Our parents have always taught us the importance of labeling our belongings with our names to prevent anyone from taking them away without our permission. This simple act of valuing our possessions exercises our ownership rights. As an entrepreneur, it is crucial to recognize, value, and protect your employees' or your own ideas and concepts, as they constitute your company's assets that differentiate it from competitors and identify it as a unique organization. These intangible assets are collectively referred to as Intellectual Property (IP).

IP is an essential aspect of any company, and failure to protect it can result in the gradual collapse of the business. IP provides people recognition and financial rewards for their inventions or creations. Inventions, literary and creative works, designs, symbols, names, and images utilized in business are among the examples of IP. According to the World Intellectual Property Organization (WIPO), there are six categories of IP: Copyright, patents, trademarks, industrial designs, geographical indications, and trade secrets, each with a distinct coverage area.

Harroch (2017) contends that IP issues frequently pose significant challenges for tech-based companies. Companies have to overcome several hurdles, such as product development, attracting the right personnel, raising capital, and other concerns. Amidst all these challenges, IP might appear distracting, expensive, or contradictory to the company's goal of getting its product to the market before others do. In this regard, several strategies can be employed to safeguard IP in a company.

One of the essential strategies, as stated in the article, is to separate employment work from new ideas. Conflicting commitments could endanger the ownership of a new company's intellectual property. As such, it is critical to understand what was done, what resources were utilized, and where the work was completed founded. It is advisable to comprehend employment responsibilities, particularly with regard to intellectual property assignment and non-competition. When employees have signed a Confidentiality and Invention Assignment Agreement, it is crucial to keep work ideas separate from the new ideas, as the former may be fully owned by the employer.

Another tip for protecting IP is by avoiding situations where others claim ownership of your IP or your company. Given the informality of such encounters, people often file financing applications jointly, present each other as co-founders, and discuss stock shares casually. In a co-founder situation, it is essential to agree on the terms of your partnership with your partner because failure to do so could result in major issues later on. Informal or unclear agreements that are not well-documented can potentially cause significant harm to a company. When discussing ownership, stock stakes, and exchanging information with associates, it is advisable to be cautious and keep track of ideas' origins. It is also crucial to maintain copies of proposals submitted to potential financing sources as future investors may request such information.

Evaluating a company's key assets and determining the type of IP protection required can be instrumental in obtaining financing and preserving critical assets. Entrepreneurs often overlook the significance of protecting non-patent IP. While patents can be extremely valuable, they do not necessarily guarantee that a product will succeed. Other forms of IP, such as trade secrets, trademarks, and copyrights, can also be secured, and assessing a company's value proposition and employing the best strategy to protect it can be very beneficial in the long run.

These three core strategies are a fundamental approach to protecting IP while operating or owning a tech-based company. However, there are still many other ways to secure a company's IP and it is up to individual firms to research and inform employees about them. Intellectual property is one of the most valuable assets of a tech-based company, and protecting it can be critical in gaining venture capital or preventing unfair competition from rivals.

References:

WIPO. (2017). What is Intellectual Property (IP)? https://www.wipo.int/about-ip/en/

Harroch, R. (2021). 10 Intellectual Property Strategies For Technology Startups. Forbes. https://www.forbes.com/sites/allbusiness/2017/06/06/10-intellectual-property-strategies-for-technology-startups/?sh=120b09c3ab1b