Whether you’re a start-up or a family business that’s been trading for generations, understanding and protecting your intellectual property is important for fostering growth, preserving what belongs to you, and upholding a strong reputation.
Intellectual property(IP) is all about safeguarding the time, money, and effort you invest in your business. By taking even a few simple measures, you can:
- protect what belongs to you
- transform your efforts and ideas into profitable outcomes
- position yourself for growth and market expansion
- keep competitors away
- ensure you’re not violating others’ rights
- prevent employees from helping your rivals
- attract investors
- showcase your business to investors, licensees, or potential buyers.
Tip
Having a solid IP portfolio can greatly attract investors and demonstrate your confidence in effectively managing these assets.
Increase your IP knowledge
IP protection can often appear daunting for small businesses due to several reasons:
- Unfamiliar with IP concepts
- They feel that it is only applicable to larger companies
- Limited knowledge of the various available IP actions.
Tip
Before you launch any website related to your business, make sure you take the necessary measures to safeguard your IP.
By not protecting yourself beforehand, you run the risk of revealing your brilliant idea or product to the world, leaving it susceptible to potential copying.
Case study
IP advisor turns backer
When a Kiwi designer devised a new baggage system, he recognised its value in terms of intellectual property (IP). Despite being unsure about where to begin with IP protection, an expert advisor identified the invention’s potential and made an investment.
The advisor’s efforts not only assisted in attracting additional capital but also facilitated access to valuable IP support. In total, the designer secured $1.2 million in funding and received $50,000 worth of free assistance in protecting his invention, including obtaining a patent.
Today the technology’s IP is being licensed to European companies for new applications, and interest in the United States is also gaining momentum. With the company’s workforce growing to 10 employees, they continue to explore fresh applications and markets for their invention.
Some of the easier ways to increase your IP knowledge
- Utilise the ONECheck tool to determine if your intended business name is already in use
- Engage in discussions with your industry group
- Seek advice from your accountant or business mentor
- Ask your local chamber of commerce for support
- Study the IP strategies employed by your competitors or potential business partners
- Check the Intellectual Property Office of New Zealand (IPONZ) website(external link) for information on different types of IP
- Attract IP-savvy board members (if applicable to your board or governance structure)
- Collaborate with an advisor through the Regional Business Partner Network
- Read articles or blogs about IP, such as the one by New Zealand Trade and Enterprise on Why you should think about IP early on
- If you are involved in research and development or undertaking innovation projects, reach out to Callaghan Innovation and explore their Innovation IP programme. They offer co-funded workshops and other forms of assistance.
- Seek assistance from start-up incubators like AstroLab, Powerhouse, WNT Ventures, or Icehouse’s start-up programme
You’ve put in a lot of effort to establish your business, idea, or product, so it’s in your best interest to ensure that your intellectual property (IP) serves you well, both presently and in the future.
Case study
Time and materials
Construction worker Hemi has come up with an idea for an enhanced safety harness. He checks with the foreman if he can utilise the company workshop during his off-work hours to create a prototype.
Regrettably, the specifics of this agreement are not thoroughly discussed and officially recorded with his boss, resulting in complications regarding the ownership of the invention.
Eventually, they engage in negotiations and reach a settlement — Hemi is required to reimburse his employer for the electricity consumed, equipment rented, and supplies used.
Common mistakes
The reality for many small businesses in New Zealand is that intellectual property (IP) either doesn’t receive much attention or is given a very low priority.
Many business owners either haven’t yet recognised the value of IP or always have an extensive list of other pressing tasks to tackle. However, it’s crucial to allocate time for IP matters because neglecting them can jeopardise your business.
There are several common IP pitfalls to be aware of:
- Disclosing your brilliant idea to others before taking steps to protect it.
- Assuming that registering your business name with the Companies Office automatically safeguards it.
- Attempting to sell your invention without first exploring options for IP protection.
- Commissioning a logo, brand, or website without verifying if they infringe on someone else’s trademark or copyright.
- Expanding into new markets without considering IP protection – certain markets may present higher IP risks than others.
- Assuming that registering your IP with IPONZ automatically provides protection overseas.
- Not including a copyright symbol on the packaging, web pages, and marketing materials.
- Using images, music, and content created by others without verifying if you can
- Believing that you automatically have the right to a domain name that matches your business name.
- Failing to safeguard confidential information – it is crucial to clearly document ownership of IP with employees and contractors, especially during the early stages of a business.
- Assuming that IP protection is always costly.
Tip
Make sure to properly document any agreements between employers and employees that are not explicitly outlined in the employment agreement.
It is advisable to pursue a patent for inventions before disclosing them to anyone else.
Are you struggling with accounting and business management for your business? We are here to help! Get in touch with us to discuss how our expert services can support your business’s success. Contact us today to schedule a free consultation and see how we can add value to your operations. Please find us on Facebook | Linkedin | Instagram – Follow us and give us a like to see more updates and news.