start-ups to end-ups: 2 – importance of ip in your business
2 mins reading time
In the second of our articles on start-ups, we look at the importance of intellectual property to your business.
—————–
Every business wants a ‘competitive advantage’: that thing that sets your business apart from your competitors. It forms the Je ne sais quoi of your business.
These competitive advantages usually originate from an idea, some kind of intellectual effort which shapes what a product/service is, how it is done and how it is marketed. They are built by both skills and resources in your business which you leverage; and are generally protectable.
Apart from natural barriers to entry (like for example the expense of plant and equipment) the main way these advantages are protected is through the registration of intellectual property (IP) rights. Different types of IP have developed over time to suit the different kinds of advantages businesses may utilise, and yes, they protect both skills and resources.
It’s one thing to create a unique advantage, but it is a completely different thing to be able to monopolise it. Any advantage can be imitated, it’s just a question of cost and time. However, if the IP rights in your IP are protected, then you may have the ability to prevent your competitors from using that competitive advantage for a set period.
IP is extremely important, and obtaining statutory IP rights (be it a trade mark, design or patent) is a strong way of demonstrating to your competitors and consumers –
- you know the worth of your IP;
- you’re a leader in your industry; and
- you’re at the cutting edge of innovation.
what competitive advantages should be protected?
Many start-ups and established businesses don’t correctly identify what competitive advantages should be protected or how to best protect them. This will result in either overcapitalisation or undercapitalisation – neither of which you want to do, especially in the current economic climate.
Each type of IP has an important role to play in your business and its value lies in –
- how it’s used; and
- how it’s protected.
If protection is properly secured, the IP can generate income (including passive income), prestige and diversification. Knowing how to use IP effectively can make a business more profitable and de-risked.
If you have a competitive advantage in your business and would like to learn how to best secure its protection or how it can make your business more profitable, please contact Mark Metzeling or a member of Macpherson Kelley’s IP Team.
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start-ups to end-ups: 2 – importance of ip in your business
In the second of our articles on start-ups, we look at the importance of intellectual property to your business.
—————–
Every business wants a ‘competitive advantage’: that thing that sets your business apart from your competitors. It forms the Je ne sais quoi of your business.
These competitive advantages usually originate from an idea, some kind of intellectual effort which shapes what a product/service is, how it is done and how it is marketed. They are built by both skills and resources in your business which you leverage; and are generally protectable.
Apart from natural barriers to entry (like for example the expense of plant and equipment) the main way these advantages are protected is through the registration of intellectual property (IP) rights. Different types of IP have developed over time to suit the different kinds of advantages businesses may utilise, and yes, they protect both skills and resources.
It’s one thing to create a unique advantage, but it is a completely different thing to be able to monopolise it. Any advantage can be imitated, it’s just a question of cost and time. However, if the IP rights in your IP are protected, then you may have the ability to prevent your competitors from using that competitive advantage for a set period.
IP is extremely important, and obtaining statutory IP rights (be it a trade mark, design or patent) is a strong way of demonstrating to your competitors and consumers –
- you know the worth of your IP;
- you’re a leader in your industry; and
- you’re at the cutting edge of innovation.
what competitive advantages should be protected?
Many start-ups and established businesses don’t correctly identify what competitive advantages should be protected or how to best protect them. This will result in either overcapitalisation or undercapitalisation – neither of which you want to do, especially in the current economic climate.
Each type of IP has an important role to play in your business and its value lies in –
- how it’s used; and
- how it’s protected.
If protection is properly secured, the IP can generate income (including passive income), prestige and diversification. Knowing how to use IP effectively can make a business more profitable and de-risked.
If you have a competitive advantage in your business and would like to learn how to best secure its protection or how it can make your business more profitable, please contact Mark Metzeling or a member of Macpherson Kelley’s IP Team.