2017-04-10
Intellectual property (IP) protection comes in different forms such as trademarks, patents, copyrights, industrial designs, and trade secrets. All these forms of IP protection not only safeguard your precious brand assets but also have the potential to boost brand value. While technology companies often utilize patent protection, an increase in competition demands an IP strategy that creates value in multiple dimensions. This means that technology companies must include other forms of IP protection in their IP strategy to gain a competitive advantage in the market. This realization has made several successful technology brands implement a multifaceted IP strategy. One of these brands is Microsoft. For years, Microsoft has utilized an aggressive IP strategy that includes different forms of legal protection. However, Microsoft learned the value of a multifaceted IP strategy the hard way, which can be traced back to its massive mistake with its Windows trademark.
Although Microsoft introduced its Windows software in 1985, it did not file a trademark for it until 1990. The long gap before filing for a trademark worked against the brand, as many people associated the Windows interface with the way in which the software displayed the user’s desktop. As a result, the application was rejected by the Trademark Office, on the basis of the ‘merely descriptive’ aspect. The office found the mark to be merely descriptive in relation to the software. While the trademark was eventually granted, the delayed trademark filing was a huge risk to the brand’s market share.
During the occurrence of this incident, Microsoft was gaining increasing brand recognition for its software products. If the Trademark Office had ultimately rejected the application, Microsoft would have had no ownership rights to the Windows name. As a result, Microsoft would have been in an altogether different competitive position if it had to introduce a new brand name and new software products. A critical lesson to be learned from Microsoft’s experience is that delays in filing for trademark protection can result in the destruction of the brand equity. Learning from its mistake, the company realized the value of trademark protection. While it still gives immense importance to patent protection, the brand also has IP protection in the form of trademarks, copyrights, and trade secrets.
Today, Microsoft invests a substantial amount of time and effort in developing innovative software, devices, and products and exercises a strong IP strategy to add to its brand value. It has emerged as an example of what companies achieve when they understand the value of different IP protection. Many technology startups fail to realize the value trademarks can have on their ability to venture into competitive markets. Such companies can learn from Microsoft’s experience with the Windows trademark and its aggressive intellectual property protection strategy to grow and succeed in a competitive technology market.
