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Protect your new product
When developing a new product there is always a concern over how much
security should be attached to it. Intellectual property (IP) laws
provide rights over products to ensure ideas are not copied.
However, fully protecting a product can be a lengthy and expensive process, especially for a start-up business, but failing to protect it may mean you lose out on long-term selling potential. Here is some advice to consider when deciding on the level of protection your product requires.
By John Dodd, Enterprise Hub Network
Firstly we should clarify the four main types of IP. At a glance they are:
Copyright - This protects creative works. Anything written down, including online, which can be proved to have been written by you, is automatically copyrighted and requires no application for protection. It cannot then be reproduced without your permission.
Design – This covers the appearance of a product. Your design is automatically protected for up to 15 years, but others can gain a licence to use the design after five. If your product is new and unique you can apply for a design right which will protect the shape and the appearance for up to 25 years. This costs up to £60 per design and can take up to 3 months.
Patent – This protects how your product actually works. There are quite strict rules which ensure that only truly original products can be patented. If you qualify the process costs £200 and can take two to three years to complete.
Trade mark – This protects any distinctive sign or logo. You are granted some protection simply by using a trade mark, but can ensure nobody copies it by registering it. This costs £200 and usually takes at least six months
Having reviewed the options, it is necessary to weigh up the value of protecting either some aspects or all of your product. To reach this decision you will need to consider how you intend to market it.
First decide what your market is. Do you see your product still selling in ten years or is it something with immediate appeal which could be lost by unnecessary delay via competition.
Ask yourself what kind of shelf life your product has. If the market will have moved on in two years you are better off taking your product to market than spending time waiting for patent approval.
Commercialising and profiting from your product may be more effective than holding out for protection and missing out on the opportunity to sell.
If you think your idea will be copied, it is worth considering approaching larger companies to see if they are interested in buying your product from you rather than trying to ensure they are unable to copy it, particularly if you are a small company with limited money.
If you are selling to a company in the same field as you, for example if you have developed a new type of drug, patents are essential. Such products could be copied and design and copyright easily circumvented. Products such as pharmaceuticals may have significant potential for many years and are therefore well worth protecting.
When bringing a product to market, make sure you have fully considered what your potential market is. Patents in the UK do not provide worldwide protection. Once you have decided what level of protection you require, make sure you get adequate protection for your full market.
If you are taking the patent route it is always worth approaching local business advice networks first and then a recommended patent agent to help you through the process. Visit www.ipo.gov.uk for more information.
If your product is copied, approach the business that has copied it. You may find that mutually beneficial business opportunities arise. Legal action is time consuming and expensive and should only be used as a last resort. Who wants to wake up with cold sweats each night when a sensible conversation could open up a good revenue stream with another company?
Remember that the reason for the protection is to make money from your idea or product or at least get it being used. Taking it to your grave is really no help to anybody!
John Dodd is Hub Director of the Sittingbourne Enterprise Hub Ltd., part of the SEEDA Enterprise Hub Network, which helps the South East’s high potential entrepreneurial businesses to get off to the best possible start through coaching, access to finance, market intelligence and support with intellectual property.
www.enterprisehubnetwork.co.uk
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