Intellectual PropertyFinancial Dictionary -> General Finance -> Intellectual Property
An example of intellectual property in action could be a band member writing lyrics for a song. This band member now owns the intellectual property to those words and can pursue getting it recorded with his band, with legal protection should a rival band try and pass the song off as their own. Often record labels may buy the rights or a percentage of the profits from a song. It should also be noted that lyrics to a song ultimately do not make up the full scope of the work, since music etc has been added during production.
When the song is produced and available to buy, copyright laws come in to play. It would now be illegal for somebody to copy the CD or MP3 and sell it on or share it with others, because it is not their intellectual property and they do not have the right to profit or infringe of the profits of those who do.