Year after year, many small and medium
enterprises lose crores of rupees due to sheer misinformation or lack of
awareness about intellectual property rights. In the last five years, on an
average, nearly 40,000 patents have been filed every year, more than 80 per
cent of them by large organisations.
The scenario is exactly the opposite in China
Despite the overwhelming case for early
patenting, most Indian entrepreneurs shy away from applying for a patent early,
for fear that the costs would be steep. They are unable to foresee that not
only can it make them richer, but if done right, it could overshadow the
perceivable benefits of running the business itself.
Here are some useful points to consider
while assessing trademarks /copyrights / patents.
1. When is it the right time to patent
your innovation?
It takes a minimum 18 months for a patent
to come through. Once you have decided that your product / service is novel and
are convinced that it needs to be patented, you should start the paperwork. A
strong IP could make entry into the market significantly easier. It gives
immediate, legally backed credibility to your product or service.
In the initial years, an IP can protect a
company from competition. It is important to identify the focus of the IP for
the organisation. Both product as well as process patents can be filed. A music
label or a Bollywood movie would focus on copyright, whereas a technology or a
pharmaceutical company should focus on patenting their products.
2. Do your homework, get down to basics
You have an idea, pick a brand name, go
ahead with purchasing a domain, set up social media platform and the works. But
someone out there has been watching your actions and files a trademark
infringement. This is every entrepreneur's nightmare, and one of the primary
reasons they hesitate to go ahead with IP protection. It is always important to
do a full background check first. It is good to document the activities of
competing brands. It is also a good idea to get a professional opinion that
would help validate your research. It is also important to research
international markets where competition is strong.
3. Invest in a non-disclosure agreement
Initially, companies may choose to work
with vendors that are not employees or consultants of the company. To ensure
that all confidential information stays within the company, make sure your
employment agreements, licences, sales contracts and other contracts protect
your intellectual property too, right from the word go.
4. Keep track internally and externally
It is advisable to keep an eye on your
competitors' IP development, to assess the market for competition. At the very
least, owners should establish an appropriate level of proactive monitoring of
trademark registration applications. For example, technology companies like
Google will track every competitor like Yahoo, Facebook, Amazon and Ebay.
Similarly, FMCG companies like HUL will closely monitor the activities of
Proctor & Gamble etc.
Also, patent procedures can be different
for different countries. It is better not to limit yourself to your own market
but also observe the competition outside. Sometimes, it is easier to get a
patent registered in a foreign market than in India
5. Finally, you cannot escape the bill
but the cost is worth every penny
Ask the right questions to understand all
the less obvious costs included in filing for patents. Administrative costs of
printing, courier, etc will be part of your final legal fees, and these small
costs can add up. When international filings take place, be sure that there
will be additional fees.
As they say, no pain, no gain. Investing
time, effort and money in patenting your innovation could save you a lot of
pain in the long run. And the benefits go beyond protecting your intellectual
property.
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