Intellectual Property (IP) is an intangible asset. It is created by people when developing new products, services and processes, or when improving existing ones. Obvious examples are inventions and original designs. But IP can also be words, phrases, symbols and artistic works.
IP rights (IPRs) are exclusive legal rights granted to owners of IP. Such rights stop others using IP, without the approval of the owner. This could mean preventing any use of the IP or just direct and deliberate copying.
Some IPRs exist automatically when created. You have to apply for others.
If you’re in the business of ‘innovation’, you may well have IP which you should protect. If so, read on.
Common IP rights
Patents
A patent protects your products and processes by granting you exclusive rights to prevent others from making, selling or using your patented product or process.
You have to apply for a patent.
For a patent to be valid, an invention must not have been disclosed in the public arena before the date on which the patent application is filed. Therefore, it’s a good idea to keep details of new products/processes confidential until a patent application has been submitted. You may want to ask any third parties, who you are dealing with, to sign a non-disclosure agreement to keep details of your product/process secret.
Patents are the hardest form of protection to obtain. Patent applications are:
- complex – you usually need professional advice;
- expensive to obtain – often costing thousands of pounds; and
- long – usually around 5 years to obtain.
Before you apply for one, you should therefore be sure that a patent is right for your business.
If you do obtain a patent, you’ll have to pay to renew it each year.
A patent only protects the product/process in the country where it is granted. So if you need protection in another country, you’ll have to investigate how you apply for protection overseas.
Design Rights
Whilst patents protect a product/service from being used by others, a design right protects the visual look of your product. They can, therefore, stop others from copying the design of your product.
You can register design rights or leave them unregistered. However, registered rights give the greatest protection.
Certain shapes of objects may be automatically protected by design rights. But it’s easier to protect your design if you register it.
Registering your design:
- protects any aspect of your design, such as product shape and decoration;
- gives you the right to stop others from using it for up to 25 years. Although you’ll have to renew your registration every 5 years; and
- makes any legal action against infringement and copying easier.
Before you apply, search the design registers to check that your design is unique.
Once a design right is registered, you can display your registration number on your design.
Trade Marks
You can protect your brand by registering a trade mark.
A trade mark is a sign which demonstrates that products and services come from a particular source. You can use them to protect against counterfeit goods. You can also stop a competitor from marketing products with similar markings to your trade mark.
A trade mark can be any name or logo, as long as it is distinctive.
Trade marks do not have to be registered, but a registered one will provide greater protection.
When registered, you can:
- take legal action against anyone who uses your brand without your permission;
- put the trade mark symbol next to your brand, to warn others against using it; and
- sell and license your brand.
Before you apply for a trade mark, you should:
- check if your brand qualifies as a trade mark; and
- whether your trade mark is already registered by someone else.
Registering a trade mark in the UK only protects your brand in the UK. So, if you need international protection, you’ll have to understand the different processes for obtaining international trade marks.
A standard on-line UK trade mark application costs £170, plus £50 for each additional class. For a slightly higher fee, you can use the ‘Right Start’ service if you want to check your application meets the registration rules.
If nobody objects to your application, it usually takes 2-3 months for your application to be confirmed as successful. At which point, you’ll receive a certificate to confirm your trade mark.
Your trade mark will last for 10 years. You can renew it after that time.
If you’ve got an unregistered trade mark, you may still be able to stop someone using a trade mark similar to yours. This is known as ‘passing off’. You’re likely to have to take legal advice to enforce your rights. It’s much harder to prove passing off than to enforce your rights under a registered trade mark.
Copyright
Copyright does not have to be applied for. It arises automatically when someone creates an original artistic, musical or literary work. You can use copyright to stop others from making copies of your protected work.
You do not have to register copyright in the UK.
Protected works do not need to have artistic merit as such. For example, you can copyright a ‘How to Guide’ as a literary work.
Enforcing copyright can be difficult, as it requires you to prove that the work has been copied. Hence, copyright is the least valuable form of IP.
IP rights can be valuable assets
IPRs can be valuable for a number of reasons:
- Owners can develop their products/services safe in the knowledge that they will be exclusively available for use by their business. Protection is often vital for businesses to create market share.
- IPRs can attract investment.
- You can sell or license them to generate income.
- In addition to their monetary value, they can also enhance a business’ reputation.
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Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Whyatt Accountancy and the writer accept no responsibility for any loss arising from any action taken or not taken by anyone using this material.