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As you start to develop your idea, you will no doubt conduct some searches and these should include relevant patents. As well as identifying potential conflicts and other interested parties, patent searching may give you ideas to improve your design.
Remember to keep your invention confidential. The intellectual property (IP) disclosure rules mean that if you accidentally disclose your invention, you may not be able to get a patent and your options for protection will be extremely limited. So avoid jumping the gun with marketing materials and web announcements.
The next thing is to talk to an IP attorney about how best to protect your idea. Remember, IP protection can be applied for while you are finalising your product, and before the design is completed.
When financing a new design or innovation, there is always friction between available funds and what needs to be done to develop your idea. Quite often, patents and associated IP will not be a priority. Remember that IP does allow you to quickly create value in the business.
In the UK, trademarks can be protected indefinitely; designs can be protected through registration for up to 25 years, and patents for up to 20 years. This IP value could last for the lifetime of the business, or certainly for the lifetime of the product. Through the patent box tax relief system, a patent can also give you significant tax savings.
The legal process of obtaining a patent is relatively complex. It is also essential to get it right first time. This is because, if your first attempt at a patent application falls short, you have essentially disclosed your product to the competition without protection.
When applying for a patent, there are many ways you can potentially handicap yourself from the outset. To make changes to the application, they must have basis in the application as it was filed. It is therefore essential to include plenty of descriptive wording that can be drawn upon later for amendments. Inventors will of course understand the complexities of their own products and innovations, but they may not be best placed to phrase these technical features in the kind of language expected by patent examiners.
Patent offices apply rigid and highly specific rules to decide whether an application is allowable, and it can be difficult to foresee and understand their objections if you are not familiar with these rules. An experienced patent attorney will be able to draft your application with the examination in mind, giving you the best possible chance of obtaining a granted patent.
It’s very hard when starting a company to think about succession planning and whether you may eventually want to sell your business. If you do, then IP could play a big part. As part of the due diligence process for a sale, any purchaser will want to know that they have the exclusive right to use the brands and products that have been established. They will also want to know that they are not at risk of infringing other people’s patents. The seller will need to show that all their IP has been filed correctly to get maximum value.
My advice would be to talk to a patent or trademark attorney at the earliest point to develop a strategy setting out how you should approach your IP. The penalty for getting it wrong can be severe but getting it right could create value, increase profitability and help to secure the future of your business.