Intellectual Property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce.
IP is projected in law by, for example patents, copyright, and trademarks, which enable people to earn recognition or financial benefit from what they invent or create. By striking the right balance between the interests of innovators and the wider public interest, the IP system aims to foster an environment in which creativity and innovation can flourish.
(definition from the World Intellectual Property Organization: http://www.wipo.int/about-ip/en/)
Patent and copyright law is authorized by the U.S. Constitution and is designed to promote innovation, progress and transformation of ideas.
The Congress shall have power... to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.
-Article 1, Section 8, Clause 8 (https://www.law.cornell.edu/constitution/overview)