Team size: Five

Focus on: How to create and manage a strong intellectual property strategy in your company

Intellectual property developed by companies, especially from the hi-tech sector, is an important asset of the company and has a significant effect on its financial valuation.

In addition, potential investors will examine the company’s intellectual property rights and their decision whether to invest or not in the company will be influenced by the strength and value of the company’s intellectual property.

Proper management of the company’s intellectual property can increase the company’s financial value while taking the wrong decisions can harm the company and therein its financial valuation.

Five key steps which companies should take if they wish to create and manage a strong intellectual property in the company and increase its financial value are presented below.

Intellectual property is an important asset that needs to be managed. Due to the importance of the IP to the company and due to the constant knowledge and know-how creation, the company should nominate a person who will be responsible to manage it on an ongoing basis. In my opinion, it is preferable that the general counsel of the company should be that person.

The intellectual property created in the company is not limited to patents. In many companies most of the IP, which is created should be protected by patents, but the R&D activities of the company can, in many cases, generate other valuable innovative ideas that can be protected by designs, trademarks, and copyrights.

Use professional consultants that specialised in the technological field of the company and its type of business operations. Professional consultants such as patent attorneys are an essential component in the creation of a strong IP strategy: they can provide valuable information regarding where to register the IP, whether to file one patent or to have it split into few patents, or recommended ways to block competitors.

Create a coherent internal policy as to how IP or trade secrets will be used and exposed by and to the employees of the company as well as sub-contractors, suppliers, and consultants. Not all the employees of the company should be privy to the different IP aspects created in the company including the company’s trade secrets. The company should also emphasis in its employment contracts all stipulations regarding secrecy and the access and handling of IP rights. The same attention should be given to collaborations and agreements with sub-contractors, suppliers, and consultants.

Constantly consult with your business team and patent attorneys when and how to use the company’s IP as a tool against competitors. The timing of IP registration, its exposure, and the decision whether to register the IP or not is a strategic decision that needs to involve the leadership team of the company with close involvement of its patent attorneys.