Application of IP law in different commercial contexts

Now that you’ve started work on defining your audience and crafting your value proposition, you need to select the IP approach that best suits your idea.

IP can be used in a range of economic sectors and commercial contexts. Here are some examples that demonstrate how different types of IP apply in different contexts:

1. Primary sector

Activities in which an organisation would be involved in extracting and harvesting natural resources. The industries that constitute the primary sector include agriculture, fishing. forestry, quarrying, oil extraction and mining.

Patents are used in this sector to protect innovative designs of tools or scientific methods in plant breeding.

Confidential information (for example, trade secrets) could also be used to protect secret formulas.

If this sector is relevant for your idea, watch this video which discusses the rights of plant breeders.

2. Secondary sector

Here, organisations take natural resources extracted by the primary sector and turn these resources into products. This sector is usually referred to as the manufacturing sector. It includes automotive, chemical engineering, electronics production, construction and large-scale food production.

Design Rights are used in this sector to protect product and packaging designs.

Patents are also used to protect inventions of machinery and manufacturing processes, alongside formulas in chemical engineering.

If this sector is relevant for your idea, read this article on the history of the iconic Coca-Cola contour bottle and how the founders of the company took steps to protect the brand through its packaging.

3. Tertiary Sector

Also known as the services sector, these organisations include hospitality, retail, health care, tourism and entertainment alongside financial services and education. This sector facilitates the distribution of goods from the secondary sector to consumers.

Copyright is used in this sector to protect literature, film, plays, music, performance, journalism and many aspects of the entertainment industry, as well as architecture, photography, art, sculpture and graphic design. It also protects software and applies to apps, FinTech, streaming platforms and video games.

Trademarks protect brands in all three sectors and franchises of well-known brands operate by licensing their name.

If this sector is relevant to your idea, watch this video explaining how McDonalds uses franchising to build its business.

Learning Journal

Does your idea fall into the primary, secondary or tertiary sector? Does the type of IP you identified in Step 1.5 still apply to protecting it? Make a note of any questions you have.