Protecting Your Intellectual Property
by Takara Alexis

Among its many influences on modern culture, the Internet has provided a virtually unfettered outlet for writers, artists, musicians, inventions and ideas. Today more than ever, an individual's creative contributions can take on lives of their own, generating wealth in ways and from ideas the author or inventor never imagined. Such intellectual property has value under the law and should be included in an estate plan to defend heirs' rights to preserve those creations and any financial gains that are related.

The convolution of family relationships - first wife, second wife and children, third wife and step-children - shows the need for certain instructions in the estate plan and related documents such as a will for who will receive the rights and responsibilities for the intellectual property.

Intellectual property, defined by law as expressions of ideas and knowledge, fits into two categories: works protected by copyright, such as writings, music and visual art, and those protected by patents, including processes, machines, designs for manufactured items, software and internet applications and food products.

Copyright protection begins at the moment of creation, with no action needed by the creator, and lasts 70 to 120 years, depending on the date of creation. Patent protection requires an application and approval from the U.S. Patent & Trademark Office and lasts 14 or 20 years from the date of application, depending on the type of patent.

Both types of protection could be transferred within the creator's lifetime or at death by a will or probate. Patent owners are able to transfer the ownership of the patent or grant licensing rights by means of a written document. Copyright transfers need a written document for restricted rights but not for nonexclusive rights. Additionally, special copyright rules apply for works created under a contractor employment of another party, with ownership of the copyright usually residing with the creator unless otherwise specified in writing. If the creator sells the work itself, he usually retains the rights to the idea itself.

If that sounds complicated, you're correct. That's why legal and estate professionals usually recommend that people who anticipate bequeathing intellectual property rights name a qualified expert in the area to manage those issues. An entrepreneur whose intellectual property might be connected to his business should seek tax advice on transferring those rights to his heirs. Figuring out the value of these assets might be difficult, so professional help will be important in that area as well.

People often think only of tangible assets - real estate, securities and other personal property - in establishing a budgeting plan. Those whose work touches on copyright or patent issues should also add detailed plans for those assets as well.