What does the term 'intellectual property' refer to?

The term 'intellectual property' refers to a legal concept that protects intangible creations of the mind, which can include inventions, literary and artistic works, designs, symbols, names, and images used in commerce. This protection allows creators to have exclusive rights over their innovations and prevents unauthorized use by others. By recognizing these rights, intellectual property law encourages innovation and creativity by ensuring that those who create original works can benefit from their efforts without fear of infringement.

This concept contrasts with tangible items, which are physical assets that can be owned and transferred. It also differs from informal agreements, which lack the legal enforceability that comes with formally recognized intellectual property rights. Understanding the importance of intellectual property is crucial for designers, inventors, and businesses as it impacts how innovations are protected and commercialized in the market.