Intellectual property (IP) can be a company’s most valuable asset and you need to take steps to harness its potential.
The innovative ideas, creative designs and powerful brands of a business are often worth more than its physical assets. It is important that these are recognised, utilised and protected.
There is an increasing awareness of the importance of capturing the value of IP, especially among investors and financial advisors. IP assets (including patents, trademarks, copyrights and registered designs) are beginning to be valued very highly. Enterprises are acknowledging the value of their IP assets, with some including them in their balance sheets. Many companies now undertake regular IP audits.
When IP is legally protected, it turns your company’s intangible assets into exclusive property rights, enabling you to claim ownership over the IP and exploit it to its maximum potential. You can use the IP, or license it to others, producing opportunities for you to create additional revenue streams through royalties and licensing fees.
When your IP is protected, it acquires concrete value for your enterprise.
If your IP is not legally protected by IP rights, it may be used by others without your permission. However, when your IP is protected, it acquires concrete value for your enterprise as it represents exclusive property rights that cannot be commercialised or used without your authorisation.
Too often, not enough attention is paid to IP. Many companies don’t know what IP they have, its value, or the ways to effectively protect and exploit it.
Business development managers need to think more strategically about the IP the business owns in order to extract its full potential and link the IP to the goals of the business.
IP should be thought of as a competitive business tool. IP management is an extremely important ingredient to the success of a business, yet often it is not given the attention it deserves.
The real value in some companies is tied to its ideas, knowledge, and potential of its IP. IP protection transforms these into revenue generating assets. Establish a strategy to protect your IP, value it and think about the big picture in using the IP to generate additional revenue for the business.
Blair Beven, partner, trademark and branding specialist, AJ Park
