What are the Major IP Mistakes Made by Start-ups?

Implementing an idea into action successfully is what converts small start-ups into million dollars of business or company. IP (Intellectual Property) for start-ups consist of Trademarks, Copyrights, Patents, Designs, and Trade Secrets. Protecting Intellectual Property is much simpler in the starting phases of the business than after those creative ideas have become victorious. Setting up Intellectual Property Rights is vital for start-ups of all sizes to distinguish their products, safeguard their assets, put authorised checks on the competition, avoid other violating on and profiting from your property, earn client’s trust, grow their business and provide more safety with any possible success. In this write-up, we deal with the Intellectual Property protection for start-ups, IP mistakes that start-ups make.

As it said that Prevention is better than cure, the same is with Intellectual Property Laws. If you take some precautionary steps in advance, then you can avoid IP mistakes, then you can save yourself from legal disturbance and high legal costs, products’ infringement, exploitation of our business plans, strategies, ideas as Intellectual Property is an asset to the start-up businesses it brings commercial value. Start-ups are often strongly dependent on their Intellectual Property for the competitive benefit so that the unguarded IP could be potentially critical to a new company or an entity. In this write-up, we deal with the Intellectual Property protection for start-ups, IP mistakes that start-ups make.

Major IP Mistakes made by Start-ups

As an outcome of the massive demand for such services, start-ups from all around the country have rapidly increased. Initiatives such as “Start-ups” and “Make in India” announced by the Government of India have helped the growth of these Small and Medium-sized Enterprises (SMEs). Many beginner firms fail to grasp the scope of their potential Intellectual Property Assets or their significance when it comes to business and Intellectual Property. Mismanagement of Intellectual Property can doom a start-up before it can develop or improve. Following are some major IP mistakes made by start-ups:

1- Fails to do a Correct Trademark Search: This is the common IP mistakes done by start-ups. This contains two different significant concepts:

• Safeguarding one’s own intellectual property;
• Preventing itself from interfering with the IP of others.

It is essential for a start-up to do a complete review of 3^rd party Intellectual Property Rights (IPR) to validate that no violating activity on other’s IP Rights is taking place. The TESS (Trademark Electronic Search System) is a free service available via the USPTO (the United States Patent and Trademark Office)^[1]. Suppose a start-up does not take this step before commencing to build a brand and connecting it with that name or mark. In that case, a start-up may lose its investment in that Intellectual Property if a business determines after the fact that it’s violating a Trademark from another company or entity or individual. A Tess search will let a business know early on if it is breaking a mark, so the search can keep losses minimal & avoiding reworks.

To guarantee that a company is safeguarded against violation, it is recommendable to appoint a Trademark Attorney to do a permission check for the proposed Trademark or a Patent Attorney to conduct a freedom-to-operate search to make sure that the technology in issue is a fee of infringement.

2- Fails Correct Documentation: Only making agreements shouldn’t be the only aim to safeguard the Intellectual Property of business, but the clauses comprised in that agreement matter. Such as lets’ take the instance of the NDA Agreement. Is it correct that the NDA limits the use of the perceptive information it safeguards for a certain purpose? Assignment clauses may be vital in some conditions to guarantee that any notions that naturally come out from the recipient as a result of NDA talks (like enhancements to underlying IP revealed under the NDA made by the recipient) are caught by the disclosing party. There, this is also considered one of the biggest IP mistakes made by start-ups.

3- Underestimating IP: Intangible assets like IP are considered to be the most important. The majority of companies fail to recognise and protect their intellectual property assets in their rush to market their products. The need for IP may affect the outcome in a reduced valuation of the start-funding ups and acquisition visions. Intellectual Property is more than just a legitimate concern. In fact, the more victorious a firm is, the more valuable its IP becomes. Intellectual Property accounts for up to 90% of the value of firms on the S&P 500, for instance. Hence, Intellectual Property should never be undervalued, especially in the start-up stage.

4- Fails to Safeguard the Confidentiality: The majority of start-ups are established due to passion for a particular field or idea. Trade Secret are most one of the most capable IP assets. TO prevent violations of confidentiality, ensure that the partners, employees, and suppliers of the start-up sign NDAs (Non-Disclosure Agreements). As such official documentation rarely meets the actual requirements of the business. There is also a requirement to safeguard all computers will password, employees, to have access on a personal device. There are many factors that should be maintained for a legitimate position concerning IP.

5- Fail to Make & Execute an IP Strategy: A start-up to develop must create an Intellectual Property plan. A robust IP plan must comprise what Intellectual Property assets a start-up has, when and how a plan or strategy to safeguard those assets and how a start-up will safeguard their business from being sued over Intellectual Property. Suppose a start-up doesn’t make and execute an IP plan. In that case, it may face violation problems in the future, and this may cause huge damages in financial terms, affects the brand reputation, loses clients and may impact sales, etc. so, comprising of an IP professional will aid the company know their strengths and aid in removing an appropriate IP strategy for the successful growth of the organisation.

Conclusion

If appropriate proactive actions are taken, IP mistakes can be prevented. Start-ups should take realistic efforts from the beginning to aid in establishing the groundwork for future success and avoid Intellectual Property asset problems. To succeed, start-ups should conquer the odds. New businesses face ongoing competition, and they cannot afford to make costly IP mistakes. Safeguarding your IP from the beginning is one way to aid protect your new business and keep it on the way for success. Not only will the business be safeguarded against legitimate problems in the future, but it will also be in a strong position to attract investors, suppliers, clients, and other stakeholders. At every phase of the service of product’s creation, whether it is production, expansion, ideation, or execution, brands should actively participate in talks with Intellectual Property law companies. Apart from the obstacles, the future appears bright as more businesses identify the value of an IP and the dangers of infringing it.

Read our article:Avoidable Common Intellectual Property Errors before Introducing the Website