BSBIPR405A - Protect and use intangible assets in small business

Nominal hours

Unit descriptor

This unit describes the performance outcomes, skills and knowledge required to effectively protect and exploit the intellectual property (IP) of a small business. It focuses on identifying and valuing intangible assets and implementing measures to protect and commercialise these assets.

No licencing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Employability skills

This unit contains employability skills.

Prerequisite units

There a no prerequisite units.

Co-requisite units

There are no co-requisite units.

Application of the unit

This unit applies to individuals who either operate a small business or who are investigating the establishment of a small business. It particularly applies to small businesses which have intangible assets with market value which require protection and which can be used to improve business performance.

Intangible assets refer to assets which may be protected under a range of IP legislation including patents, trade marks, designs and copyright, as well as protection under other techniques such as common or contract law.

This unit encourages small business owners to seek expert advice from IP professionals when required for the protection of IP.

Performance criteria describe the performance needed to demonstrate in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

Elements and Performance Criteria

Elements describe the essential outcomes of a unit competency. Performance criteria describes the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

Element 1: Identify and value intangible assets which are key to the small business.

Performance Criteria:

Identify intangible assets, which are key to the ongoing success of the small business through an IP audit.
Research appropriate sources of information and advice for protecting and effectively exploiting the small business's intangible assets, and seek professional advice when required.
Value intangible assets so they can be incorporated into the business plan and risk assessment strategy.

Element 2: Identify and select types of protection available for intangible assets.

Performance Criteria:

Identify the types of protection for intangible assets including registered and unregistered protection.
Identify relevant legislative requirements in relation to the proper use and protection of intangible assets.
Calculate the likely costs, risks and benefits of potential types of protection available.
Assess organisational requirements, and balance costs and benefits to select the most appropriate methods to protect and use intangible assets.

Element 3: Implement appropriate protection for intangible assets.

Performance Criteria:

Ensure all employees, partners and directors are aware of the importance to the small business of protection against intangible assets.
Implement confidentiality agreements if appropriate with employees and others who might have access to commercially sensitive information.
Search appropriate data bases and other resources to determine whether the small business's intangible asset is original, to avoid infringement of the intangible assets of other.
Follow procedures to protect intangible assets according to the type of protection required, using appropriate IP professionals.
Develop and implement processes for detecting and defending infringements against the small business's intangible assets.
Monitor the market for possible infringements of protection of intangible assets and take appropriate action is required.

Element 4: Develop and implement processes to avoid infringement of the rights of others.

Performance Criteria:

Develop and implement processes so that the small business does not infringe other's IP rights
Ensure all employees are aware of and understand the importance of avoiding the infringement of other's IP rights.

Element 5: Use and commercialise the small business's and other's intangible assets.

Performance Criteria:

Identify options for exploiting and commercialising own intangible assets.
Identify IP of others that can legally be used by the small business for small business advantage.
Identify taxation, accounting and financial reporting requirements for any gains made from commercialisation of intangible assets.

Required Skills and Knowledge

This section describes the skills and knowledge required for this unit.

Required skills

Research and analytical skills to investigate and interpret relevant legal requirements in relation to protection of intangible assets.
Numeracy skills to understand the value of intangible assets.
Organisational skills to develop processes to protect, use and exploit intangible assets.
Communication skills to provide information to relevant personnel about IP.

Required knowledge

Basic knowledge of types of IP and the key characteristics of each.
The range of IP residing with the organisation.
Basic knowledge of relevant legislative requirements as they apply to the job role.

Range Statement

The range statement relates to the unit of the competency as a whole.

