Protecting your intellectual property

The fruits of your creative labour are a bounty that should not only inspire a certain amount of pride, but will ideally enable you to make a bit of cash into the bargain. The last thing you want is some unscrupulous scallywag getting rich off of your idea.

Anything that is a result of your own creativity is automatically classified as your intellectual property. Different rules protect different types. Products and technical solutions are covered by patents and design rights, while literary, musical and artistic creations are covered by copyright. Words, logos and even sounds and smells can be registered as trademarks.

You automatically have certain IP rights as soon as your creation is realised. Registration is not necessary and, in theory, you can stop another party using your ideas. However, in order to do this, you have to prove that what they are doing is copied from your original idea. If they developed it independently, you don't have a leg to stand on.

To increase your rights and see to it that you have the monopoly on your ideas, it's necessary to register your IP rights. This ensures that you retain the ability to make money from your work and have a say in how it is used. You can stop anyone in the UK using it, even if they are stepping on your toes by accident.

Your key point of call for registration should be the UK Intellectual Property Office. This is the government body that ultimately decides on all IP right applications and its excellently redesigned website is extremely helpful. Registration with the IPO only covers the territory of the UK but is a good place to start before moving on to register in other territories.

Trademarks

The purpose of a trademark is to enable customers to differentiate between your products or services and your competitors'. It's a 'badge of origin' which can be anything from a sign, word or logo to image or sound. The important thing is that it's recognisable and distinct.

Make no mistake, registering your firm's name with Companies House or registering a domain name does not protect you. Senior trademark attorney Phillip Cooper says many start-ups and small businesses find themselves in trouble because they're not even aware of rules concerning IP. "A lot of people are just not well educated enough as to what the real value of their IP is," he says. "In some cases, it can be up to 80% of the value of your business."

For example, if your name is Bloggo and you've registered Bloggo Ltd at Companies House, you might think you're okay. But Cooper says there is nothing to stop someone coming along and registering Bloggo Products or Bloggo Marketing. "If you've got it registered as a trademark, you’ve got a defence against this," he adds.

Don't expect the IPO registration process to be over quickly, it can take anywhere from five months upwards, depending on whether your trademark application is initially accepted or challenged by a third party.

When you apply for a trademark, you will be asked to provide a list of all the goods and services that the mark will apply to. There are 34 classes of goods and 10 classes of services. The application will cost £200 for an initial class, plus an additional £50 for each category you wish to apply for.

There are a number of criteria your proposed trademark has to adhere to as well. For instance, it must not be similar to any specially protected emblems like national flags or hallmarks. For a full list of requirements, check the IPO website.

"A lot of people are just not well educated enough as to what the real value of their IP is. In some cases, it can be up to 80% of the value of your business."

Phillip Cooper, senior trademark attorneyProviding you pass these requirements, your proposed trademark will be published in the trademark journal for three months to give other organisations the chance to object. Once you're certified, no one in the UK will be able to pinch your hard work. A registered trademark can be dealt with like property; it can be licensed, mortgaged, sold or traded.

Patents

Patents are slightly more complicated from a legal point of view as it's not always cut and dry what can be patented. To do this, it is highly advisable to seek legal advice – and not from some high street solicitor. Many specialist IP lawyers will give you a free 30 minute consultation and will be able to advise you on the best way to proceed.

If you decide to submit an application, the IPO will charge you £200 for the process. A typical patent application will take between two and four and a half years maximum, although you can request that the process be accelerated. The patent, if granted, ensures you have the monopoly on your product or process for 20 years. Patents, like trademarks, can be traded or licensed like property.

If you find you need to share your knowledge with a third party in order to develop it or take it to market, you need to draw up a comprehensive non-disclosure agreement (NDA) – another job for the legal experts.

"If you are going to use an NDA, it should be so detailed that it really sends a warning that you are serious about enforcing it," says Susan McGaughran, chief executive of law firm Limeone. "If people have to sign a very serious legal document before they can handle something, it's going to make them think more than twice about stealing it."


"If people have to sign a very serious legal document before they can handle something, it's going to make them think more than twice about stealing it."

However, there are a number of things you can do to strengthen your position and dissuade any potential infringers. For instance, putting the international copyright sign [©] at the bottom of every document you write, along with your company name, isn't legally necessary but might make someone hesitate before trying to pass it off as their own.

Similarly, particularly in software coding, some producers will include a feature that serves no technical purpose but makes it very easy to see that it's been copied as that feature is unique to the person. Written text may sometimes contain unusual grammatical or typographical errors that aren't really errors but have been placed there as a trap to catch copyright infringement.

"We would always advise clients to do this," says McGaughran. "If you are going to try and prove that someone's copied you further down the line, it'll be much easier to prove if you have got some of these devices in."

Further information

The Intellectual Property Office is the government body with the final say on IP registration. http://www.ipo.gov.uk/home.htm

Own-it is a London based non-commercial initiative offering free IP legal advice, definitions and other useful information. http://www.own-it.org/advice/

The World Intellectual Property Organisation offers a free downloadable handbook explaining IP policy, law and application. http://www.wipo.int/about-ip/en/iprm/index.html

Matt Henkes is business writer for BusinessZone, providing free help and guidance to entrepreneurs. For more information visit www.businesszone.co.uk.

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