IP strategy: Grandmaster Moves to Checkmate Competitors

The right intellectual property (IP) strategy can be the checkmate that decides who wins the market race. IP is the most valuable asset of any business. Regardless of the product or service offered, as a startup or an SME, you are likely to use and create a large amount of IP on a regular basis, from brand names to confidential business information to original creative designs. By protecting your innovations, you can differentiate yourself from your competitors, attract investment, and create new opportunities for growth and expansion. On the other hand, failure to do so can lead to revenue loss, litigation, and damage to your company's reputation.

In this article, we will introduce you to some of the strategic moves that can help you create and implement a successful IP strategy to position your business for market dominance

1. Unlock the Power of your IP Assets by Registering Them

Recent studies show that the number of IP applications filed by small businesses has steadily increased over the past decade. Small businesses worldwide are recognizing the critical role of IP, and as a result, they are increasingly prioritizing the acquisition and preservation of IP rights. This is because IP offers several key benefits, such as a strong market position and competitive advantage, higher profits or returns on investment, additional income from licensing, creative negotiating power in business deals, and a positive business image. In this context, a 2022 EU flagship study found that 93% of SMEs with registered IPRs have seen positive impacts on their business. These SMEs cited several key benefits, including improved reputation or image of their business (60%), better IP protection (58%), and better long-term business prospects (48%). These findings underscore the critical role of IP protection in effectively navigating the business landscape. It is worth mentioning that in addition to registering your IP assets, you must take the necessary steps to keep them alive. Failing to renew your TM and failing to pay annuity fees for your patent lead to loss of protection.

2. Avoid Fatal Disclosure Pitfalls

Startups and SMEs should always prioritize protecting their innovative ideas or concepts before disclosing them. Disclosing your invention before filing a patent application could deprive it of novelty and render it impossible to obtain a validly granted patent. The same applies to design. Losing protection may result in hefty losses associated with losing competitive advantages and allowing competitors free access to your valuable innovations. In addition to patent and design protection, you may also consider utilizing trade secret protection to protect confidential and commercially valuable information, such as customer lists, marketing strategies, and other internal processes. NDAs can also be an effective tool for preventing the disclosure of confidential information to competitors, employees, or other third parties. In this digital age, it is also important to be mindful of the various channels through which information can be disclosed, such as social media, public pitches, or even discussions with potential investors.

3. Defend your IP Kingdom against Infringement

In the fiercely competitive world of business, defending your IP rights is key to thriving. IP infringement refers to the unauthorized use, reproduction, or distribution of IP-protected products, creations, or inventions without the owner's permission. It can lead to significant financial losses, damage to brand reputation, and even legal action. Fighting IP is about preserving your reputation and building consumer trust. Consumers are increasingly concerned about the authenticity and quality of the products they buy, and IP infringement can erode their trust in your brand. Because of this, taking swift action against any infringement communicates your commitment to defending your IP rights to your customers. Therefore, it's crucial to develop a strong IP strategy that prioritizes defending your IP kingdom against infringement. This involves partnering with experienced IP experts who can help you identify potential infringement and take swift action against violators. It also involves establishing a culture of IP protection within your organization and educating your employees on the importance of safeguarding your IP assets. By doing so, you can establish yourself as a powerful player in the market and prevent infringement from undermining your success.

4. Incorporate a Global Perspective into your IP Strategy

In the realm of global business, it's vital for entrepreneurs to keep in mind that IP rights are territorial. This means that legal protection for IP is only valid in the country or region where it has been granted or registered. In order to safeguard your IP assets in a foreign market, it's imperative to secure registration of your IP in that market. This strategic move not only mitigates the risk of infringement but also enables you to establish a strong foothold in the target country, giving you a distinct advantage over your competitors. In this context, it's also important to be aware of the brief window of time associated with priority privileges granted by the Paris Convention. This priority right allows trademark and patent applicants to claim the filing date of their initial national application in other member countries within a certain timeframe without losing their priority status. To benefit from this privilege, applicants should submit their application within six months of the national trademark filing date and within twelve months of the patent filing date. Missing the deadline could lead to forfeiting the opportunity to seek priority. If you seek to protect your TM or patent abroad, you can take advantage of the streamlined Patent Cooperation Treaty (PCT) process and the Madrid Protocol. These streamlined processes allow for simplified and cost-effective filings across multiple countries. By taking advantage of these international systems, businesses can efficiently protect their IP in multiple jurisdictions and expand their market reach.