The Concept of Intellectual Property
Intellectual property is a form of intangible property — the result of a person’s mental and intellectual effort, a product of the mind (thinking, ideas) — which, like any other form of property, is subject to legal protection. Intellectual property rights protect inventions, creativity, and innovation.
The concept of intellectual property encompasses:
- Trade secrets,
- Copyrights and related rights,
- Industrial property,
- Industrial designs,
- Trademarks,
- Patents and utility models.
It is important to note that each country defines the concept of intellectual property according to its national laws. Therefore, when doing business internationally, one must take into account the legal framework and practices of each specific country. Moreover, citizens of European Union member states can choose to protect their intellectual property either nationally (e.g., in the Republic of Lithuania) or throughout the entire EU.
Trade Secrets
A trade secret is information that has real or potential commercial value because it is not known to third parties and is not accessible to the public, provided that the owner or the person to whom it was entrusted has taken reasonable steps to keep it confidential.
Each company (management body) defines what information is considered a trade secret. Such information must be confidential, relevant, and specifically identified.
A trade secret may include unique company data, manufacturing methods, technological innovations (such as data processing methods), client contracts, client lists and their details, contract terms, pricing principles, and other information considered confidential under internal policies or agreements. This may also include information such as employee salaries, payroll calculation methods, and more.
Thus, a trade secret is information that gives a competitive advantage in the market and should not be disclosed to competitors.
To protect trade secrets, employers must include confidentiality clauses in employment contracts. In such cases, employees are introduced to the list of confidential information and assume liability for maintaining secrecy.
Those responsible for trade secret protection may not disclose such information to other employees (unless necessary for their job functions) or to third parties. The duty to maintain confidentiality applies not only during employment but also after working hours, termination of employment, or transfer to a different position.
Employees who have confirmed in writing that they are familiar with the list of trade secrets are subject to criminal, civil, administrative, or disciplinary liability for unlawful disclosure — including in Lithuania.
Copyrights and Related Rights
Copyrights are property and moral (personal) rights of the author to their intellectual creation (artistic, technical, etc.).
Property rights allow the author to control how their work is used (publication, distribution, public performance, release, etc.) and to earn income from such use.
Moral rights include the right of authorship, the right to sign the work with one’s name, the right to have the name mentioned on the book cover, and so on.
Copyright protection applies to original literary, scientific, and artistic works expressed in any objective form. For a work to qualify as a copyrighted object and receive protection, it must meet three criteria: originality, creative effort, and expression in an objective form.
The subjects of copyright are the authors and also individuals or legal entities who hold exclusive property rights to the work, as well as their successors. In the Republic of Lithuania, copyright protection lasts for the author’s lifetime and 70 years after their death.
Registration of a work is not required — protection arises from the moment of its creation. The author only needs to be able to prove the date of creation or demonstrate the originality and novelty of the work. In Lithuania, protection applies to literary works (books, brochures, articles, diaries), oral works (speeches, lectures, sermons), stage works (dramas, choreography, performances), musical and audiovisual works (films, TV programs), radio broadcasts, works of sculpture, painting, graphics, photography, architecture, applied art, illustrations, maps, plans, and others.
Not considered objects of copyright are: ideas, processes, methods of operation, concepts, principles, discoveries, single facts; legal acts, court decisions, verdicts, urban development documents, and other official documents; state symbols and signs (flags, coats of arms, anthems, currency); officially registered legislative proposals; daily news reports; and folklore.
Regulation of Related Rights
Related rights are the rights of performers, phonogram producers, broadcasting organizations, and producers of the first recording of audiovisual works (films), ensuring the protection of their financial and moral interests.
Holders of related rights have the exclusive right to authorize or prohibit the use of performances, phonograms, broadcasts, and audiovisual recordings (films), and to receive remuneration for such use.
A performer, regardless of their exclusive property rights, has personal non-property rights to their live performance or its recording. The performer has the right to be identified as such when the performance or its recording is used, and to oppose any distortion, alteration, or other interference that could harm their honor or reputation.
In the Republic of Lithuania, property rights of performers are protected for 50 years from the date of performance. Rights of phonogram producers are valid for 50 years from the date of recording. Broadcasting organizations’ rights are valid for 50 years from the date of the first public transmission of the broadcast, regardless of whether transmitted via wire, wireless, cable, or satellite. Rights of producers of the first recording of an audiovisual work (film) are valid for 50 years from the date of recording.
Industrial Property
Industrial design refers to the artistic design and implementation of projects for mass-produced items. A design is recognized as the appearance of a product or its part, formed by specific characteristics of the product or its ornamentation—lines, contours, colors, shape, texture.
Industrial designs can be flat (e.g., textile items, wallpapers, carpets) or three-dimensional (e.g., cars, electric devices, mobile phones, furniture, or kitchenware shapes and decorations). In some cases, the color, texture, or material of a product may also be considered as part of the design.
To be protected in Lithuania, an industrial design must be new and possess individual character. A design is considered new if no identical design was made publicly available before the filing (priority) date. A design has individual character if the overall impression it gives to an informed user differs from the impression given by any earlier design available to the public.
Legal protection is granted in the Republic of Lithuania to a design registered in the Lithuanian Design Register, unless international agreements provide otherwise. The initial term of protection is 5 years from the application date, renewable four more times for 5 years each, up to a maximum of 25 years.
