Does your business rely on innovation to stay ahead of your competitors? If so, it is likely that you know how important your intellectual property is for protecting your innovation. Nevertheless, are you concerned about the escalating costs of maintaining your IP portfolio, without always understanding the value it brings to your business? Do you wonder if it’s all worth it? You will very likely want to make sure that you don’t spend more than you need to on IP.
But the truth is, without being strategic about your IP portfolio, you can end up spending more on some rights than they’re worth to your business. Just like every other aspect of your business, it is important to keep your IP portfolio under regular review, and perform a simple cost/benefit analysis in relation to each IP right to help you to decide whether or not it is worth spending any more money on it.
Do you wonder if you spend more than you need to on IP? Here are some top tips for managing your IP portfolio:
1. Carefully map your IP rights to your products/services
Make sure you match each existing IP right to a product or service within your business, so you always have a clear picture of which parts of the business are covered by each.
2. Decide whether or not to spend any more money on each IP right
Ask yourself the following questions:
- what does the right do
- what could it mean for your business or brand if a competitor were allowed to do that?
- if the IP right relates to an old or obsolete product or service, what could it mean, in terms of competition for your current product line or your brand, if a competitor were allowed to do what is currently protected by the IP right?
If the amount by which your revenue stream or market share could potentially be eroded if a competitor were allowed to do what is covered by the IP right is greater than the cost of maintaining it, then it is probably worth doing so, especially if you have investors (or may, in the future, be looking for investors) who value IP on that basis.
3. What about new IP rights?
When deciding whether or not to spend money on a new IP right, the same process applies. So:
- what will the IP right cover and enable you to do?
- what could it do to your commercial plans if a competitor were allowed to copy your innovation – what effect could it have on your market share?
Looking at your financial goals in relation to the new innovation, once again, if the amount by which your revenue stream or market share could be eroded (if a competitor is allowed to copy you) is more than the cost of securing the IP right, then it is probably worth pursuing it, If the amount by which your revenue stream or market share could potentially be eroded if a competitor were allowed to do what is covered by the IP right is greater than the cost of maintaining it, then it is probably worth doing so, especially if you have investors (or may, in the future, be looking for investors) who value IP on that basis.
4. Review your IP portfolio and strategy regularly
…and make sure it evolves with your business plan so that it always matches your commercial and financial goals. In this way, you can ensure that IP costs are only being incurred when their potential benefit to the business outweighs the cost.
5. BUT…don’t underestimate the value of your IP either
Company assets and funding
In trying to cut or limit your IP spend, don’t underestimate the inherent value of your IP. The associated costs can be daunting, but its value can lie in more than just protecting your immediate interests. A robust IP portfolio can add untold value to a business, and IP rights represent tangible assets that are often imperative when looking for funding, either by borrowing or investment. Not only that, but it sends a clear message to your competitors that you value your IP and will enforce it if you need to.
Don’t forget the deterrent power of IP
It is difficult to prove a negative, so you may never know whether or not a would-be competitor was put off copying your innovation because you had registered IP in place. In general, a legitimate business will not knowingly risk lengthy and costly legal proceedings for IP infringement, so if you have registered IP, and show a commitment to enforcing it, then it will likely act as a powerful deterrent to others who might otherwise try and muscle in on your market share.
Resources
The UKIPO provide some great tools to help businesses with their IP. You can find out more here Welcome to IPO’s online training tools. These have been designed to help you: | Intellectual Property Office
If you have any questions or need any IP advice, please contact us for a free initial consultation by emailing vicki.strachan@strachanip.co.uk or visiting our website at https://strachanip.co.uk/contact/
