Dear Dan: We're a small design startup, and most of what we create is considered "intellectual property." We're always debating which ideas to protect with patents and trademarks, and how we can cash in on those assets. What are some resources that can help?
– IP Inquirer
Dear IP Inquirer: Intellectual property, or IP, is becoming increasingly important for small business. IP refers to all intangible assets such as ideas, designs and other information that are products of the mind, rather than products of machinery.
Technology giants such as IBM spend huge amounts of money to develop and protect ideas. But individual inventors and small businesses still create the vast majority of patent activity nearly 15 times as many patents per employee as larger companies, says the U.S. Small Business Administration.
Here are some things you can do to establish, protect and cash in on IP assets:
1. Devise an IP strategy. "Start with the outcomes you want from exploiting your intellectual property assets and create a strategy that leverages the entire spectrum of techniques, including patenting, designating ideas as trade secrets, and trademark and copyright law,"
says Jeff Lindgren, an IP attorney in Walnut Creek, Calif.
2. Execute proper agreements with freelancers. Beware of using independent contractors who are actually employees at large technology companies (a common practice). They might have conflicting employment agreements that say any IP they develop belongs to their employer.
3. Get up to speed on IP issues: A good place for a fast and authoritative primer is the FAQ section at the USPTO (www.uspto.gov).
Self-help legal publisher Nolo (www.nolo.com) has several excellent books on navigating the patent and trademark process.
4. Shop your IP via licensing agreements. Several Web sites offer affordable ways to license or sell IP, including IPmarket.com, NewIdeaTrade.com and IPauctions.com.
5. Protect your Web site IP: Be aware that whatever you place online can be easily pilfered by almost anyone. At a minimum, include a "Terms of Use" section on your site.
6. Look beyond borders: Small businesses are especially vulnerable to overseas theft of IP. The World Intellectual Property Association
(www.wipo.int) has an excellent guide to international IP rights for small business.
7. Get good IP legal advice: The USPTO keeps a list of active IP attorneys. Or you can quickly search for IP attorneys in your area at Findlaw.com.
Daniel Kehrer can be reached at editor@business.com.
