Tangible and intangible property

Property is an external thing that can be owned or possessed. Property can be divided into two categories: tangible
and intangible. The word tangible refers to something that has a definable physical form that can be felt or
touched. The word intangible refers to something that cannot be perceived by the senses.

1. Tangible and Intangible Property
Department of Pharmacy (Pharmaceutics) | Sagar savale
Mr. Sagar Kishor Savale
[Department of Pharmaceutics]
[email protected]
2015-2016
27/04/2016 Sagar Savale 1

2. Tangibleproperty
Inlawis,literally,anythingwhichcanbetouched,andincludesbothrealproperty(or,incivillaw
systems,immovableproperty)andpersonalproperty(ormoveableproperty),andstandsin
distinctiontointangibleproperty.InEnglishlawandsomeCommonwealthlegalsystems,items
oftangiblepropertyarereferredtoaschosesinpossession(orachoseinpossessioninthe
singular).However,someproperty,despitebeingphysicalinnature,isclassifiedinmanylegal
systemsasintangiblepropertyratherthantangiblepropertybecausetherightsassociatedwiththe
physicalitemareoffargreatersignificancethanthephysicalproperties.Principally,theseare
documentaryintangibles.Forexample,apromissorynoteisapieceofpaperthatcanbetouched,
buttherealsignificanceisnotthephysicalpaper,butthelegalrightswhichthepaperconfers,and
hencethepromissorynoteisdefinedbythelegaldebtratherthanthephysicalattributes.Aunique
categoryofpropertyismoney,whichinsomelegalsystemsistreatedastangiblepropertyandin
othersasintangibleproperty.Whilstmostcountrieslegaltenderisexpressedintheformof
intangibleproperty("TheTreasuryofCountryXherebypromisestopaytothebeareron
demand...."),inpracticebanknotesarenowrarelyeverredeemedinanycountry,whichhasledto
banknotesandcoinsbeingclassifiedastangiblepropertyinmostmodernlegalsystems
27/04/2016 Sagar Savale 2

3. Intangible property
Alsoknownasincorporealproperty,describessomethingwhichapersonorcorporationcanhave
ownershipofandcantransferownershipoftoanotherpersonorcorporation,buthasnophysical
substance.Itgenerallyreferstostatutorycreationssuchascopyright,trademarks,orpatents.It
excludestangiblepropertylikerealproperty(land,buildingsandfixtures)andpersonalproperty
(ships,automobiles,tools,etc.).Insomejurisdictionsintangiblepropertyarereferredtoaschoses
inaction.Intangiblepropertyisusedindistinctiontotangibleproperty.Itisusefultonotethat
therearetwoformsofintangibleproperty-legalintangibleproperty(whichisdiscussedhere)
andcompetitiveintangibleproperty(whichisthesourcefromwhichlegalintangiblepropertyis
createdbutcannotbeowned,extinguished,ortransferred).Competitiveintangibleproperty
disobeystheintellectualpropertytestofvoluntaryextinguishmentandthereforeresultsinthe
sourcesthatcreateintellectualproperty(knowledgeinitssourceform,collaboration,process-
engagement,etc)escapingquantification.Generally,ownershipofintangiblepropertygivesthe
ownerasetoflegallyenforceablerightsoverreproductionofpersonalpropertycontainingcertain
content.
27/04/2016 Sagar Savale 3

4. Forexample,acopyrightownercancontrolthereproductionoftheworkformingthecopyright.
However,theintangiblepropertyformsasetofrightsseparatefromthetangiblepropertythat
carriestherights.Forexample,theownerofacopyrightcancontroltheprintingofbooks
containingthecontent,butthebookitselfispersonalpropertywhichcanbeboughtandsold
withoutconcernovertherightsofthecopyrightholder.InEnglishlawandotherCommonwealth
legalsystems,intangiblepropertyistraditionallydividedinpureintangibles(suchasdebts,
intellectualpropertyrightsandgoodwill)anddocumentaryintangibles,whichobtaintheir
characterthroughthemediumofadocument(suchasabilloflading,promissorynoteorbillof
exchange).Therecentriseofelectronicdocumentshasblurredthedistinctionbetweenpure
intangiblesanddocumentaryintangibles.
27/04/2016 Sagar Savale 4

5. Tangible and Intangible Property
Property is an external thing that can be owned or possessed. Property can be divided into two categories: tangible
and intangible. The word tangible refers to something that has a definable physical formthat can be felt or
touched. The word intangible refers to something that cannot be perceived by the senses.
Tangible Property
Tangible property consists of real property and personal property. Real property is property that does not
move, such as land and the things that are attached to or built on that land.
Personal property is property that can be moved or any other tangible property that can be owned. Personal property
is also called chattels. Chattels that are attached to the land and that cannot be removed without damaging the land are
called fixtures. Examples of fixtures are built-in bookcases and ceiling fans.
Intangible Property
Intangible property consists of property that lacks a physical existence. Examples of intangible property include
checking and savings accounts, options to buy or sell shares of stock, the goodwill of a business, a patent, and spousal
love and affection.
27/04/2016 Sagar Savale 5