Managing intangible assets: a necessity for today’s businesses
Value of intangible assets
A brand, software, customer data, know-how and goodwill often make up most of a business’s value. They must be identified, protected and documented, particularly before financing or a sale.
Protection tools
- Trademarks: registration with the Canadian Intellectual Property Office (Trademarks Act), renewable every 10 years;
- Copyright: protects software, texts and designs automatically; registration facilitates proof (Copyright Act);
- Patents: protect new, useful and non-obvious inventions for 20 years, provided the application is filed before public disclosure (one-year grace period for the inventor’s own disclosure in Canada);
- Industrial designs: protect the appearance of a product;
- Trade secrets: protected by confidentiality agreements and internal security measures (art. 1472 C.C.Q.).
Good practices
Keep an inventory of IP assets; obtain written assignments from employees, founders and contractors; register domain names; monitor infringement; and structure licences carefully (scope, territory, royalties, termination). Personal data must also be managed in compliance with Quebec’s privacy legislation (Law 25).
