- June 7, 2018
- Posted by: Asheesh Sinha
- Category: Business plans
Your ability to innovate and stand apart from the competition is critical to success. Unique designs and ideas are intellectual property that could be of great value. Many new businesses are founded on one original concept. But the better an idea is, the more likely rivals are to borrow it. Unfortunately, many entrepreneurs do not adequately address intellectual property in their business plan or pitch deck. Legal protections should be put in place to ensure you have control of your own innovations. This gives lot of confidence to investors when you are seeking funding for your startup. Here are some industries that can benefit most from intellectual property protection,
This applies to creative people of all types. Musicians, authors, filmmakers, and traditional artists — whether working for an established distributor or themselves — can be considered private new businesses looking to make a profit from their work. They often depend on royalties for their incomes from the materials they license to others. With public works and almost universal access to the internet, it’s effortless for people to steal and download creative properties. While it’s not strictly necessary to have a copyright to protect original artistic material, it certainly helps when it’s time to go to court and recover any monies that are due.
This is another field where there is a tremendous demand for services and vast amounts of money at stake. Healthcare providers are also strictly regulated by the government, and each has the ultimate goal of providing the best care possible to stay competitive. While many advancements are shared or licensed for the common good, many are not. Many manufacturers of goods outside the immediate realm of medicine like supplements, nutraceuticals, and lifestyle medicine also have issues competing in a market if others can copy their ideas. Makers of medical equipment, pharmaceuticals, healthcare tech, and pioneers in new treatments stand to lose fortunes if someone else is allowed to capitalize on their ideas.
Tech products and services are expanding fast. There is a constant demand for new applications, gadgets, and hardware that can make life easier for individuals and more profitable for organizations. Billions of dollars are spent on research and development in the tech industry. Without proper protection, however, it’s relatively easy for tech staff at a rival company to reverse-engineer hardware or produce their own version of your software. Many companies take the more profitable and sensible route of selling licenses to use their new technology.
Franchising opportunities hinge on branding and intellectual property protections. When someone chooses to open a franchise, they rely on information in the Franchise Disclosure Document (FDD). According to Franchise Gator, “The FDD contains 23 mandatory sections that provide candidates with information regarding costs and fees, legal issues, turnover rates, and more.” The document outlines information on trademark ownership rights and ownership, including patents, copyrights, and proprietary information. All of this information is vital to successful franchise ownership and operation.
Every hot new product can be worth millions or billions in sales, while innovative production solutions and machinery can save companies millions more in costs. Most product and service industries also spend heavily on marketing to come up with catchy, original slogans, logos, graphics, and other forms of advertising. All these things are intellectual property representing a substantial investment in time and money, and must be protected against misuse. New businesses that don’t protect their intellectual
Some businesses have strong IP while others have weaker ones. But no matter what is your business plan, there is always some intellectual property for protection.