Cheat Sheet 2: Incorporeal Rights & Insurance

01 Incorporeal rights and the fiqh idea of māl

An incorporeal right is the authority of a person over something non-physical. In fiqh, ownership is not restricted to a tangible object: property (māl) is anything that possesses recognised value among people and may be lawfully utilised.

Because incorporeal rights meet that standard they count as māl: their owners may sell, buy, or lease them, and they are financial rights safeguarded by Shariah.

02 Copyright

Falls under intellectual property. It gives the author the right to use their work and to prevent others using or benefiting from it without consent; literary and material rights are fully reserved for the creator.

Who counts as the author

• The person who created the work.
• Whoever has their name published on it — unless proven otherwise.
• If no name is given, or a pseudonym is used, the publisher acts as the author's representative.
• Also includes anyone contributing to the creation of visual and audio work.

The two rights

Why it is legally recognised — four reasons

1. Benefits are compensable in Islam; intellectual property benefits society, so it earns compensation like any other benefit.
2. General custom ('urf) already admits the author's right and that it can be compensated.
3. Plagiarism is prohibited — misattributing statements is strictly forbidden.
4. Rights correspond to responsibilities — "the benefit runs with the burden."

03 Patent (invention certificate)

Intellectual property giving its owner the legal right to exclude others from making, using, or selling an invention for a limited period — in exchange for publishing an enabling disclosure of it. In most countries patent rights fall under private law: the holder can sue an infringer.

The inventor's rights — only two

• The right to use the invention for a limited period.
• The invention should be registered under the inventor's name.

Four kinds of certificate

Shariah ruling — three reasons

Recognised, because: benefits are compensable; plagiarism / false attribution is forbidden; rights correspond to responsibilities.

04 Trade name

The official name under which an individual or company conducts business. A trademark gives legal protection for a particular brand, which may be associated with a trade name.

Rights and ruling

• Exclusive right — exclusive use, distinguishing the business and preventing imitation.
• Transferable asset — measurable financial value; the owner may sell, gift, or transfer it.

Legally recognised, on condition it is not based on cheating or gharar. The reasoning mirrors Copyright's — all four reasons apply.

05 Insurance — definition and the two systems

The philosophy

Insurance rests on collective risk-sharing: one person could be crushed by a disaster's full cost, but pooling relief expenses across a large group makes the burden manageable. That cooperative ideal was compromised when insurance shifted from mutual aid to a profit-driven commercial enterprise.

06 Collaborative insurance

Three historical forms in Islam

Three modern systems

Legal ruling

Scholars agree social / cooperative insurance is fully lawful in all its forms, because it fulfils the Islamic objective of mutual solidarity rather than commercial profit.

How a collaborative contract actually works

Collaborative associations collect donated subscriptions, invest them, and use the pool plus investment profits to cover subscriber risks. Any surplus after settling claims belongs entirely to the participants — they can take it back or roll it into future payments.

07 Commercial insurance — mechanics

A contract between an insurance company and an insured person: the company is legally bound to pay the insurance amount covering risk or damage; in return the insured pays regular installments (premiums). The company profits from the gap between premiums collected and claims paid.

Emergence: began as marine insurance in northern Italy in the 15th century, then transferred to Islamic countries in the 19th century AD under the name "Saukarah."

Five elements of the contract

1. The insurer
2. The insured
3. The specific risk
4. The insurance installment — paid by the insured to the company
5. The insurance amount — paid by the company

Five conditions of the risk

1. Uncertain — its happening must not be certain.
2. Not intentional.
3. Not prohibited by law.
4. A future event.
5. A regular / ordinary danger.

Three types

08 Why commercial insurance is prohibited — and the three exceptions

Three exceptions

09 Commercial vs. collaborative — full comparison

10 Highest-yield items for Major 2

11 Flashcard glossary

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