Without the owner’s consent, third parties are not allowed to manufacture, import, export, sell, offer for sale, or lease products which incorporate a registered design or its part.
Trademark
A trademark is any sign used to distinguish one person’s goods or services from those of another, and which can be graphically represented.
A trademark may consist of various symbols, combinations, or visual elements such as words, surnames, slogans, letters, numbers, drawings, emblems, or spatial features of the product itself—its appearance, packaging, shape, color, color combination, or a combination of these elements.
Trademarks help distinguish products of different companies or various products of a single company, indicating the specific business offering them.
Trademark protection is essential in Lithuania to prevent copying or counterfeiting, which could cause significant losses to a company. Counterfeit products bearing such marks often fail to meet quality standards, leading consumers to lose trust in the brand. Priority rights to a trademark are granted based on the filing date. To be protected in a specific country, a trademark must be registered there. According to the Law on Trademarks of the Republic of Lithuania, trademark protection lasts 10 years from the date of registration and must be renewed at the State Patent Bureau.
The owner of a registered trademark has the right to prohibit others from using, without consent, any identical or similar sign for goods and/or services for which the trademark is registered. The owner may also prohibit labeling goods or packaging, importing or exporting marked goods, or using the sign in commercial documents or advertising. Trademark infringement may be subject to legal action in the Republic of Lithuania.
Trademarks may be individual or collective. Collective trademarks are typically owned by trade associations or unions, managed in the name of their members, and used to mark products with specific distinguishing features. A collective mark is registered on behalf of a union only if the application is accompanied by usage regulations approved by the union.
Patents and Utility Models
A patent is a form of protection for inventions. The state grants the inventor exclusive rights to their creation and provides legal protection for inventions.
The patent system operates as a type of exchange between society and the inventor. Society protects the inventor’s rights and grants exclusive rights for commercial gain, while the inventor discloses the details of the invention. Patent law is characterized by limited legal protection for the patent holder. This limited protection is intended to encourage the inventor to implement their invention as quickly as possible. After this period, the invention becomes public domain.
To protect an invention with a patent, it must meet the criteria of novelty, inventive step, and industrial applicability.
An invention is considered new if it is not part of the prior art. Prior art includes everything that was publicly disclosed or used in the Republic of Lithuania or abroad before the patent application date, or before the priority date if priority is claimed.
An invention is deemed to involve an inventive step if, based on the prior art, it is not obvious to a person skilled in the relevant technical field. The solution must differ from others obtained by known methods of verification or by means unusual for professionals in the field.
An invention is industrially applicable if it can be manufactured or used in industry, agriculture, healthcare, or other fields—i.e., the developed solution must be more useful than existing equivalents. Its usefulness must be proven or described.
In certain cases, patent protection is not granted. The following are not considered inventions:
- Discoveries, scientific theories, and mathematical methods;
- The external appearance of products;
- Rules, methods, and plans for games, intellectual or economic activities, and computer programs;
- Methods of presenting information (e.g., tables);
- Inventions whose industrial application would be contrary to public order or morality.
Stages of patent issuance:
- Filing a patent application with the State Patent Bureau (the application must include: a request for a patent; description of the invention; one or more claims; drawings if needed; abstract; proof of payment of the fee; document proving the right to file the application if filed by someone other than the inventor; statement of inventorship; proof of deposit of biological material, if applicable);
- The Patent Office provides a search report in the register of prior inventions;
- Publication of the application 18 months from the earliest filing date;
- Examination: the Patent Office checks if the application meets formal requirements and whether the invention fits the definition of a patentable invention. The applicant may be contacted to amend the application if necessary;
- Patent grant: if the invention meets the patentability criteria and the applicant pays the required fee, the patent is granted within 6 months and published.
The right to a patent belongs to the inventor or a successor in title, or the employer if the invention is made in the course of employment. If the invention is created within a company, institution, or organization performing research or development work under a contract funded by a client, the right to the patent is determined by that contract. If the employer waives the right or fails to notify the inventor within four months of the intention to use it, the right passes to the inventor. Co-inventors have equal rights unless agreed otherwise.
Exclusive Rights, Patent Validity, and Utility Models
The patent owner has the exclusive right to use the invention (sell, import, export, etc.) and to prohibit others from using it without permission. The owner may also transfer their rights or license them to others.
A patent is valid for 20 years from the application date. If the invention concerns the active substance of a medicinal product or plant protection product, a supplementary protection certificate may be issued for up to 5 additional years after patent expiry.
Inventions can be registered not only as patents but also as utility models. A utility model is similar to a patent and must be novel and industrially applicable, but it does not require a high level of inventiveness or non-obviousness. Utility models are generally used for less complex inventions or those with a shorter commercial life. Their registration process is simpler and cheaper than for patents. Utility models and national patents issued by countries that do not conduct thorough examinations offer faster protection but are often considered to provide lower-quality legal protection, which increases legal uncertainty.
If someone violates your intellectual property rights (e.g., copies your designs, trademarks, or patents), you may:
- Contact the infringer directly, demand they cease illegal activity, attempt to resolve the situation, and request financial compensation;
- Notify customs authorities of suspected counterfeit goods being imported into the country;
- File a civil lawsuit in court, allowing you to claim damages, seek compensation, and request an injunction;
- File a complaint with the police for administrative or criminal proceedings.