Every innovative business seeks a competitive edge; something that will differentiate it from the crowd and attract customers to select its products or services. When you create a company based on a novel product or innovative service, knowing what steps to take to prevent competitors from simply copying your ingenuity is a key foundation stone to lay in the future success of your business.
While preventing copy cats is not a straightforward task, it is often possible. A bundle of legal rights, known as Intellectual Property (IP), can be used effectively to create barriers to entry into a marketplace to fend off unwanted competition. These legal barriers can take different forms; patent protection for inventions, trade mark protection for branding and logos, design protection for a product's appearance, and copyright to protect photos, drawings or source code.
The early stage planning of an IP strategy can be critical, as there can be significant penalties for not getting things right first time. For example, showing a new product at a trade show before a supporting patent has been filed may seem inconsequential, but it could forego the subsequent ability to seek patent protection for that product. In turn, the absence of patent protection can result in a lower sale price for that product (due to the lack of a monopoly for the product in the marketplace), more competition, less licensing opportunities and a reduced chance of investment.
To get things right from an IP perspective, a start up businesses will typically work through a structured IP audit or review, often in conjunction with an experienced professional adviser, such as a Patent Attorney or Solicitor. This review would include the process of understanding each type of IP protection, considering how that IP right may be relevant to the products and services of a business, before pulling this together into a cohesive IP strategy which can be implemented alongside the growth and development of the business.
Navigating the maze of IP rights is a necessity in today's competitive corporate world. Not only is the inclusion of a considered IP strategy an important part of any business plan, it will usually be a necessity to engender investor confidence and secure funding.
Simply disregarding IP is also not an option, as that may result in a company hitting the rocks by way of straying into the realm of IP held by third party companies. This can result in costly legal action, which can often be terminal for a young company. Making sure that the route ahead is clear is therefore also important and this can be achieved by assessing freedom to operate, as part of an IP strategy.
So, the take home is "be prepared" and to take pre-emptive action to identify and implement a suitable IP strategy which, once implemented, can contribute significantly to the long term viability of a business.
For more on this please do watch some Intellectual Property videos in our ADVICE section
Gordon Stark
Murgitroyd
