What is IP?

IP is something you create using your mind – for example, an artistic work, an invention, a logo design or a brand name. Intellectual property protection is often overlooked due to the perceived cost and complexities, but this doesn’t need to be the reality.

When used efficiently as a business tool, huge commercial opportunities can be unlocked. A robust IP portfolio and effective exploitation of patent, design and trade mark rights can increase a business value and open up additional revenue streams.

Having the right type of IP protection gives you the ability to stop others from stealing or copying:

  • the name of your brand or the design of your logo
  • your inventions
  • the design and aesthetics of your products
  • things you write, draw, make or produce 

What you need to know about IP

We’ve collated five things all businesses should know about intellectual property: 

1. IP is an umbrella term, and different legal rights can be used to protect different business assets:

  • Trademarks can be any word, phrase, symbol, or stylised design, which are capable of distinguishing the goods or services of one business from those of another.
  • Patents provide an owner with a monopoly for an invention. The invention can be a product, a process, a system or a method involving a new technical solution to a problem.
  • Registered designs protect the appearance of a product, such as its shape, configuration (or how different parts of a design are arranged together), decoration, colour or pattern. 

2. Paying a third party to work on a project on your behalf does not automatically mean any IP created belongs to you.

This can typically occur with external consultancies carrying out work such as website development, product design, logo creation, or specialist technical assistance. Always ensure that within a written contract, it is clearly stated that any IP generated is to be owned by your business. 

3. Trade Marks are not only for preventing other businesses from using identical brand names.

Many start-ups or early-stage businesses may put off filing for a trade mark as they don’t believe their branding is particularly worth much at the moment. However, without a registered trade mark, another business could see your branding and file a new trade mark application for your brand name. You could then receive a cease and desist letter meaning you could either have an expensive legal battle on your hands to keep using your brand or have to rebrand altogether. Both options are almost certainly more expensive than the cost of a new UK trade mark. 

Hand drawn plans of boxes on white paper

4. Patenting your inventions can reduce your corporation tax.

The Patent Box is designed to encourage companies to keep and commercialise intellectual property in the UK. It allows companies to apply a lower rate of Corporation Tax to profits earned from its patented inventions. By electing into the Patent Box, businesses may apply the lower rate of Corporation Tax which is 10%. 

5. Confidentiality is crucial.

Disclosing details about an invention in any public setting can be fatal when trying to protect an invention down the line. A public disclosure does not necessarily mean describing an idea somewhere as public as in a café or a restaurant, but even providing details to a potential investor or consultant without having a confidentiality agreement in place could mean the disclosure is deemed to be a public disclosure. Before giving away any details of a new design or invention, always have a signed confidentiality agreement or NDA in place.