Chances are, you went into business with a vision: A clear problem you wanted to solve and an innovative way to address it. Developing that innovation has likely been pivotal to your success — which makes protecting it just as important.
Protecting your intellectual property, or IP, allows you to safeguard the innovation that makes your business unique. It not only prevents competitors from using your inventions and designs, it protects your brand names and logos to help maintain your brand image and reputation.
Yet, many entrepreneurs make the mistake of not prioritizing IP protections. Here, we’ll discuss what intellectual property is, how protecting your IP can set your business up for success, and where to turn for advice in protecting your IP.
What is Intellectual Property?
Intellectual property is a type of property that involves creations of the mind. It includes inventions and designs, as well as your logo or business name. For small business owners, IP can be a valuable asset that distinguishes your products or services from those of your competitors and contributes to your brand identity.
There are several types of protections for IP, including:
Copyrights
Copyrights protect original works of artistic and intellectual authorship, such works of art, books, software codes, photographs and more.[1]
Trademarks
Trademarks protect your business’ brand names, logos, slogans, and any other symbols that distinguish your goods from your competitors.[1]
Patents
Patents protect unique innovations, such as new inventions and designs. There are three types of patent available for businesses in the U.S.
1. Utility patents, which protects the functionality of a product — for example, a new type of hybrid car motor.
2. Design patents, which protect the unique design of a product, such as unique packaging, a unique clothing or jewelry design, or a unique computer icon or graphic interface.
3. Plant patent, which protects new and unique cultivars of plants.[2]
Why Protecting Your IP Matters
At a most basic level, IP protections help you secure your competitive advantage in the market, because they prevent your competitors from using your IP without authorization. That means your business can continue to benefit from your research and development, as well as the brand image you’ve built.
However, protecting your IP can also directly generate value for the business. With IP protection, you gain the option to license your IP to other other businesses, unlocking additional revenue opportunities. Protected IP can also make your business more attractive to investors, potentially making it easier to find investors at a higher valuation.
Finally, lenders may consider the value of your IP when deciding whether to extend you credit, so protecting your IP may make it easier to secure the financing you need to reach your goals.
Making a plan to protect your IP
Before making any legal moves, it may be important to talk to a trusted IP lawyer. Your lawyer will be the primary point of contact in helping you understand the protections available to you and guiding you through how to protect your business’ IP.
However, you should also consider discussing your plan with your bank. A trusted financial advisor may be able to assist you with creating a financial plan for your business that accounts for the costs of protecting your IP, from filing for protection to defending your IP in mediation or court.
Looking for support as you create a financial plan to protect your IP? PNC’s dedicated team of small business banking professionals can offer trusted advice, as well as solutions created with your needs in mind. Learn more, and find a branch near you, by visiting us online.
