IP Protection Agreement

As of 2010, the global value of intellectual (IP) property runs between $5 and $5.5 trillion, according to consulting firm A. E. Feldman Associates. Thieves steals up to $600 billion worth of IP each year. IP protection agreements can help mitigate this loss.

IP Protection Agreements in Business

Companies dealing with contractors and their employees usually sign a proprietary information and inventions agreement or nondisclosure agreement. Proprietary information and inventions agreement specifically state that the individual will not reveal details of a company's IP during employment. Nondisclosure agreements are less nuanced and require the signer to restrict revealing confidential information to a third party.

Global IP Agreements

Most countries have treaties agreeing to respect the IP of other nations. Members of the World Trade Organization, for example, have the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to protect medical knowledge and other high tech information.

Benefits

All businesses with IP should draft an IP agreement, according to BusinessWeek. Without IP protection, other people and businesses can infringe on your product or idea and ruin your reputation in the marketplace.

References

• A. E. Feldman: U.S. Firms Paying High Price for Global IP Theft
• BusinessWeek: Protecting Your Intellectual Property
• World Trade Organization: Intellectual property: protection and enforcement