Intellectual Property Rights

Jan 25, 2021

Five Reasons why small businesses should register their Intellectual Property Rights

Intellectual Property Rights can be one of the most valuable assets of a business.  

Common examples of Intellectual Property developed by a small or medium business can include a brand name, a logo, the idea and the code behind an app, a patentable design or invention and trade secrets.  

Some Intellectual Property may be protected automatically, however, a business should not assume that its Intellectual Property is legally protected.   

PRISM Supply Solutions has assisted clients with identifying their existing Intellectual Property and developing a strategic overview of where future rights may arise and how these can be protected.   

PRISM’s top 5 reasons for a small business to consider Intellectual Property:

1.     Prevent brand confusion / passing off

Your product has launched in your chosen market and you are seeing customer recognition – this is great news!  A competitor notices your success and launches a similar product or service with a similar brand name and logo. What can you do?

While options may be available for you to take action against unauthorised use of your brand and logo without registration, having registered intellectual property rights in this respect will generally provide stronger tools for protecting and enforcing your rights quickly and consequently with less expense. 

2.     Expansion

Your business is surpassing targets and you are ready to expand to other countries or regions.  Having already registered your trademarks in your home jurisdiction can help you to move faster to register your rights abroad.  Some countries may offer reciprocal recognition with your home country prior to formal registration.  You will want to be registered already so you can hit the ground running in the new market(s).  

3.     Intellectual Property as a product

It is important for small businesses, particularly digital businesses, to recognise when the product they are selling is an intellectual property asset.  Any transfer or licencing of the intellectual property to the customer should take place on agreed terms including price, duration and exclusivity.  Without a good understanding of intellectual property rights, and proper registrations, a small business owner may inadvertently assign rights to its customers on less than beneficial terms.  

4.     Business acquisition

The intellectual property of a business may be a large part of its underlying value.  If you receive an acquisition proposal for your company, having established and registered intellectual property rights can make monetizing your business easier and ensure you obtain the best price. If your brand is not yet a registered trademark or your content is not copyrighted then a potential buyer may require you to first file for registration or prove your copyright before the sale and purchase can complete, slowing down or stalling the process.  

5.     Avoid disputes

If your business or your employees produce or deal with intellectual property then the terms and conditions in respect of those assets should be as clear as possible.  Ambiguities around the ownership of intellectual property rights have the potential to lead to disputes, which can be incredibly costly and time-consuming. Wherever possible rights should be registered or contractually recorded.