Intellectual Property Rights
An intellectual property rights strategy is an effective instrument that can facilitate a successful business. Intellectual Property Rights (IPR) themselves are essential for determining the success of a business. In this scenario, the significance of IPR for a startup cannot be over-emphasized. More often than not, startups are hotspots of innovation and emerging technologies. Streamlining the system of protection of their innovations will be an essential value addition to their business strategy.
Intellectual property rights may be in the form of patents, trademarks, design, or copyright. In whatever form, IPR can be capitalized upon to improve the finances as well as the credibility of a company in the economy. IPR is intangible property, which means that care must be taken to protect these invaluable assets at the business’s inception. Recognizing this, the Government launched the Scheme for Facilitating Startups Intellectual Property Protection (SIPP) in India. The object of this scheme is to nurture the creativity and innovation of startups, promote awareness and encourage the protection of IPR among startups.
The Starting Point:
After forming a startup, what must be done insofar as IPR is concerned?
1. Be conversant with all forms of IPR
After a startup’s inception, an indispensable requirement is conversing with all forms of IPR, their registration process, requirements, and the like. Below is a brief description of the different forms of IPR:
a) Patent:
Patents are arguably the most lucrative form of Intellectual Property Rights. Getting an invention patented requires the innovation to be novel, have an inventive step, and have industrial applicability. Filing a patent is necessary to tap into the benefits of getting a patent. The key is to ensure the complete and adequate protection of the core invention and then build around it to ensure the commercial viability of the patent.
b) Trademark:
A Trademark’s importance lies in the fact that it serves as a source identifier. For this reason, trademarks have to be unique and distinctive. Further, it tells the consumers the source of the product/ service they are availing. This enables the company to garner goodwill and a reputation in the market based on the quality of the products/ services offered. Therefore, trademark registration gives the proprietor of the trademark the statutory right to sue an infringer and claim damages for the trademark infringement.
c) Industrial Design:
Any unique shape, configuration, or pattern applied to an article may also be protected. Many consumers base their purchase decisions on the aesthetics of a product. The design registration of an article protects the design from being used by any third party without the permission of the Registrant. Though a relatively lesser-known form of IPR, it has much capitalization potential.
d) Copyright:
Literary and artistic works may also be protected under copyright. Copyright exists in the creator of the work from the moment the work was created. This means that no formal registration is required for copyright. However, registering a copyright is always better as it acts as proof of copyright ownership. An essential point in copyright is that copyright only protects the original expression of an idea. The idea itself does not have to be unique. But, the expression of the idea has to be unique.
2. Do not infringe on existing IPRs:
Before registering any form of IPR, it is crucial to ensure that it does not infringe on any subsisting IPR. This can be done by conducting a patentability search, a public search of trademarks or designs, and the like.
3. Draw up an IPR strategy:
Having an IPR strategy always enables a business to streamline the protection of its innovations. Adequate time and energy must be expelled to ensure the IPR of a company is protected against potential infringers. This is especially required for a startup to increase its economic credibility. An IPR strategy is needed to determine whether intellectual property must be accorded protection. Not all intellectual property is worth protecting. For instance, some inventions may not be commercially viable. For such inventions, a defensive disclosure is better than spending money on getting a patent for the invention. Finally, a good IPR strategy will facilitate decision-making to this end.
4. Be wary of public disclosure:
Sometimes, startups may, in the event of describing their product, reveal too much information about the product. So much so that the process behind the product becomes public knowledge. In such an eventuality, the product cannot be patented as it would have become public knowledge. Hence, startups need to keep a check on the amount of information they reveal.
5. Avail the benefits under SIPP:
In India, the Government, in a bid to encourage innovation and creativity among startups, has accorded many benefits to startups under the SIPP scheme. Startups must be sure to avail the benefits under the scheme for protecting intellectual property rights in India. Please refer to this SIPP Scheme to understand how to help the benefits.
These are some points that startups must incorporate into their business strategy to protect intangible IP rights. Therefore, Intellectual Property Rights are as important as tangible property and can be just as lucrative if protected and utilized correctly.
