Intellectual property (IP) in business refers to the valuable ideas, inventions, and branding that set a company apart. Whether it’s a groundbreaking product, a recognisable logo, or proprietary software, these intangible assets can be just as central to business success as any physical resource. For businesses that innovate and create, IP is important to maintaining a competitive edge and building long-term value. For example, intangible assets, including IP, constituted more than 90% of the total market value of S&P 500 companies in 2023.

Below, we’ll explain the most common forms of IP that businesses have – patents, trademarks, copyrights, trade secrets – and why it’s so important to protect these assets.

What’s in this article?

• What is IP?
  
• Why is IP important for businesses?
  
• How to protect your business’s IP
  
• How to identify the IP your business owns
  
• What are the risks of not protecting IP?
  
• How to enforce your IP rights
  

What is IP?

IP refers to creations of the mind that are used in commerce, such as inventions, literary and artistic works, designs, symbols, names, and images. It’s any intangible asset derived from intellectual or creative effort. These are the main categories of IP:

• Patents: Patents protect new inventions or discoveries and give the inventor exclusive rights to their use.

• Trademarks: Trademarks protect brand names, logos, and slogans that distinguish goods or services.

• Copyrights: These protect original works of authorship such as books, music, and software.

• Trade secrets: Trade secrets protect confidential business information that gives a competitive edge (e.g. formulas, processes).

Why is IP important for businesses?

IP is important for businesses because it protects what they’ve created, whether that’s a new invention, a brand, or a piece of creative work. IP does the following for businesses:

• Protects against copycats: Businesses can protect themselves from infringement or counterfeiters with solid IP rights that keep their profits safe and maintain their market position.

• Creates revenue: Companies can license or sell their patents or trademarks and turn them into extra income streams.

• Builds their brands: Businesses can make their brands more recognisable and build customer loyalty with trademarked products and services.

• Attracts investors: Companies can boost their value and investor appeal by demonstrating they have protected IP with long-term potential.

How to protect your business’s IP

To protect your business’s IP, involve an IP lawyer from the start. They’ll help you file everything correctly, avoid loopholes, and give advice on international protection, if needed. Beyond involving a lawyer, here are some important steps you can take to protect your IP:

• Figure out what IP your business actually has. Is it an invention, your logo, some unique software, or a secret recipe? Each type of IP requires a different approach.

• File for patents and design rights if you develop any new products, technologies, or processes. Patents give you the exclusive right to use, sell, or license your inventions. Design rights protect the unique product designs you create.

• Trademark your brand identity, including your business name, logo, and any other distinguishing features. This prevents others from using similar branding and confusing your customers.

• Use non-disclosure agreements (NDAs) when sharing trade secrets or sensitive information with employees, contractors, or potential partners.

• Monitor your IP actively to catch instances of infringement, and don’t hesitate to enforce your rights. There are services that can help track copied content or unauthorised use of your trademarks online.

• If your business operates globally or plans to, consider international protection. Patents, trademarks, and copyrights don’t automatically protect you worldwide.

How to identify the IP your business owns

To identify the IP your business owns, look at everything it uniquely creates and uses, including products, branding, processes, and creative output. Here’s how to identify the IP you can protect:

• Products and innovations: If you’ve invented something new – whether it’s a product, technology, or process – ask yourself if this invention solves a problem in a novel way. If it does, it probably needs patent protection.

• Brand assets: Think about what makes your brand stand out. You might be able to trademark your business name, logo, slogan, and even product packaging. If these are how customers recognise your business, they’re valuable IP worth protecting.

• Creative works: Any original content you’ve created – whether it’s a website design, marketing copy, photos, videos, or software – falls under copyright protection. It’s what your business produces to promote itself or run operations, and it can often be overlooked when thinking about IP.

• Business processes: Are there internal processes, formulas, or systems that give you an advantage in your industry? These could be trade secrets such as a secret recipe, a customer database, and a unique way of operating that others don’t know about and can’t easily replicate.

• Digital assets: Digital assets such as domain names and proprietary software are also part of your IP. If you own a distinctive domain name or have developed custom apps or tools, these should be considered IP that your business owns.

What are the risks of not protecting IP?

Not protecting your IP can lead to several serious risks that can hurt your business. Here’s what can happen if you don’t take steps to secure your IP:

• You can lose your competitive edge. If your inventions, branding, or creative work aren’t protected, competitors can easily copy them and dilute your market position.

• Others can infringe on your rights or counterfeit your products. This can lead to lost revenue, damaged brand reputation, and a loss of customer trust. Counterfeits also expose you to potential legal liabilities if customers receive faulty or unsafe imitations of your product.

• You can lose the opportunity to license or sell your inventions to other companies for additional revenue.

• You can struggle to enforce your rights. For example, if someone uses your unregistered brand name, it’s tough to prove you own it and take legal action. Proper IP registration gives you the legal backing to defend against infringement.

• Your company’s value can decrease. Investors and potential buyers are more likely to view your company favourably if your inventions, branding, and creative assets are protected.

• You can face issues abroad. Different regions have different rules, and not having international protection can lead to others claiming your work as their own in those markets.

How to enforce your IP rights

Enforcing your IP rights requires being proactive and prepared to act if your rights are infringed. Here are some tactics for enforcing your IP rights:

• Monitor the market regularly, both online and offline, for potential infringements. This could mean watching competitors, using services that track trademark or patent usage, or even implementing Google Alerts for key brand terms.

• If you spot someone infringing your IP, gather evidence. Take screenshots, download copies, or record the specific ways they’re violating your rights. Have a clear, documented case so you can prove infringement if you need to.

• Send a formal cease-and-desist letter to any infringers. This is a written notice that demands they stop using your IP and remove any infringing material. It’s a strong warning that lets them know you’re serious about protecting your rights, and it’s often the first step before legal action.

• Sometimes, infringers aren’t fully aware they’re using your IP. Instead of immediately filing lawsuits, negotiate to see if they’ll agree to stop using your IP or pay for a licence. It’s a less expensive, quicker way to resolve the issue.

• If a cease and desist doesn’t work or if the infringement is serious, consider filing a lawsuit. This could involve seeking damages or an injunction to stop the infringer from using your IP. Having an IP lawyer on your side can ensure your case is as strong as possible.

• In some cases, especially with counterfeiting, you might need to involve law enforcement or customs authorities. They can help seize counterfeit goods and stop them from entering the market.

• If the infringement happens in another country, you might need to enforce your rights there too. It helps to have international IP protection in place from the start, but you might still need local legal help to address enforcement abroad.