Common Intellectual Property Mistakes Made by Small Businesses

In the economy that businesses currently operate, for new ventures, no asset can come close to the IP they create; it adds value to their operations like no other.

Yet, we rarely see small business owners attribute the level of significance to protect their intellectual properties that which they should be doing, and what intellectual properties deserve in the truest of sense.

This negligence may be viewed by some as ‘just another area which needs improvement’, but let’s be real – you are making a mistake and mistakes in business can sometimes prove to be too costly, especially when it comes to intellectual property.

What are these mistakes?

Mistake #1: Assuming registering a business with Companies House is enough to protect its intellectual properties

That’s not true. Registering your business with Companies House is a requirement for incorporating your company; it has nothing to do with protecting your business’s intellectual property.

It does not even guarantee that your business name won’t be stolen.

You need to register separately at the Intellectual Property Office to acquire protection rights on your intellectual property.

Mistake #2: Delaying the process of registering your IP, deeming it as a ‘secondary’ priority

Most start-ups prioritize marketing and selling of a new product over getting it registered under IP laws. We understand you are in it to earn money, but doing so can seriously jeopardize the existence of your very business.

A potential investor or a client can catch onto your idea and before you even know it, they may imitate, reproduce and start selling it under their own label. To make matters worse, they could even end up patenting the product before you, leaving you with nothing.

Mistake #3: Forgetting that IP laws are equally binding for ‘all’

Some companies just don’t do enough homework of their own when designing or creating an intellectual property, ending up with an IP that already exists. As a result, they have to reconsider the entire project.

Moreover, where such a property is openly marketed [without knowing that it’s already protected], the business ends up facing legal action in violation of IP laws.

Mistake #4: Failing to understand the concept of ‘IP ownership’ in case of commissioned works

At times, a company may prefer to hire someone else to work on an intellectual property. For example, a fashion brand may temporarily hire an illustrator to design a logo for their brand.

When you commission someone else to develop an IP, unless stated in the terms of the contract, the IP ownership rests with the commissioned party. Therefore, it’s important to have clarity in the agreement at the outset of any commissioning process with regards to who will own the IP.

Involved in an intellectual property dispute because of a mistake you made earlier? Feel free to contact us, our experienced solicitors would be happy to serve you.