Startup Myths: The Company Without IP

By: Mary Juetten

As we discussed last time in the first in the series here, myths and misconceptions are part and parcel with nearly every human endeavor, and business is no exception. Myths take hold where knowledge is lacking, until such point where they are misperceived as knowledge itself. Occasionally these myths can be harmless, but education is needed for those that can do real harm to people working under these false assumptions.

One of the most pernicious startup myths — indeed, one that often persists well past the startup stage— is the idea that there are companies or fields in which intellectual property (IP) doesn’t exist, or at least not to the extent that it matters in decision making. And while there’s no basis for that assumption, it’s easy to understand how the idea might take hold among the uninitiated. Intellectual property often applies to real things, but itself is intangible, and in fields that concern themselves solely with the tangible assets they deal in, it must be easy to forget or ignore what you can’t see in front of you.

As I’ve written about many times before,IP is something that exists in every business and serves as the backbone of what they do. And the most successful companies in the world recognize the importance of patents, trademarks, copyrights and trade secrets. They know that a strong IP portfolio is a platform from which they can continue to build and innovate, and that is why they devote the resources to protecting their intangible assets. It’s not a coincidence that the most frequent applicants for IP protection are the companies considered leaders in innovation and creativity.

Nevertheless, there are undoubtedly some who, despite this evidence, still refuse to see the relevance of IP in their own businesses. Patents are the province of the Elon Musks of the world, with their rockets to Mars, copyrights the domain of Disney and their blockbusters. Particularly among small businesses, the notion that your own venture or enterprise doesn’t rise to the level needed to have what would be considered IP can be prevalent in the absence of a greater understanding on the topic.

Read more >> https://www.forbes.com/sites/maryjuetten/2019/03/12/startup-myths-the-company-without-ip/#3d58c94d3b63

10 intellectual property tips for startup companies

By: John Thomas and Jeremy Harrison  

Obtaining and securing intellectual property (IP) rights is often not a high priority with startup companies. Rather, startups commonly focus most efforts on obtaining financing, building a brand, and effective marketing strategies.

Securing company IP, however, such as patents, trade secrets, trademarks, and copyrights, is vital since doing so creates a legal barrier to competition. Company IP can be a revenue generator through strategic licensing or IP transfer, and is often crucial in valuation for venture funding purposes.

The following are some tips and strategies for startups to manage company IP.

Patents

Pursuing and maintaining patent protection requires a considerable capital investment. The cost to obtain a U.S. utility patent is roughly $20,000, and sizeable maintenance fees are periodically required to keep an issued patent enforceable. Thus, pursuing a patent should be approached proactively and with caution.

In addition to U.S. utility patents, design patents should also be considered. Design patents protect the ornamental appearance of an article of manufacture. The subject matter of a design patent application often relates to:

> The configuration or shape of an article.
> The surface ornamentation applied to an article.
> The combination of configuration and surface ornamentation.

Any person who has invented a new, original and ornamental design for an article of manufacture is entitled to apply for a design patent.  A design patent differs from a utility patent in that the design patent only protects the appearance of the article and not structural or utilitarian features. Design patents in the U.S. do not have maintenance fees and typically cost considerably less that utility patents. 

1. Undertake a patent prior to art search 

For key technologies, it is a good idea to conduct a prior art search before investing in the patenting process. A properly conducted search will identify patents, patent publications, and non-patent literature closely associated with the technology. The search can also identify potential competitors and infringement risks. Decision makers can then intelligently focus continued related research and development and draft patent application claims that avoid identified prior art.

2. Do not prematurely disclose

Unless a patent application is on file, foreign patent rights are immediately lost once an invention is publicly disclosed. In the U.S., a one year “grace period” following a public disclosure is generally available, but a patent application must be filed within 12 months to retain patent rights. If an invention must be disclosed, make sure to have proper confidentiality and/or non-disclosure agreements in place, which transform the disclosure into a non-public disclosure.

Read More >> https://www.bizjournals.com/pittsburgh/news/2018/04/30/10-intellectual-property-tips-for-startup.html