Economic headwinds have created a challenging environment for technology startups that they must confront in order to grow this year.
The risk of devaluation could lead founders to attempt to streamline costs by foregoing expenditure on generating intellectual property assets – but such actions may be taken at the expense of long-term success.
In an effort to help technology startups navigate these economic challenges, Marks & Clerk has published an e-book which can be used by founders as a guide on how to use IP to their advantage from the outset – as a means by which to maximise profitability and drive business growth.
It covers every aspect of the process of capturing and protecting IP for technology startups.
“For many startups, critical IP assets will simply have been overlooked in the journey from foundation to exit, meaning that the company’s value will be determined primarily by unsecured know-how, trade secrets, people and relevant contracts,” said Robert Lind, partner at Marks & Clerk and author of The IP Driven Start-up.
“Capturing generated IP often doesn’t feel affordable to startups and during periods of extreme economic uncertainty, the unpredictable process of securing IP assets further underscores these reservations.
“However, expenditure on IP should be viewed as an investment in the long-term future of the business, as a means by which to enhance its commercial value.
“The inherent value of an IP portfolio must, though, be coupled with precise management and presentation. Being able to demonstrate a systematic approach to IP, crucially with written procedures, is critical, as is the retention of properly signed documentation – without which the value of securing the IP can be easily undermined.”
Beyond the direct contribution to the financial value of a company, securing IP assets also has advantages that contribute to the success of startups – primarily surrounding innovation. IP-driven startups are more likely to create innovative products and services that can be patented, often addressing real-world problems that in turn are eligible for R&D funding.
Marks & Clerk says pursuing an effective IP strategy also signals ambitious but shrewd vision to investors and partners while providing greater awareness of competitors.
Lind continues: “It doesn’t all have to come down to registering assets, there are significant rights attached to unregistered assets – such as know-how, trade secrets and copyright – but founders must know how to maintain suitable records of these unregistered rights in order to enforce them with any credibility.
“But their value should certainly not be underestimated. Even if they remain unregistered, many IP assets will remain critical to achieving a successful launch of a product or service.”