The temptation to relegate IP assets during periods of economic uncertainty to the status of optional extra/nice to have but not essential for business growth, is a concerning trend that can have a significant impact on long-term success.

Start-ups are at particular risk during challenging economic times, but taking action now to increase value will safeguard founders against the worst impact. Having IP assets creates a more robust, commercially stable product but knowing how to go about capturing them in an efficient, cost-effective way is essential.

IP assets (particularly registered IP assets including patents and trade marks) have a tangible value that directly correlates to the overall value of a company. If founders take a sensible approach to pursuing protection, the value gained can and should be many multiples of the investment put into securing the asset.

With that in mind, we’re sharing insights on what founders must consider when it comes to protecting their intellectual property.

Understand what you need to protect/seek the right safeguards

If technological innovation is at the heart of your products and services, seeking patent protection may well be critical to future success. Investors are likely to deem solid patent rights as critical when making investment decisions. If you plan to invest significantly in marketing and in the appearance and aesthetics of products and services, you will need to consider seeking registered protection for your trade marks and designs. As a general rule, seeking to registerIP rights at an early stage will likely result in protection of broader scope and a higher likelihood of validity.

Consider the territorial scope that you require, now and in future

Whether it is trade mark, patent or design protection you are seeking, rights are registered country-by-country. Should you expand internationally in future, rights applied for at an earlier stage may be insufficient. Unfortunately, especially when it comes to patent and design rights, early decisions can be irrevocable. As such, you need to have an eye on the future from the outset. The same applies when conducting a freedom-to-operate exercise. Establishing freedom to operate in respect of a brand name in one country doesn’t necessarily give you the same rights elsewhere.

Revisit your protections as you grow

As your range of products and services evolves in line with your business, so too should your IP protection. Regularly review IP protection to make sure it is in line with current and future commercial objectives – particularly prior to launching any new product or service.

IP rights are more than just a competitive advantage

The basis for seeking registered IP rights is to establish a monopoly in the market place. Rights therefore have a value that can often be realised financially. Rights can be licenced (in or out), bought or sold, used to raise investment, and even used as collateral for loans. When considering whether to seek registered IP rights, use a multi-dimensional approach.

To help unlock value from IP protection, and successfully navigate the sometimes-daunting world of IP law, founders should seek expert advice – to ensure they have the right protections in place, and to ease the burden of doing so and ensure they feel safe from infringement, giving their business the best chance to succeed.

Robert Lind is a Partner Marks & Clerk

Temptation to delay on IP assets can have significant impact on long-term success - Robert Hind