Legal Definitions - incorporeal

The term incorporeal refers to something that exists as a legal right or concept but does not have a physical form or body. Unlike tangible items you can touch, see, or feel (which are called "corporeal"), incorporeal things are abstract. In the context of property law, an incorporeal property is a valuable right or interest that can be owned, transferred, inherited, or sold, even though it cannot be physically held or observed.

Here are some examples to illustrate this concept:

• A Share of Stock in a Company: When you own a share of stock, you possess a portion of ownership in a company. This ownership grants you certain rights, such as the right to receive dividends (a share of the company's profits) or to vote on company matters. However, the share itself is not a physical object you can hold in your hand. Even if you receive a paper certificate, the true value and the "property" you own are the underlying rights and interests in the company, which are entirely intangible.

  This illustrates incorporeal property because your ownership is not a physical item but a collection of legal rights and claims against the company's assets and earnings.

• A Broadcast License for a Radio Station: A radio station operates by transmitting signals over specific frequencies. To do this legally, it must obtain a broadcast license from a government regulatory body. This license is an extremely valuable asset for the station, allowing it to generate revenue through advertising and programming. Yet, the license itself is not a physical thing; it's a legal permission or right to use a particular frequency within the public airwaves.

  This demonstrates incorporeal property because the license is a valuable, transferable right to utilize a public resource, existing purely as a legal authorization rather than a tangible object.

• A Software License: When you purchase a software license, you are buying the legal right to use a particular software program under specific terms and conditions. While you might download the software or receive it on a physical disk, the actual "property" you acquire is the permission to use the intangible code. You don't own the code itself, but rather the right to interact with and benefit from it as defined by the license agreement.

  This exemplifies incorporeal property because the license grants you a valuable right to use an intangible asset (the software program) without giving you physical possession of the underlying code or program itself.