Intellectual
property is the life blood of any organisation. For small businesses –
even more so! A strategic handling of a company’s intangible assets –
e.g. trademarks, copyrights, trade secrets, and patents – can catapult
small, local businesses toward greater global recognition. By developing
and protecting their best-in-class technologies and products, they can
establish themselves as market leaders and
industry experts, thereby attracting a sizeable clientele.
It’s
especially the case for small businesses that rely predominantly on the
fruits of their intellectual labor. However, innovation forms only half
the equation
in the success and growth of a business. In today’s increasingly
digitalised market environment, it’s becoming equally important for
small businesses to adopt measures to protect their intangible assets –
whether those assets are inventions in the making or
proprietary information that keeps a small business competitively fit.
There are a number of key steps that can translate intellectual property protection into advantages for your small business.
Prioritise the protection of your intellectual property
Protecting intellectual property is essential for every company – big or small. Why?
Firstly,
cases of intellectual property theft are too common to ignore nowadays.
And the size of a company never matters, start-ups and small businesses
are
no less affected. In fact, they may feel the consequences of theft even
more acutely than their larger counterparts. When just starting out, you
may underestimate the likelihood of someone stealing or copying your
company’s technology, designs, and trade secrets.
But actually, it happens more often than you might expect.
This
is why it’s crucial to take proactive steps to protect your
intellectual property, for example by registering your trademark,
applying for a patent,
or implementing technical and organisational measures to safeguard your
business secrets – and to do so as soon as possible. If ever you need to
defend or assert your rights, as an intellectual property owner, these
steps will have already set you on the correct
course of action. Plus, they can give you peace of mind, as you continue
your focus on developing your business, growing your client base, etc.
Of
course, there are additional benefits to reap. Not only will you be
able to better defend your company against cases of unfair competition,
intellectual
property can generate goodwill and increase the appeal of your small
business, thereby enabling your business to thrive.
For
example, a patent can demonstrate that you’re the inventor of a new
technology. And when you receive a patent, it means only you can use
that invention.
Generally, its validity period is 20-years, giving a small business
ample time to take advantage of it on the market.
Furthermore,
patented technologies offer invaluable insight into a company’s level
of expertise. Potential partners and clients will often look to patents,
as well as other intellectual property, when assessing the prospect of
future collaborations and funding. Thus, for a small business, patents
can convey its innovative spirit not as mere statements, but as concrete
assets of value. This reputational boost can
open up those hard to come by proverbial doors of opportunities –
namely, generous investments and profitable joint ventures.
Delegate IP’s protection to professionals
The
need for professionals to manage your intellectual property should
never be underestimated. Integrated intellectual property teams, for
example, play
critical roles within their company and produce valuable insight into
the innovation landscape.
In
particular, the profound knowledge they hold about the company’s assets
enables them to adopt effective preventative measures throughout all
stages of
a company’s research and development, thereby substantially decreasing
legal risks. In patent suits, a keen understanding of a patent’s
examination history, claim language, and the applicable legal system and
procedures will determine the strength of a defense
strategy.
In
their day-to-day activities, intellectual property teams perform a
range of tasks central to the company’s strategic focus, including
providing consultation,
e.g. to marketing and R&D departments, carrying out expert reviews
and research (e.g. prior use of marks and prior art), drafting
applications, interacting with local intellectual property agencies,
compiling and examining licensing agreements, etc. All of
these activities add considerable value to a company, not only in terms
of the output of intellectual property, but also in terms of reducing
potentially costly risks in the first place.
However,
because all companies differ in their capabilities, an internal
intellectual property team may not be a realistic alternative from the
get-go. Having
one is of course the best approach, but an alternative could be to hire
an attorney to whom to outsource an application or two.
Sure,
it’s also possible to seek registration for a trademark or apply for a
patent by yourself. The risks of doing so, however, can be as
wide-ranging as
they are grave – from minor mistakes and omissions in descriptions or
drawings and missing deadlines, up to serious failures in securing the
broadest rights possible (in the case of patents, due to their highly
technical and nuanced language). These mistakes
are sure ways to a rejection, if not litigation. Therefore, it’s better
to delegate these tasks to professionals with experience in both the
relevant law and technology area.
Either
way, there’ll be costs to consider. While it can be challenging to
locate and invest resources, business owners should keep in mind that
intangible
assets are effective, long-term investments. Not only can they sustain a
business for the long haul, they can also advance and transform it in
valuable ways.
