Focus on your Intellectual Property

04 February 2008
Intellectual property (IP) is an area often neglected by business - even though it is recognised as being important. Now you are back at work refreshed and invigorated after the holidays, start the year by deciding to make 2008 the year your business will focus on IP.

While you were relaxing over summer, you may have spent some time thinking about what lies ahead for your business.  You may even have come up with some ideas of how you wish to tackle the year.  With the increasing importance of IP in today’s business environment, IP probably featured somewhere in your thoughts. 

A recent survey of 500 New Zealand businesses revealed some interesting attitudes towards IP. The A J Park IP Outlook survey showed that what a business says about IP is inconsistent with the action they take to protect it. While most businesses see the importance of IP, they said in the survey that they don’t always take steps to protect it, and they report losing business as a result.  See our news item for more details on the survey findings.

Each week we read about businesses dealing with IP issues either because they infringe another’s rights or are actively enforcing rights they hold.

If you ignore IP, you do so at your peril. Give IP the importance it deserves in your business by following these simple steps.  You don’t want to miss business opportunities or face unnecessary challenges because you have not considered how IP affects you.

What IP do you have?
It is important to know what IP your business has.  Carrying out an IP audit will tell you what IP you own.  This may cover trade marks, brands, patents, trade secrets, copyright, domain names, contracts (including licences, business information such as customer and marketing lists), and financial information. 

A regular audit can help to keep your IP portfolio strong, current and maximise the value of your IP spend.  An IP specialist can work with you to complete the audit.  They will have the skills and expertise to help reveal rights you may not realise you own.

Once the audit is completed, then a register should be kept of your IP rights.

Do you have an IP policy?
An IP policy should match your current business strategy.  IP is a tool to help businesses achieve their commercial objectives. 

It is easy to gather a portfolio of IP rights, but they do cost to maintain so the value of those rights in the business needs to be regularly assessed. If they are not adding value, drop them!  If you are not using a right, consider whether you can you create value by selling or licensing the right. Should you let the rights lapse?  If you don’t have the rights you need to run your business, how can you get them?  All of these issues need to be considered and worked through regularly.

Another consideration is who in your business has responsibility for IP.  That person will have responsibility for capturing your IP and seeking and preserving protection as well as making decisions about enforcing your IP rights.  They may also need to work with an IP specialist to check agreements impacting on IP, such as employment agreements, research contracts, confidentiality agreements, and licenses.

The need for a balance
IP rights are easily lost or their value lessened if not carefully handled.  For example, rights can be lost through publication or unintentional transfer of ownership interests to third parties.  Balanced against this are the continuing disclosure duties and the duty to preserve asset values. An IP policy should address these issues by identifying the process for capturing IP and watching its release.

Watch your competitors
A regular review of IP databases can provide valuable information about your existing competitors and newcomers to the market. 

By checking IP databases, you may be able to gain insights about what your major competitors are doing, ideas about product development, new service offerings and how to minimise infringement risks.  You may also be able to identify potential business partners or takeover targets.

Why bother?
The value of IP for a modern business is undisputed.  IP strategy should be the focus of not only management but also the governing board. IP rights need to be treated strategically in line with the business strategy and vision. Most importantly, IP needs and justifies the full understanding and support of the business and its owners to succeed.

An edited version of this article was published in Her Magazine, February 2008

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