Protecting your Intellectual Property
Let’s say you consider building your own product because nothing on the market meets your needs. Your friends and family will notice and request that you make that product for them. You soon then realize there is a business opportunity here and begin making more and selling them. While you were busy fulfilling orders and making money, an established company noticed your project and had their in-house team replicate and patent the design. They sell your invention to the general public under their brand (and most likely at a lower price). What options do you have as a small business owner? Nothing, unless you protected your idea when you first created the design (i.e., your intellectual property).
Intellectual property is the lifeblood of any organization, and especially small businesses. Strategic management of a company's intangible assets (such as trademarks, copyrights, trade secrets, and patents) can propel small, local businesses to greater global recognition. Too many new entrepreneurs disregard intellectual property because they believe it is an expense they cannot (or should not) bear, or that it is unnecessary because no one will steal their idea. However, registering your intellectual property not only prevents people stealing your idea, but it also increases the attractiveness of your business to investors. A patent or trademark is an asset ?that can grow in value as your company grows.
This is why it's critical to take proactive steps to protect your intellectual property, such as registering your trademark, applying for a patent, or putting in place technical and organizational safeguards to protect your business secrets—and to do so as soon as possible. As an intellectual property owner, if you ever need to defend or assert your rights, these steps will have already put you on the right track. Furthermore, they can provide you with peace of mind as you continue to focus on developing your business, expanding your client base, and so on.
During the start-up stage of your business, you should register your intellectual property as soon as possible. It's a critical step in getting your new product or service to the market. If it is already in the public domain, protecting it may become more difficult. Patenting protects the idea for a new product or process. It prevents others in South Africa from producing, using, or selling your invention. A patent provides up to 20 years of protection but cannot be used to protect computer programs, artistic works, mathematical methods, games, plans or schemes, business methods, biological inventions, or methods for treating humans and animals. The Companies and Intellectual Property Commission can provide more information about the process (CIPC).
A trademark applies to trading names, logos, or slogans and prevents others from using them or something confusingly similar to them. The CIPC is in charge of trademark registration, and you can even search online for elements of your company's brand to see if they have already been trademarked. Some words, such as "24 hours, cheese, and server," are ineligible for trademark protection because they do not distinguish one company's products or services from another. They would also prevent other businesses with operations related to these terms from using them.
Copyright is most commonly associated with music, art, writing, or photography, but it also protects works like instruction manuals, software code, databases, and computer programs. It is given to the creator or employer of an original work to prevent it from being copied or reproduced without permission. Although copyright does not have to be registered, it is a valuable asset that can be sold or licensed to others.
Make confidentiality, nondisclosure, and licensing agreements for employees and partners. There are times when critical information about your company should not be made public. For example, suppose you're working on a product and don't want any details to leak before it's ready for release. As a result, it is prudent to ask your business partners and employees who have knowledge or access to information or trade secrets to sign a confidentiality agreement to ensure IP protection.
It is critical that SMEs recognize the commercial value of intellectual property and the importance of safeguarding these assets against imitators. SMEs should identify the types of intellectual property they may have, whether it is a trade mark or an invention, and take steps to protect their intellectual property adequately.
