Intellectual capital is knowledge that produces or creates value. It is in the processing of information and making it knowledge that intellectual capital comes into being.  Most intellectual capital is the mind of its creator.  Intellectual property is something that has been produced and can be owned.  It is things like a book, an article, or an object.

Thanks for your response.

Dear Mustabasar,

Intellectual capital is entirely different from intellectual property. In fact intellectual  Capital is the capital of an organisation lies with its human resources or human capital. Suppose for a software developer company without the software developer entire infrastructure is useless as it is without intellectual capital. 

Intellectual property can be created only with the use of intellectual Capital.

It is part of human capital but entire human capital can't consider as intellectual Capital as only the persons apply their mind in the process can be considered as intellectual Capital. 

I think it will serve the purpose

As one of the "inventors" of an Intellectual Capital (IC) Reporting method widely used in Europe (e.g. manifesed in the Austrian University Law) I have little to add to the definitions of IC as already given by my esteeemd colleagues. Maybe some research on IC Reporting may add to clarify definition, since ICR is based on indicators.

Intellectual Property is a legal term, denoting a "claim" of owning a piece of documented knowledge, such as a technical desciption captured  and proteced e.g. by means of a patent. Usually it is for commercial expolitation or for defending the subject described, e.g. an invention or a piece of art, literature or similar, against unlegitimated use.

Thank you Guenter Koch for adding your response. Can you please share some of your research on the Intellectual Capital? Thanks

A good source on intellectual capital is Thomas Stewart's book Intellectual Capital: the new wealth of organizations. 

capital includes IP and knowledge and skills of employees and 'business knowhow'. IP is simply that which has been encapsulated under the various propertisation/monopoly frameworks...

As for IC reporting, you ma start with 

http://ec.europa.eu/invest-in-research/pdf/download_en/2006-2977_web1.pdf

Intellectual property are the actual assets or items such as trademarks, patents, copyrights, trade secrets. Intellectual capital is the value of the intellectual property. 

Segun un documento de consulta el capital intelectual es la suma de todos los conocimientos que poseen los empleados y que otorgan a la empresa ventaja competitiva (Stewart (1998)). Sobre este tema no tengo mucho que decir pues no lo conozco a profundidad.

La propiedad intelectual es una parte del derecho que se integra con el dercho de autor y la propieda industrial. Lo que se protege son bienes intangibles, ya que no interesa el objeto crado en si mismo como el libro o la marca sino el proceso de creacion y la idea en abstracto del autor. El derecho de autor incluye las craciones artisticas como libros , obras, musica.. Y la propiedad industrial se refiere a las patentes de invencion, marcas, signos distintivos, entre otros.

La diferencia creo que radica en que e capital intelectual son los conocimientos adquiridos y que se pueden utilizar para mejorar la eficiencia de una empresa, y la propiedad intelectual es la utilizacion de ese conocimiento para la creacion, ya sea de obras artisticas o industriales.

Here's a blog post that lays out definitions of intellectual property, intellectual capital and intangible capital. 

http://www.smarter-companies.com/profiles/blogs/what-is-intangible-capital-part-one-of-a-series