KEY POINTS:
Are IP rights just ignored by other businesses?
Most businesses respect IP rights. In Western countries, infringement often occurs unintentionally. This is not always the case in countries such as China, where IP laws are not so well developed or enforced. But even in these countries, having some protection can be better than having none at all.
How do companies lose business by not protecting intellectual property?
By not protecting inventions, trademarks, product designs and trade secrets, companies are potentially handing over their own creative genius and years of expensive research and development to their competition free. This means competitors can get their goods and services to market at a cheaper cost.
What if I don't have the expertise to take the idea to market?
It is possible to licence your IP and be paid a royalty. By licensing your IP you can hand over the cost and risk for getting a product to market to the licensee. The licensee may be better placed to maximise revenue from the product you have developed.
Once IP is copied is it too late to licence, and what if some of my ideas are based on those of rivals?
If your IP is protected (by a patent, trademark or registered design) infringement can be stopped. Some IP rights, such as copyright, exist automatically. But most only exist if they are registered at the Intellectual Property Office of New Zealand (IPONZ). If you do not file an application for registration at the right time, you may lose your IP rights forever. In NZ, it is not possible to protect a business concept. But the company name, product names, logos, jingles and corporate colours may be protected by registered trademarks. Innovative products or technical processes may be patented. Copyright laws mean instruction manuals, databases, software, product catalogues, photos and product shapes cannot be copied without the owner's permission.
Is it expensive to protect IP, and how do I stop staff taking valuable IP to rivals when they leave?
Benefits need to be weighed against costs. If it's worth copying then it's worth protecting. Compared to other business expenses, IP protection is often insignificant. Employment contracts should always include a clause about IP rights during and after the employment. Some IP cannot be kept secret because, once released on to the market, they are public knowledge. For such IP you need to consider registering your rights to protect them as a patent or trademark. For other confidential information or trade secrets, employees should sign confidentiality agreements.
I don't want to spend lots of money on expensive court cases. Do IP breaches mean a day in court?
The courts are the final stage of an infringement case but most cases are settled out of court well before significant costs are incurred. Because companies often innocently infringe IP rights, a cease and desist letter may be all that is required. By being prudent and searching thoroughly for competing IP rights in the markets of interest before you start trading, you can avoid IP infringement before it occurs.
What are some of the first steps towards protecting intellectual property?
Get professional advice early to find out what rights you have and the best way to protect them. It may be necessary to search locally and internationally to see if someone else has already protected the same or similar IP right. For most forms of IP, you'll need to register your IP at IPONZ. Lodging applications involves preparing and filing forms and supporting documents.
