3 Reasons Why the Early Stage Companies Should Prepare and Protect Their Intellectual Property
Are you a start up? So you have brilliant set of ideas for your business? Unsure whether to copyright them? In this article we will know why an early state company should prepare and protect their intellectual property.
Reason 1: To create value out of ideas lying on the table.
Copyright, trademark and patent are seen as intangible assets of the company. By preparing Intellectual property one is creating assets for the company and since it is a new company a lot of ideas must be evolving and it is important that they do not lose the worth they have. The first thing is to know whether they are patent-able, if so it is always advised for a start up to prepare Intellectual Property out of them. Intellectual Property thefts cause US companies 30 billion per annum, and this is an expense which a startup just cannot afford. It is also observed that 90% value for an emerging company comes from its IP.
Reason 2: To eliminate competition.
Having your valuable ideas patented, eliminates tough competition as no one would be allowed to use it without your permission and if someone does the IP laws would protect the original owner.
It also helps in securing good market position and gives recognition to the original author/originator. It also helps in protecting trade secrets. And any person with a novel idea can first patent it and then propose it to the interested parties. This would eliminate the fear of losing the novel ideas to the people who heard it while proposing the same. Famous successful examples include the recipe for Coca-Cola.
Reason 3:To attract investors
For a startup it is very important to attract investors and investors would largely depend their decisions on the object of business and how they want to achieve it. If a company is well prepared and is legally backed; it provides for assurance to the investors. It also increases visibility in the market.
The procedure to acquire IP is easier than other legal requirements while setting up a company. Help from a lawyer makes it better and it is always suggested to have a lawyer’s opinion on important aspects relating to Intellectual Property.
About the Author-
Anusha is an intern at Lexfluence and a student at Gujarat National law University with an unconditional love for debate. She loves reading novels and her favorite genre is fantasy. In her free time she enjoys playing throw ball and listening to good music.