Intellectual property strategy guide

What is an IP strategy?

An IP strategy is a planned approach to creating and managing a portfolio of legal rights that support your business’s goals. Just like a commercial roadmap, it sets out clear steps to secure the right legal protections and use them as leverage to add value to a company. As a business develops and grows, an IP strategy should be reviewed and refined to match its objectives. 

Key elements of a strong IP strategy

When you’re developing an IP strategy, it’s essential that you include the following elements:

• A complete IP profile: this sets out all the IP assets your business has or will potentially have, from innovations currently in development to protections about to expire. By performing a full audit, you can get a complete picture of the rights you hold and identify any untapped potential

• IP management: from the first idea to the moment rights expire, your strategy should clearly set out each stage of your business’s IP processes. This will help you take a consistent approach towards innovation generation, development, legal protection and commercialisation

• Steps to maximise value: this should set out the different options your business can use to generate revenue from your IP portfolio. From licensing policies to valuation guidelines and calculation methods for return on investment, this will act as a complete guide to creating a profitable IP portfolio

• Risk mitigation: infringement and enforcement aren’t just about protecting your legal rights, they’re about leveraging your commercial advantage. Set out the steps and options for managing infringement and enforcing your IP so you can minimise risks, or even turn them into opportunities. This element may include, for example, your approach to IP insurance

• Commercial alignment: your IP strategy should map directly onto your business plans. Whether you’re heading for an acquisition, entering new markets or focusing purely on growth, the way you manage your IP should match these goals. That way, you can ensure maximum return on investment

Do you need an IP strategy?

Any business which has IP protections should develop a strategy to leverage their full commercial value. Like any intangible asset, they can add massive value to your business if they’re used appropriately. Having an IP strategy in place gives your business a clear plan to use innovations to support your company’s wider objectives. 

Even if you only have one set of IP rights, having a strategy for how you’re going to fully leverage them will ensure you get a return on investment into your portfolio. 

What benefits can an IP strategy bring? 

Although an IP strategy can take some time and focus to pull together, it can bring a range of benefits to the businesses that do so. 

Efficient IP processes

Drafting, filing and managing IP protections can be time-consuming. Having set processes in place for all the different stages of IP development will ensure everyone knows their roles and responsibilities, and has a clear roadmap to follow. This will help teams manage their time effectively, and ensure innovations are correctly protected, with none lost in the pipeline. 

Better return on investment

There is significant financial investment associated with registering and managing your IP rights. From patent attorney fees to renewal costs, you want to make sure you’re getting a return on any budget you’re putting towards securing and maintaining your IP rights. Having a clear strategy will ensure you can make as much profit from your inventions as possible. 

Increased business value

As intangible assets, IP rights add value to your business. Whether you’re trying to attract investment, are looking to sell your company or want to fund the next period of growth, IP can play a central role. Options such as licensing can also open up new revenue streams, helping you to diversify your business model. 

Minimised risks 

Throughout the IP process, there are lots of factors that could leave your innovations at risk. From the loss or theft of trade secrets to the unauthorised use of a protected product or process, and the infringement of your legal rights. A strategy will set out policies and controls to minimise these risks. It will also establish enforcement processes, so you can turn threats into opportunities. 

Improved innovation development

With a clear IP development pathway, you set the foundations for a culture of idea generation. By setting a clear roadmap for how IP feeds into commercial value, you can justify investment into further research and development. Plus, established policies and processes such as inventor incentives will ensure you don’t miss any opportunities and always get the right legal protections to profit from your innovations. 

How do you develop an IP strategy? 

The starting point for developing an IP strategy is doing a full audit of all the legal rights you hold, or are planning to have in the future. Once you’ve established this picture, you can start to identify the opportunities and risks and set out appropriate policies and processes you need to manage your IP in line with your commercial goals. 

Getting expert legal advice can help you identify the possibilities and pitfalls within your IP strategy. That way, you’ve got complete peace of mind knowing that every eventuality is taken care of, so you can focus on hitting business objectives.