Intangible assets may include:

brands
business names
customer/client lists
computer systems software
confidential information
copyrights
core technology
data bases
designs
distribution agreements
domain name
employees specialist knowledge
goodwill
ideas
innovations
inventions
logos
packaging
patents
practical application of a good idea
processes
products
promotional materials
secret recipe, process, formula
standards of service/unique service technique
trade marks
trade secrets
training manuals

IP audit refers to:

a systematic review of the IP owned, used or acquired by a person or organisation, including:

identifying products or services that are key to the small business
identifying intangible assets, and the legal rights in relation to protection of the assets

understanding what market advantage these rights give the small business

Sources of information or advice may include:

IP Australia
the Attorney-General's Department
the Australian Copyright Council
State and Commonwealth government agencies
lawyers specialising in IP
Trade Mark Attorney and Patent Attorneys
Accountants
Business Advisors
Marketing Consultants
Branding Consultants
copyright collecting societies, for example CAL, PPCA, MIPI, APRA, AMCOS
publications
the internet
databases such as local and international trade mark data bases.

Value may include:

using processes in accordance with accepted accounting standards and with the assistance of an appropriate professional, consider:

how much time would be required to develop these assets from scratch
how much a competitor might pay to buy or use these assets
how much of the organisation's profit is attributable to the asset.

Business plan may include:

an executive summary
objectives
a descriptive of the business
legal requirements (including intangible assets)
a sales and marketing strategy
a research and development plan
production or operating strategies
an ownership and management plan
a funding strategy
a financial plan
an analysis of strengths, weaknesses, opportunities and threats (including intangible assets)

Types of protection may include:

copyright
registered patents
registered and unregistered trade marks
registered company name, business name and domain name
registered designs
trade secrets
sui generis protection for example plant breeders and circuit layout
moral rights.

Registered protection refers to:

protection which occurs through the registration of the particular intangible assets, for example trade marks, patents and designs

Unregistered protection refers to:

protection which occurs automatically by law, without the need for registration, for example copyright, moral rights and common law trade marks.

Legislative requirements may include:

business name legislation
the Copyright Act
the Designs Act
the Patents Act
the Trade Marks Act
Trade Practices Act and State and Territory fair trading legislation.

Appropriate databases may include:

public registers of registered Australian and international patents, trade marks, designs and plant breeder's rights.

Note: these may be accessed via IP Australia's website or through use of a commercial search company or patent and trade mark attorney.

Confidentiality agreements may refer to:

an agreement between a party with confidential information and a party to whom that confidential information will be disclosed, for example potential partners and financial backers and employees, outlining conditions of the disclosure and permitted use of the information.

Other's IP rights may be infringed through unlicensed use of:

brands, logos, packaging and colours
domain names, business and company names
inventions, innovations, business methods
designs
content, such as photos, text and images
software
music
film
technology in new invention

Commercialising intangible assets may include:

franchising
licencing
selling off business and/or processes, inventions or brands and so on
manufacturing

Gains may include:

proceeds from:

sales
franchising
licencing
use of the IP or associated products

Evidence Guide

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit.

Evidence of the following is essential:

identification of issues for the use, management and protection of intangible assets
implementation of policies and procedures for the management, use and protection of intangible assets and legitimate use of other's intangible assets.

Context of specific resources for assessment.

Assessment must ensure:

access to a small business for exploration of intangible assets
access to relevant documentation, including explanatory materials and guidelines
access to appropriate computer resources for establishment and maintenance of policies and procedures

Method of assessment.

A range of assessment methods should be used to assess practical skills and knowledge, such as:

direct questioning combined with review of a portfolio of evidence
oral or written questioning to assess knowledge of IP and its implications for the organisation
development of action plans for implementation of IP policies and procedures, and commercialisation of intangible assets
analysis of case studies of issues around IP issues, with recommendations for action
presentation to financial backers or other showing how intangible assets will be protected and commercialised.

Guidance information for assessment.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBMB401A - Establish legal and risk management requirements of a small business
BSBMB403A - Market the small business

Last Updated: 15/9/2012

Read previous (IP in Everyday Life)

Next Section:

Case studies

9 of 9

Meet Kirsty

eServices Security
Learn more about working with us