Intellectual property, including trademarks, service marks, copyrights and patents, has become an increasingly important topic for small business. IP refers to all of the intangible assets that a business develops – 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 are still the ones who create the vast majority of patent activity. Small businesses earn nearly 15 times the number of patents per employee as larger companies, according to the U.S. Small Business Administration.
Yet, poorly written patent applications submitted to the U. S. Patent and Trademark Office (USPTO) have created a backlog of historic proportions. And IP experts at IBM, for example, say the government has been approving applications for things that are overly broad, obvious and old-hat in a rush to clear the logjam.
Here are some things small businesses can do to establish, protect and cash in on IP assets:
• Devise an IP strategy: Jeff Lindgren, an IP attorney in Walnut Creek, Calif., said you should, “Start with the outcomes you want … and create a strategy that leverages the entire spectrum of techniques, including patenting, designating ideas as trade secrets, and trademark and copyright law.”
• Execute proper agreements with freelancers: If your business uses independent contractors to help develop IP assets, it is vital that all written contractor agreements specifically establish your full ownership of any developed IP.
• 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) also has several excellent books.
• Shop your IP via licensing agreements: Several websites offer new and affordable ways for small businesses and inventors to license or sell IP. Check out IPmarket.com, NewIdeaTrade.com and IPauctions.com.
• Look beyond borders: The Internet has made intellectual property rights a global pursuit. Small businesses are especially vulnerable to overseas theft of IP assets. The World Intellectual Property Organization (www.wipo.int) has an excellent guide to international IP rights for small business. Look for “SME Resources” on the home page.
• Get good IP legal advice: The USPTO (www.uspto.gov) 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.
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