In today’s competitive business world, protecting your innovative ideas and creative assets is crucial. Business owners often undervalue and misunderstand intellectual property (IP), but they can leverage this valuable asset for additional income through licensing.
Pete Konieczko-Hansom, legal director and head of commercial and intellectual property at Blacks Solicitors, shares an overview of matters that business owners should consider when it comes to protecting their IP.
What are intellectual property rights?
Intellectual property refers to the tangible expression of creations originating from the mind. These include 3D designs, inventions, artistic works like stories or songs, and symbols or logos. These grant the creator exclusive rights over their use for a specific duration. Copyrights, patents, designs and trademarks are all forms of IP. They safeguard product and brand names, inventions, product designs and created content.
Ownership of intellectual property
An individual or business owns intellectual property if they created it, meet copyright, patent, or design requirements, acquire rights from the creator or a previous owner or possess a trademarkable brand. Intellectual property can have multiple owners, belong to individuals or businesses, and be sold or transferred, enabling monetisation.
Intellectual property rights for self-employed individuals
A self-employed individual typically retains intellectual property ownership, unless contractual agreements with clients stipulate otherwise.
Protecting your intellectual property
Protecting your intellectual property involves various measures and durations:
● Registering a trade mark covers brand names, logos and jingles (but can also include smells), typically taking around four months for an application from start to finish.
● Design registration safeguards the appearance of products, including shape and packaging, and is usually completed within three to five weeks.
● Copyright protects writing, art, photography and other works and is automatic if it meets the relevant criteria. The length of time it lasts varies from country to country but is usually the lifetime of the author plus a set number of years.
● Registering a patent secures inventions like machines and medicines for approximately twenty-five years. Although it can take up to five years to obtain the patent, the protection usually starts once the application is submitted.
● Whilst some IP receives automatic protection, registration strengthens legal ownership.
● Maintaining personal or business confidentiality until registration or until the application becomes public. In the meantime, employ non-disclosure agreements when discussing ideas with potential business partners or third parties.
● Consider combining multiple protections, such as registering names and logos as trade marks, registering unique product shapes as designs and applying for patents for innovative parts or processes.
Ensuring brand name protection
Protecting a brand name or logo involves registering it as a trade mark, which includes signs, designs, logos or expressions uniquely identifying a product or service from a specific entity. Once registered, it becomes easier for businesses or individuals to prevent others from replicating their brand. This can be seen with licensed sporting goods, for example, when a product features a football team’s logo, customers recognise it as the official merchandise of the team.
Protecting unique inventions
When a business or individual creates unique or innovative processes or operational methods, it’s important to consider protecting them with a patent. The patent acquisition process entails stringent rules and regulations, highlighting the importance of seeking professional advice. Securing a patent offers numerous advantages, whether this is through passive income through licensing the invention or restricting competitors by forcing them to use inferior materials or products.
Essentially, a patent grants the owner legal authority to prohibit others, for a designated duration, from manufacturing, utilising or selling the invention without their consent.
Protecting confidential information
When a business’ process or procedure is not suitable for patenting, this can still be protected by restricting access to vital and confidential information. There are various reasons why a business chooses not to patent its product, particularly as a patent only protects an invention for a limited time (up to a maximum of 25 years), eventually allowing others to utilise, sell or replicate the patented innovation.
Protecting information can be achieved in a variety of ways, from confidentiality agreements or limiting access to select individuals. For instance, the Coca-Cola recipe has remained a closely guarded secret since its invention in 1886, as the company opted not to patent it, relying instead on contract law and restricting knowledge of the key ingredients to a select few.
Securing licensing
Individuals or businesses with established brand names can consider expanding into new territories or industries through licensing. This could involve venturing into different geographic regions or diversifying products, services or sectors.
Image: Provided by Lucky North.
