Why do start-ups need industrial property rights?
A company that saves on industrial property rights is penny wise, pound foolish. Intellectual property rights provide start-ups with security, future and money â€“ and help to avoid expensive litigation. With the initial investment, intellectual property rights appear to be something to be pushed onto the backburner, especially because they initially appear not to contain any tangible value.
There are good reasons to invest in early protection. Bad investments can be prevented, the development opportunities of start-ups improved and, in particular, value can be secured. If a business idea is good and both the start-up and the product enjoy some success, the interest of competitors will be awakened. If the start up does not protect its trademarks at this point, for example, other companies can latch onto the accomplishments of the start-up with identical or similar trademarks â€“ and tap into the potential customer base. The protection of trade marks enables the possibility to oppose such endeavours and protects a companyâ€™s own work. High-quality intellectual property rights also give start-ups competitive advantages. Good model contracts for the licensing of the industrial property rights of start-ups provide another means, whose importance cannot be overestimated.
Start-ups should also be aware that the registration of industrial property rights, in particular patents and utility models, is of utmost importance both for financing and when looking for business partners.
When venture capitalists and business angels decide on investing in a young technology company, IP rights are among the most important criteria.