know-how

Know-how is the application of knowledge possessed in engineering, technology, bio-medicines or manufacturing in industry with a view to commercial advantage.  This information may be a key asset and of great value to any business and thus appear as an asset on the business's balance sheet.

Know-how is comprised of techniques that are not generally protected or protectable by statutory forms of intellectual property (law of designs, copyright, law of patents or trade marks). In business contracts, technology transfer and protection of the know-how may be protected by creating contractual rights to preserve confidential information and trade secrets and otherwise limit the use of the know-how. Know-how may be licensed to third parties for exploitation. Cross licences may be granted between the parties where the parties intend to share know-how and grant mutual immunity from law suits for joint exploitation.

Provided the confidentiality in know-how is maintained, it is protected as confidential information or a trade secret under UK law. Once confidentiality is lost, the information comprising the know-how (in whatever form it may take) falls into the public domain and may be used by anyone, subject to contractual obligations between specific parties.  Thus dissemination of know-how which is of value should be controlled in order to preserve its value and prevent loss of confidentiality.

Know-how is protected by restrictive covenants in employment contracts and contracts with independent consultants; by restricting dissemination to those who need to know, and notifying those receiving the information that it is confidential information, in writing before disclosure.

Usage: The know-how was licensed in exchange for a 10% share of the profit garnered from the exploitation.

Related Words: technology transfer; contract; intellectual property rights; trade mark infringement; copyright infringement; exclusive licence; non-exclusive licence; confidential information; passing off; copyright; patents; designs; registered trade mark; unregistered design rights; patent infringement; design infringement.

Useful Material:Licensing IP at the IPO