Starting, growing or relocating a business in Hyndburn
Start-up Advice
Start-up Advice – Protecting business assets when launching a new business
Launching a business can be an exciting venture. During this period, there are often various creative and innovative ideas brought forwards, and safeguarding the fruits of your labour is just as important as launching your products or services to sustain the future growth and success of your business.
Intellectual property (‘IP’) refers to intangible assets that derive from a creation of the mind. Recognising and subsequently protecting your IP allows you to commercialise your ideas and works, whilst securing exclusive rights and preventing unauthorised use. This short guide explains how to identify, protect and enforce your IP as a start-up.
Step 1: Identifying IP in your start-up
When starting a business, several intangible assets may fall under the umbrella of IP, and it is always worth considering how you can protect – and later exploit – the IP rights that your business owns. These assets include (but are in no way limited to) your business name and logo, taglines and slogans, inventions (including new and innovative products, processes, or technologies), original content (i.e. any designs, artwork, software code, written materials, or music that your business creates) and/or any trade secrets.
Step 2: Protecting your IP
In the United Kingdom, the most common forms of IP rights are as follows:
Trade marks
A trade mark can protect business name, logo, slogan or any other identifier which distinguishes your goods and services from other businesses. Before selecting a trading name or logo, it is essential to conduct a comprehensive search to ensure it is not already in use. This proactive step helps avoid costly disputes later.
Once you have established that you have a freedom to operate, it is worth considering whether you can obtain a registered trade mark over your trading name and logo. Trade mark registration provides an exclusive, UK-wide, right to use the trade mark for the goods and services that it is registered for. UK trade mark applications are submitted via the Intellectual Property Office (“IPO”).
It is still possible to trade on an unregistered basis but, especially as a new start up, it is more difficult to prevent misuse, as you can only rely on what’s known as “passing off”.
Copyright
There is a closed list of works that can be protected under copyright in the UK including, of most relevance, literary and artistic works. There is no registration procedure for copyright; protection arises automatically upon the creation of the work in a tangible form (i.e. in writing, recorded or otherwise). Businesses commonly mark the copyrighted works with the © symbol, their name, and the year in which the works were created. Copyright ownership prescribes an exclusive bundle of rights, which include the right to copy the work.
Patents
Patents protect novel inventions and processes. In order to be registrable, the invention must be new, involve an inventive step, be capable of industrial application, and not be excluded from protection as a patent. Applying for a patent can be a lengthy and expensive process but, once registered, the owner of a patent has exclusive rights over the subject matter of the invention for up to 20 years. Innovative patents can therefore have significant value.
Designs
Unregistered design right can attach to functional aspects of a products design on creation of that design (in similar fashion), provided that the design is original. Where unregistered design right subsists it is possible to prevent third-parties from unauthorised copying of the design. It is also possible to register a design in the UK by applying to the IPO. As well as protecting the shape of the design, this is also a useful way of protecting colour and other features of the design.
Step 3: Enforcing and exploiting your IP rights
Once an IP right subsists, it is imperative that you actively monitor the marketplace for any unauthorised use of it. This can be done by conducting online searches, regularly reviewing competitor offerings or instructing legal advisors to activate IP monitoring services. Maintaining clear documentation of ownership (especially with copyright) is vital in substantiating any IP claim, if a dispute is to arise.
Owning IP can provide opportunities to generate revenue through new channels, including licensing (i.e. allowing another to use your IP in exchange for royalties or other payments) and franchising, Additionally, you have the option to sell your IP outright in the future. Strong IP can also attract investors and enhance the valuation of your business.