What Startups need to know about Intellectual Property?

Intellectual Property (IP) is an asset, intangible, which is the product of knowledge and ideas of a person’s mind and thinking abilities. When a person brings out something in intangible form, using his ideas and information and is an outcome of his applied mind, that is said to be an Intellectual Property, i.e., a property generated as a result of the intellectual capability of a person. IP can help in giving an upper edge or advantage in the competitive market, but also it is also on the verge of getting copied or stolen or not registered in that person’s name as his property or is not protected from being copied. Therefore, an IP is said to be valuable, both in a moral and commercial sense.

What Startups need to know about Intellectual Property?

Intellectual Property (IP) is an asset, intangible, which is the product of knowledge and ideas of a person’s mind and thinking abilities. When a person brings out something in intangible form, using his ideas and information and is an outcome of his applied mind, that is said to be an Intellectual Property, i.e., a property generated as a result of the intellectual capability of a person. IP can help in giving an upper edge or advantage in the competitive market, but also it is also on the verge of getting copied or stolen or not registered in that person’s name as his property or is not protected from being copied. Therefore, an IP is said to be valuable, both in a moral and commercial sense.

Now, in the business world, a businessman is aware of the challenges he could face while starting a new business or venture and he is also aware of the fact that the initial phase of starting a business is a crucial and busy time for the company as well as for the business. Along with structuring the business team, company, shareholders, partners, and making out market plans, developing a strategy for the intellectual property is also a task that needs to be done before stepping into the market. This helps in establishing a strong foundation for the business and the company. This article creates an outline of the types of intellectual property and also includes ideas for startup companies to protect their valuable property against the risk of getting copied or misused by others.

What is Intellectual property?

Intellectual property has been defined by World Intellectual Property Organisation (WIPO) as creating and inventing literary and artistic works, designs, symbols, names, and images used in the market, using the mind and intellect. Usually patent, copyright, trademark falls under the category of intellectual properties.

IP is a term universally accepted, for a set of incorporeal properties owned and protected, legally, by any company from outside, which tries to use or practice it without the holder’s consent or permission. Defining IP as an asset aims to protect the intangible property just like a physical property; also it provides the holder and company competitive advantages over others in the market.

Types of Intellectual Properties a Startup must protect:

In general, there are three of the important IPs a business venture or startup must protect-

  • Patent- Patent is an invention of a product or service and preventing a patent means protecting it from others so that they can’t make, use, or sell the patented product, and gives the owner, the right to make, use or sell the product. It is the most expensive and time-consuming type of intellectual property but also provides the best scope for protection. In other words, patent excludes the competitors in the market to make, use, or sell the patented product even if they formerly knew about the patent or tried to copy it. A patent attorney helps in protecting the patent. The businessmen or entrepreneurs apply basically for two types of patents- a utility patent (which helps in protection of the technology behind the invention and also the functionality and structure of the patent); and a design patent (of an original design).

To know more about patents law, see the video below-

 

 

  • Copyrights- Copyrights provide protection to the original authorship work which includes literature, software, or even images. Copyright protection provides with exclusionary rights to make changes, disperse, perform and create, displaying and copying of one’s own work. According to common law, copyright comes into existence from the very moment of creation, and thus registration is voluntary. Copyrights help in the protection of expressing ideas, but they don’t help in the protection of concept. It means that a competitor can get inspired from your work and bring out something of the same kind and it doesn’t mean that he has copied your work, he has just followed and put into his ideas.

To know more about copyright law, see the video below -

 

 

  • Trademarks- Construction of a standing brand is an essential step in starting up a business and it also helps in creating trust and faith in the customers. As the name grows and a wide reach is met, the competition gets tougher and the other competitors try to bring out and promote similar products and services. Trademarks here help in prevention from such scenes and a memorable trademark help in winning a customer’s heart. A brand’s name and logo, slogans, and design help in attracting customers and achieve the targeted market reach, and thus, trademarks significantly differentiate between your and the competitor’s product. Monetizing a brand’s identity helps in increasing revenue and attracting a wide customer range nationally or globally. Registering a trademark distinguishes your goods and services from others and creates a brand of your own, creating a distinguishable and unique identity for the company and thus helps a brand from getting copied by others in the market.

To know more about Trademark Law, see the video below-

 

 

Why protect Intellectual Property?

Since IP is a product of a person’s mind and is the most valuable asset, it is at the risk of getting copied in case it emerges out to be advantageous for the owner or holder. To protect the risk of getting it copied and from the competitor to make a fortune out of a person’s intellectual effort, it is necessary to protect the IP. IP brings out an advantage in the competitiveness of the market and in a market like India’s, which is a growing market as each day passes, reducing risks of illegally using someone’s intellect is the best a company can do. As prevention is better than cure and thus preventing rival parties or other startups to use the same idea, IP protection is an important step to take. So, safeguarding products and brand names so that genuine market remains in play, startups and businesses must protect the IPs.

To know more about Indian laws that every businessman and entrepreneur must know, see the video below -

 

 

 

 


 

BY

Shivangi Garg