IP strategy: Grandmaster Moves to Checkmate Competitors
The right intellectual property (IP) strategy can be the checkmate that decides who wins the market race. IP is the most valuable asset of any business. Regardless of the product or service offered, as a startup or an SME, you are likely to use and create a large amount of IP on a regular basis, from brand names to confidential business information to original creative designs. By protecting your innovations, you can differentiate yourself from your competitors, attract investment, and create new opportunities for growth and expansion. On the other hand, failure to do so can lead to revenue loss, litigation, and damage to your company's reputation.
In this article, we will introduce you to some of the strategic moves that can help you create and implement a successful IP strategy to position your business for market dominance
1. Unlock the Power of your IP Assets by Registering Them
Recent studies show that the number of IP applications filed by small businesses has steadily increased over the past decade. Small businesses worldwide are recognizing the critical role of IP, and as a result, they are increasingly prioritizing the acquisition and preservation of IP rights. This is because IP offers several key benefits, such as a strong market position and competitive advantage, higher profits or returns on investment, additional income from licensing, creative negotiating power in business deals, and a positive business image. In this context, a 2022 EU flagship study found that 93% of SMEs with registered IPRs have seen positive impacts on their business. These SMEs cited several key benefits, including improved reputation or image of their business (60%), better IP protection (58%), and better long-term business prospects (48%). These findings underscore the critical role of IP protection in effectively navigating the business landscape. It is worth mentioning that in addition to registering your IP assets, you must take the necessary steps to keep them alive. Failing to renew your TM and failing to pay annuity fees for your patent lead to loss of protection.
A solid IP strategy can have a significant impact on your business's prosperity, especially in highly competitive markets.
2. Avoid Fatal Disclosure Pitfalls
Startups and SMEs should always prioritize protecting their innovative ideas or concepts before disclosing them. Disclosing your invention before filing a patent application could deprive it of novelty and render it impossible to obtain a validly granted patent. The same applies to design. Losing protection may result in hefty losses associated with losing competitive advantages and allowing competitors free access to your valuable innovations. In addition to patent and design protection, you may also consider utilizing trade secret protection to protect confidential and commercially valuable information, such as customer lists, marketing strategies, and other internal processes. NDAs can also be an effective tool for preventing the disclosure of confidential information to competitors, employees, or other third parties. In this digital age, it is also important to be mindful of the various channels through which information can be disclosed, such as social media, public pitches, or even discussions with potential investors.
3. Defend your IP Kingdom against Infringement
In the fiercely competitive world of business, defending your IP rights is key to thriving. IP infringement refers to the unauthorized use, reproduction, or distribution of IP-protected products, creations, or inventions without the owner's permission. It can lead to significant financial losses, damage to brand reputation, and even legal action. Fighting IP is about preserving your reputation and building consumer trust. Consumers are increasingly concerned about the authenticity and quality of the products they buy, and IP infringement can erode their trust in your brand. Because of this, taking swift action against any infringement communicates your commitment to defending your IP rights to your customers. Therefore, it's crucial to develop a strong IP strategy that prioritizes defending your IP kingdom against infringement. This involves partnering with experienced IP experts who can help you identify potential infringement and take swift action against violators. It also involves establishing a culture of IP protection within your organization and educating your employees on the importance of safeguarding your IP assets. By doing so, you can establish yourself as a powerful player in the market and prevent infringement from undermining your success.
4. Incorporate a Global Perspective into your IP Strategy
In the realm of global business, it's vital for entrepreneurs to keep in mind that IP rights are territorial. This means that legal protection for IP is only valid in the country or region where it has been granted or registered. In order to safeguard your IP assets in a foreign market, it's imperative to secure registration of your IP in that market. This strategic move not only mitigates the risk of infringement but also enables you to establish a strong foothold in the target country, giving you a distinct advantage over your competitors. In this context, it's also important to be aware of the brief window of time associated with priority privileges granted by the Paris Convention. This priority right allows trademark and patent applicants to claim the filing date of their initial national application in other member countries within a certain timeframe without losing their priority status. To benefit from this privilege, applicants should submit their application within six months of the national trademark filing date and within twelve months of the patent filing date. Missing the deadline could lead to forfeiting the opportunity to seek priority. If you seek to protect your TM or patent abroad, you can take advantage of the streamlined Patent Cooperation Treaty (PCT) process and the Madrid Protocol. These streamlined processes allow for simplified and cost-effective filings across multiple countries. By taking advantage of these international systems, businesses can efficiently protect their IP in multiple jurisdictions and expand their market reach.
5. Align your IP Strategy with your Business Goal
Your IP assets are a key component of the value of your company. IP is a powerful tool in the modern business world and the backbone for your business's survival and growth in a competitive environment. These valuable business assets must be properly managed and protected to ensure you can use them effectively to grow your business and remain competitive. Therefore, consider creating an IP strategy that aligns with your overall business goals. This strategy can help you identify the most valuable IP assets, allocate resources for protection and management, and develop a plan for monetization. If you don't, you will miss opportunities to increase revenue and excel in the marketplace.
6. Enlist Expert Assistance to stave off Competitors
As small businesses often lack sufficient technical IP background, getting professional IP support can help you navigate the complex landscape of IP registration, management, and enforcement. An excellent IP firm with adequate resources and experience will assist you with all the possible IP challenges you might face, provide strategic advice and manage your IP Portfolio. This support will help you build a vital IP strategy that points the way toward a sustainable growth model to stave off competitors. Although the cost of hiring an IP firm may seem daunting, it is a wise investment that can ultimately protect valuable IP assets and provide a competitive advantage in the long run.
7. Make your winning move on the Business Chessboard by conducting an IP Audit
Like a skilled chess player, you need to have a comprehensive assessment of your IP assets to decide the right moves. That's where an IP audit comes in, and it can help you leverage your company's IP and realize your growth plans.
An IP audit is a thorough and comprehensive review of all intellectual property assets owned by your company. This includes patents, trademarks, copyrights, design patents, and trade secrets. The main goal of an IP audit is to ensure that your valuable intellectual property is protected and that you are making the most of it. With an IP audit, you can identify all of your IP assets, identify potential infringement risks, and ensure that all IP registrations are current and valid.
Once completed, an IP audit will provide you with a report that will assess the quality of your IP portfolio and identify ways to optimize it. You may find that some of your IP assets are redundant or underutilized, and you may decide to abandon them to save costs. Or you may find that some of your IP assets have untapped potential, and you can develop them further to increase their value.
Overall, an IP audit is a critical step that can help you effectively implement the best strategy to value your IP assets, integrate them into your broader business strategy, and win the market race.
Conclusion
In conclusion, having the right intellectual property (IP) strategy is crucial as it can determine the winner in the market race. IP serves as the most valuable asset for any business, regardless of its offerings or size. Implementing a solid IP strategy has a significant impact on business prosperity, especially in highly competitive markets. It allows for the protection of innovations, differentiation from competitors, the attraction of investment, and the creation of new growth opportunities. Conversely, neglecting IP protection can lead to revenue loss, litigation, and damage to the company's reputation.
Abounaja Intellectual Property is ready to assist in the creation and implementation of successful IP Strategies for your business. Drop us an email at connect@abounaja.com for a complimentary consultation.
Special thanks to our IP Specialist, Hawraa Hammoud, for contributing to this article.
