4 Major Intellectual Property Mistakes Businesses Make

Intellectual property like trademarks, patents, and copyrights are valuable assets for any company. These rights hold immense significance because:

• They set your business apart from your competitors,
• Provides a significant revenue stream as they can be sold or licensed,
• They are an essential part of your business marketing strategy
• They can be used as security for loans

Businesses, especially startups, often tend to neglect the importance of safeguarding their intellectual property. Usually, this is because of the expenses related to protecting intellectual property. But, by not safeguarding their rights, they end up making costly intellectual property mistakes. Here are a few common intellectual property mistakes businesses make:

1) Failing to do Proper Market Research

Market research is essential in the planning stages of any business. One of the most critical aspects of market research is competitor analysis. It not only includes gathering detailed information about yearly turnover, marketing strategies, and profitability, but it also comprises of proper research about their intellectual properties. The study consists of evaluating their intellectual property strategy and portfolio. Failing to do research may result in violation of intellectual property rights and legal hassles.

2) Registering Patents too Late

If you have a groundbreaking invention that promises serious commercial success, you may want to obtain a patent and safeguard it. In order to evaluate the commercial viability of their invention, some businesses disclose their idea before protecting it. But, doing so is risky as others may take the credit for your idea and exploit it. While there’s nothing wrong in seeking professional advice, businesses should consider applying for patent protection or utilize non-disclosure agreements until a patent application can be filed.

3) Spending too Much to Achieve Larger Coverage

While it is important to protect your intellectual property, it is not necessary to obtain rights for every invention or branding aspect. You must consider various aspects like commercial value, predict profitability, etc. to ensure you are spending wisely. Many businesses and startups make the mistake of spending too much on IP to ensure they gain maximum coverage in different areas or countries. Though one must spend on IP, the temptation of obtaining more profit leads some businesses to make the mistake of spending more than required.

4) Being Lenient Towards IP

Many businesses believe in the misconception that IP is only meant for the big players - for renowned inventors and well established businesses. That’s not true. Many small businesses and inventors have obtained patents, trademarks and copyrights. Yes, it is true that big players have the spending power to enforce their IP. But, if small businesses and startups understand the importance of having IP and how to leverage it they can achieve as much as the big players.

When investors are interested in investing in a company, they look for a company’s IP portfolio. Investors think of IP as a competitive advantage against competitors. If businesses have a lenient attitude towards IP, they are likely to miss out on a golden opportunity for the growth of their business.

At Prowse Chowne LLP we have a team of experienced lawyers and agents who understand the importance of intellectual property rights for a business. We can help you develop a strong IP portfolio, while not hampering your budget.