Why is Intellectual Property Important for Businesses?

Businesses in England should always be aware of the types of intellectual property available to them. Intellectual property provides a critical competitive edge for businesses and often impacts your market position due to the strength of branding and product designs. In this article, we will discuss the importance of intellectual property protection and how it can be a valuable asset to you as a business owner and your overall long-term success.

The Overall Importance of Intellectual Property

Intellectual property is an intangible asset that provides a business with exclusive rights over: 

• branding; 
• a design right; 
• creative work; and 
• other valuable assets. 

In the same way as physical property, intellectual property has a financial value. Intellectual property can often be a valuable asset as part of a brand’s image or designs. Notably, if you sell your company to another business, the intellectual property your company owns can be worth more than any other asset. This is due to the importance of the brand to the business’s overall future success. Some examples of intellectual property such as this include the:

• McDonald’s logo;
• Tiffany blue;
• Apple symbol/logo; and
• Nike tick.

The above examples are all intrinsically linked with the overall brand and are often incorporated into: 

• products; 
• services; and
• advertising. 

Therefore, intellectual property is an essential tool, and you should ensure you have an intellectual property strategy in place in order to maximise its value.

Intellectual property can exist in things such as:

• logos;
• symbols;
• creative works;
• product designs; and
• slogans.

These are just a few examples of how the format of intellectual property can vary. While all the above examples are contrasting in their character, they are all crucial components of any business and its business objectives. Intellectual property can form an important part of branding, advertising, and marketing as well as build consumer trust and an internationally recognised brand.

How Can I Use Intellectual Property Effectively?

Your intellectual property strategy should incorporate a number of different uses for your intellectual property rights. Some examples include:

• putting your registered logo on products;
• using your slogan in advertising and marketing campaigns;
• licensing your design rights to third parties;
• using your trade mark to expand into other geographical customer bases; and
• using your rights to grow your business’ brand identity.

Intellectual property lasts for a varying length of time, dependent on the type of intellectual property rights you hold, varying from a few years to a lifetime. Therefore, you should consult a legal professional regarding the timeframes of registration as well as any renewal dates required in order to maximise your exclusive rights.

Building Your Brand

You should, however, be aware of the potential of your intellectual protection throughout its lifespan. You can use your intellectual property to build a brand which in turn will result in greater economic growth. Brands can be focused on things such as:

• logos associated with a business;
• slogans heard in advertising and marketing material; and
• the quality of products that you can protect through registered design rights.

You can demonstrate these tactics while using your intellectual property to the best of its ability.

Protecting Your Business and Brand

Furthermore, you can use your intellectual property rights to protect your business, as competitors may attempt to use your intellectual property without your consent. Intellectual property rights and their associated protection provide you with the tools to challenge this either by informal means or formal legal action.

Intellectual property acts as a critical protection mechanism for your business against anyone seeking to copy, reproduce, or use your work without your permission. If you did not possess legal rights to challenge someone attempting to do this, it could result in not only financial loss but also reputational loss, which can be a huge issue to overcome.

Key Takeaways

Businesses in England register their intellectual property with the Intellectual Property Office. Owners of registered intellectual property gain exclusive rights, including the right to challenge competitors who attempt to use their property without consent. Registered intellectual property also plays a vital role in building a business and a brand image. Accordingly, intellectual property rights are extremely valuable assets for any business to hold despite the fact they are, by nature, intangible assets. Therefore, you need to have an intellectual property strategy in order to maximise the value of your intellectual property.

If you need help or advice around registering your trade mark, our experienced intellectual property lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions