An IP strategy is the part of your business plan that sets out exactly how you plan to develop, protect, use and - most importantly - commercialise your intellectual property (IP) so your innovation can achieve its maximum value.
As IP comes in many forms, you will need to make strategic decisions so that your IP best serves your commercial goals. These decisions will be based on the stage your business is at, the field you operate in, the type of innovation you produce, the competition you face and your goals and objectives.
As these factors will be the key drivers for your business, we would always stress your IP strategy must be an integral part of your business plan and not an adjunct or accompaniment. Instead, the overall business plan dictates the IP strategy which in turn supports the business goals:
Having an IP strategy isn't solely an exercise in working out how you plan to move forward. It will also preserve your competitive advantage. Your IP strategy will play a hugely important role in safeguarding the investment that you, your employees and your investors have made in your business given that you, your market and your competitors will change over time.
For example, you may be in an industry that is seeing a steady stream of new market entrants, or you may have targeted new territories or sectors to introduce your product into.
A strong IP portfolio will ringfence your position, protecting you against your competitors and laying a solid foundation from which to build your market share and leverage your chosen revenue streams.
The good news is developing an IP strategy doesn't have to be complicated.
Your IP strategy can start off as nothing more than a simple one-page overview of the IP assets you currently own and how you want to develop your portfolio over time.
At the earliest stages of your business' life, even your one-page IP strategy will help you achieve one vital goal. It will position your IP as one of your most valuable strategic assets, assets that must be at the forefront of your thinking as your company continues to grow.
However, as your company does continue to grow, your IP strategy will grow into a more detailed document as you will need to ensure:
- Your business plan and your IP remain totally aligned.
- Your IP and your approach to IP has the infrastructure and support it will need to deliver your commercial objectives.
- You know exactly how you plan to execute your IP strategy and the roles everyone in the business is expected to play in its execution.
This last point underlines why creating your IP strategy is not just a job for your CEO, CTO or founder.
All your key stakeholders should be involved in developing and implementing the strategy.
Everyone who is involved in any aspect of your IP will have a valuable contribution to make. The IP to be considered includes patents, trademarks, designs, copyright, licences and other agreements and confidential information, including know-how/trade secrets.
WHY IS CREATING AN IP STRATEGY A COMMERCIALLY VALUABLE EXERCISE?
There will be a cost associated with creating an IP strategy, but it should be viewed as an investment in your business' future. Over time, the benefits of having a fully formed IP strategy will massively outweigh the initial cost. These benefits include:
INCREASED REVENUES
Once you have decided what you want to achieve with your IP, identifying all the potential revenue streams becomes a relatively straightforward task. And once you know where you plan to generate your revenue from, you can agree the tactics you'll need to leverage each revenue stream.
INCREASE YOUR CHANCES OF SECURING INVESTMENT
Today investors understand the power of a robust IP strategy. They know a business with a clear and structured approach to IP is much more likely to deliver the returns they want at exit, and in the early days, having a clear and intentional IP strategy can be more attractive to investors than having a patent application on file.
This means having a robust and considered IP strategy makes it more likely you will secure the funding you want when you go out to the market to pitch.
INCREASED MARKET SHARE
In sectors with high barriers to entry or a range of alternative solutions, patent protected technology is often the most attractive option in what will be a competitive procurement process.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
