The market is booming with new innovations, technology, products and start-ups. With that comes measures taken by these businesses to protect their ideas and products. Protecting intellectual property is imperative for businesses of all sizes and length of operation. However, the timing of these measures could make an impact for both the business and the protections offered.
Protect intellectual property early
Because it can take time to go from an idea to a product placed on the market, it is important to know when to take measures to protect the intellectual property of the company. This step can take place long before investors are procured.
To go from an idea to placing a product on the market, usually through a start-up, there are certain steps to be taken. For example, if the product was created at a university, the vehicle to do this is through a licensing agreement; however, this is not always the best way to start. An option agreement includes general descriptions for the to-be-negotiated license. It creates flexibility with regards to terms, which can help when it comes to seeking investors.
Negotiate the licensing agreement
When a licensing agreement is ready to be signed, it is important to consider the financial terms while also considering an agreement that would promote investors. When negotiating a licensing agreement, the founders should be aware of certain terms, such as outstanding rights, royalties and rights that are not part of the agreement. There should be balance when it comes to flexibility and protecting the rights to the product.
Intellectual property plan
Decisions regarding the protection of a company’s Intellectual property should happen in the early stages. This is something that should not wait, as taking these measures later in the process could cause the loss of some rights. Therefore, a plan should be established even during the formation of the company, as this can help ensure it is protected.
The intellectual property of a company is its heart and soul. Therefore, it should be protected, as the company’s existence relies on it. Whether one is seeking to protect intellectual property or are dealing with issues regarding intellectual property that is protected, it is important to understand what rights the company has and what actions can be taken.