PRESS RELEASE
27 March 2014

The start-ups guide to success…. lessons learnt in 54 hours from Christchurch Startup Weekend

James & Wells were proud sponsors of the event, and thought a summary of the top 5 intellectual property tips (and lessons learned by participants) would be helpful.
New Zealand

The team at James & Wells had a great time at Startup Weekend Christchurch this month.

The weekend was held in the middle of warnings about Cyclone Lusi, just one week after a "one-in-100-year" flood, and based at the Epic Centre which was built as an innovation sanctuary for businesses who lost their offices after the 2011 earthquakes.

Rowan Yeoman launched the weekend by celebrating the great number of attendees, and noted that Startup Weekends were being run around the world at the same time including in Tokyo, Athens, Vancouver, and Panama.

We were proud sponsors of the event, and thought a summary of the top 5 intellectual property1 tips (and lessons learned by participants) would be helpful.

  1. Tread carefully – when can you use someone else's stuff?

When you're using something created by someone else as part of your innovation, there are a number of IP2 rights involved, including; copyright, trade marks, patents and/or registered designs.

At the very least, do a general Internet search and check the relevant IP Register to determine whether someone owns the rights to the material you are about to use. If you're still not sure, check with an IP expert. In certain circumstances, government funding may be available towards the costs of a clearance search provided by an IP expert.

The dangers of leaping into a market or running with an idea without first checking whether you'll infringe someone else's rights, or be confused with an inferior product or service, can trip you up when you are least able to recover.

A clearance search can also help you learn:

  • what your competitors are doing;
  • what ideas are already in the public domain and available for you to use; and
  • who else might be interested in what you're doing and want to work with you.
  1. Size doesn't matter – how much can I change something to avoid infringement?

It's not true that you can simply change something by 5% (or any other percentage) and you'll escape infringement3.

If you're using someone else's material to create your work then you may infringe any IP rights they have. It is better therefore to use ideas as inspiration rather than as a basis for your own creations.

For example, if you see a house that you like, the plans are likely to be protected by copyright.

  • Don't – take a plan of the house to your architect and ask them to change certain features.
  • Do – describe ideas that you liked to your architect and ask them to create your own plan.
  1. NZ is not enough - do I have to do anything extra to launch my idea overseas too?

Just because it is okay to do something in New Zealand doesn't mean it will be okay overseas too.

Copyright in product designs is not recognised in most jurisdictions, or if it is, then only to a very limited extent; other forms of IP (including patents and registered designs) only grant ownership in the country of registration.

Therefore, if you are intending to take your idea overseas, make sure you own your innovation there too. If you've got a website, also be aware that you may infringe the rights of others if you market or sell your materials overseas (see question 1 above).

  1. The king of the castle – who owns my idea if I got help?

Even if you come up with an idea, you may not be the owner4 as there are lots of different rules around ownership, and the rules differ between the various types of IP.

The best idea is to get everything agreed to in writing at the start so that:

  • everyone knows where they stand; and
  • you have the right documentation if its needed by an IP Office or a court.
  1. Egg before the chicken – can I look at IP after I start getting money in?

It's always best to have an IP strategy for your proposed venture before you start, or at the very least know what your options are.

One of the major limitations of patents and design registrations is that many countries (including NZ) don't allow you to obtain protection if you've already gone public about your idea – the difficulty being that until you know whether there's a market for your idea, it's difficult to know whether it's worth spending the money securing ownership.

The general rule across the board is: when in doubt, ask.

Many thanks to all the participants, organisers and mentors for their enthusiasm and innovative energy. The judges said it was the best turn out they'd seen and the pitches were highly impressive.

A great sign that our innovation in Christchurch is still alive and kicking after some shaky times.

Footnotes

1Refers to the ownership of an intangible thing - the innovative idea behind a new technology, product, process, design or plant variety, and other intangibles such as trade secrets, goodwill and reputation, and trade marks. Although intangible, the law recognises intellectual property as a form of property which can be sold, licensed, damaged or trespassed upon. Intellectual property encompasses patents, designs, trade marks and copyright.

2Refers to the ownership of an intangible thing - the innovative idea behind a new technology, product, process, design or plant variety, and other intangibles such as trade secrets, goodwill and reputation, and trade marks. Although intangible, the law recognises intellectual property as a form of property which can be sold, licensed, damaged or trespassed upon. Intellectual property encompasses patents, designs, trade marks and copyright.

3Refers to the commission of a prohibited act with respect to a patented invention without permission from the patentee. In New Zealand, the Deed of Letters Patent confers on the patentee a monopoly to make, use, vend or exercise the invention in New Zealand. Performing any of these acts without the permission of the patentee will amount to an infringement if the patent is current and in force. Permission will typically be granted in the form of a license. Remedies for infringement can include an injunction to restrain further infringement, payment of damages suffered by the patentee as a consequence of the infringement or payment by the infringer of any profit he/she/it made by virtue of the infringement, and legal costs.

4A legal term to describe a person entitled to make an application for a patent. In New Zealand this includes any person claiming to be the true and first inventor, the assignee of the inventor, or the legal representative of a deceased inventor or his/her assignee.

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