Risk Arising in Tangible Property and Intellectual Property


Property rights in the automotive industry are of much importance as the livelihood of the companies can be significantly affected if the proper control measures are not implemented in their operations.   With respects to intellectual property, “Growth in the trade of illegitimate goods over the past 20 years is astounding, intellectual property
crime is one of the fastest growing criminal enterprises worldwide”. (Donohue, 2004)   Below is an outline of the types of property and how managers can mitigate infringements.

Tangible Property

Tangible property in the automotive industry comprises anything that we can see and touch.   This includes buildings, land, steel, aluminum, plastic, fabric, wiring, computers, rubber, and wood.

Tangible Property Protection

Two aspects of tangible property protection should be implemented.   Protection from outside threats can be mitigated through alarm systems, security fences, and security guards.   Protection from internal threats can be mitigated through background checks of all employees as well as screening of personnel and vehicles when they depart the premises.

Intellectual Property

Intellectual property in the automotive industry comprises:
Trade Secrets - Product formula, pattern, design, compilation of data, customer list, or other business secret.
Patents - Rights to an inventor for a set period in exchange for public disclosure of their invention.
Copyrights - Tangible writings are subject to copyright registration and protection.   This includes books, periodicals, newspapers, lectures, musical compositions, movies, radio and TV productions, maps, paintings, sculpture, photos, cartoons, and video files.
Trademarks/Service Mark – A distinctive mark, symbol, name, word, motto, or device that identifies the goods/services of a particular business.
Domain Names – Internet domain names companies use to market and sell their product or service.

Intellectual Property Protection