Any start-up that is truly devoted to growth and the success of their company should take the proper steps to develop their assets, not risk losing them. But start-ups and IP have a complicated relationship.
Many small business owners pass on adequate protection at the beginning, assuming they can protect their business and intellectual property later. This is a mistake that could potentially bear terrible consequences including profit loss and
Why IP protection is vital for your start-up?
If a competing business ever decides to use your company's IP such as software code, logos, inventions, or even marketing strategies, this could result in lost customers, business, or sales.
With adequate IP protection and ownership, you can protect your intangible assets and stop any company that infringes on your rights, legally pursuing them if necessary.
Provides Commercial Value
IP, or intangible assets are a vital asset to your business. In fact, for many start-ups, your intellectual property (IP) could be more than 90 percent of the value of your company. This includes patents, copyrights, trademarks, and trade secrets such as processes and policies.
IP provides commercial assets to your start-up by:
- preventing other companies from using your discovery to market a competitive product
- generating revenue if another company wishes to use your technology but has to buy or license from you
- potentially creating valuable alliances with other companies that require your product or technology
There may be another company with priority or competing rights against your IP. This situation could restrict your company's growth and even result in legal action against your business. Therefore, every company should always perform intellectual property searches so as to not illegally use another company's IP.
Encourages New Discovery
Strong protection of intellectual property right and patents encourage research and development of new products, software, and technology that could be beneficial to the public.
Intellectual Property is critical to cultivating innovation. Without legal protection of ideas, businesses and individuals would not realize the true potential of their inventions or technology and discouragement would hinder new discoveries.