Professional Documents
Culture Documents
Technology-based assets
Trade secrets
Trade secrets include technical and commercial information that a business uses
internally, but which is maintained by the business as a confidential proprietary right. The
National Conference of Commissioners on Uniform State Laws, Uniform Trade Secrets Act
defines a trade secret as: “any information that can be a formula, pattern, compilation,
program device, method, technique, or process that (i) derives independent economic value,
actual or potential, from not being generally known to, and not readily ascertainable by proper
means by, other persons who can obtain economic value from its disclosure or use, and (ii) is
the subject of efforts that are reasonable under the circumstances to maintain its secrecy.”
Trade secret protection does not result in the grant of legal title to the creator of an
original work. Instead, trade secret laws protect creators of trade secrets from the
unauthorized disclosure or use of confidential information. The best example for a trade secret
in the formula for Coca Cola that managed to stay this way for over 100 years. Hybrid plant
varieties kept secret could also be a protected trade secret. Trade secrets may also include
inventions not yet at the patenting stage and customer lists.
Patents
The patents are intellectual property rights that create a link between innovation,
inventions and marketplace. It means a protection for the invention, but at the same time it
makes it public. It assesses the innovative and inventive performance of a country and it
shows the capacity to exploit knowledge and translate it into potential economic gains.
Between 1992 and 2002, the number of patent applications filed in Europe, Japan and
the United States grew by more than 40 percent. The number of patents filed with the
European Patent Office reflects that trend, going from approximately 100,000 applications in
1997 to nearly 193,000 in 2005. This is due, in part, to individual inventors, SMEs, large
companies and research institutions realising the importance and economic impact of
patenting their innovations.
The patents are used to spread the technological information. Patent law confers on
patentee right to exclude all others from manufacturing, using, or selling his invention; extent
of that right is limited by definition of his invention, as its boundaries are marked by
specification and claims of patent. The monopoly expires with the term of patent and others
may make and sell the thing patented, subject only to the rule against unfair trade.
Databases
However, there are many specialized proprietary databases that have broad
commercialization potential. Examples of this type of database are mailing lists, credit
information, financial studies or compilations, and scientific data. These databases are
sometimes bought and sold in their entirety, including the associated proprietary rights. More
often, the database in used to generate income either directly, through the sale or licence of
the data to customers, or indirectly, through the internal use of the data to perform a service
for customers.
The New Economy was marked by a development of computer, telecomunications and
internet companies (AOL, Amazon, eBay, and a raft of „dot-com” firms). Most Old Economy
companies have adopted to this trend though, and applied the new internet-driven
technologies. The Internet plays a big part in this tendency as business are ran using it because
it lowers dramatically the cost of communication. The vast stores of information in databases
is behind all these, having a great importance.
Software
References