When it comes to your business, some assets are tangible like stock, premises, or cash, while others—such as your brand name, slogan, and identity—are less visible but equally valuable. These are known as intangible assets.
Protecting your intellectual property (IP) and trademarks is crucial in maintaining your brand’s reputation and financial success. Here’s what you need to know to safeguard your business.
Don’t have time? Here’s the wrap-up of this article in less time it takes to eat a taco 🌮
▪ Intellectual Property (IP): Includes intangible assets like brand reputation, patents, and copyrights.
▪ Trademarks: A business’s badge, like a logo or slogan, used to promote the brand.
▪ IP Protections: Apply early for patents, copyrights, trademarks, and registered designs to secure your brand identity.
▪ Why Protect IP? Prevents unauthorised use, builds customer trust, and secures your brand’s unique identity.
▪ Legal Rights: Without a trademark, your only recourse may be ‘passing off’ rules.
▪ Tax Relief: Explore the Patent Box scheme and R&D tax relief for potential support.
▪ n.b. Stay Sharp, Stay Savvy and Keep Winning!
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My Idea, Is My Idea, Is My Idea! (All about IP)
1- What is Intellectual Property?
Intellectual Property (IP) includes assets you can’t physically touch, like brand reputation, patents, trademarks, copyrights, and designs. These intangible assets add immense value to your business and can help set you apart in the marketplace.
Protecting IP gives you the legal right to control its use and prevent others from exploiting it.
Types of Intellectual Property in the UK
▪ Patent: Protects inventions or products like machinery, tools, or medicines.
▪ Copyright: Secures original works of authorship, including literary, musical, and artistic works.
▪ Trademarks: Symbols, logos, or phrases that distinguish a brand’s identity.
▪ Designs: Covers the visual appearance of a product, including its shape, color, and pattern.
▪ Trade Secrets: Confidential business information that provides a competitive edge.
2- What is a Trademark?
A trademark is essentially your brand’s badge that makes it recognisable in the market. Think of iconic symbols like the golden arches of McDonald’s or Apple’s silver logo.
When registered, trademarks are typically accompanied by the ® symbol, while ‘TM‘ is used to indicate an unregistered mark.
3- Why You Should Protect Your IP and Trademark
▪ Brand Recognition: Trademarks help customers identify and trust your brand.
▪ Legal Protection: A registered trademark allows you to take legal action against unauthorised use.
▪ Prevention of Counterfeits: Trademarks deter others from creating counterfeit products that mimic your brand.
▪ Non-Disclosure Agreements (NDAs): If you’re still developing your IP, NDAs can help protect your ideas during business dealings.
3- Why Should You Should Record Your Business Assets
Your business assets represent a significant portion of its worth, so it’s essential to keep detailed records.
Recording assets can help you:
▪ Determine the overall value of your business.
▪ Price an asset correctly if you decide to sell it.
▪ Use assets as collateral for securing a loan.
▪ Claim tax relief such as Capital Allowances.
4- Where to Get Started
For general advice on IP, check the UK Government’s Intellectual Property Office (IPO) and their resources, which include guides, videos, and advice on securing your IP.
5- What Protection Can You Apply For?
There are various protections available for different types of intellectual property:
1. Trademarks
What It Covers: Names, logos, slogans, and jingles.
Application Process: Takes around four months; fees start from £170.
Right Start Service: An optional check to ensure your application meets registration requirements.
2. Registered Designs
What It Covers: Visual appearance of products, including packaging, shapes, patterns, colors, and decorations.
Application Process: Takes around a month; fees start at £50.
3. Patents
What It Covers: New inventions, tools, machinery, medicines.
Application Process: Lengthy and expensive, taking up to five years.
What You Can’t Patent: Literary works, information presentation, some software, medical methods, and business processes.
OMB Connect Pro Tip: You can use more than one type of protection for a single product, such as registering the product’s logo as a trademark, protecting its unique shape as a registered design, and patenting any new working parts.
6- Registering Your Business Name
Registering your business name with Companies House as a limited company prevents others from using a similar name. You can incorporate a company even if it’s dormant, just to protect the name until you’re ready to trade.
Some businesses also operate under different trading names, which can also be protected.
7- Things to Remember
Is There Tax Relief Available for Intellectual Property?
Although registering IP can be costly, some tax reliefs are available:
1- The Patent Box
Reduces Corporation Tax to 10% on profits from eligible IP income, incentivising companies to keep IP in the UK.
2- R&D Tax Relief
Offers Corporation Tax relief for companies engaged in research and development.
What if someone infringes my trademark?
If you believe someone is infringing on your trademark, seek legal advice immediately.
Initial steps may involve sending a Cease and Desist letter. If this doesn’t work, you may need to consider court action.
What Are My Legal Rights Without a Trademark?
Without a registered trademark, stopping others from using your brand name or IP becomes difficult.
The only potential protection is through ‘passing off’ rules, where another party falsely represents their goods or services as yours, leading to customer confusion.
Conclusion
Protecting your business name, intellectual property, and trademarks is essential to secure your brand’s identity and future success. By understanding the different types of intellectual property and taking the necessary steps to safeguard them, you not only prevent unauthorised use but also strengthen your brand’s market value.
Whether it’s registering a trademark, applying for patents, or using non-disclosure agreements, protecting your intangible assets is a crucial investment for your business.
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