🌱 Startups β€’ 7 Ways To Protect Startup I.P.



Intellectual property (IP) refers to any "creation of the mind," such as inventions, literary and artistic works, symbols, logos, processes, systems, software, and designs, among others. Protecting intellectual property is critical for businesses for several reasons. Properly protected IP ensures that the owners have control over their creations. It prevents others from using them without permission. When properly registered, federal patent, trademark, and copyright protection can include legally mandatory damages (payments to the owner from those who misuse). For startups who will be seeking third-party financing (e.g., from angel investors, venture capital firms, bank loans, and even family and friends), the investors will want to know that the IP that provides value to the company (the goose that lays the golden egg, so to speak) is protected. In this post, we will discuss 7 important ways a company can protect its intellectual property.

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Safeguarding IP ensures that a company's unique ideas, products, and brand identity remain secure and are not misappropriated or exploited by others. There are several avenues available to protect your startup's IP to shield your intangible assets, foster trust among your stakeholders, enhance your business' market competitiveness, and enable your company to capitalize on its innovations effectively.

Patent Registration

A patent is a type of legal protection granted by the government to an inventor, providing exclusive rights to an invention for a period of time. It gives the inventor the right to prevent others from making, using, selling, or importing the patented invention without their permission. A patent is granted for novel, non-obvious, and useful inventions, and it serves as a form of intellectual property protection, encouraging innovation and allowing inventors to commercialize their creations. Patent registration is the process by which the owner of an invention seeks legal protection for the invention. It involves submitting a detailed application to the U.S. Patent and Trademark Office, disclosing the unique aspects of the invention and demonstrating its novelty, usefulness, and non-obviousness. This legal protection incentivizes innovation by providing inventors with a means to commercialize their inventions, attract investment, and gain a competitive edge in the market. Patent registration also serves as a valuable asset for licensing agreements, collaborations, and potential monetization through sales or enforcement of patent rights.

Trademark Registration

A trademark (or a service mark) is a distinctive symbol, logo, word, slogan, packaging, design, image ... even sounds, colors and even flavorsβ€”e.g., the flavor of a gum by Pfizer that contains children's Advilβ€”can receive federal trademark protection. The mark identifies the source (i.e., the company) of goods or services and distinguishes it from other sources of similar services. Trademarks (and service marks) play a vital role in establishing brand recognition and consumer trust, protecting the interests of the owner and helping consumers make informed choices. They are valuable business assets that provide legal protection and exclusive rights. Registering a trademark gives the company the exclusive right to use that mark and prevents others from using it. Trademark registration is the legal process of protecting a brand's symbols from unauthorized use. The process involves a comprehensive search to ensure trademark availability, filing an application with the USPTO, and undergoing examination. If approved, the mark is published for opposition before proceeding to final registration. Seek guidance from a trademark attorney to navigate this process efficiently.

Copyright Registration

Copyright grants exclusive rights to creators of original works, such as literary, musical, artistic, and software creations. Copyright protection enables creators to control the reproduction, distribution, display, performance, modification, and commercial exploitation of their works. While registration is not mandatory, federal copyright registration offers significant additional benefits, like legal enforcement and statutory damages. Copyright law encourages creativity, protects intellectual property, and ensures creators are duly recognized and rewarded for their works.

Trade Secrets

Trade secrets encompass a wide range of valuable and confidential business information, such as manufacturing processes, formulas, customer lists, and marketing strategies. Specific examples vary by industry, for instance: proprietary algorithms in technology, research data in pharmaceuticals, design patterns in fashion, manufacturing processes, techniques for achieving flavor or texture in food industries, recipes for branded foods, among many others. These secrets are crucial for maintaining a competitive edge and preserving valuable business assets. Non-disclosure agreements (NDAs), also known as confidentiality agreements, are the primary contracts used to protect trade secrets. NDA's establish legally binding terms, outlining the confidential information being shared, restricting recipients from disclosing or using it for any purpose other than expressly permitted purposes, and defining the rights, responsibilities, and remedies of the parties for a breach. NDAs trade secrets when shared with employees, contractors, partners, or other third parties by creating a binding agreement that can be enforced in court. Overall, an NDA serves as a tool to establish trust, protect sensitive information, and provide recourse in case of unauthorized disclosure or misuse of confidential information. 

Employment and Consulting Agreements

Startups should give serious consideration to having agreements with employees and consultants that specify the ownership of intellectual property created by these workers during the course of their employment or other engagement. IP can be protected through employment and consulting agreements, which establish ownership and control over intellectual property created by employees or consultants. These agreements include provisions such as IP assignment, confidentiality, and non-compete clauses which safeguard valuable assets and prevent unauthorized use. (Note well, however: non-competes are more and more disfavored in both courts and legislatures as unfair and having a chilling effect on competition; they should not be entered into without legal counsel to advise.)  A well drafted employment or consulting agreement can help ensure that companies have protective, enforceable rights over their innovations, technologies and trade secrets; that the company retains full ownership of the IP; and that disputes with employees and consultants are minimized. Such protective language can be included as part of an employment or consulting contract, or can be set forth in a separate agreement (often called a "proprietary information and inventions assignment agreement."

Domain Name Protection

A startup can protect its domain names by implementing a few strategies. First, register domain names that align with your brand. This helps establish ownership and prevents others from acquiring and using similar domain names that may cause confusion. Second, register relevant domain name extensions (e.g., .com, .co, .biz, .info, .net, .org) to secure a broader online presence and prevent competitors from capitalizing on similar names. Regularly renew domain name registrations and maintain up-to-date contact information to prevent inadvertent loss of ownership. Enforcing trademark rights can also help protect domain names from unauthorized use or cybersquatting. 

Monitoring and Enforcement

Companies should monitor the use of their intellectual property and enforce their rights when necessary. This includes sending cease-and-desist letters, threatening and filing lawsuits, and taking other legal actions to protect their intellectual property. There are commercial services available that help startups monitor misappropriation of intellectual property. These services employ various tools and techniques to track and identify potential instances of infringement or unauthorized use of trademarks, copyrights, patents, and other intellectual property assets. They can monitor online platforms, marketplaces, social media channels, and other sources to detect any misuse or unauthorized reproduction of protected works. Monitoring services can also monitor domain name misappropriation by employing advanced technology to track and identify any unauthorized use or infringement. These services provide startups with valuable insights and alerts, enabling them to take timely legal action to protect their intellectual property rights. By utilizing such monitoring services, startups can effectively safeguard their valuable intellectual property and prevent unauthorized use by others. 


Protecting intellectual property is essential for businesses. Companies should use a combination of these methods to protect their intellectual property and prevent others from using their creations without permission. By doing so, companies can safeguard their competitive advantage and ensure their long-term success.

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I have become very impressed with the efficiency possibilities of AI. So, I gave ChatGPT a try. I generated this text in part with GPT-3, OpenAI's large-scale language-generation model. After it generated its own draft language, I reviewed, edited, revised, and expanded on it to my own liking and to ensure accuracy in all material respects. WLF takes ultimate responsibility for the content of this article.


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