Navigating Intellectual Property as a startup

This infographic will take you through the important Intellectual Property (IP) issues which should be considered at different phases of a startup’s journey. The journey of a startup is not always a straight line. There may be many stops and starts and, sometimes, two steps forward and three steps back.

Each startup journey is unique, but we will explore six phases of this journey to show you how IP can help you take your product to market and beyond. The important terms have been highlighted and, if you click them, their definitions will appear. For more information click the links to read the full Enterprising Ideas guide and access relevant WIPO resources. Click the “IP Check” button to learn more about the IP audit process.

Before we begin...What exactly is IP?

Intellectual property (IP) refers to creations of the mind recognized by law as protectable such as new product ideas, new ways of doing things, distinctive business signs, attractive designs, and creations such as music, songs, paintings, and sculptures. By their nature these are intangible, in that we cannot touch or see the idea or knowledge behind a product. IP laws give tangibility to these by giving innovators and creators who acquire these rights, the possibility to control their use by others.

The startup IP Journey

Phase 1 Innovative idea

It all begins with an idea.
Do you have an idea for solving a technical problem?

Innovative idea

Has your startup developed any new or improved solutions to technical problems, have you found new ways of doing things, or perhaps you have internal business information that you don’t want competitors to know about?

If yes, you may have protectable IP assets.

That’s great! But how can you really be sure that your idea is new? The best way to check if no one else has come up with the same idea for a solution is to check patent databases. Maybe you are aware of a problem but don’t have a solution. That’s fine, too! You can find inspiration from all those who had good ideas and converted them into patentable inventions by searching patent databases.

Phase 2 Market Appeal

As important as a good idea is, and how well it is transformed into a product, it is not enough to ensure success on the market. A product needs buyers. In a very competitive globalized market, buyers have plenty of choice. Your startup needs to think about how it can attract buyers for its product.

Business Signs

Have you thought of a name, logo, or any other sign to make your product distinctive, which sets it apart from the competition?

Are you sure that your dream name or logo is not already in use or registered as a trademark?

Doing an online search is a good place to start, but you should also search trademark databases, which can tell you if the same or similar trademark have been registered for a similar product.

Industrial Design

Have you considered using an engaging design to make your product or the packaging of your product more attractive to consumers? Again, it is important to ensure that nobody else has the same or similar design. Design databases are an important resource for finding out if your design is new.

Creative Materials

Do you use creativity in your business such as producing videos, artwork, graphics, music or even product manuals, labels, advertising content etc.? These can be the source of your competitive advantage as well contribute to market appeal.

Market Appeal

Do you use a logo, name or other sign or an engaging design for marketing your products? Do you use creativity in what you do?

If yes, you may have protectable IP assets.

Phase 3 Protecting your creations and innovations

Did you know that your innovative solution, the name, logo or other business sign, the unique design, confidential business information, your creative work can all be protected by different tools within the IP system?

Consult your IP office for the local requirements and Enterprising Ideas for more information.

You may consider applying for a patent right for your new technical solution. You may also decide to keep your invention, surrounding know-how, and other business information confidential protecting them as trade secrets. You could apply for trademark protection for your logos and other business signs and design protection for your unique designs. Your artistic and creative materials are protected by copyright at the point of creation without any need for further formalities. IP laws can be different for each country so consult your national IP office for the local requirements.

Got a website? Don’t forget about your domain name. Check if your preferred domain name is available at an early stage.

Unfortunately, you may be deprived of an IP right if others have got there before you. Check patent, trademark, and design databases to ensure that no one else has obtained rights that would prevent you from acquiring them. You may also not be able to obtain a patent or design right if you had made any public disclosure of the invention or design without the protection of a non-disclosure agreement before application.

Protecting your creations and innovations

Have you considered applying for IP rights? Have you put in place procedures to maintain the secrecy of competitive business information?

Have others such as founders, employees, vendors, partners, and collaborators being involved in these creations or innovations? If so, there may be ownership issues and assignments may have to be obtained.
Are there third parties that have already obtained rights?

Have you disclosed to others your innovative solution or unique design? If so, you may have lost novelty, an important criterion to obtain protection.

