I recently attended an interesting presentation on the role of intellectual property when breaking into a new market. The talk was given by Me Neil Milton of Miltons IP, a law firm specializing in intellectual property. I’d like to share some of my takeaways with you.
Mr Milton began by saying that intellectual property should be looked at as a two-fold tool because it allows you to avoid losing money by preventing theft, copying and other violations and to generate income by facilitating exporting and the attainment of other business objectives. The second aspect is interesting because we sometimes overlook the fact that it gives a monetary value to an invention or know-how.
By registering a patent, trademark or copyright before breaking into a new market, you are protecting your intellectual property rights and therefore making sure no one uses them other than you. For example, if you neglect to register your trademark on a new market, you’re taking the chance that a competitor or even your distributor or local partner will do so locally. In so doing, they can then market your product under this trademark, preventing you from using it yourself or forcing you to work exclusively with them, in the case of a distributor.
Before venturing into a new market, it is vital that you conduct a thorough trademark, patent and copyright search to make sure your intellectual property does not already belong to someone else locally. A good place to start is the World Intellectual Property Organization site but since intellectual property is a local matter, the search needs to be done country by country.
While it’s important to legally register your intellectual property on a new market, Me Milton also says that in a new market, you absolutely must set up a control system without resorting to the courts. This should be done as soon as you decide to export. For instance, licensing and/or distribution agreements should be ironclad in order to give you legal recourse. Non-disclosure agreements must also be very detailed and contain unambiguous clauses on the procedure should negotiations stall before a genuine business relationship begins. You must also not hesitate to use non-contractual means to prevent a third party from holding on to or using intellectual property, even if the business relationship is severed. For example, it is sometimes preferable to give secure access to a server than to send critical information by e-mail.
To find out more, listen to Me Milton’s presentation on EDC. Registration is free. In his talk, Me Milton goes into detail about interesting topics such as intellectual property on the Internet and in China. I also strongly recommend consulting a lawyer with expertise in international law and intellectual property before exporting abroad because even a single mistake can be very costly. Feel free to contact us for referrals.
Bruno Séguin
