It’s never too late to consider intellectual property (IP). Follow our simple step-by-step guide to steer clear of common IP pitfalls and take note of significant milestones when IP becomes particularly crucial.
These are the crucial moments when a business should pay particular attention to intellectual property (IP):
- starting out
- seeking investment
- investing in research and development
- investing in brandings, such as logos, signage, and websites
- establishing a digital presence
- hiring employees or contractors (or when an employee is leaving)
- handling confidential information
- expanding into new areas or shifting business focus, such as a plumber introducing a new service or transitioning into product manufacturing
- engaging in import or export activities
- selling all or part of your business.
Fact
When it comes to IP, it’s important to note that protection in one location does not guarantee protection in another. This holds true even when transitioning between different cities within New Zealand.
When to consider intellectual property
Intellectual property (IP) plays a vital role in protecting the time, money, and effort you invest in your business. While it’s ideal to identify your IP early on, there are key milestones when every business should prioritise and protect it. It’s important to review and, if necessary, revise your IP plans at these milestones to ensure comprehensive protection.
Starting out
Tip: Utilise business.govt.nz’s ONECheck tool to verify if there are businesses with similar names.
- Keep your great idea confidential.
- Ensure your intended business name or logo is not already in use by someone else.
- Check if similar products or services are already available in the market.
- Avoid sharing sensitive information on your website.
Staff
Tip: A verbal agreement is insufficient. Use the Employment Agreement Builder to create job contracts and ensure both parties sign them.
- Specify IP ownership in employment agreements.
- Include confidentiality clauses when:
- hiring employees or contractors
- outsourcing work to manufacturing firms, developers, or graphic designers
- licensing or distributing your products/services.
Copyright and other IP — Employment Agreement Builder
New ideas
Tip: Patents can be complex, so seek professional advice to navigate the process effectively.
- Keep your idea confidential until you have the means to protect it.
- Consult an IP advisor for further assistance if needed.
- When it comes to secret recipes and other trade secrets, only disclose them to staff members who require access. Ensure they sign confidentiality agreements.
Expanding and exporting
Tip: Regularly review and align your IP with your business objectives.
- Protect your intellectual property (IP) before moving into a new area.
- Verify that a competitor is not already using a similar name or offering a similar product.
- Familiarise yourself with your target market, as certain countries may present higher IP risks due to counterfeiting or more relaxed regulations.
Branding and marketing
Tip: Use ™ after your brand name or logo, or ® if you have registered them as trademarks.
- Before investing in business cards or signage, ensure that no one else holds rights to your brand name or logo.
- For a cohesive brand identity, maintain consistency by utilising the same logo, font, and colours across all marketing materials.
Systems and processes
Tip: Consistently update software systems and passwords to prevent unauthorised access.
- Protect confidential information. Revealing it may allow competitors to exploit it.
- Secure your customer databases with strong passwords.
Selling your business
Tip: Use the IP checklist to identify your IP assets and gain valuable protection insights throughout the process.
- Outline your intellectual property (IP) assets and their protection measures when selling your entire business or a portion of it, or when selling shares to investors.
- IP — especially if protected — will enhance the worth of your business.
- It shows you know how to manage valuable assets and provides reassurance to potential buyers/investors that your ideas cannot be easily stolen or duplicated.
Basic IP business steps
There’s no universal approach to IP that fits every situation, but for most businesses, it comes down to a few key steps. And the sooner you take these steps, the better.
Step 1. Identify your IP
Consider what you do and contemplate what aspects might require protection. Take a stroll through your business and inquire about what truly sets you apart.
Refer to the IP checklist of typical IP assets to document everything you come across. Some basic examples could include your trading name, domain name, logo, website, staff expertise, distribution and sales agreements, and customer databases.
Step 2. Consider where your business is going and how to protect what’s necessary (within budget)
Much of the necessary protection depends on the future direction you envision for your business. For instance, if you intend to remain local and focus on your core operations, basic IP safeguards such as trademarking slogans and logos might suffice.
However, if you have plans to expand by opening additional branches, going international, hiring employees or contractors, or seeking investment, a more comprehensive examination of IP becomes increasingly crucial. At these moments, you must determine how IP can contribute to achieving your business goals.
Tip
Set up reminders in your calendar to ensure timely renewals of important items like your domain name or trademark.
Failure to keep up with renewals can jeopardise the protection of your intellectual property.
Step 3. Use your IP to its maximum advantage
Smart small businesses in New Zealand understand that managing intellectual property (IP) is not only about safeguarding against competitors but also about gaining market advantages. For instance, having complete control over your IP can enable you to:
- Promote a specific product or service effectively
- Attract a larger customer base
- Persuade investors to support your business
- Leverage technologies freely
Data for business — Stats New Zealand tools drill into data on competitors and customers
Case study
Pop of inspiration
Once Craig Jackson conceived the name Dr Feelgood for his ice pop venture, he immediately recognised the need to safeguard it with IPONZ. With a background in film and design, Jackson understood the significance of brand identity. He was uncertain about the chances of registering the name, considering it was already associated with a British band and an album by Mötley Crüe. Although there were other Dr Feelgoods listed in the IPONZ register, the name was available within the trademark classifications pertaining to confectionery, food, and beverages.
Dr Feelgood was launched in early January 2015 and has already been rapidly expanding into new markets and product offerings. IP plays a pivotal role in Jackson’s business strategy.
“We’re continuing to secure IP as our business grows into new product and market areas. It’s really important to our commercialisation opportunities. We’ve also taken in-house steps to keep our trade secrets safe,” he says.
“It’s really important that new businesses think of their IP as an asset and how it fits into where their business is going – especially in the early days. Lots of people think IP is a difficult thing to understand, but it’s not. Even basic steps can really help protect and grow your brand.”
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