A lot of individuals and businesses have never thought about intellectual property at the same time, what it can do for them. In the majority of cases, there is a feeling that exploiting intellectual property is time consuming and too expensive to yield any return. However, this is not true, and proper exploitation of this can add value to small businesses, generate income and provide you a competitive advantage in many negotiations.
Safeguarding a Monopoly
In case you didn’t know yet, intellectual property lets the owner avoid unauthorized use of the protected IP. Therefore, when a patent secures a product, for instance, selling or making that product could be prevented. Further, when a brand name is listed as a trade mark, then the infringement of that recording by applying a similar brand or identical name to products could be avoided.
This will value that intellectual property has clear commercial benefits in allowing a monopoly to be kept in a certain area of business to the elimination of the competitors. On the other hand, it might be advisable to join forces along with other parties to aid exploit the protected part of the business. Thus, intellectual property can permit this to be accomplished via licensing of those parties to feat the area of business in conjunction with. When there is a big market to exploit that you can’t exploit yourself, one or more licensees could be appointed who can help in the exploitation of the area, at the same time get a royalty on the income.
It might be advisable to just sell the intellectual property, which you have acquired for a certain price. This is possible given that the rights could be assigned to other parties. For instance, if you have developed an invention in a particular area in which you do not have any commercial interest, you might want to consider selling the invention to another party that does operate in the area instead of licensing the party to exploit your invention.
Observing the Market
The presence of intellectual property offers a practical tool for observing the activities of the competitors. Registered designs, applications for registration and published patent applications of a trade make can signify the commercial and technical direction that a competitor is taking or planning on taking.
All of this material is accessible for public inspection and could be a great source of commercial information not available elsewhere.
What are the indirect advantages of generating and protecting your Intellectual Property?
You will find a lot of benefits of protecting your intellectual property, which might not be obvious. For instance, in some nations, there are some tax breaks and lowered taxation on profits attributed to items sold, which are enclosed by registered intellectual property rights that can directly boost the revenue your small business can generate. Sometimes, the cost of protecting such registered IP rights is less in comparison to gains made by the lower tax rate.