How to secure your business’ intellectual property
3 effective ways to protect your intellectual property
Intellectual property (“IP”) is a highly valuable part of a business. It can take many forms but essentially consists of intangible assets including copyrights, trade marks, patents, designs and trade secrets. Securing IP rights can be fundamental to the commercial success of a business seeking to stay ahead of its field and seeking to protect its branding and customer loyalty. Indeed, the value of IP is also recognised by financial institutions, who regularly provide loans secured against IP.
Unfortunately, Intellectual Property is often overlooked by businesses until it has either been copied (which can easily occur once open to the public) or there has been a breakdown in relationship. If you have started or acquired a company, or your business engages third parties for products and services, it is imperative to secure any related IP rights, which can be done through these suggested mechanisms.
1. Registered Protections
For copyright and certain designs, there is no registration procedure to follow as protection is free and automatic. Apart from these, there are some types of IP where you will need to formally apply and register for protection, namely trade marks, patents and registered designs.
The scope and costs for registered protection will depend on what brand, product or invention your business is seeking to protect. At Dragon Argent, our IP specialists can assist with assessing your business’ IP assets and advising on the necessary levels of registration protection.
2. Contractual Protections
In addition to registered protections, your business will want to secure its ownership of IP created for the business and in the course of business. This can be done by way of an assignment agreement.
An assignment agreement is a contract that transfers IP from the creator of the IP (or existing owner) to another person or legal entity. In transferring these rights, the creator or existing owner of the rights no longer retains any interest in the said IP.
In the UK, assignment of IP (including digital assets) must be in writing and signed by the transferring party to show a clear intention to transfer the IP rights. Trying to assign IP rights without complying with these formal requirements will not transfer the legal title to the assets and, consequently, IP ownership will not transfer correctly.
By comparison, an existing IP owner may wish to enter into a license agreement, under which the owner continues to retain an interest in the IP. With a license agreement, your business will only be granted permission to use IP in particular circumstances; it will not retain the full rights to them. These agreements may include a time limit on the licensee’s use of the IP rights and/or product, and payment terms to the owner of the rights. In some licensing agreements, the licensor retains the right to use the property simultaneously (through a non-exclusive arrangement) or the licensee is granted exclusively to the licensor for a defined period.
3. Obtaining Legal Advice
Each business and IP situation is different and may trigger varying risks – it is very fact-specific and tuning registration applications and contacts to the needs of your business is critical. The relevant law itself can be complicated and is always evolving, so relying on a template may not provide your business with the legal protections it needs now and in the future. The best way to determine the right course for your business is to speak with an IP specialist who can provide the appropriate legal advice.
For advice on IP rights and how best to protect your business, please get in touch by scheduling a discovery call with Margherita Barbagallo, Head of Commercial Litigation.
Book a call with our Intellectual Property Solicitor today ↓
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