Intellectual Property (IP) can be very valuable to a small or medium business.
IP can create revenue through sale or licensing. IP can be used by a business to build a brand identity. IP can distinguish your business or products from your competitors. Preventing or limiting your business' IP use by others can also give your business a competitive edge and help you create or maintain a market position.
But despite its value and importance, many business owners are not sure what IP is and whether they create any IP in their business that needs protecting.
If this is you, this article will help you to understand what IP is and how contracts can be used to protect its value and use.
What is Intellectual Property?
Intellectual property includes creations of the mind which have rights that are protected by law. It includes inventions, designs, brand names or logos.
Some common examples of business IP for small and medium business includes:
- Trademarks: These are signs including business names, logos, slogans or symbols. They are used to identify your business or your products or services. Trademark rights can be recognised whether they are registered or unregistered.
- Copyright: This is original work of a human author, such as written content, artwork, music or software. For example, your original website or marketing copy. Copyright cannot be registered in Australia but can be protected under contracts or via the courts.
- Patents: A patent is for new and novel useful inventions of a product or process granted under patent law. If you want a patent recognised and protected, it needs to be granted following an application to IP Australia.
- Designs: This is the look or appearance of your products, such as their shape or pattern. To be a protected IP right, designs need to be registered through IP Australia.
- Confidential Information: This is information about your business that is not available publicly, such as trade secrets, customer lists or sales information. Confidential Information cannot be registered. The protection usually arises via contracts or through court actions.
How do contracts help?
Using written contract terms and conditions is one of the more straightforward ways to protect your business' IP.
Terms in relation to IP in your written contracts can:
- Specify IP ownership: This can help reduce claims or disputes that someone else, like your contractor or employee owns the business IP and provide evidence of your business' ownership.
- Control Over Use: Contracts can tell others how they can or cannot use your business' IP and for how long. This written set of rules can prevent misuse of your business IP. Additionally, if the requirements are not followed, it will be a breach of contract.
- Provide compensation for infringement: Certain clauses can be included that require your contractors to pay you for your losses from the mis-use or unauthorised use of your IP.
Secure Your Business's IP
Protecting your business' IP is not just about avoiding headaches or disputes over IP. It's also about protecting an asset that can make your business money, distinguish your business from your competitors or give your business a unique place in your market.
If your small or medium business needs help with protecting your IP in the contracts you are entering, SLB Legal is here to help. Contact us today to discuss how we can draft or review your contract to protect your business's valuable IP.
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