While many young companies view IP protection as an unnecessary expense or a concern for later, the reality is that IP protection can be the difference between long-term success and vulnerability to competition.

Why Your Startup Should Invest in IP Protection

IP protection requires upfront investment, however, the potential returns far outweigh the initial costs. Some of the benefits of early investment in IP protection include:

• Investor Attraction: Venture capitalists and angel investors typically view robust IP protection favorably
• Potential Revenue Streams: Licensing opportunities can create additional income streams
• Competitive Advantage: Protection provides exclusivity and makes it unlawful for competitors to copy
• Increased Company Valuation: Strong IP portfolios can significantly increase a startup’s market value

How Can Startups Protect Their Intellectual Property?

The ideal intellectual property protection strategy includes different types of intellectual property protection, including any combination of patent, trademark, copyright, and trade secret protection.

Copyrights

A copyright is an exclusive right given to owners of original creative works. A copyright owner has the exclusive right to reproduce, adapt, publish, perform, and display the original works, as well as the right to authorize third parties to exercise these rights. Businesses may seek copyright protection for items such as product packaging, textual, graphical, audio, or audiovisual content, and in some instances, product design.

Patents

A patent provides its owner with the right to exclude others from making, using, offering for sale, or selling the invention for a specific period of time. Businesses who wish to protect inventions in international markets should apply for patent protection in the United States and abroad. Businesses may seek patent protection for items such as devices, product design and packaging, processes, formulas, and more.

Licensing

Businesses can monetize their intellectual property rights through licensing agreements. A business may allow another party (the licensee) to use, manufacture, sell, or distribute their patents, trademarks, copyrights, or other intellectual property assets under the conditions of a licensing agreement in exchange for royalties or other fees.

Trademarks

A trademark is any word, name, symbol, or device used in commerce to identify or to distinguish a source of goods or services. To be eligible for trademark protection, a mark must be source-identifying. (i.e., it must communicate to a customer that particular goods or services originate from a particular source).

The goodwill and reputation of a business and its products and services are often linked to its trademarks. Businesses may seek trademark protection for items such as names, slogans, logos, colors, sounds, and in some instances, product design and packaging.

Trade Secrets

A trade secret is commercially valuable information that is not generally known to others, providing a business with an economic advantage over competitors or customers.

The Risks of Not Protecting Your Startup’s Intellectual Property

Without proper IP protection, your startup becomes an open target for competitors. A few of the risks of not protecting your startup’s intellectual property are:

• Lower barriers to entry for potential copycats 
• Difficulty attracting investors who prioritize protected innovations
• Challenges in enforcing your rights against potential infringers
• Rapid duplication of your core innovations
• Loss of unique selling propositions
• Reduced negotiation power in business discussions

Work With an Intellectual Property Attorney You Can Trust

The ideal time to start protecting your intellectual property is now. Early-stage protection can prevent costly legal battles, preserve your competitive advantage, and position your startup for long-term success.