Leveraging Inspiration: The Inspired Patent Podcast
In this episode of Leveraging Inspiration: The Inspired Patent Podcast, we will discuss what you are protecting, the value of what you are protecting, and separating that value into two parts.
Understanding Intellectual Property
The first thing we need to address is that intellectual property is actually property. Property law protects it. You can either exclusively own it or share ownership with others. However, the emphasis in property law is usually on exclusive ownership.
The Source of Value
The value of intellectual property comes from two different places. The core value lies in what the intellectual property protects. For instance, in the case of patents, the intellectual property itself is the idea, the process, the new product, the new material, the new chemical, or the machine that hasn’t been made before and does something that hasn’t been done before. If this new idea or invention benefits people and makes their lives easier or better, it has value. Otherwise, it doesn’t.
Property vs. Property Rights
To draw a comparison, consider a house. The house itself is the property that provides value by offering a comfortable, private place to live, work, and store your belongings. Similarly, the value of intellectual property is in the property itself, such as an invention or a brand.
The deed to the house represents the property rights, and documents for the law that the owner has exclusive rights to that property. For intellectual property, it’s the same principle. You first need to understand and define the property itself, whether it’s an invention, a brand, or creative content, before figuring out how to protect it with intellectual property rights.
Common Misconceptions
Far too often, inventors and business people come to me saying they got a patent or a trademark years ago but are unsure of its value. Sometimes, the legal claims in the patent don’t match what the person is producing, or the trademark protects services or goods the company is not selling. These scenarios highlight the importance of understanding the value of your property, communicating that value to your attorney when protecting the property, and then ensuring that the value of the property is actually protected.
Focusing on Value
The first step in protecting intellectual property is understanding its inherent value. Once you identify what brings value to your business, whether it’s a brand, an invention, or a creative work, you can then layer property rights on top of that to enhance its value. This exclusivity is crucial for making the property truly valuable.
Obtaining Exclusivity
With physical property, like a home, we take for granted that we have exclusive rights to it. Intellectual property requires a process to obtain similar exclusivity. For patents, this process involves patenting the invention. For trademarks, while extensive use can sometimes grant rights, obtaining a federally registered trademark is more secure.
The Role of Trademarks
A big company might spend a significant amount of money on advertising to establish their trademark rights across the country. Federally registered trademarks allow you to expand and protect your brand, ensuring that the entire country is reserved for you to grow your brand and build trust with consumers.
The Importance of Copyrights
Copyrights automatically protect creative works as soon as they are recorded. Enforcement of these rights, however, requires registration. This registration solidifies your exclusive rights, allowing you to fully benefit from your creative work.
Business Secrets and Trade Secrets
Trade secrets, unlike other forms of intellectual property, rely on contractual agreements and security measures rather than registration. The value of a trade secret lies in how it benefits your business, such as a customer database or a secret recipe.
Why This Is Important
Intellectual property protection is not just a legal necessity but a strategic business move. It ensures that your innovative ideas and products remain exclusively yours, allowing you to confidently invest in their development and commercialization. Without proper IP protection, you risk losing the competitive edge and the potential financial benefits your innovations could bring.
What You Need to Know
Understanding intellectual property starts with recognizing that it is as valuable as any physical asset. Just like a house or a car, intellectual property requires specific actions to establish and maintain ownership. This means more than just having an idea; it involves documenting, securing, and enforcing your rights.
What You Need to Do
Here are two simple steps to begin protecting your intellectual property:
- Document Your Assets: Write down your brands, trade secrets, and any products you’ve launched in the past six months.
- Evaluate Your Vulnerabilities: Conduct a mental exercise. Imagine hiring a CEO who, after three years, leaves to work for a competitor. Identify what critical knowledge or systems you wouldn’t want them to take. This insight reveals what aspects of your business are most vulnerable and need protection.
Take Action
Do you have any of the following in your business? If so, add it to your list of Trade Secrets and take action to keep them secret.
- Customer List: Document all your clients and the expiration dates of their contracts.
- Supplier List: Keep a record of your suppliers and the negotiated prices.
- Trade Secrets: Note down any proprietary recipes or processes.
- Marketing Plan: Detail where you find your dream clients and who they are.
- Business Plan: Outline your strategy and growth plans.
- New Product Designs: Record any recent innovations.
- Skilled Employees: List the employees who are crucial to your operations.
Taking these steps ensures that your intellectual property is protected, enabling you to leverage your innovations for business growth and success.
