In today’s fiercely competitive business landscape, innovation serves as the cornerstone of successful businesses, paving the way for the creation of valuable intellectual property. You can protect your business ideas and set yourself apart from the competition by maintaining and utilizing your Intellectual Property assets.
Intellectual property refers to intangible assets resulting from human ingenuity, creativity, and innovation. It encompasses various forms, including patents, trademarks, copyrights, and trade secrets.
According to the World Intellectual Property Organisation (WIPO), intellectual property is defined as “creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.”
Intellectual property rights are customarily divided into two main areas:
- Copyright
- Industrial Property
- Trademark
- Patents (protects inventions)
- Industrial designs
- Trade secrets
While MSMEs are eligible for IP rights under Nepal’s Patent, Design, and Trade Mark Act, 2022 (1965), many business and legal experts argue Nepal’s IP laws and implementation agencies are still underdeveloped. But don’t be deterred and do take that extra measures, including legal consulting, to ensure that your work is protected.
When implementing IP solutions, a business should take the initiative to find breakthroughs and increase sales. Setting definite, strategic intellectual property (IP) goals can help achieve business objectives. As your business grows and generates revenues, your IP strategy should include protecting the distinctive elements of your assets and fostering innovation to venture into new markets. This can be achieved through multiple strategies, such as licensing agreements and forming joint ventures. Protecting these assets not only prevents competitors from using them improperly or copying them, but it also strengthens your position as the industry leader.
How do you grow your business through intellectual property?
Let’s explore what these forms mean and actionable strategies to leverage your IP assets and drive your business forward.
Patents
A patent refers to a particular right granted for a useful invention. It might involve a novel technique, procedure, or production process. Additionally, it might entail utilizing or mixing resources uniquely.
In Nepal, a patent is initially granted for 7 years and can be renewed twice for another 7 years. Thus, it can be extended to a maximum of 21 years. During this time, no one else can use your invention without your permission.
By securing a patent, you create a legal barrier to protect your creation and give yourself the freedom to make a profit from your innovation. You can authorize the use of your protected technology by others through licensing, in return for royalties or other licensing costs. Additionally, having a patent portfolio can increase the value of your business and attract new partners or investors.
Trademarks
“A trademark is a symbol, phrase, or insignia that is recognizable and represents a product that legally separates it from other products”.
You can legally protect the assets that make up your brand by registering trademarks for elements like your business name, logo, or product. When you register a trademark, you are given the sole right to use that particular mark in connection with your products or services.
A well-known and protected trademark strengthens the market position of your business, enabling you to stand out in a competitive marketplace. It can effectively communicate your business’s unique value proposition and differentiate it from competitors. Additionally, trademarks serve as a base for entering new markets and creating licensing or franchising opportunities.
Overall, trademarks provide businesses with the ability to build a unique brand identity, gain customer trust, and seize growth opportunities in a highly competitive business environment.
Having an enforceable or registered trademark is an intellectual property right that all MSMEs are capable of creating, protecting, and enforcing. Every business has a trademark or a logo or any mark that distinguishes them from their peers, among their customers/clients, and registering it can just ensure that nobody else in their trade or industry is able to use that mark anymore, and this exclusivity allows the MSME to attach goodwill, of quality product/service, to that mark at lower costs.
Copyrights
Copyrights provide authors and other original content creators with the sole authority to use, copy, or replicate their works. Musicians, authors, photographers, digital creators and service providers, filmmakers, publishers, and ad makers are eligible for copyright protection for their creations — which gives them credit for their creative work. The recognition is crucial for establishing your credibility in the creative sector, gaining opportunities, and growing your profile.
One industry in Nepal where copyright is crucial for business growth and the sustainability of creative companies is the music industry. Copyright protection helps with brand building and public awareness. A company gains a reputation for originality and creative excellence when it consistently creates high-quality music.
This reputation attracts a loyal fan base and opens doors for live performances, concerts, and artistic partnerships. As the company expands, it can reach new markets, attract new customers, and become a significant force in the Nepali music market.
Industrial Designs
Industrial designs protect a product’s or object’s aesthetic and visual qualities. They cover the ornamental or aesthetically pleasing aspects of a final article’s shape, configuration, pattern, or combination of lines or colors. Industrial designs are made to deter copying or replicating a product’s aesthetic appeal.
Industrial design can elevate the value of your product, allowing your business to set higher prices. Customers are more inclined to pay more for a product’s quality and uniqueness when they believe it is well-designed. When customers have a positive experience using your product, they are more likely to become loyal customers and recommend the product to others. This can help your business attract a new customer base, increase repeat business, and promote brand loyalty by placing user satisfaction first.
Trade Secrets
Trade secrets are an important type of intellectual property that can significantly help a business grow. Trade secrets include proprietary and confidential business data that gives an advantage over competitors and is not commonly known to the public. Formulas, recipes, production procedures, client lists, marketing plans, and other details may be included in this data.
Strict internal procedures should be put in place by your business to prevent the distribution of sensitive information. This may entail using data encryption methods, securing physical documents, and password-protecting files. You should focus on providing employee training and awareness campaigns on the value of maintaining confidentiality, which is also crucial in minimizing unintentional leaks.
When disclosing confidential information, non-disclosure agreements (NDAs) are crucial for protecting trade secrets. NDAs provide your business with legal recourse in case of breaches or unauthorized disclosures of trade secrets.
Today, obtaining new intellectual property is seen as a smart move to boost a company’s financial situation. Every company should consider making investments in product development, marketing, and intellectual property research.
As an MSME, why should you know about IPR?
For MSMEs, securing intellectual property rights is crucial for several reasons:
Protecting Innovations: As an MSME, you invest time, resources, and efforts in research and development (R&D) to create new products, processes, and technologies. IP protection allows you to safeguard your innovations from unauthorized use or exploitation by others, providing a competitive advantage in the market.
Enhancing Market Position: Intellectual property rights enable MSMEs to establish a unique identity in the market, build brand recognition, and differentiate their offerings from competitors, leading to increased sales and customer loyalty.
Attracting Investment: Investors and financiers are more likely to support MSMEs with robust intellectual property portfolios. A strong IP framework instills confidence in stakeholders and signals the company’s commitment to protecting its ideas, products, or brands.
Facilitating Technology Transfer: A well-established IP system encourages the transfer of technology and knowledge between larger firms and MSMEs, fostering collaboration and strengthening the innovation ecosystem.
