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Intellectual property (IP) protection is important for any business owner in England. The IP rights holder usually has exclusive rights over intellectual property. Therefore, if you wish to use the protected IP, you must obtain the right holder’s permission. The law provides various ways to obtain the right to use another’s property. In this article, we will discuss how you can use another business’ intellectual property in the UK.
LegalVision’s Trade Mark Essentials Guide provides valuable information for any business looking to register or enforce a trade mark.
Intellectual Property is Property
Intellectual property can be highly valuable. As a result, businesses take steps to protect their rights. Despite the fact that intellectual property is intangible, you must ask for permission to use it in the same way as any physical piece of property. Usually, this involves paying a fee. The price is usually dictated by market conditions and your negotiating position with the rights holder.
Most forms of IP are registered with the Intellectual Property Office (IPO). Registration typically gives the owner exclusive rights over the IP. This means that if another business were to use the IP without the owner’s permission, the owner could claim against the infringing party. Usually, the infringing party will have to pay compensation and associated fees.
How You Can Use Another Business’ Intellectual Property
Licensing Trade Marks
If you are seeking to use a particular trade mark that is registered with the IPO, you can search the online database for the owner of the mark. Using this information, you can then contact the owner to request permission to use it. You can usually do this by requesting to licence the mark or offering to buy it. The difference between the two is that licensing allows you to use the mark in agreed ways whereas buying a trade mark would transfer ownership completely.
A licence to use a trade mark is done by drafting a formal agreement. Both parties agree that a business can use the mark in certain ways or in particular jurisdictions. The agreement will also contain the length of the licence and how much you will pay the owner. A licensing agreement is a complex arrangement and should be drafted by an intellectual property solicitor. It is a special kind of contract, which means that if either party breaches the conditions, the other party can sue.
Another option is a coexistence agreement. This is where you and the original mark owner enter into an arrangement to use the same trade mark in the same areas of industry.
Buying Trade Marks
Alternatively, you can negotiate a purchase of the trade mark. This can be particularly costly, depending on the brand. However, you obtain the exclusive right to use and licence the use of the mark to others. You will need to inform the IPO of the change of ownership. You can do this via an application and paying a fee (currently £50).
Design Rights
Design rights can be licensed and bought/sold in the same way as trade marks. When they are registered with the IPO, it grants the owner of the registration exclusive rights over the usage of the design and therefore, you must obtain express permission from the owner to use it.
Using Another Business’ Copyright
Copyright is different from trade mark protection because copyright protection arises automatically once an original piece of work is created. The owner of the copyrighted work is usually the creator. An exception is if the work is created by an employee in the course of business. Employment contracts usually dictate that the business owns the copyright.
You can choose to license or buy copyright in the same way as trade marks. If the owner permits you to license the copyright, they can either allow you exclusive use of the work for the duration of time agreed to or limited use, which will be limited to specific instances or circumstances. If you are granted exclusive use, the copyright owner will not be able to use the work during that time. However, if you are granted limited use, the copyright owner will still have usage abilities.
how you can use another business’ intellectual property
Buying Copyrights
Buying a copyright is slightly more complex than trade mark purchases. This is because even though the ownership rights transfer to you, the moral rights of the work subsist with the creator.
Moral rights include the rights to:
- be recognised as the original creator;
- object to the ways in which the work is used if it could damage the creator’s reputation; and
- object to alterations to the work if it would be prejudicial to the creator.
Moral rights cannot be sold or licensed. Therefore, the creator will hold these rights regardless of your ownership rights. However, moral rights do not themselves hold any financial value.
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Key Takeaways
Intellectual property in England is an important asset for businesses and provides the owner of the IP exclusive rights over usage. Therefore, if you used another business’ IP without their permission, they could commence legal action against you and potentially obtain financial compensation for any damages that have resulted. You should therefore negotiate a licence to use the intellectual property with the owner. Alternatively, you may wish to purchase the rights, which will grant you exclusive rights over the property. There are different considerations depending on the form of intellectual property.
If you need help or advice about how you can use another business’ intellectual property in the UK, our experienced intellectual property lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
You are allowed to use another person’s intellectual property as long as you have the permission to do so. Intellectual property is a highly valuable asset to businesses and permission is often obtained via formal arrangements through licensing or purchasing the IP rights.
In the same way as tangible property, intellectual property can be transferred from one person or company to another. This can be done by purchasing the intellectual property or obtaining a licensing agreement which permits you to use the intellectual property in certain ways for a fixed period of time.
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