By: Bhumesh Verma
> Introduction
Intellectual property protection should be one of the foremost concerns of a nascently set up entity, particularly a startup.
Intellectual property refers to innovative creations arising out of one’s or a team’s intellectual exercise. It includes not only innovative products and processes but also logos and images. Some key intellectual property rights are:
a) Patents: Inventions involving both innovative products and processes which contribute to technological development and simplify everyday lives are called patents. A patent-holder has the exclusive right to use or license his patented product or process.
b) Copyright: Ideas cannot be copyrighted, but if these ideas are articulated in a permanent form then the creator may be entitled to a copyright over his/her work. Copyright generally exists over books, films, music etc.
c) Trademark: A trademark is a distinctive sign or symbol used by companies to enable the consumers to identify their goods. Logos of companies are trademarks.
IP rights and their protection is essential for companies. Especially, a startup which is just starting out requires its reputation to be built over years and its ideas to be protected in order to gain competitive advantage over its rivals.
In this article, we discuss and lay down an ideal IP protection strategy that may be adopted by startups.
What needs to be protected??
An entity ideally needs to protect the following components of its IP:
a) Trade secrets/confidential information: Trade secrets are information essential and valuable to the business being run. It may include documents such as sales charts, product specifications or any other information which may give the company a competitive edge over its rivals. The first step towards efficient protection of trade secrets is to have a strong contractual clause built in all the contracts being / to be executed by the entity, including employment contracts which impose strong confidentiality obligations. A separate confidentiality and non-disclosure agreement may also be entered into with business partners, customers and employees.
b) Patent protection: Being new in the industry, startup enterprises need to devise a strategy which gives them an edge over the extant market players.
The following steps may be kept in mind while devising a strategy for the protection of patents:
> Filing an application for patents needs to be done immediately after the product or process is ready.
> The product or process for which the patent is being filed should not be published or disclosed.
> The application may be filed with a provisional specification as well. However, complete specification needs to be filed within 12 months of the filing.
> Patents are territorial in nature. Hence, filing for patents in multiple jurisdictions simultaneously may help the startup in gaining competitive advantage.
c) Trademarks: Trademarks create a company’s brand. For instance, google is known and identified by its logo. It is important for companies to protect their logos and trademarks. The first step towards an efficient trademark protection should be to register the trademarks. A registered trademark enjoys a higher protection than an unregistered trademark. An infringement suit can be filed only for the violation of a registered trademark.
What should an ideal IP Strategy encompass
While strategy of each start-up may differ according to the services rendered or the products marketed by them, certain issues run central to all efficient IP strategies.
While formulating an IP strategy, the following things need to be kept in mind:
> An IP strategy must include a training policy wherein the employees, customers and partners of the company are made aware of the various kinds of IP the company owns and the importance of maintaining confidentiality and protection of these rights.
Read More >> https://www.lawyered.in/legal-disrupt/articles/how-protect-intellectual-property-strategy-startups/
