By being proactive in safeguarding intellectual property, managers can minimize the potential for financial losses, lawsuits, and reputational damage, while maximizing the value and capitalizing on the competitive advantage offered by their company's intellectual assets.
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