Why IP Protection is Essential for Your Business
IP protection is essential for every business, whether you’re a start-up or a well-established corporation. But what qualifies as intellectual property, and what are the key benefits of IP protection? Below, we discuss the concept of intellectual property and how it can help your business succeed in an increasingly competitive marketplace.
Protect Valuable Business Assets
Intellectual assets (IA) are intangible creations and knowledge that have been systematically codified and arranged to drive value within a business. Intellectual property is one subset of IA that represents creations or knowledge that can be formally protected by the law and may include registered or unregistered rights. From trademarks and patents to designs, trade secrets, and copyright, there are many different types of intellectual property. An effective IP strategy can protect your most valuable assets.
IA market trends show that around 80-90% of business value is represented by its intangibles or IA. Your IP strategy will depend on the type of business you own and will likely consist of a combination of these assets. As your business grows, your IP portfolio will inevitably become larger and more complex. By identifying, capturing (through registration or otherwise), and organising your IP, you increase its ability to drive value into your business and you protect them from risks that will cause them to lose their value.
Gain a Competitive Advantage
Standing out above your competitors is one of the biggest challenges any business must face. Intellectual property can be used as a strategic business asset and is one of the most effective ways for businesses to gain and maintain a competitive advantage. When developing an IP strategy, business owners must first understand what they want their competitive advantage to be.
For example, if your competitive advantage is your brand, then a registered trade mark can help to distinguish your business from your competitors. Trade marks usually consist of unique words, phrases, or logos that help people identify a specific product or service. Trade marks must be distinctive – which means capable of distinguishing one business’s offering from other businesses. Once your trademark is registered, you can use it as an opportunity to stand out in the market and position your brand in a unique, fresh way.
If your competitive advantage is the technical superiority of your product, then a patent will help to preserve that advantage in the market. Likewise, if the design aesthetic of your product attracts more customers, then use registered designs to sustain that competitive advantage.
Earn More Profit
Securing your IP rights enables you to enhance the profitability and value of your business. An effective IP strategy should work to increase revenues (for example, enabling a price premium, or gaining market share through enhanced competitiveness), reduce costs (for example, more streamlined production processes, or avoiding risks), and therefore improve profits. Businesses can sell, licence, or commercialise their patent, copyright, designs or trade marks, which can ensure a steady stream of passive income long term and improve their market value. Licensing agreements (including franchising) can lead to significant business growth – and this is only possible with IP protection. Additionally, if you ever sell your business in the future, it will be worth much more if you have carefully curated and managed a valuable intellectual property.
Contact Innovation Liberation Front for IP Protection Services
Need assistance with your IP strategy? Here at Innovation Liberation Front, we offer a full range of IP protection services, including trademarks, designs, patents, and plant variety rights. Simply get in touch and tell us what you want to achieve with your IP strategy. Let us help you protect your assets and grow your business today.