March 2007: Business Tools
RISK MANAGEMENT
Steps to protect your intellectual property
The area known as intellectual property, or IP, is becoming
increasingly important for small business. IP refers to all of
the intangible assets that a business develops that are
products of the mind, rather than products of machinery. Just
as you can own tangible property, you can also own intellectual
property if you take proper steps to establish and protect that
ownership.
But while patents and other intellectual property are vital to
smaller businesses, those businesses often lack resources for
managing IP issues. Poorly written patent applications
submitted to the U.S. Patent and Trademark Office (USPTO) have
created a backlog of historic proportions. And IP experts at
IBM, for example, say the government has been approving
applications for things that are overly broad, obvious and
old-hat in a rush to clear the logjam. Here are some things
small businesses can do to establish, protect and cash in on IP
assets:
DEVISE AN IP STRATEGY.
Create a strategy that leverages the entire spectrum of
techniques, including patenting, designating ideas as trade
secrets, and trademark and copyright law.
EXECUTE PROPER AGREEMENTS
WITH FREELANCERS. If your business uses independent
contractors to help develop IP assets, it is vital that all
written contractor agreements specifically establish your full
ownership of any developed IP. Beware of using independent
contractors who are actually employees at large technology
companies (a common practice). They might have conflicting
employment agreements that say any IP they develop belongs to
their big company employer.
GET UP TO SPEED ON IP
ISSUES. A good place for a primer is the FAQ section at
the USPTO (www.uspto.gov). Self-help legal publisher Nolo
(www.nolo.com) has several books on the process.
SHOP YOUR IP VIA LICENSING
AGREEMENTS. Several websites offer new and affordable
ways for small businesses and inventors to license or sell IP.
Check out IPmarket.com, NewIdeaTrade.com and IPauctions.com
where you can list your IP assets for sale.
PROTECT YOUR WEBSITE IP,
TOO. In an effort to attract and service customers,
small businesses sometimes post intellectual property on
websites. Be aware that whatever you place online can be easily
pilfered by almost anyone. At a minimum, include a “terms
of use” section on your site that spells out your
intellectual property ownership.
LOOK BEYOND BORDERS.
The Internet has made intellectual property rights a global
pursuit. Small businesses are especially vulnerable to overseas
theft of IP assets. The World Intellectual Property Association
(www.wipo.int) has an excellent guide to international IP
rights for small business.
GET GOOD IP LEGAL
ADVICE. There’s no substitute for legal advice.
The USPTO (www.uspto.gov) keeps a list of active IP attorneys.
Or you can quickly search for IP attorneys in your area at
Findlaw.com.
— Daniel Kehrer,
editor,www.work.com
dkehrer@business.com
