De-Mystifying Intellectual Property

Intellectual property ranks among the most prized assets of today's leading companies. In fact, some experts estimate that intellectual property accounts for nearly 80 percent of the value of many Fortune 500 companies.

Notwithstanding its importance, the abstract and intangible nature of intellectual property can make it difficult to comprehend. The best way to begin to understand the term is to learn the five basic categories into which all intellectual property falls.

1. Trade secrets/confidential information: Any information that has economic value to its owner as a result of not being generally known or easily ascertainable to competitors can be a trade secret or confidential information — terms often used interchangeably. Trade secrets are generally technical information such as secret formulas and processes (the Coca-Cola soft drink formula is a classic example), while confidential information is typically less-technical secret information such as business