The Importance of Knowing About IP When Starting a Business

Clive Palmer has lost a long-running court battle against US rock band Twisted Sister, in which they demanded Palmer stop using a re-written version of their 1984 hit We’re Not Gonna Take It in a TV campaign for the United Australia Party. Palmer has been ordered to pay $1.5 million in damages after infringing the copyright.

This got us thinking about the importance of knowing about Intellectual Property (IP) in business, and the key considerations when structuring a startup. Unfortunately, this is something many businesses overlook when first getting started, but it’s crucial to get right in order to retain value in the business and ensure its growth.

Here’s how and why you should protect your startup’s copyright, trademarks and patents.

WHAT IS INTELLECTUAL PROPERTY?

Generally speaking, IP is a category of rights that includes intangible creations of the mind. These rights can be crucial for your business, as not only can they be used to protect your own creations, but also provide useful business tools that can be used commercially.

There are different forms of IP that can be used to protect different aspects of your business, although not all IP rights may apply to your industry. Understanding the IP rights that relate to your business and those of your competitors will put you on sound footing from the get-go.

WHY IS IT IMPORTANT TO IDENTIFY YOUR IP?

Your new business may have a wealth of IP. From the name on your door to an innovative new process, every business has some form of IP that sets them apart from competitors. As your business grows, so too will the importance of these intangible assets.

Understanding the different types of IP and the advantages of each one is important because they can:

●       Set your business apart from competitors

●       Be sold or licensed, providing an important revenue stream

●       Offer customers something new and different

●       Form an essential part of your marketing or branding

PATENT PROTECTION

A patent is an exclusive right granted for an invention, which is a product or a process that provides a new way of doing something or offers a new technical solution to a problem. An Australian patent provides a legal right to stop third parties from manufacturing, using and/or selling an invention in Australia. It may also be used to license someone else to manufacture an invention on agreed terms.

TRADEMARK PROTECTION

A registered trademark provides legal protection that prevents others from using your brand. This may include a unique symbol, word(s), sound, number, image or scent used to represent a business or its products. Once registered, a trademark is an asset that gives you the sole right to use, license or sell it to others.

COPYRIGHT PROTECTION

Australian copyright law is designed to protect the way an idea or information is communicated. This may include material such as text, visual images, music, computer programs, sound recordings and films. In Australia, copyright protection is automatic. There is no need for copyright registration in Australia, nor is there a legal requirement to publish the material or to put a copyright notice on it. The material will be protected as soon as it is put into material form, such as being written down or recorded in some way (e.g. filmed or recorded).

REGISTERED DESIGNS

Design is what makes a product look the way it does. For example, the shape, pattern or configuration. When applied to a product, it gives it a unique appearance. Registering a design can prevent others from using the design without your permission. It will also give you exclusive rights to use, licence and sell the design for up to 10 years.

TOP 3 TIPS FOR NEW BUSINESSES

START EARLY

When first establishing your business, it’s important to be aware of the IP rights that relate to you. Do some research and identify what IP rights you can utilise, and be sure to include your IP considerations when developing your business plan. You will be confronted with questions of IP ownership at critical moments such as the business’ registration, so it’s good to set things up early.

CONSIDER TRADEMARKS

A trademark and a business name are two different things: registering a business name does not give you exclusive rights over that name and may not provide you with exclusive rights or ownership of the name. Therefore, you need to consider applying for trademarks if you want to retain exclusive rights to its use. We recommend checking Ip Australia and doing a trademark search prior to finalising your decision on any business name. This can be done here: https://search.ipaustralia.gov.au/trademarks/search/quick

KEEP IT CONFIDENTIAL

Keep your idea confidential until it is protected. If you’re talking to others about your idea, use a non-disclosure agreement (NDA) to prevent them from disclosing your idea without permission.

Have any questions? You can book a free consultation with us.