For many, intellectual property in business is considered a legal concept that can only be understood and properly applied by those who are specialized in the matter. Perhaps you are wondering why a small or medium-sized company should pay attention to intellectual property, or what benefits an SME could derive from its use.
Hand in hand with human creativity and inventions, intellectual property surrounds us every day. All the products that we use in our everyday lives are the result of a long chain of small or big innovations that make the product work and look the way it does.
Innovative and creative ideas are the core of most of the companies that we consider successful:
however, ideas alone are of little value. To turn them into innovative products that can be successfully marketed, ideas need to be developed and carried out. Only in this way, the company can enjoy the benefits of its intellectual capital, its innovation and creativity. Therefore, intellectual property (especially patents), can become a crucial aspect to transform an innovative idea into a competitive product with the ability to considerably increase a company's profit margins.
Similarly, a company can use patents to obtain royalties through licensing of its patented invention, which represents an additional source of income that does not require any investment.
This logic can be and has been applied to almost any product or service on the market. To demonstrate the importance of intellectual property, an example of an MP3 player can be taken: The player is likely to have patent protection for various technical parts. Your design may be protected by industrial design rights. The brand name is registered and the music played with that device is probably protected by copyright.
Regardless of the product or service your company offers, it is very likely that you are using and creating a large amount of intellectual property. Virtually all companies handle product names, valuable confidential information, original and creative designs; some may have invented or improved a product or service. With this in mind, it makes sense to consider the requirements for protecting and managing intellectual property, with the goal of obtaining the best possible business outcomes from the property. On the other hand, if you make use of intellectual property that belongs to others, you should consider acquiring rights, in order to avoid costly legal problems.
How can IP enhance your business export opportunities?
Before starting an export operation, companies must perform a series of key steps, from identifying a suitable export market for their product, estimating demand for said market, defining distribution channels, estimating costs and financing. It is important to analyze the reasons why intellectual property should be considered in strategic export planning, and look for ways for intellectual property rights to represent a competitive advantage in the markets to which you export your product.
Because intellectual property rights are by territory, they will only be valid in the country where they were requested and granted. To have rights in foreign markets, you must have protection abroad.
The main reasons why intellectual property should be protected in export markets are:
- Patents can open up new export opportunities Trademarks and industrial designs can be helpful in gaining a privileged position in the export market IP rights increase the likelihood of gaining a loyal customer base for the products and services you offer in export markets.
Simply put, intellectual property is a fundamental aspect of running a business, and should be treated in such a way.
Normally, when talking about intellectual property, people tend to think of transcendental inventions such as the telephone, television, etc; however, intellectual property should be viewed as a protection mechanism applicable to any innovation or invention that provides additional value to your company, no matter how insignificant it may seem.