Phase 4 Go international

Once you have marketed your product locally, within your region or country, you may begin to consider expanding to new international markets. You might even decide to go global, even without going local. An important rule to remember is that IP rights are territorial, which means that rights obtained in a country or region are only valid in that country or region. If you intend to export, it is important to consider obtaining IP rights in the country or region of interest. If you don’t have your innovations and creations protected in these “outside” markets, they will be vulnerable to imitators.

Go back to the patent, trademark and design databases and make sure no one has obtained rights in the target markets that would prevent you from entering that market. The databases are also a good source for identifying potential partners and collaborators, determining emerging trends and to spot opportunities.

How?

To obtain protection in international markets you may file applications in each country individually or file a regional application where available. You can also file through WIPO-managed international filing systems, which allow you to file in many countries with a single application. Copyright which was available at the point of creation is automatic in all countries that are members of the Berne Convention.

WIPO International Filing Systems

  • Patent Cooperation Treaty (PCT)

    The PCT facilitates the filing and processing of patent applications in multiple countries with a single application.

  • The Madrid System

    A trademark holder can apply for protection in multiple markets  by making a single application through the Madrid System.

  • The Hague System

    A single application to register an industrial designs in multiple countries can be filed through the Hague System.

Go international

Have steps been taken to obtain protection in the target countries?

Phase 5Grow your business

Now that you have an IP right, you have acquired a valuable asset that you can use to grow your business. You can sell, donate, and license your IP rights and create additional revenue streams or benefits for your company. They can also serve to attract partners, promote collaborations, convince investors and appeal to prospective employees.

IP databases are a great resource when you are trying to grow the business. It is helpful in seeing technology and market trends, identifying the players that are active in the field, finding partners as well as for spotting opportunities for expansion.

  • Sell

    Sell

    You can sell your IP rights if you have no further interest in being involved in their exploitation.

  • Licence

    Licence

    You can license your IP rights; that is, give another party the right to use and exploit in exchange for a fee.

Grow your business

Do these IP assets add value to the strategic business goals of the company? Are there other ways to use these to bring revenue or other benefits to the company? Alternatively, should they be dropped if they are costing more to maintain?

Phase 6Manage risks

Successfully managing a business is not only about expansion and growth but also about foreseeing and preventing problems.

As IP rights create proprietary rights, it is important to avoid infringing the rights of others. You can check IP databases to see who has prior rights. Infringement can result in costly litigation that could be fatal to a startup. It is also important to keep an eye out for imitators of your products. As such, seeking protection early is critical. Apart from IP ownership, another risk area is the issue of leakage of valuable information particularly when dealing with partners, employees, suppliers, and other collaborators. Therefore, understanding the system, the legal requirements, deadlines and maintaining confidentiality are all important for ensuring that valuable innovations and creations are protected. A missed deadline, an unintended disclosure, or failure to obtain an assignment of rights or an authorization to use could lead to unfortunate, and sometimes catastrophic, consequences.

Manage risks

Are you infringing the rights of third parties or are others infringing your rights? If so, have you considered obtaining licenses to use or granting licenses to use?

When engaging with third parties are you using confidentiality agreements when sharing information?

Are you keeping an eye on statutory deadlines?

Patent databases

Patent documents (patent applications and/or granted patents) are published by patent offices around the world and form the primary source of patent information. As a result, public patent collections and commercial patent databases are an essential and often unique source of technical information since many related inventions are not published in scientific literature. A first search can be done through national databases followed by PATENTSCOPE managed by WIPO and, if necessary, specialized fee-based databases managed by private providers.

Trademark databases

What is called a trademark clearance search can be done by searching trademark databases of national and regional trademark offices as well as WIPO’s Global Brand Database.

Design databases

Searches can be undertaken by checking national and regional databases as well as WIPO’s Global Design Database.

Patent rights

A patent is an exclusive right granted by a government for an invention that is new, involves an inventive step, and is capable of industrial application.

Trade secrets

A trade secret is any information that is commercially valuable to a business to the extent that it is kept secret.

Trademark

Trademark rights protect signs that are capable of distinguishing goods or services, including words, names, letters, numerals, drawings, pictures, shapes, colors, labels, or any combination of these.

Design protection

Design rights protect the ornamental or aesthetic aspects of a product.

Copyright

Copyright is available to authors, composers, computer programmers, website designers and other creators for their literary, artistic, dramatic, or other forms of creation.

Assignments

Assignment is the transfer of ownership of an IP right.

The Berne Convention

Berne Convention for the Protection of Literary and Artistic Works.