Intellectual Property Essentials for Start-Ups

An introduction to IP and its importance for startups/ fledging (新型产业) business

Introduction

  • IP can be key assets for business for

    • all sizes
    • all sectors
  • particular value for start up
    • only real asset and key differentiator
  • key to stopping other start up
    • for mimicking
  • Different guises
    • each with their own particular rules
    • existence and effects

Why should a startup care about IP?

  • Failure to consider IP can have significant impact

    • on business and
    • its prospects at the outset
  • IP can be a key value element for subsequent investors
  • Many IP rights require consideration at an early stage
  • Others give beneifts from early registrations

What should you be thinking about on IP?

  • IP should always support your business plan

    • what are you planning to do?
    • what are your competitors planning to do?
      • how easy is it for a competitor to enter the market?
      • how would you distinguish from prevent that competition?
    • why will the IP be important?
      • Exclusive/ barrier to entry
      • sales driver
      • Branding / customer communication and loyalty
    • balance of cost and benefits

Types of IP rights and their role for a business

  • registered right (stronger )

    • patents
    • trade marks
    • registered designs
    • plant variety rights
      • 植物品种权（也称为植物育种者权利）是一种专门为保护植物新品种而设计的知识产权形式。

  • Unregistered right

    • un registred design
    • database rights??
    • passing off
    • copyright
    • Semiconductor

Overview

  • registered rights

    • require action to create
    • may be subject to an examination process
    • Require fee payment
    • Monopoly right
      • Broader protection
    • easuer to enforce
      • existence of right is proved by registration
  • Examples
  • Unregistered rights
    • come into effect automatically

      • May require particular actions by

        • creator
        • but these are usually implicit in the subject matter being created
    • typically only protect against copying
      • no protection against indent third party creation
    • generally harder / more complex to enforce
      • need to prove existence and ownership of the right

        • often long after its creation
      • need to prove copy
        • direct evidence of this is rarely available
    • may differences around the world
  • Examples
    • copyright
    • unregistered design right
    • trade secrets

只要你不直接抄别人的，你就不影响他的copyright

Patents

  • time limited negative monoply right
  • granted for inventions
    • new
    • inventive
    • in exchange for suitable disclosure
      • whether better protected into the trade secret
  • requires applications
    • subject to a potentially lengthy examination process
  • strong potential to exclude competition
  • Can be used to gain a substantial tax break
    • when your business becomes profitable

Whether, Where and When to Files?

  • Mainly US and EU

  • someone to go the Japan and China

  • Then Australia can canada

  • others

    • layer 1

      • india
    • layer 2
      • Korea, russia, and mexico
    • Layer 3

  • not too late

    • risk
    • risk
    • may hold back marketing efforts

  • not too early

    • not before the invention is sufficiently developed

      • Product ot a winner so wasted IP budget
      • product evolves and IPdoes not quite cover new version
      • data and plausibility?
      • 数据和可信度
    • from filing, procedural and

  • In practices

    • too late is worse than too early

  • what is the issue

    • infringing IP of others that can actually stop you

  • but how to find out what is out there?

    • basic landscape searching may be informative at the outset

      • Areas to avoid
      • Gaps to exploit
    • focused FTO search as product nears completion
      • FTO

        • It is related to the budget
    • Patents vs Application
      • many rights are not granted yet
      • scope unclear
    • Known competitors and names are useful tools
      • but not the whole story
    • Main market first
      • GB
      • EP
      • US
      • WO

  • inventorship

    • Patent ownership is determined by who the inventors are

Design

  • product the appearance of the product or part of a product
  • used to protect aesthetics rather than function
  • very important if you are selling a consumer product
  • but can also protect app icons and skins / pages

Trade marks

  • protecting your brand and your relationship with your customers

    • if your business model can be replicated by competitors, then your brand may be the only thing that attracts custoerms o you rather than them
    • How are customers going to find your business
      • Except through a brand
    • Once customers find out about you
      • you need to ensure you protect that relationship
      • and the investment that you make in obtaining/ retaining those customers

What is protected in the deliver oo?

  • a wide range of the domain for making the influencial
  • trademark can last forever

Three layers of protection

  • copyright

    • you have it ?
    • lifetime+70 years
  • trademark
    • How long
    • Forever
  • patent
    • 20 year
  • design patents
    • 25 year in eu
  • what to do if rejected?
  • what is the way for

What type IP rights should you be thinking

  • if there is scientifici or technological advance for solution?

    • patent
  • do you have a product or service
    • trade marks
    • It need to have the customer relationship
  • If your domain has the new different visual appearance
    • design rights

Housekeeping issues

  • do you have any unregistered rights?

    • ensure proper documentation in place
  • who owns the IP?
    • sort out ownership
  • have any external contractors been used in the development of potential IP?
    • Ensure all potential ownership issues resoled at the

Summary

  • In one word

    • think about what you have
    • and
    • what you might have

  • Think about intellectural property exists in the business and concept

    • can it be protected or improved?

      • obtraining registered rights?
      • is it properly documented
      • are there any outstanding ownership issues?
    • what is the value of the IP to business

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