Understanding The Exception That Makes it “Intellectual Property”

The general rule is that “ideas are as free as the air,” as well they should be. Intellectual property, however, is the exception. Qualifying creative works, know-how, and commercial names or symbols that distinctively represent the goodwill of a business are capable of “ownership;” namely, they confer rights to exclude others from exploiting them.

If you live or work in or Silicon Valley, it is essential to have an experienced intellectual property lawyer in California who understands where the line is between “free as the air” and the proprietary exceptions. Similarly, in obtaining advice on your business, you should have an attorney who fully understands the “metes and bounds” of intellectual property protection. I am attorney Lawrence G. (Larry) Townsend, and I have been providing such services to my clients for more than 40 years.

Some of the types of IP services and representation I offer to my clients are listed below. Please call Call if you need help in any of these areas.

Trademark Law

One of the most common requests clients ask of me is to help them protect a new name or trademark for their businesses. Usually the first step is to conduct an appropriate search to determine whether the name is available, i.e., whether the name, or a confusingly similar name, has been adopted or registered by another party. If the name is available, trademarks are best protected nationally under the federal Lanham Act, 15 U.S.C. §§ 1051 – 1127.

Copyright Law

As a published novelist, I appreciate firsthand the importance of copyright protection from the standpoint of the creator. Unlike trademark law, which is governed by both state and federal law, copyright law is entirely federal. Under the U.S. Copyright Act, 17 U.S.C. §§ 101 – 810 and pursuant to international treaties, protection is afforded to original works of authorship, including written materials, software, multimedia, sound recordings, and works of visual and performing arts.

Trade Secret Law

Having written the story about the ultimate secret sauce, I thoroughly understand the importance of keeping under wraps my clients’ trade secrets, whether recipes, formulas, know-how, technical specifications, customer lists, customer requirements, pricing strategies and information, product specifications or other proprietary information. Trade secrets are protected under both common law and California’s version of the Uniform Trade Secrets Act: Civil Code Section 3426.

Valuing Intellectual Property Assets In California

Understanding the true value of intellectual property is essential for businesses, creators and investors operating in today’s innovation-driven economy. A thorough IP asset valuation in California helps clarify the financial and strategic worth of intangible assets.

Key components of an intellectual property appraisal:

• Identifying the type and scope of protection (trademark, copyright, trade secret, etc.)
• Evaluating market relevance and competitive advantage
• Reviewing licensing potential and revenue history
• Assessing enforceability and legal standing
• Considering jurisdictional factors unique to California

An IP worth assessment requires legal insight, industry context and a clear understanding of how intellectual property contributes to business goals. Whether a startup founder or a seasoned executive, an experienced California IP attorney helps ensure your valuation reflects both legal realities and commercial potential.

Valuation methods may include cost-based, market-based or income-based approaches depending on the nature of the asset and its intended use. For example, a patented medical device may be appraised based on projected licensing income. In contrast, a brand trademark might be valued by comparing similar marks in the marketplace. 

Businesses should also consider how IP assets affect investor confidence, acquisition terms and competitive positioning. A well-supported valuation can strengthen negotiations, support financial disclosures and reduce risk.

Intellectual Property Rights In California Employee Contracts

Employment agreements must carefully balance business interests with individual rights. Employers and employees alike benefit from clarity regarding employee IP rights in California, especially in industries where innovation is constant.

Effective IP clauses in employment contracts typically address:

• Ownership of inventions created during employment
• Scope of work-related intellectual property
• Disclosure obligations for new ideas or technologies
• Post-employment restrictions on IP use
• Compliance with California Labor Code Section 2870

Navigating employee invention rights requires more than boilerplate language. California limits employer claims over inventions developed entirely on personal time without company resources. A well-drafted agreement protects proprietary interests while respecting statutory boundaries.

Employers should clearly define what constitutes “work-related” IP and specify any exceptions to ownership claims. Employees, particularly those in engineering, biotech or software development, should maintain records of independent projects and fully understand their disclosure obligations. 

Both parties benefit from transparency and documentation, which can prevent future disputes and clarify expectations. In fast-paced industries, even informal side projects may raise questions of ownership, making it essential to address IP terms before innovation occurs.

Contact An Established IP Attorney

To discuss your intellectual property questions or concerns, please call my office to arrange a consultation or complete the online form.