Could your intangible property generate more revenue during its lifecycle if it was properly protected, Ornamo’s lawyer Iiris Adenius asks.
Intellectual Property Rights (IPR) refer to rights to intangible assets, such as copyright, design right, trademark, patent or trade name.
Intellectual Property Rights protect creations of the mind and encourage creativity and innovation. Most IP rights grant their holders exclusive rights. Protecting intangible assets is important because without protection competitors can freely benefit from the results of creative work and innovations without having to invest in their own research and development.
Intellectual Property Rights protect creations of the mind and encourage creativity and innovation.
IP-Strategy is linked to profitability
A designer should pay special attention to IP-strategy as the designer’s business typically revolves around intangible assets. In addition to creating and protecting intangible assets, a successful IP-strategy includes a strategy for the commercialization of intellectual property.
According to a study conducted by the European Union Intellectual Property Office in October 2016, IPR-intensive industries generate more revenue, pay higher salaries and have resilience against economic crises. What’s more, design-intensive companies showed the highest increase in net exports and are the industries with the highest trade surplus.
Protecting intangible assets is a question of return on investment. For example, the protection process should not cost tens of thousands if the expected returns are only couple of thousands. However, it is worth contemplating if the intangible assets could in fact generate more revenue if the assets were properly protected.
It is worth contemplating if the intangible assets could in fact generate more revenue if the assets were properly protected.
Identify, protect and manage
IP-strategy can be divided into three sections: Identify, protect and manage.
- It is essential to identify company’s existing or potential intangible assets which could create added value for the company or its customers. The potential use of the intellectual property is a key factor to identifying company’s intangible assets.
- To protect the intangible assets correctly, the designer must be familiar with the different forms of intellectual property rights. Different forms of IPR include for example design rights, trademarks, patents ad copyright. Intellectual property should also be taken into consideration in the designer’s agreements with its customers, partners and suppliers.
- Managing intellectual property rights comprises of commercialization and government. Intellectual property does not automatically generate revenue and requires active merchandising. Governing IP means that the designer must actively supervise that their intellectual property rights are not infringed.