Leveraging Inspiration: The Inspired Patent Podcast

In this episode of Leveraging Inspiration: The Inspired Patent Podcast, we’ll discuss what you’re protecting, the value of what you’re protecting, and separating that value into two parts.

Understanding Intellectual Property

The first thing we need to pay attention to is that intellectual property is actually property. Property law protects it. You can either own it exclusively or share ownership with others. However, property law usually emphasizes exclusive ownership.

The source of value

The value of intellectual property comes from two different sources. The fundamental value lies in what the intellectual property protects. For example, in the case of patents, the intellectual property itself is the idea, the process, the new product, the new material, the new chemical, or the machine that has never been made before and that does something that has never been done before. If this new idea or invention benefits people and makes their lives easier or better, it has value. If not, it has no value.

Property and Property Rights

To make an analogy, let’s take a house. The house itself is the asset that provides value by providing a comfortable and private place to live, work, and store your belongings. Similarly, the value of intellectual property lies in the property itself, such as an invention or a trademark.

The deed to a home represents the property rights and legally establishes that the owner has exclusive rights to that property. The same is true for intellectual property. You must first understand and define the property itself, whether it is an invention, trademark, or creative content, before determining how to protect it with intellectual property rights.

Common mistake

Too often, inventors and entrepreneurs come to me saying they got a patent or trademark years ago but aren’t sure what its value is. Sometimes the legal claims in the patent don’t match what the person produces, or the trademark protects services or goods that the company doesn’t sell. These scenarios underscore the importance of understanding the value of your property, communicating that value to your attorney when protecting the property, and then making sure the value of the property is actually protected.

Focus on value

The first step in protecting intellectual property is understanding its intrinsic value. Once you’ve identified what brings value to your business, whether it’s a brand, an invention, or a creative work, you can then add ownership rights to it to increase its value. This exclusivity is essential for the property to truly have value.

Obtaining exclusivity

When it comes to tangible assets, like a house, we take for granted that we have exclusive rights to them. Intellectual property requires a process to obtain similar exclusivity. For patents, that process involves patenting the invention. For trademarks, while extensive use can sometimes confer rights, obtaining a federally registered trademark is more secure.

The role of brands

A large company can spend a significant amount of money on advertising to establish its trademark rights throughout the country. Federally registered trademarks allow you to develop and protect your brand, ensuring that the entire country is reserved for you to develop your brand and establish consumer trust.

The importance of copyright

Copyright automatically protects creative works upon registration. However, to enforce these rights, you must register. This registration consolidates your exclusive rights, allowing you to take full advantage of your creative work.

Trade secrets and commercial secrets

Unlike other forms of intellectual property, trade secrets rely on contractual agreements and security measures rather than registration. The value of a trade secret lies in the benefits it brings to your business, such as a customer database or a secret recipe.

Why it matters

Protecting your intellectual property is not only a legal necessity, but also a strategic business move. It ensures that your innovative ideas and products remain exclusively yours, allowing you to invest confidently in their development and commercialization. Without adequate intellectual property protection, you risk losing the competitive advantage and potential financial benefits that your innovations could bring.

What do you want to know?

Understanding intellectual property begins with recognizing that it is as valuable as any physical asset. Just like a house or a car, intellectual property requires specific actions to establish and maintain ownership. This means more than just having an idea; it involves documenting, securing, and enforcing your rights.

What do you need to do?

Here are two simple steps to start protecting your intellectual property:

1. Document your assets:Write down your brands, trade secrets, and any products you have launched in the last six months.
2. Assess your vulnerabilities:Do a mental exercise. Imagine hiring a CEO who, after three years, leaves to work for a competitor. Identify the critical knowledge or systems that you would not want him to integrate. This analysis reveals the aspects of your business that are most vulnerable and need protection.

Take action

Do you have any of the following in your business? If so, add it to your list of trade secrets and take steps to keep it secret.

• Customer list:Document all your customers and their contract expiration dates.
• List of suppliers:Keep track of your suppliers and negotiated prices.
• Trade secrets:Note any proprietary recipes or processes.
• Marketing plan:Describe in detail where you find your dream clients and who they are.
• Business plan:Describe your strategy and growth plans.
• New product models:Record all recent innovations.
• Qualified employees:List employees who are essential to your operations.

By following these steps, you ensure that your intellectual property is protected, allowing you to leverage your innovations for the growth and success of your business.