Intellectual Property Rights for Small Businesses

What is intellectual property?

Intellectual property refers to something that is created using human intellect. These non-physical assets include imagery, literary and artistic work, the design or looks of your product, names, symbols and other items created by, and unique to, your business.

For example, simply having an idea for a new app doesn't mean it's intellectual property. Rather, the app's design, prototypes and app itself would be classified as intellectual property assets.

Businesses go out of their way to make sure their physical assets, like stock and equipment are protected. When it comes to your intangible assets, like your ideas and designs, they can be much trickier to keep secure.

Intellectual property is in place to ensure that ownership rights are recognised and there is control over how assets are used. Intellectual property rights allow owners to make money from the intellectual property they own.

You own intellectual property if you either created the asset in question, bought intellectual property rights from the creator or previous owner, or if you have a trade mark.

If you're self-employed, you'll own the intellectual property of what you create even if your work was commissioned by someone else – unless your contract with them gives them the rights.

You won't own the intellectual property for something you've created as part of your employment with someone else. Intellectual property can also have numerous owners, be sold or transferred or belong to one or more businesses at once.

Small businesses should consider how to secure their intellectual property from day one to prevent rivals from cashing in on their fresh perspective.

Why do I need to protect my intellectual property?

When you introduce your latest ‘a-ha’ moment to the outside world, there's always a risk that it could be copied or stolen by other businesses. Your intellectual property belongs to you, so you should know how it's controlled, used and in what situations.

If your business is centred around your intellectual property and someone steals your idea, this could put your business at risk of losing the market share and put a dampener on the profits you've worked so hard to achieve.

Having intellectual property in place for your business makes it easier to take legal action if someone tries to copy your work. Registering your intellectual property can protect your investment, futureproof your business and give you it extra credibility.

And even if your business isn't centred around a unique idea, it's a good idea to be up to speed on intellectual property law to make sure that you're not accidentally infringing on someone else's work.

What intellectual property do I need?

The type of intellectual property protection you need depends entirely on the assets that you're trying to protect. For the majority of small businesses, the intellectual property types that should be on your radar are: trade secrets, patents, design rights, trademarks, and copyright.

Here are some of the main categories of intellectual property that you can use to protect your business.

Patents

What is a patent?

Got an original invention that you're bursting to take to market? Having a patent in place means you can take legal action against anyone who creates, sells, uses or imports your invention without getting your permission.

Not only this, if you successfully obtain a UK patent, you have exclusive usage rights on your creation for up to 20 years.

Patents provide the most protection for your intellectual property and not only can they keep your invention safe against competitors, having one in place could prove attractive to investors and licensers.

How do I apply for a patent?

You should get a patent attorney or advisor to help you prepare your application and to make your patent as commercially appealing as possible.

There are eight steps when applying for patent protection in the UK through the Intellectual Property Office:

1. Check for similar patents

You can search for published patent applications and registered patents using the Intellectual Property Office's patent information and document service and patent publication service.

2. Create your patent application

This must include a description of your invention that allows others to see how it works and can be used, legal statements setting out the technical features of your invention and a summary of all of its important aspects. For more info on patent applications, click here.

3. File your patent application

Once you've got your patent application up to scratch, you'll need to file a UK patent application with the Intellectual Property office by submitting it online or by post. For information of application fees, click here. You'll get a receipt with your application number and filing date and you can mark you invention as 'patent pending'.

4. Get your search report

You'll receive this up to six months after submitting your patent application. The feedback will help you weigh up whether or not it's worth continuing with your patent application.

5. Your application will be published

Your patent application will be published 18 months after filing it.

6. Request a substantive examination

The examination deems whether or not your creation is inventive enough and checks that your description and claims are worthy of a patent. You need to request this examination within six months of your application being published. Find out more here.

7. Respond to your substantive examination

You'll need to respond to any feedback the Intellectual Property Office have on your patent application in case you need to amend or change it in line with their feedback. Be aware that the examination process can take place years after initially filing your application.

8. Decision time

Successfully got your invention patented? Congratulations! Your patent application will be published in its final form and you'll be sent a patent certificate as proof of your patent. You'll also be responsible for renewing and defending your patent too. Click here for more information on patent application decisions.

Is getting a patent right for my business?

Patents can be expensive and tricky to secure. In fact, only 1 in 20 applicants get a patent without professional help. And given that the process can take up to five years to complete and typically costs around £4000, you need to make sure you're taking the right step.

If you're unsure what route to take, consider speaking to a patent attorney, heading to an intellectual property clinic or going to the British Library Business and IP centre for advice.

Keep in mind that you shouldn't talk to other people about your invention without having a non-disclosure agreement in place. If you do, you may not be able to patent your invention.