Why Your Business Needs to Protect its IP (6 Reasons Why)
Intellectual property (IP) are intellectual creations such as inventions, symbols, images, names, literary and artistic works used in commerce.
Intellectual property is an intangible asset that provides economic benefits to your business just like any other tangible asset. Intellectual property are creative assets that include patents, trademarks, copyrights, and trade secrets.
This article discusses the importance of protecting your company's intellectual property.
- Protects your Innovation
You may have invented a valuable innovation. Unfortunately, someone may counterfeit your invention and sell your ideas as his own. He will cause you economic loss or damage your reputation by producing inferior counterfeits of the original.
If you register your intellectual property, you can prevent the theft of your innovations. You get an exclusive right to your creative assets. No one else can use your invention without your permission. If someone uses your creation without your consent, it will be considered an infringement and be dragged to court.
- Sets your business apart from competitors
Every business wants to establish its unique identity in the market. To do this, you must stand out from your competitors. Your company logo, products, services, processes, etc., differentiate your offering from your customers.
Protecting these will give you a competitive advantage over your competitors. Your competitors who are tempted to copy your creative ideas and innovations will be prevented from using your IP, thus creating a barrier to entry.
- Increases visibility of your brand in the crowded market
Building your brand presence in the eyes of customers is critical. The market is crowded with many products from different companies.
If you protect your intellectual property, you can establish your brand's presence and build an impression with people. In addition, you can establish your brand in a way that will attract customers who will buy your products or services again and again.
- Acts as security for loans
Tangible assets such as real estate, plant and machinery, and inventory are used as collateral for asset loans. But intangible assets such as copyrights, patents and trademarks can also be used as collateral. Using intellectual property improves creditworthiness and increases the collateral pool.
If you need a loan for your business, you can deposit your intellectual property as collateral with your bank to increase the chances of a successful loan.
- Generates a revenue stream
Revenue streams are the various sources of income that a business can generate by selling goods or providing services. For example, one way to develop a revenue stream is to license the rights to your intellectual property to earn royalties on it.
Since intellectual property is an intangible asset, you can even sell your intellectual property to make some money if needed.
- Provides security to investors
Every investor is very interested in knowing the intellectual property of a business. The investor community considers intellectual property one of the most important parameters when making investment decisions in your company.
From an investor's perspective, a company that owns intellectual property provides a sense of security regarding the money invested. An investor has the assurance that if the company fails, the intellectual property owned by the business can be monetized either through licensing or sale.
What if your IP Rights are Not Protected?
Failure to register your intellectual property may adversely affect your business. For example, someone could use your intellectual property without your permission and cause economic harm. In addition, if the intellectual property is used adversely by such a person, it can lead to a loss of reputation in customers' eyes.
IP crime cases are on the rise. For example, a person might steal your intellectual property and claim it belongs to him. You will have to take such a person to court and prove that the property belongs to you in such a case. However, if the intellectual property is registered, you are considered to have exclusive rights to the intellectual property, i.e., you are the owner of the creative assets.
We can now say that the protection of the intellectual property is essential. It is your responsibility to protect your company's intellectual property. No one else will bother to inform you that someone is violating your intellectual property rights. Protecting intellectual property will also help you grow your business. With the right help, you can protect your intellectual property and use it to your advantage.
Your Virtual Legal Counsel can help you protect your creative assets. YVLC will work with you as a partner to protect your company's intellectual property. Schedule an appointment with YVLC to discuss your intellectual property protection strategy.