Intellectual property (IP) is a diversity of legal rights in creations of the intellect. Specific IP such as patents, design rights and trade marks may constitute 90% of the value of the world’s top 2000 companies. A huge amount of IP owned is not exploited to its fullest capacity or exploited at all.
A recent survey revealed that 75% of European companies consider IP to be critical in the economic downturn. This is certainly borne out by the experience of previous recessions. These have often been productive periods for innovation leading to the creation of new IP. The light bulb as invented by Thomas Edison in the depths of the 1870s depression; DuPont invented synthetic rubber and Nylon in the hard times of the 1930s. Microsoft really took off in the 1970s. In these examples, although the groundwork was done in difficult times, the products that were generated found a market in the boom years which followed. Revenues from them continued to be generated during the busts which came afterwards.
If business is slow, you may have the time to work on a new invention or a novel brand concept. If it could be of value at all when customers and funding proliferate, now is the time to think about the IP you need to protect it.
What can you do to ensure that your IP is correctly positioned to give you best advantage? You should certainly start by reviewing your current offerings as well as new ideas likely to become exploitable items during the next few years. You should also look at your markets in the and overseas and all manufacturing and distribution options. The next stage is to audit all existing and potential IP that would confer protection at all levels and in all territories. At the same time you might want to monitor the activities of your competitors.
Nothing however stops you from joining any networks through which knowledge can be shared among compatible organizations. There is no reason why new technology, for example, cannot be exchanged; in some cases, this may help you to understand current R&D in the technical field better and enter into licensing arrangements or even dispose of non-productive IP for a profit.
It is necessary to preserve confidentiality by requesting that third parties enter non-disclosure agreements with you and agree not to circumvent you by bringing a new idea to market first. Confidentiality is also essential in order to retain the capability of patenting a new technical invention; without “novelty” no patent can be granted.
Your aim will be to protect your offerings by developing a portfolio of contingent IP. This is not necessarily a costly exercise; it depends on the nature of your business. Each IP right is a valuable asset in its own right. Collectively, all of your IP enhances the ultimate worth of your company and helps to attract investors and other business partners.
For a no obligation chat about how we canhelp you with your intellectual property matters, please contact
Rhys Jarman.
This article was first published in NewsBrief, Autumn 2009.
