As a small business owner, you’ve worked hard to develop unique products, services, and processes that set you apart from competitors. But have you taken the necessary steps to protect these valuable assets? Intellectual property (IP) is often one of a business’s most valuable yet overlooked assets.
What Is Intellectual Property?
Intellectual property refers to “creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.” Every business, regardless of size or industry, has some form of intellectual property worth protecting.
Yet despite the value IP brings to a business, many small business owners fail to adequately protect their intellectual assets. According to Warren Tuttle, Co-Chair of the Creator Committee of the USIPA and Founder of Tuttle Innovation, “a lot of business owners are probably unaware of how they could be helping themselves.”
Types of Intellectual Property Protections
Understanding the different types of IP protection is the first step in safeguarding your business’s valuable assets:
Patents
Patents protect “a new and useful process, machine, manufacturer, or composition of matter, or improvement thereof.” The United States Patent and Trademark Office (USPTO) offers utility patents that protect inventions, design patents that protect ornamental appearance, and plant patents for new varieties of plants.
Utility and plant patents last for 20 years from the filing date, while design patents provide protection for 15 years.
Trademarks
Trademarks protect “a word, phrase, symbol or design, or combination of words, phrases, symbols or designs that identifies and distinguishes the source of the goods of one party from another.” Unlike patents, trademarks can last forever as long as they are registered, continuously used in commerce, and renewed with the USPTO every 10 years.
Trademarks can even cover sounds, colors, and scents that distinctly identify your brand.
Copyrights
Copyrights provide “legal protection for original works of authorship including literary, dramatic, musical, artistic and certain other intellectual works, such as logos, product design, packaging, advertising, promotional materials, instructional materials” and more.
Copyright protection begins the moment something is created, but federally registering your work provides stronger legal protection. Copyrights typically last for the life of the author plus 70 years.
Trade Secrets
Any confidential business information that provides a competitive advantage can be classified as a trade secret. This might include formulas, processes, customer lists, or proprietary algorithms. Unlike other forms of IP, trade secrets are protected through contracts that businesses give to employees and vendors rather than through registration with a government agency.
Why Small Businesses Overlook IP Protection
Many small businesses fail to properly protect their intellectual property for several reasons:
According to Warren Tuttle, this willingness to overlook IP protections often stems from “a lack of awareness on the topic, a lack of resources to pay for legal services, and a lack of understanding of how IP can impact business.”
Some entrepreneurs don’t realize they have intellectual property worth protecting, while others may be deterred by perceived costs or complexity of the process.
Steps to Protect Your Small Business’s Intellectual Property
- Identify Your IP Assets
The first step is understanding what intellectual property your business has. The USPTO offers an IP Identifier tool (available at https://www.uspto.gov) that helps founders understand what they have to protect and how. This tool uses questions and real-life examples to identify IP and suggest protection strategies.
- Consult with an IP Attorney
“Any type of real filing… requires a really good attorney,” advises Tuttle. While there are DIY options for some initial filings, working with an experienced IP attorney ensures your business receives proper protection.
To find a qualified attorney, consider the American Intellectual Property Law Association (AIPLA) at https://www.aipla.org, which has member attorneys across the United States.
- Consider Starting with a Provisional Patent
If you’re concerned about costs, consider filing a provisional patent, which can cost as little as $60 and does not require a lawyer. “That buys you a year to think about whether you want to go into the next stage,” explains Vidal from the USPTO.
- Monitor for Infringements
Once you’ve secured protection, establish a process to monitor for IP infringements. This might include searching patent databases, using patent analytics tools, watching the market, or hiring a patent attorney or subscribing to a patent watch service.
- Use Nondisclosure Agreements
Nondisclosure agreements (NDAs) legally obligate people and businesses not to share or use your IP for their own causes. While not a guarantee against misuse, NDAs provide legal recourse if your IP is used unlawfully.
- Educate Your Employees
Don’t underestimate the value of an educated employee base who know the value of your IP and the proper way to protect it. Have employees complete trainings on responsible IP handling and reinforce the importance of doing so.
- Consider IP Insurance
IP insurance can help cover legal expenses in the event of IP infringement, aiding you in your fight to protect the IP that defines your business’s success.
The Business Value of IP Protection
Protecting your intellectual property isn’t just about preventing others from copying your ideas—it can significantly impact your business’s bottom line:
“If you want to get funding, you need to protect your IP, [and] that IP is also part of the value of your company,” explains Vidal. Sharing your plans for IP protection with potential investors and partners piques their interest and increases your company’s valuation.
Even if you aren’t seeking outside funding, IP protection can drive growth. Companies with one patent increase employee growth by 36%, and after five years, those companies usually have two times the revenue of businesses without patents.
Plan Ahead for Future Growth
As your business grows and expands, your intellectual property needs will evolve. Plan for the kind of IP needed to support expansion. For example, if you run a salon chain, you will need to file for a different class of trademark to use your name and branding on products for sale.
Don’t wait until you’re ready to launch new products or services. “People need to know that if you don’t get started right away, you could lose the ability to protect what you have created.”
Getting Expert Help with Your IP Strategy
Navigating intellectual property protection can be complex, but you don’t have to do it alone. Our law firm specializes in helping small businesses identify, protect, and leverage their intellectual property assets.
Whether you need assistance with patent applications, trademark registration, copyright protection, or developing a comprehensive IP strategy, our experienced attorneys can guide you through the process and ensure your valuable assets are properly safeguarded.
Don’t wait until it’s too late to protect what makes your business unique. Contact our IP team today for a consultation to discuss your intellectual property needs and develop a protection strategy tailored to your business goals.
This blog post is for informational purposes only and is not intended to provide legal advice. For specific guidance on intellectual property matters, please consult with a qualified attorney.
