Whether your company created a mobile application or algorithm, protecting intellectual property (IP) is essential. Developers and tech companies often struggle to determine which legal protection applies to their products. Copyright and patent law both protect IP, but in different ways. To make an informed decision, it can help to know the advantages of each one.
How does copyright protect IP?
From the moment you create your software, you generally have legal ownership of its source code. Under federal law, software code is automatically protected as an original work. This means no one can copy, distribute or modify another entity’s code without permission.
However, copyright only protects the code itself. It does not protect the function or concept behind it. Other businesses or developers can still create software with similar features.
Moreover, automatic copyright ownership does not provide complete legal protection. To obtain enforcement rights, you may need to register the copyright.
What are the benefits of registering a copyright?
Automatic copyright establishes your ownership. However, it does not allow you to enforce that ownership in court.
As a registered owner, you may file for infringement against a competitor that copies your code. You may also recover litigation fees and statutory damages.
When should companies consider patent protection?
If your software involves an innovative technology, a patent may apply. Patents protect what the software does, not the code itself.
Unlike copyright, a patent prevents competitors from using an individual’s invention. However, not all software qualifies for a patent. It must meet the following requirements:
- It must be new and undisclosed to the public before filing
- It must represent a significant advancement beyond existing solutions
- It must provide a practical application
- It must involve a specific technical process, not just an abstract idea
Patents offer broader protection, but it often comes at a higher cost. Applications require significant financial investment and may take years to be approved.
Planning an IP protection strategy
The level of protection depends on the nature of your software. Business revenue can also play a role. Software with significant commercial value typically requires multi-layered protection.
When developing an IP strategy, it may be beneficial to seek legal counsel. This can help you determine what fits your business needs and budget.