Intellectual property is as valuable as cash assets to small businesses. Most companies, especially big ones like Google and Pepsi, spend millions each year protecting intellectual property assets. That’s because IP infringements are all too common. A company’s IP can be breached even via mundane things like signing a new contract with a partner or proposing a new design with a contractor. Losing the IP value of anything means that a small business loses an asset. Considering that, here are several methods recommended by Corporate Business Solutions to protect your company’s IP:
Sign NDAs with Everyone: It’s very important to include an IP clause in nondisclosure agreements that the company signs with clients, partners, contractors, freelancers, or anyone else. This indicates to the third-party that your business fully owns the copyright of a certain asset, and thus discourages infringement. If a breach does happen, your company will have the legal advantage to take the matter to the courts.
Be Careful of Disclosures Made to Freelancers: More and more companies are now getting business done via third-party freelancers or self-employed agents. If these non-employed workers get involved in the development of something, they can later make a claim on the IP. To prevent this, sign an NDA with an IP clause as mentioned above. Also, be careful of the sensitive disclosures you make to freelancers who might be able to use the knowledge to turn a copyright claim to their advantage.
Beware of International IP Rights: Small businesses themselves can be perpetrators of IP violations, sometimes unknowingly. This is quite true with regards to companies that sell internationally. Always make sure that patents, trademarks, or copyright claims of your company cannot be contested internationally. You will have to check international patents and IP registration to be sure.
Negotiate with IP Violators First: IP claim lawsuits are typically costly and prolonged for both parties. Therefore, it’s best to open dialogue with a potential violator before going to court. If you think an entity is infringing on your company’s IP, you can send a legal letter notifying them of the infringement, and send a cease and desist letter. You can hire mediation services to come to an agreement with the violator before getting into a lengthy court battle.
Always think of IP as assets. Things like patents add wealth to your small business. If you want to conduct a company review of business operations, including your risk for unregistered IP, contact us at CBS-CBS.com to find a consultant.