Intellectual property ("IP") is a form of intangible asset that can be owned, transferred and licensed.  IP generally includes patents (utility, design, and plant patents), trademarks, copyrights and trade secrets, as well as certain additional acts labeled "unfair competition." 

Most forms of intellectual property can be considered as a contract between the government and creators.  A basic underlying public policy behind intellectual property protection is to promote creativity for a better society.  The U.S. Government provides limited protection to creators in exchange for a full disclosure and subsequent use of the creations.  The intellectual property protection law is designed to balance the creator's economic reward and the benefits that society receives.

Different categories of intellectual property protection cover different aspects of a product or service.  Thus, it is possible to obtain patent, copyright, trademark, and trade secret protection on the same item.  For example, Ford Motor Company may acquire various types of protection over an automobile;  utility patents on the design and manufacture of particular components, such as the brakes or engine design; design patents on the ornamental appearance of the car body; trademarks for the marks "FORD" and "MUSTANG"; copyright protection for advertisements and literature for the car; and trade secret protection over any design or marketing information which is not published or otherwise publicly available.  All of these types of intellectual property coexist covering various aspects of the single product.

In the U.S., most forms of intellectual property are governed under federal law.  The U.S. government established the Patent and Trademark Office (PTO) under the Department of Commerce for administrating issues relating to the granting of patents and the registration of trademarks.  The U.S. Copyright Office is established under the Library of Congress for administrating copyright registration issues.  Federal patent and copyright law may pre-empt similar state laws.  The U.S. federal courts have exclusive jurisdiction over patents and copyrights and have non-exclusive federal question jurisdiction over trademark-related issues.  28 U.S.C.     § 1338.  Trade secret law and most unfair competition claims arise under state statutory and common law.

Intellectual property protection has played a vital role in promoting technological development.  Because of the intellectual property protection, individuals and corporations are more willing to invest in research and development for new science and technologies and in the marketing of new products.