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IP Basics in 10 Easy Steps
Step 1 Keep your idea confidential!
Keep your smart idea confidential until it is has been protected as a patent
or design. If you do talk to others about your idea, engage a lawyer to draw
up a confidentiality agreement and make sure all parties sign it. If you fail
to do so, you risk losing your legal right to protect your innovation with IP
rights.
Step 2 Understand the different types of IP
and the advantages of each form
Patents protect inventions, design registration
protects its look. A registered trade mark
protects brand names, logos, original sounds
and scents and aspects of packaging. You
may want to rely on rights such as copyright
or trade secrets, which do not require
registration, to protect your innovation. Visit
IP Australia’s website for more options about
protecting your IP.
Step 3 Make sure you have a market –
conduct some market research
Every business needs to research its potential
market and understand its likely consumers,
buyers, licensees, investors, manufacturers
and distributors. Doing this will help you
work out your per unit cost and should give
you a basis to see if your product or service is
competitive.
Step 4 Use the IP system to protect your IP
Protect your innovation, design or trade mark
by using the IP system. Visit IP Australia’s
website and seek professional advice from a
patent or trade mark attorney sooner rather
than later.
Step 5 Build a prototype of your innovation
Build a model of your invention, where
practical, to help prospective financial backers
visualise your idea and its market potential.
Remember; don’t let anyone see it unless they
have signed a confidentiality agreement first.
Also, if you have an invention, don’t seek
money in relation to that invention before
lodging an application for patent protection.
A ‘commercial use’ of the invention prior to
applying for a patent may invalidate a patent
application.
Step 6 Keep track of all costs associated with
your innovation
Keep track of your development and
protection costs to help you put a value on
your IP. This will give you an idea of how
profitable your venture needs to be to recover
your costs.
Step 7 Make money from IP – sell it, license it or
manufacture products and deliver service
yourself
There are various ways of profiting from your IP.
You can sell it, license it or do it yourself. In
some cases, it may be more profitable to
outsource manufacture. If you do decide to
outsource, seek legal advice to make sure that
your IP is secure and the appropriate contracts
are in place.
Step 8 Incorporate your IP into your business
plan
Your business probably relies on your IP so it is
important that you integrate your IP into your
business plan. By doing so, your business plan
will be more attractive to potential financiers.
Step 9 Value your IP
Treat IP as a business asset by putting a dollar
value on it just as you would your tangible
assets. Seek advice from an accountant.
Step 10 Watch out for infringers
Keep an eye out for infringers as they can erode
your hard-won market share. Poor quality
imitations will also ruin your brand reputation.
If you believe your products are being infringed,
seek professional advice from a lawyer or a
patent/trade mark attorney.
Who can help?
IP Australia cannot give you specific advice
about your innovation and your business,
however, we provide web based information,
products about protecting and profiting from
your IP and application kits for patents, trade
marks and designs. Contact IP Australia on
1300 65 1010, visit one of our state offices, or
visit our website.
IP lawyers, patent and trade mark attorneys can
provide professional advice and tailor an IP
protection and commercialisation plan to suit
your particular business needs.
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