Risk Arising In Tangible Property And Intellectual Property

In the automotive industry the rights given to the property is given much value as the source of revenue of the companies can be considerably exaggerated if there are no proper control measures to be implemented in their operations.

Donohue in 2004 stated that “With respect to intellectual property, “Growth in the trade of illegitimate goods over the past 20 years is astounding, intellectual property crime is one of the fastest growing criminal enterprises worldwide”.”

• Tangible property: In the automotive industry it comprises of things that we can see and touch and it includes rubber, wood, land, steel, aluminum, fabric, wiring, computers etc. There are two types of protection that has to be given to the tangible property:
  • Outside threats: can be mitigated by using security fences, alarm systems and security guards etc.
  • Internal threats: can be mitigated by checking the employee’s vehicles, baggage when they leave the premises, screening of personnel.

• Intellectual property: In the automotive industry it comprises of copyrights, patents, trade secrets, trade marks, domain names etc.

  • Copyrights – substantial writings and subjected to copyright protection and registration. E.g. books, newspapers, radio, movies etc.
  • Patents – rights that is being given to the inventor.
  • Trade secrets – pattern, formula for the product, design, customer list, other business secret etc.
  • Trade marks – a symbol, name or motto which identifies the goods or the services that are done.
  • Domain names – used in the internet to advertise their products for sales/service.

The role of the intellectual property rights (IPRs) and intangible assets in trade is insufficiently unstated. Some of the questions that need an answer in order to understand IPRs in a better way are listed below:

• Who owns it (could I bring a claim or could someone bring a claim on me)?
• What is their importance (and hence level of risk)?
• What are the IPRs used in the industry?