Intellectual property as defined by Investopedia is a broad categorical description for the set of intangible assets owned and legally protected by a company from outside use or implementation without consent.
According to Investopedia the term startup refers to a company in the first stages of operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand.
Intellectual property and startups are intertwined because it affects almost every aspect of the business
During the early stages of a company’s operation, the intellectual property aspect is usually neglected but this is one of the most important assets of a startup that should be given attention ranging from trademark, trade secrets, copyright, patent, designs etc.
Startups need to be proactive with regards to their IP rather than waiting for issues to arise before acting which might affect the company negatively such as attacks from patent trolls also known as patent assertion entities (PAEs) who purchase patent from existing or nonexistent companies and make their money by suing companies, especially startups that use them.
When a startup is considering protecting its intellectual property it must engage an IP attorney to consider the following:
- What type of IP does it have?
- Is that IP infringing on someone else’s IP
- How can its IP be protected?
- What is the lifespan of its IP?
- How can the IP support the company commercial goal?
The effect of IP protection on startups is that it helps them gain advantage over their competitors and gain exclusivity to its trademarks, earn revenue, project a good image to investors. Also, startups must resolve the issue of retaining the IP developed by employees and independent contractors to avoid future issues.
Startups can protect their IP through the following ways:
- Develop strategy for IP protection
- Register the IP
- Date IP works
- Sign NDAs
- Always do a freedom to operate (FTO) research.
- IP auditing
However, an IP can be protected without registration such as under unfair competition, it is always advisable to register it for better remedies when infringed upon.
