Understanding the Different Types of Property Laws

It is for new business owners to know the individual laws that affect their companies' futures. Every year, people bring lawsuits against companies and win, for several different reasons. According to Edwards & et al (2006), 52 percent of plaintiffs win their cases in a lawsuit for property related causes. However, there are "two types of property laws", one is "Intellectual Property" and the other is "Real Property". These special laws protect the "consumer" and the "business owner" from shady deals or characters. Every business owner must "observe" these laws or risk "losing their business".

Real Property Law

What is it?

The Real Property law is important to a new business owner, because it "proves ownership" with "certificate" or "title". This way, the business owner is able to show that they own the land through the correct documents. Furthermore, the real property is "protected forever", once the business owner "registers" the property with the proper "local officials". Every business should register the property they own, in order to protect it from being taken from them by a person with legal documents. Unfortunately, unregistered property leaves a business owner in a legal mess, in which he or she will have to prove his ownership.

What does it protect?

All business owners must be sure to get a title, bill of sale, or certificate of ownership for any real property they buy. This way, they can avoid dishonest people, who are out to scam them for fraudulent property. Additionally, businesses are responsible for what happen on their property, by employees or customer. According to Edwards & et al (2006), the business owner an be responsible for criminal acts that are committed on their property.

Is it necessary?

Honestly, the property laws protect business owners and consumers from being scammed or hurt. With these laws, the consumer or business owner can bring a lawsuit, when the laws are broken. However, many owners have liability insurance, in order to protect their company whenever they are sued by a consumer. This way, the business owners do not lose everything they have worked for, due to a lawsuit of any kind.

Intellectual Law

What is it?

The Intellectual Law is used to protect an idea or design from being used, without the permission of the owner. The intellectual property is harder to protect, since it is harder to prove ownership. Additionally, a copyright or a trademark is used to protect this kind of property and its owner. However, it is important for the owner to understand that this form of property is only protected for a limited time. Further, they must understand that each design or idea must be copyrighted or trademarked separately.

What does it protect?

This law protects a creative idea or a company's logo, since they are creative expressions of the intellectual mind. In addition, it protects the business owner from having trade secrets stolen and sold to competitors. The business owner must prove ownership, by filling out the proper forms. This will, allow him to safeguard the company's symbol or logo from being used, without the owner expressed written consent. However, protect the idea right away, someone may copyright it first. Once, the other party copyrights the idea, it will be hard for the original creator to prove the idea was his or hers.

Is it necessary?

As a business owner, ideas and designs are important, because people it is that creativity that help sell the company's products. According to Edwards & et al (2006), the Intellectual Property law will protect the business owner from a lawsuit. This creative idea's copyright will allow the owner to prove their ownership. Furthermore, it allows the owner to see compensation or damages for their stolen work. It also allows the business owner to protect the product's design, while creating it.

Business Owners

Understanding the Law

All business should research the intellectual and real property laws, in order to know the best way to protect your company from lawsuits of any kind. They should understand the real property involve "tangible" property, which they own like office or land. However, the intellectual laws are "intangible" or "creative ideas". These creative ideas can be for designs, writing, picture, or a painting. These items require a trademark or a copyright depending on what kind of idea they have.

Protecting their Assets

Each business and their employees must follow the laws, when it comes to both types of property laws. Every owner should look into liability insurance, just in case they are hit by a lawsuit. This way, they have protection, just in case they are served with a lawsuit, by a consumer or another business.

These laws are meant to protect businesses and consumers from unscrupulous business dealings. Nevertheless, it is important for all business owners to follow all types of property laws, in order to protect themselves.

Breaking the Law

Business owners must be prepared to protect their real and intellectual property, because accidents do happen. They should never allow their employees to hurt others, since they will be held responsible in court. In addition, they must be aware of broken things or wet spots, which can cause harm to their employees or consumers. Furthermore, they will need to research the ideas and creative designs they create, in order to be sure they can use it. This way, they can avoid being brought to court for stealing someone's intellectual property.

Conclusion

There are many laws governing each type of property that a business can own, but they are protected differently. According to Edwards & et al (2006), the intellectual and real property laws are vital to any business. These laws protect business owners and their customers from people, who are out to steal their property of all kinds. However, it is important for a business to have liability insurance, in order to protect their business. Therefore, it is up to the business owner to learn all they can, about the different types of property laws.

References:

Edwards, F L; Meiners, R E; Ringleb, A H, (2006) The legal environment of business (9^th ed.)

Mason, Ohio

Thomson Publishing