Why is securing IP rights important?

Spending time and money gaining intellectual property (IP) rights for your business’s innovations may not be a priority. In fact, a third of UK SMEs don’t use any type of IP protection at all. For 23%, this is because of a lack of IP knowledge, while 18% cite cost as the main barrier to them securing these legal rights.

This is despite the fact that, out of those who have taken out measures, 84% say they’re important to them. Having worked with hundreds of sole traders, startups and SMEs to protect their IP rights, we’ve seen first-hand the positive impact they can have on businesses. Here’s why those who are sceptical or unsure about stepping into the world of IP should consider it.

How is IP protected?

Some IP rights are granted automatically under law. Others need to be formally registered to be enforceable.

Unregistered designs, for example, are IP rights which apply once the design is created or put on the market (as a product). You don’t need to file anything at the Intellectual Property Office to get these rights - they are automatic. They are also free, but there are some limitations, such as not lasting as long as registered design rights.

In contrast, patents give the holder significant IP protection, including exclusive rights to make, use and distribute an invention for up to 25 years. To secure these protections, individuals or businesses need to file an application with an Intellectual Property Office in the relevant jurisdiction (such as the UK Intellectual Property Office).

Fees, including application, search, examination, grant and renewal costs also need to be paid, as well as what your attorney charges for handling the case.

The exact IP protection you need will vary depending on factors such as your business goals, the nature of your invention and the markets you want to secure rights in. So it’s worth getting legal advice to narrow down the best options available to you.

When should you protect your IP?

When you decide to protect your IP depends on:

• The type of rights you want to secure

• Your commercial timelines and goals

• The risks of launching your invention without protection

For example, if you want to secure a patent for your invention, it could take three or four years for the rights to be granted. Depending on your business’s goals, there are several pathways you could consider taking, including:

• Delaying product launch until the patent is granted (this is often not feasible!)

• Manufacture and sell your product under a ‘patent pending’ status (most of our clients take this approach)

• Take your product to market without a patent, which could risk competitors recreating it, as it’s not legally protected

Alongside weighing up the above factors yourself, it’s worth getting legal advice as soon as possible to put the most effective IP strategy in place. This will help you get the most value from your time and financial investment by securing the rights you actually need in line with your business’s roadmap.

Benefits of protecting your IP

Getting the right legal protections for your invention before bringing it to market offers lots of opportunities to add value to your business.

Gain competitive advantage

By having IP protection in place before you launch a product means other businesses can’t recreate the invention or element that sets it apart in the market.

This advantage will be maintained for the duration of your rights, which could be up to 25 years (for registered designs) and 20 years (for patents). You can use this time to maximise profits and market share without worrying about a competitor stealing your idea or customers.

Generate value

If built effectively, an IP portfolio can become an asset in itself. This means it holds inherent value which can be leveraged to attract investors, raise funds or secure loans. It can also be used as collateral for debt funding, as well as generating revenue through licensing. If your business strategy changes, the portfolio can also be sold to a competitor or new market entrant, helping you generate profits even when the product is no longer on the market.

Build reputation with customers

Having a product which is protected by a patent (even patent pending), designs, trademark or copyright can significantly enhance your brand. From a protected logo or name to a patented innovation, securing IP rights differentiates you, even in a crowded market. It can also act as a mark of quality, authenticity and professionalism, giving customers reassurance that they will enjoy a consistent experience or product when they buy from your brand.

Security in new markets

If you get IP rights under the right jurisdictions, they give you legal protection as you enter new markets. This helps you maintain an advantage even if you’re not sure about the competitive landscape. Whether it’s warding off copycats, licensing to in-country manufacturers or establishing a reputation with new customers, IP acts as a security behind your commercial goals.

Tax breaks in the UK

Businesses paying Corporation Tax in the UK could be eligible for the Patent Box scheme. This allows them to pay a reduced rate of Corporation Tax on qualifying profits made from patents. Leveraging this benefit won’t just help you generate revenue from existing IP rights, but foster a culture of innovation tied to commercial value.

How to protect your IP

How you protect your IP will depend on the types of rights you need to secure. Establishing a strategy for your legal protections will help you understand the steps you need to secure the rights that meet your business goals. As a result, you can make the most of any time or financial investment you make into IP.

For example, you might have sufficient legal protection from an unregistered design, which means you don’t have to pay fees or submit an application. For more business-critical products, you may opt for a registered design. Although more expensive, it offers longer and more secure protection.

In other instances, a patent might be the best option, which needs to be planned to align with your product roadmap. For example, if you plan to make the most of Patent Box tax relief, it is often helpful to accelerate the patent to grant.

Getting expert legal advice on the protections you need as soon as possible can help you build an IP strategy that secures the rights you need in a timely, cost-effective way. It’ll also help you create a portfolio that you can leverage for maximum commercial value.