Understanding Intellectual Property

Understanding Intellectual Property for Startups to Leverage IPR

It becomes too overwhelming when you start a new business. You may have concerns, anxiety, and a host of other valid problems. One of the key things companies need to be mindful of is intellectual property rights. IPR helps to distinguish the company from rivals until the fundamentals of defining the correct market structure are understood.

IPR provides the following advantages;

– May sell or license an additional revenue stream.

– Delivering customer-specific products/services.

– It may become an integral part of marketing or branding.

– Intellectual property is an asset you can use to obtain loans.

Consider optimizing your IP because as it makes more sense to protect your company in the best possible way. You can legally defend your Intellectual Property as follows;

– Securing Intellectual Property from any other infringement through trademark registration, copyrights, and patents.

– You will protect your sole right in the court of law.

– May legally prohibit, produce, sell, or import others without your agreement.

– You can receive royalties by renting or selling property.

– Use your strategic alliance’s name. 

Mostly, there are three ways a new company should protect its intellectual property. This could be anything – a brand-representing thought, concept, object, pictures, operation, logos, etc. 

As a business, you can enable the following intellectual rights. 

1. Trademarks:

Trade Marks: It is a brand element that distinguishes your goods and services from those of your competitors and other traders. This gives the business a distinct identity and therefore guarantees that a brand is counterfeited.

It includes; a wordmark, a picture or a symbol, forms and unusual symbols may be registered under a registered trademark

 including colours, sounds, movements, animations, hologram, etc.

For the Trademark rights, the owner can avail exclusive right to use the mark and forbids anyone without permission from using it. The owner is also entitled to license, grant, and sell the label in return for compensation out of it. 

As far as the trademark validity is concerned, it lasts ten years, and the same can be continually extended every ten years. Do note that you will have to get the trademark registration separately in any country where you need trademark protection, depending on the market you sell your goods and services. 

2. Copyrights

The creators of their original, artistic, or scholarly work are automatically protected.

It includes; books, lectures, drama and music plays, cinematographs, drawings, paintings, art, sculpture, photos, illustrations, charts, sketches, etc. Rights: copies or phono-records of the work shall be circulated to the public through the sale, transfer of possession, rental, lease, loan, and publicly transmitted by audio or in-person to be performed. 

For copyright validity; registration is not required but strongly recommended. Copyright shall be valid for the remainder of the author’s life and even up to 60 years after his death. In most countries, the owner has created work of art guaranteed safety by copyright law.

3. Patents:

The question of Patenting arises when you choose to protect any innovation, new invention, or the latest technology that can be used to simplify people’s lives. Many startups rely on patenting to earn huge profits that guarantee longevity in the market.

Condition: Patent requires a novel and original concept. In particular, industrial processes can be patented if there is a non-obvious phase.

Rights: Grants exclusive rights over the patented invention, the right to exclude others

Validity: Patent protection is a territorial right and hence only in respect of Indian Territory (or country where applicable) is valid. For each country where protection is required, separate patents must be filed. A patent is valid for 20 years after it is a public domain.

It is best to consider IP as something that offers an additive advantage that is beyond the concept of making money or even branding for that matter. It is something with which the business esteem is connected. Ensuring the intellectual property is also a standard norm since it is an asset. One of the quintessential business components is to have Intellectual Property Protection a part of budgeting and business plans as well. 

– Investors make Startup valuation based on the IP it secures: 

New businesses don’t have stocks of goods or workforce to continue with. Subsequently, the bulk of a startup’s revenue comes from their IP rights, and its something that attracts more investors. It was assessed that more than 80% of a new business’ estimated value depends on their IP portfolio on the standard.

– No Over-Stretching Finance: 

Unless your startup offers something that has zero creation costs, you’ll need to tighten your pocket massively even to make profits. Another thing that companies don’t understand is the expense of not taking good care of the intellectual property. Perhaps, the best way to secure business (in a relatively cheaper way) is to protect its intellectual property as it goes a long way.

– Impose Control on What You Have: 

Many companies think that other companies copying their brand elements will only make their business famous. Unfortunately, someone who is manipulating your brand identity is not doing any free promotion. There are significant changes that they are providing substandard products and services, eventually damaging your business brand in a longer run.

Firstly, the new company has a highly competitive atmosphere considering the startup ecosystem that is churning out a plethora of entrepreneurs by putting competition and technology are at their forefront. You must always be on the verge of defending the intellectual property from being used for certain goods and services that are not normal. The best and only way to build a definitive and defensible differentiator in an extremely competitive market is to protect your IPR.

Seema Gupta is a well-known financial and tech advisor with the abilities to keep a track and predict the market trends with the utmost accuracy. Her extensive knowledge in finance and tech is remarkable as she has worked on different financial and sectors dealing with the entire range of loans. She is also an expert in writing many finances and tech related articles and blogs, so she is a renowned finance blogger too.

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