1. What is intellectual property and how do I know if I have it?
2. I have Intellectual Property — so how do I protect it?
3. How do I use my IP and what benefits can it bring me?
4. I think someone is infringing my Intellectual Property rights, what do I do?
1. What is intellectual property and how do I know if I have it?
Intellectual property (IP) is the ‘property of the mind’. It takes many forms but is an essential element of a business’s assets — one which can give it a significant competitive advantage in today’s increasingly crowded and competitive market place.
Intellectual property primarily exists in the following forms:
- Copyright
- Trademarks, company logos
- Patents
- Designs
- Confidential information and trade secrets
Many businesses fail to properly identify and adequately protect their IP. In fact they either don’t know what it is or if they do, they have only a vague idea of what IP exists in their business or what to do about it.
Properly identifying the IP in a business and maintaining an effective IP portfolio is essential for the long term survival of businesses today.
IP is an asset of a business as much as plant and equipment, don’t neglect it — utilise it to strengthen the position of your business.
To review and enhance your business’s IP assets and learn more about IP in your business, please contact the Business Law Team on 02 9635 8266 or e-mail to buslaw@champion.com.au .
2. I have Intellectual Property — so how do I protect it?
You have determined your business has Intellectual Property (IP) assets but are not sure how well protected they are or how to adequately protect them.
First you need to ensure your own house is in order by attending to the basic ‘First Stage’ protections for your IP assets.
These take many forms. Some IP protection is automatic on its creation, such as copyright. Other IP, such as trademarks, should be registered for adequate protection and such IP as confidential information needs to be properly protected by contract and management initiatives.
Identify the type of IP asset you have and what is required to establish the basic First Stage protections for it.
Second, you need to identify how your IP is currently being used both by you and other third parties and implement "Second Stage" protections.
How you use and let others use your IP is also important in developing a proper protection strategy. Too often, businesses do not adequately control the use of their IP assets within their own organisation or by third parties.
Second Stage protections include the development of internal policies to regulate the use of IP assets within your organisation and strong contractual arrangements and monitoring of those arrangements with third parties using your IP assets.
Proper procedures and protection structures for IP assets are vital to maximising its value and realising its full potential.
Properly protect your IP assets to maintain your ‘patch’ and competitive advantage in the marketplace.
Be assured that if you don’t protect your IP assets your competitors will and gain a competitive advantage over you.
To discuss and develop strategies for the protection of your IP assets please contact the Business Law Team on 02 9635 8266 or e-mail to
buslaw@champion.com.au .
3. How do I use my IP and what benefits can it bring me?
Intellectual Property is an asset of a business and, like any asset, it can have a value all of its own. Commercialising and utilising IP assets is an often overlooked part of a business’s commercial strategy.
Depending on the IP you have a business can benefit in the following ways:
Marketplace recognition: increasing the identity of your business’s services or products over those of your competitors. For example McDonald’s, KFC and Nike.
Finance security: commonly used overseas and becoming more popular in Australia, IP assets are used as security in financing transactions for businesses. Examples of this are Disney, Calvin Klein, 20th Century Fox, Dreamworks, News Corp and David Bowie.
Revenue streams: proper licensing of the use of IP assets by third parties will provide ongoing revenue to help maximise a business’s return on investment in IP.
IPOs and business sales: an effective and properly protected IP portfolio is now essential in any IPO and can significantly increase the value of your business on its sale.
Independent value: an IP asset can have its own independent value and be sold by itself. It is conservatively estimated the Coca-Cola ribbon device trade mark is itself worth US$1 billion.
IP can be used in a variety of ways, depending on the nature of the IP asset and the requirements of your business.
To discuss and review ways in which your business can utilise its IP assets more effectively please contact the Business Law Team on 02 9635 8266 or e-mail to buslaw@champion.com.au .
4. I think someone is infringing my Intellectual Property rights, what do I do?
When disputes arise it is important to have an appropriate response policy in place.
The nature of your response will depend on the type of IP asset being infringed, the nature of the infringement and the potential risk of financial loss to the business or damage to the IP asset.
Creating a response policy will help identify the risk to the IP asset and determine the action required more quickly.
Sometimes a strongly worded letter to an allegedly infringing party is all that is needed to prevent or stop infringement; at other times, urgent court action is required to quickly prevent loss or damage to your IP assets.
Whatever the nature of the infringement, an appropriate and timely response is essential — as is seeking professional legal advice on infringement issues.
IP disputes can be complex when claims are made as to ownership of particular IP and the use of IP rights.
Be prepared to protect your IP assets in which you have invested time and money.
Undertaking appropriate protection action is the most effective way to preserve your IP assets and provide maximum value and return on the investment in your IP assets.
To discuss the development of a risk assessment and response policy or obtain advice in any IP infringement matters, please contact the Business Law Team on 02 9635 8266 or e-mail to buslaw@champion.com.au .
