Understanding intellectual property
The initial task for a business trying to get to grips with intellectual property is identifying what it owns. With tangible assets such as machinery or buildings, this is a straightforward exercise as these can be seen or felt. The same is true to a certain extent with parts of a firm's intellectual assets. "A firm's patents, its trading name, anything that clearly distinguishes one firm from another; these are tangible parts of intellectual property," says Richard O'Connor, general manager of Cruickshank Intellectual Property Attorneys.
While aspects such as brand names can be clearly seen and registered with patent and trademark offices, intangible elements such as reputation are difficult to see, making it harder to recognise the value of these assets. Other intangible elements include industrial designs, trade secrets, research and development data - indeed, any idea or concept that a business has invented. Knowing what these hidden assets are can help a business to exploit them and potentially attract interest from investors.
"Businesses need to be aware of their intellectual property," says Maureen Daly, head of technology and intellectual property at Beauchamps Solicitors. "Investors look at how a business operates. If you take steps to protect research and development, then these investors will see that you know what is important in your business."
Protecting your assets
Taking the right steps to protect this property is crucial if companies want these assets to add value to their enterprise. Failure to do so can prove costly, as the BBC found out in a dispute with manufacturers in China. The British broadcaster claimed that its intellectual property rights were being infringed because toys linked to its children's series 'Teletubbies' were being sold in China without the BBC's permission. The broadcaster soon found out, however, that it had no rights to make a complaint as it hadn't registered the trademark in China.
Daly says that businesses need to ensure they register their trademarks and patents in any territories they might be operating in, to avoid falling into the same trap. "If someone infringes your rights then you can go after them and make them take their products off the market," she says. Businesses can also help to prevent counterfeiting by making their intellectual property claims as public as possible. "If there's a patent pending then tell the world about it," says Daly. "Put trademarks on your brochures, have copyright notices on material relating to your assets."
On top of registering information, firms also need to develop a strategy to protect valuable information that can't be patented or trademarked. Everyone involved in the business needs to know what this policy is so that sensitive data can be kept at close quarters. Once something has been accidentally disclosed to rivals or industry colleagues, there is no way for a business to reclaim that information and protect its value.
Thinking of others
Protection against losing your own intellectual property is only one side of the coin. SMEs also need to ensure they do not infringe on the intellectual property of others. The last thing a firm needs is to reach the market and suddenly find that a competitor with a similar name is already operating in the field. Should this occur a business might have to cease trading and relaunch under a new name.
There are easy ways of avoiding these kind of problems, however. The Irish Patents Office can help firms to search for patents and trademarks belonging to other companies in Ireland. Its website, patentsoffice.ie, has a wealth of information to help businesses avoid infringement and get up to speed on protecting their assets. Equivalent bodies overseas, such as the US Patent and Trademark Office, provide similar services.
Getting assistance
Developing an intellectual property strategy need not be a solo effort. There are several specialist trademark and patenting firms that can provide assistance, as can several solicitors firms. Aid can also be sought from local enterprise boards, who can assist Irish businesses in the protection of their assets.
O'Connor recommends that firms seek advice in order to protect the future of their business. "You wouldn't spend EUR100,000 on machines without spending EUR1,000 to insure them; likewise you shouldn't spend ten years building up a business without registering a trademark," he says.