4 Developing an IP strategy

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Figure 8 The key elements of a successful business with strategy, ideas and planning at its core

As with any other form of strategy, IP strategies come in many forms:

A good IP strategy allows the business to recognize the IP it owns and provides a strategy to protect, optimize, and monetize the IP. IP rights can serve as valuable business assets and can be monetized in several ways. For example, the addition of a patent, or simply a patent application, to an early-stage company’s IP portfolio, makes the company an eye-catching investment opportunity to equity financiers, such as venture capitalists (VCs) and angel investors, who often view an early-stage company’s attempts to obtain patent protection as a demonstration of dedication and commitment to striving for success. Pending patent applications can also be used by investors to assess whether the early-stage company will effectively be able to deter potential competition.

(Halt et al., 2017, p. 37)

A coherent IP strategy must have a clear link to your overall business strategy, which it should both reflect and support. The challenge can be that, while you might think that your business idea is wonderful, there is no guarantee at an early stage that anyone else will agree or that your business will be a success. It can consequently be tempting not to bother taking a coherent approach – but this could well be a big mistake!

As Hooper points out:

A good IP strategy is based on the needs not only of the business in the present, but also provides a framework for protecting the business as it grows. It will put simple processes in place to identify a business’s IP as it is created, then capture it, and finally protect it. It will also help a business to take measures to check it isn’t infringing someone else’s IP.

(Hooper, 2018)

The underlying importance of a coherent IP strategy is demonstrated by the increased value of patents in recent years. This has led to corporate takeovers and legal actions in order to acquire and protect patents, and legal action has also been taken as a strategic tool to attack competitors.

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5 Proactive steps to manage IP