First Principles of Business Law

4. Property rights in intangible things

4.1. Property that has no physical existence

Until now in this module, we have had in mind property that has a physical existence. Such property is often referred as 'tangible' property, from the Latin word 'tangere' (to touch), because it is property that can be physically touched. Tangible property includes both land and chattels.

However there is another category of property to be considered, namely intangible property. Intangible property is something which has no physical existence, but over which property rights (such as ownership) can be acquired and transferred. An example of intangible property is 'intellectual property'  such as patents, copyright and trade marks.

Tangible property is sometimes referred to as a 'chose in possession' while intangible property may referred to as a 'chose in action'. This reminds us that tangible property is enjoyed through the right to possession, whereas intangible property is enjoyed through a right of legal action in the courts.

Review the basic facts of the case study.  In the following sections of this module we will consider how property rights in trade marks, copyright, patents and designs are acquired, what the content of such rights is, and how they are protected.