Do you use protection?

Let me start by making two statements:

1. Product development is risky.
2. Product development is expensive.

With those statements in mind, ask yourself what safeguards you have (or will) put in place in order to ensure that your new product development remains YOURS, and doesn’t fall into someone else’s hands? What strategies do you have to protect your new product, and give you more control over how it is developed, manufactured, launched and sold – and by whom?

Intellectual Property protection (IP) is at the core of such control strategies. There are a range of IP measures you can take to protect your development, all depending on your needs.

I chose to write this article because, despite the wide range of clients and industries I work with, there have been a few instances where clients have been all-too keen to publicise their project, before implementing any form of IP protection. This can be disastrous to your cause, particularly if your product or innovation has some attribute, function or appearance that could be regarded as unique and state-of-the-art.

Making your new product design, mechanism or unique functional attribute public before gaining the necessary protection can not only jeopardise your future market success, it can also mean that you will be unable to get IP protection for your invention in the future. This leaves the door wide open for others to cash-in on your idea.

For Australians reading this, you can get a lot of great information about IP at the IPAustralia website. There are a wide range of resources and events you can access to learn about the specifics of IP. So, I’ll keep this discussion brief – because this article is just a head’s up really…

There are different types of IP protection measures you can take, depending on your needs. Here is a brief snapshot:

Confidentiality Agreements

I’ve talked previously about Confidentiality Agreements (aka Non-Disclosure Agreements) here. For purposes of brevity, I’ll assume you have read this article. Suffice it to say – don’t say anything about your project with anyone unless you have them sign a Confidentiality Agreement! More here > 

Design Registrations

Protect the visual appearance of your product. Often, new products will have a distinctive or novel appearance that helps them stand out and be differentiated against their competitors. This visual difference can be protected through Design Registration. It is an economical way to protect the investment you have made in design styling. Design registrations expire after 5 years, and are renewable for further terms of 5 years. More here > 

Patents

Perhaps your product functions like no other… it may deliver a particular operation or benefit that no other product or mechanism has before. Maybe you have developed a new electronic circuit unlike no other. These sorts of inventions may be submitted for patent protection. Patents are perhaps the headline form of IP protection – and can be proportional in cost, depending on where you wish to market and sell your product. Traditional patents are enforceable for up to 20 years – however there are also “Innovation Patents” which are easier to apply for and receive, however they expire within 8 years. Patents are costly… so get professional advice; and once you can determine your likely investment in patent protection, consider whether you are likely to get a return… is your market and forecast sales & profits going to be enough to justify the spend on patent protection? More here > 

Trademarks

Protect your corporate name, tagline, logo, sound, even smell! Trademarks like “Coca Cola” and “KFC” are accompanied by a small “R” in a circle. This “R” signifies that the organisation has formally registered their mark. Company names and taglines displayed with a “TM” are essentially staking a claim to their name or tag, but have not yet paid to have it registered. Registering your trademark is useful when your company name, tagline or logo is unique, and you want to create some brand affinity or connection with your products and services. More here >

Copyright

“Copyright protects the original expression of ideas, not the ideas themselves” (Ref: IP Australia). In product development terms, that means that sketches, drawings and visual presentations that are prepared remain the property of the creator – be it you, your designer, engineer and so on. Photographers also retain copyright ownership of their work – irrespective of who is paying! It is my policy to provide unrestricted permission to my clients to reproduce the works I create for them, since they paid me to do the work in the first instance. That said, some other consultants, agencies and practitioners may have a different policy – so it pays to check first. Typically, copyrights do not expire for up to 70 years, and is automatically in-effect upon the creation of the work. More here > 

So, tying things all back to the first two statements, what can be gleaned from this article:

Statement 1: “Product Development is risky”

Developing a product for a particular market or niche is risky enough, without you blabbing your idea to the world before taking the necessary IP precautions. IP protection can provide with legally enforceable rights that help you develop and commercialise your product when, how and where you want. In the meantime, all conversations with potential partners, suppliers, consultants and advisors should only happen after signing a Confidentiality Agreement.

Statement 2: “Product Development is Expensive”

Like many aspects of the product development process, IP protection will cost anywhere between $0 and $LOTS. From a strategic perspective, consider what your aims, goals, and vision is for your product, and get some professional advice about the best combination of IP measures you should take. Think about your IP investment like any other financial investment – “will I get a worthwhile return?” This investment will be just one of many during your project… so it needs to have a compelling business case.

There are plenty of IP resources and information available, including:

IP Australia   http://www.ipaustralia.gov.au/index.html
Smart Start     http://www.ipaustralia.gov.au/smartstart/index.htm
World Intellectual Property Organisation:      http://www.wipo.int/
Free Patents Online:      http://www.freepatentsonline.com/
Wikipedia (Patents):      http://en.wikipedia.org/wiki/Patent
Confidentiality Agreement Generator:      http://www.ipaustralia.gov.au/smartstart/cag.htm

What are your IP experiences? Is there anything you’d like to share about how you’ve handle IP issues in the past?