What is the difference between tangible property and intellectual property?

Answer 1

The biggest difference, and the one cited most frequently in arguments about copyright and filesharing, is that if I take your physical property, you don't have it anymore. You had a screwdriver, now I have a screwdriver. But with intellectual property, there's no thing changing hands: you had a song, now we each have a song.

Intellectual property rights also expire after a set period of time. After a while, you can use my song without my permission. But you always need permission to use my screwdriver.

The most esoteric difference is that real property has inherent value, while intellectual property does not. An actual car has a known worth; the patents that make up that car, and the trademarks the car is sold under, only have value in relation to the actual car.

Answer 2

To further understand Intellectual Property here's a simple comparison between tangible property and intellectual property:

Tangible Property

Intellectual Property

If you want to permanently transfer tangible property, you sell that property.

If you want to permanently transfer intellectual property, you assign rights in that property

If you want to acquire temporary rights to tangible property such as a house or car, you rent or lease them from someone.

If you want temporary rights to someone else's intellectual property, you license those rights.

To relinquish your rights to tangible property without receiving any compensation, you give away the property.

To do the same thing with intellectual property rights, you would waive those rights.

If someone takes your tangible property without your consent, that property is considered stolen.

If someone uses your about patents, copyrights, or trademarks without your permission, those rights are considered to be infringed

If someone uses your trade secrets without permission they are misappropriated.

When any property, tangible or intangible, is sold or assigned, the new owner has full control over that property and can resell it, change it, destroy it, or give it away without the consent of the former owner.

When intellectual property is licensed, the licensor may impose restrictions on what the licensee can and cannot do with the licensed material. Those uses and restrictions would be included in the license grant.

Items that are sold usually have minimal restrictions and can be resold or transferred

Intellectual Property usually includes restrictions such as how long the licensee can continue to use the intellectual property, whether the licensee can copy the Intellectual Property, and whether the licensee can disclose the intellectual property to others.

Hardware is sold

Software is licensed

The purchaser has full ownership subject to any liens or encumberances

The licensee has a right to use the licensed materials subject to the terms and conditions imposed by the licensor in the license grant .

Answer 3

Real property is a thing that existed, and someone took ownership of it in some manner: I bought a piano. Intellectual property is created by someone's mind: using my imagination and skill I wrote a song.

The biggest difference--the one that makes intellectual property frustrating to talk about in the context of real property--is that although both can be bought and sold, real property physically exists in limited amounts, and intellectual property just doesn't. If you buy my piano, I no longer have a piano; if I sing my song to you, we both now "have" that song, to the extent that there's anything to "have" at all. It's the difference between taking a candle from someone, and simply lighting your candle off of theirs.

Answer 4

Industrial property represents an asset that is physical asset, such as a building or computer or machine. Intellectual property refers to patents and trademarks.