Later
on, as the company grows, it may consider forming an internal
intellectual property team, especially if it’s strategically focused on
innovation. At
Kaspersky, for instance, we established the Department of Intellectual
Property Control in 2005. Since then, we’ve managed to acquire nearly
1000 patents worldwide, in addition to winning awards and numerous legal
cases relating to intellectual property. Our
intellectual property team at Kaspersky also works on GDPR compliance
for products, antitrust and unfair competition cases, and other legal
compliance matters.
Think big and act fast
Innovation
happens fast, and you have to be first – first to think, first to
create, first to use, and first to act. In patenting, even though a
technology
may not be fully ready, inventors should consider patenting it as early
as possible. Priority counts. Being first means you get to receive
exclusive rights in that invention. Accordingly, they can create a
competitive advantage that is hard to put a price on.
But what does innovating look like, e.g. in patenting?
First,
patenting exposes you to a variety of technologies. In turn it enriches
your understanding of the technology area and industry, enabling you to
envision
how a technology will work in the future. Second, it may point you in
certain directions to identify key features of a possible invention.
At
Kaspersky, we often tell our inventors not to limit themselves to
technological parameters of today. Even if something seems impossible
now, that may change
later on. Thinking also in terms of how industries transform may give
inventors foresight into macro trends, which could serve to catalyse the
generation of entire families of lucrative patents for a small
business. In general, it’s a good bet that the limits
you place on innovating will usually be reflected in the inventions you
patent. So, it’s best to think beyond them through constant
self-awareness.
…but don’t forget about cybersecurity
Cybersecurity
should be part and parcel of any company’s activities relating to
intellectual property. Patentable inventions under development, critical
know-how,
early-stage mark designs, supporting documentation, and other forms of
proprietary information are all at risk of theft. Today cybercriminals
are becoming more and more interested in stealing and selling
intellectual property and other confidential information,
leading to significant losses.
At
the start of your business, time and resources may seem too constrained
to implement proper protection for your infrastructure. As a result,
you may not
divide sufficient attention to IT security risks affecting your
company’s intellectual property. In fact, some cyberattacks may even go
unnoticed for long periods of time, which poses on-going risk to future
attempts to innovate and protect your intangible
assets.
This
is why it’s critical to have a robust and comprehensive cybersecurity
solution that will also protect your intellectual property. For small
businesses,
whose resources are limited, there are specifically tailored security
solutions on the market that enable companies to focus on their growth
while maintaining peace of mind about IT security.
Don’t be afraid of NPE – fight them
NPE
is short for “non-practicing entity” (others may even refer to them as
“patent trolls”), who is someone with a patent but does not “practice”
or use that
invention, for example, to develop and sell products. Often their aim is
to enforce their patent by sending cease and desist letters, at times
indiscriminately to large numbers of companies, and/or by filing
lawsuits against practicing companies. In many cases,
recipients of such lawsuits choose to settle the dispute, which can
involve large undisclosed payouts to NPE or purchases of licenses to the
allegedly infringed patent.
For
a company dealing with an NPE, it’s important to maintain a firm
stance, as NPE cases can drain company resources dry. When a business is
small, the impact
could be especially hard and difficult to rebound from.
Within
the cybersecurity industry, Kaspersky is well-known for its staunch
refusal to settle with NPE. We are often asked why we maintain our
approach, when
many companies prefer the route of settlement. Fortunately, our
experience has shown us that the more you settle, the bigger and more
frequent the problem becomes. Our history of patent lawsuits is
confirmation of this fact. Furthermore, Kaspersky understands
that needlessly buying high-priced license fees or offering settlements
can impede its innovation, as those resources could be directed toward
growing the business instead.
NPE
know we never give in, and as a result we’ve seen fewer lawsuits,
especially since NPE know we hit back. In fact, in one case that began
in 2016, we hit
back so hard that the NPE backed down and paid us to dismiss the case!
Before leaves could fall the following year, the case had been dismissed
with prejudice, and we had extra funds sitting in our account.
Another
important outcome of maintaining a firm stance against NPE is that
companies can save a tremendous amount in the long run. In many of our
cases, potential
payouts are roughly around millions of dollars. Being able to defend
cases successfully means never having to put that financial burden on
the company, thanks to the work done by our patent lawyers.
Notably,
the benefits aren’t only local in scope. Taking a stance against NPE
helps the industry overall. Whenever a case is filed against one
company, you
can expect that many more companies in the same industry have also been
targeted. This is why we believe that cooperation is beneficial in the
fight to protect innovation.
Finally,
while these steps may seem complicated, the protection of your
intellectual property from both legal and cyber risks should be given
their due attention.
Not only can they broaden your horizons in terms of industry trends,
they can also pave the way toward new opportunities that can sustain,
grow, and strengthen your small business.