5 Ways To Safeguard Your Company From Intellectual Property Theft
5 Ways To Safeguard Your Company From Intellectual Property Theft
Original ideas and innovations are the cornerstone of an organization’s success in today’s competitive environment. These are priceless assets that must be secured at all costs, and yet IP theft is amongst the most common and serious perils facing a business.
So how does one ensure the security of their intellectual property and prevent financial consequences associated with it? This article explores a few measures to deal with the issue.
Table of Contents
The Importance of IP Protection
Protection from Intellectual property thefts is crucial for businesses regardless of their size. Here’s why you need to defend your IP Rights:
- To defend a source of revenue: By monetizing your IP Rights, you can be assured of revenue generation when your business needs it. Hence it becomes crucial to ensure they stay within the business.
- To prevent competitors from exploiting them: The loss of your technology to the business rivals can result in disastrous financial consequences as you lose the advantage you have over others by owning the technology.
- To encourage R&D activities: The knowledge that present and future innovations are safe reassures the R&D staff and inspires them to excel at new developments.
Types of IP Protections
There are various types of IP Protections like Copyrights, Patents, Trademarks, and Trade Secrets. Each covers different aspects of intellectual property.
They protect “original artistic works,” like architecture, music, drama etc.
Used to protect inventions and their related applications for a determined period of time.
Words, symbols, logos etc. related to branding are defended by Trademarks.
Information like formulas, data, programs etc. that gives a party an economic advantage over another comes under Trade Secrets.
As ideation is the first step, a lot of ideas are generated and subsequent filtering out of ideas is required to choose the best idea, which can be converted into an invention and later into a patent by following certain rules specific to the country where the patent is filed.
All the above requirements will provide a clear view of whether to proceed with patent filing or not under the specific Jurisdiction Like US/EP.
Ways to Prevent Intellectual Property Theft
While the threat of IP Rights being stolen is real, a few steps can help you prevent it from happening. Here are 5 important steps that must be followed:
1. Signing an NDA
An often-overlooked step while making a sales pitch to sell your invention is the NDA or Non-Disclosure Agreement. Before you reveal the secrets of your invention known to a potential group of investors/buyers, it is vital that an NDA is signed with the party. By doing so, they become legally bound to not disclose or divulge any information discussed in the meeting. Having such a system in place works as a deterrent against the theft of Intellectual Property.
2. Apply for a Provisional Patent
By securing a provisional patent you are able to protect your invention/idea for a period of 12 months (in the USA). You are thus able to get interim protection for your pending patent without the hassle of getting in to too many legal requirements. Provisional Patents make it possible to promote your innovation without the fear of infringement. In the time assigned for a provisional patent you can also continue working on developing the product. Provisional Patents are thus an efficient, quick, and affordable method to safeguard your ideas before you secure an actual patent.
3. Assign a Patent Attorney
A patent attorney brings with them expertise and knowledge of the patent process and related aspects. They consult clients not only on preparing and filing robust patent applications that negate loopholes but also in representing clients in matters concerning patents like licensing, infringement etc. A patent attorney thus is the focal point for all legal formalities related to the protection of IP Rights.
4. Set Up Cybersecurity Measures
Any organization that uses a tech device is exposed to the world of cyberattack which poses an imminent threat to the safety of data in organizations. It is becoming important to know how to protect a website idea from cyberattacks like Malware, Phishing, Man-in-the-Middle Attack etc. that pose a danger to your sensitive information. An unprecedented increase in cybercrime and the lack of robust laws to protect the victim makes it imperative to employ cyber defense programs to avert data theft. Firewalls, Security Software, Updated Software etc., are few methods to keep the risk of a cyberattack at bay. Lack of a strong cybersecurity system makes your data vulnerable to being attacked resulting in loss of both credibility and money.
5. Singing Employee Confidentiality Agreements
An Employee Confidentiality Agreement establishes a contract between the company and the employee to protect the sensitive information of the company. It clearly states that the employee cannot under any circumstances divulge the company’s proprietary information. An ECA grants the option of legal recourse to the employer in case there is a breach of agreement. It is best to sign the agreement at the time of employment to maintain mutual confidence and trust.
Summing Up
As the threats to their IP Rights increases, more and more companies are realizing the importance of investing in novel means to safeguard their intellectual property. In order to accelerate business growth and enhance the credibility of your business protecting your IP Rights is of utmost importance. The emphasis should be on adopting a multi-dimensional approach as explored above and swiftly resorting to legal action in case of an IP theft.
