What is an example of intellectual property?

Intellectual property (IP) refers to creations of the mind that can include inventions, designs, symbols, names, and images used in commerce. A trademark or patent is a key example of intellectual property because they are legal rights granted to individuals or organizations for their creations. A trademark protects brand names and logos, ensuring that businesses can distinguish their products or services from others in the market. A patent, on the other hand, provides exclusive rights to inventors for their inventions, preventing others from making, using, or selling their invention without permission for a certain period.

This differentiation is important because it highlights the essence of intellectual property as intangible assets that provide a competitive edge and foster innovation by legally protecting ideas and inventions. As such, trademarks and patents are directly aligned with the definition of intellectual property, which is why this choice is correct.

In contrast, company profits, employee training materials, and annual sales reports do not fit into the category of intellectual property. Profits represent financial performance rather than an intangible asset, while training materials could be regarded as proprietary documents but do not serve as recognized forms of IP like trademarks and patents. Annual sales reports are financial statements reflecting past performance and do not hold the qualities of intellectual property.