Intellectual property can be a major component of what makes a company successful. Small businesses often exist in part because the entrepreneur who starts the company has a unique idea. Perhaps they have a barbecue sauce recipe that they slowly honed over multiple years.
Maybe they have found a particularly efficient way of deep cleaning carpets in motor vehicles. Intellectual property can also consist of original creative works ranging from music and photography to the written word. Trade secrets, consisting of non-public information that provides a competitive advantage, are also an important form of intellectual property. Businesses typically have an interest in protecting intellectual property, and that is especially true for small businesses that may need to compete with much bigger companies.
How can a small business owner protect their intellectual property to help promote the success of their organization?
By formally registering intellectual property
There are several federal agencies whose primary purpose is the protection of intellectual property. The United States Patent and Trademark Office and the United States Copyright Office allow individuals and businesses to submit requests for formal intellectual property protection.
Registering trademarks, requesting formal copyright protection and prosecuting patents can all be ways of ensuring that there is a formal record of a company’s intellectual property. Registration also helps by giving the owner the option of enforcing their rights if infringement occurs.
By proactively protecting intellectual property
Registration is not enough to protect the information that gives a business a competitive advantage. Small business owners and entrepreneurs also need to limit access to intellectual property by members of the public and even employees.
For example, they may want to be the only person who knows the whole recipe for their secret barbecue sauce. It is possible to manage certain aspects of the business in private or to separate out different stages of production so that no one employee has unfettered access to crucial company secrets.
In cases where hiding or limiting access to trade secrets and other intellectual property is impossible, appropriate employment contracts are important. Restrictive covenants including non-disclosure agreements can significantly reduce the likelihood of employees abusing information for personal gain at the expense of the company that hired them.
Discussing specific intellectual property holdings in a confidential environment with a skilled legal team, and establishing a working plan for protecting them, can help small business owners preserve what gives their company an advantage. Intellectual property can be very valuable and can lose its value quickly otherwise.