EXPERT ADVICE
Protect and prosper T
Every business owns intellectual property of some kind, but most do little to either protect it or maximise its commercial value. DAVE MORGAN, of Ignite IP, wants to see that change.
he UK Intellectual Property Office awareness survey of 2010 found that 96% of UK businesses do not know the value of their Intellectual Property Rights. The majority of SMEs ignore IP and only react passively to IP issues when they arise and have little idea about how to manage and exploit their firm’s Intellectual Assets. This issue is so serious that Business West has decided to offer a new service, via Ignite IP, to help people in business fully appreciate the importance of understanding IP management.
The first thing we need to do is to establish what we mean by Intellectual Property. It’s a wide definition which covers things like brand or a patent or literary works. That means that every business possesses IP.
For example, the smallest and most local of businesses offering a particular service, such as a plumber, actually owns a valuable piece of IP – their name and brand. That could be a watchword for high quality service at reasonable cost delivered over a number of years. The snag is that unless that IP is protected, there would be nothing to stop someone else opening up a business in the same area with the same name, profiting from the reputation but potentially offering a much poorer service that would damage the original business. Large corporate enterprises usually have in-house expertise with a focus on appreciating the needs of IP protection and maximisation. On the other hand, smaller businesses don’t have that sort of support so their challenge is to find a reliable source of informed, strategic and above all, impartial advice.
There are two key elements to explore. There is a need to have a clear understanding of legal elements and also an appreciation of potential commercial applications. SMEs that are successful and sustainable have a strategic business plan in place which should include a provision for IP. It’s a key building block for your business with exactly the same attributes as traditional property and should be regarded in just the same way as your premises, your financial plan and your workforce. Part of that process involves conducting an IP audit. You wouldn’t dream of operating without regularly reviewing your financial position, so it’s crucial to do the same with your IP. Ask some questions, such as what do you have, what is secure and what is potentially at risk? You must seek a secure registration for your brand within its relevant sector. But think strategically, plan ahead and ensure your brand is fit for purpose. How might your business develop in the future? Might you diversify into other areas? If so, what are they likely to be? Take care when starting to trade abroad because IP rights are limited to the country in which they are awarded. Just because you have protection in the UK, don’t think that will still apply if you expand your operations into Europe or further afield.
This is not just about protecting your rights. Think about ways in which you can add value to your business and increase your revenue streams by selling a licence to operate to someone else, which in turn will promote your brand. There have
been some amazing examples of that. When you think about it, McDonalds don’t sell burgers, they sell their name to other people who run franchises that sell the burgers.
So far I have concentrated on protecting your own property. But you also need to check that your business doesn’t infringe the rights of others. Take care to ensure you can legitimately use a brand. It would be all too easy to spend a fortune on a logo, marketing material and a website without first being sure you are entitled to a name. The consequences of finding out later that it was owned by someone else could mean you would have to go back to square one which would be time consuming and costly to your business. Take care of your intellectual property and you will find it takes care of your business.
‘The smallest and most local of businesses offering a particular service, such as a plumber, actually owns a valuable piece of IP – their name and brand
Business West Update JANUARY/FEBRUARY 2012 15
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