Chapter 16 Property and Its Acquisition 6/4/2018 Chapter 16 Property and Its Acquisition 16-1 Types of Property 16-2 How Property Is Acquired and Held Chapter 16 LAW

16-1 Types of Property GOALS Define property Identify the classifications of property Chapter 16

PROPERTY AND ITS CLASSIFICATION What is property? Classifications of property Real property Personal property Copyrights Trademarks and service marks Patents Trade secrets Chapter 16

FEATURES OF INTELLECTUAL PROPERTY PATENT What is protected? Ideas, designs, or processes that are novel, non-obvious, and useful Registration required? Yes Duration? 20 years Examples Industrial chemical manufacturing processes, prescription drugs Chapter 16

FEATURES OF INTELLECTUAL PROPERTY COPYRIGHT What is protected? Fixed expressions of creativity Registration required? Yes, before generally publicized, for federal protection. Duration? 70 years past the death of the creator Examples Novels, poems, songs, photographs Chapter 16

FEATURES OF INTELLECTUAL PROPERTY TRADEMARK What is protected? Distinctive mark, word, or symbol associated with a particular product Registration required? No, but recommended Duration? Indefinite Examples Logos, emblems, catch phrases Chapter 16

What are the two main classifications of property? Chapter 16

16-2 How Property Is Acquired and Held GOALS State the different ways of acquiring property Differentiate the various ways of holding ownership to property Chapter 16

WAYS OF ACQUIRING PROPERTY Acquiring ownership by contract Acquiring ownership by gift Acquiring ownership by intellectual labor Acquiring ownership by inheritance Acquiring ownership by accession Acquiring ownership by finding Acquiring ownership by occupancy Chapter 16

Name the three most common means of acquiring property. Chapter 16

HOW IS OWNERSHIP OF PROPERTY HELD? Ownership in severalty Co-ownership Joint tenancy Tenancy in common Tenancy by the entireties Community property Limitations on ownership Chapter 16

TENANCY IN COMMON May any number co-own? Yes Must interests be equal? No Is consent of co-owners required for sale? Is there a right of survivorship? Must co-owners be married? Can a will replace survivorship? N/A Chapter 16

JOINT TENANCY May any number co-own? Yes Must interests be equal? Is consent of co-owners required for sale? No Is there a right of survivorship? Must co-owners be married? Can a will replace survivorship? Chapter 16

TENANCY BY THE ENTIRETIES May any number co-own? No, just 2 Must interests be equal? Yes Is consent of co-owners required for sale? Is there a right of survivorship? Must co-owners be married? Can a will replace survivorship? No Chapter 16

COMMUNITY PROPERTY May any number co-own? No, just 2 Must interests be equal? Yes Is consent of co-owners required for sale? Is there a right of survivorship? Yes* Must co-owners be married? Can a will replace survivorship? In some states *In some states a deceased spouse’s one-half interest in community property passes automatically to the surviving spouse. In other states it can pass via a will to someone other than the surviving spouse; however, if there is no will, it then passes to the surviving spouse. Chapter 16

What are the two basic ways to hold property? Chapter 16

PREVENT LEGAL DIFFICULTIES Manage and use property wisely . . . Do not misuse your property in a way that injures others. Use public property with care. Vandalism, destruction, and theft deprive innocent persons of the benefits of use and also cause higher taxes. Do not infringe upon the copyright, trademark, or patent of another. Continued on the next slide Chapter 16

PREVENT LEGAL DIFFICULTIES If you become a co-owner, be sure to take title appropriately. Use tenancy in common with strangers, associates, and friends. Use joint tenancy with a spouse or other person whom you want to have full ownership by right of survivorship when you die. In community property states, keep separate property separate with clear records if you do not want it to become community property. Chapter 16