Intellectual property (IP) is a critical component of every successful business. Though IP is certainly not the only factor in building a business, how you choose to use it, or not, can often make the difference between excellence and mediocrity. Entrepreneurs need to understand the value of IP, and put this knowledge into practical use as early as possible.

Know the Different Types of IP

You can obtain federal protection for 3 types of IP: patents, trademarks and copyrights. For a more extensive discussion of these categories, check out www.patentwiki.jot.com.

Generally speaking:
Patents cover inventions;
Trademarks cover names, logos and sometimes three-dimensional product configurations (also known as trade dress); and
Copyrights cover original expressions (e.g., songs, videos, visual arts, text, software code, advertising materials, etc.).

It’s possible that multiple categories of IP may be embodied in a single product. For example, you may be holding an electronic device that bears a particular brand (i.e., a trademark). One or more patents might cover the functionality of the device, while copyright protection might extend to the content that you’re receiving.

One of the smartest things you can do in starting a business is to take inventory of all the possible IP assets you own or would like to own. Never mind if you’re not sure they qualify for protection - just jot them down on paper. If you’re already several years into your business and you’ve never done this, stop reading and start writing. Then, meet with your patent attorney to discuss an appropriate IP strategy that makes sense and ties in with your business objectives.

Timing Is Critical - Be First in Line

Like almost everything else in business, timing is critical. Do not assume that you can hold off on seeking patent protection for your inventions. Most foreign countries require that you file a patent application prior to any public disclosure. So if your inventions potentially have commercial value in foreign countries, you must obtain a patent filing date first before making any public disclosures. In the US, you have one year from the earliest date of a public disclosure or offer for sale to file a US patent application.

Just remembering the 2 rules above regarding international and domestic patent deadlines can mean the difference between some patent protection or no protection at all.

Timing is also highly significant for trademark and copyright filings. Certain procedural and substantive advantages are given to those who file first, so there is really no good excuse to delay.

Budget Wisely

If you’ve met with a patent attorney recently or spoken to someone who has, you’ll know that IP is flat out expensive. As a patent attorney, I must admit that IP is an expensive game to play, but one that you cannot afford to merely observe as a spectator. You might not think that you have anything valuable to protect until one day you receive a cease-and-desist letter or, even worse, a summons and complaint accusing you of infringing someone else’s IP rights.

It can be especially aggravating when you believe that you originated the IP on your products or services that are being accused of infringement. Though obtaining your own IP will not necessary guarantee that you will steer clear of infringement, it might reduce the probability of those occurrences, and/or possibly give you some leverage if those times come.

Avoid the “penny wise, pound foolish” approach - not investing in your IP now, only to find yourself spending much more money later to correct it. With your patent attorney’s help, prioritize your IP projects, figure out how much they’ll cost, and budget accordingly. Then, just do it.