In Chicago, one chef meets his Intellectual Property lawyer every few weeks to discuss what kind of IP he may create.
From special utensils used for cooking to kitchen management methods to edible paper which can embody designs, this chef has realised that his restaurant also creates IP and has filed a number of patents.
The point is that today's small and medium enterprises are also repositories of valuable IP.
Here is how they can realise this value:
Today's small and medium enterprises are also repositories of valuable IP. A example of this is home-grown toy firm Stikfas whose unique products have captured a growing global market.
1. Choose your IP protection
Copyright and patent
Be discerning when obtaining IP protection for your business.
For instance, it is important to know whether to apply for a patent or to rely on copyright which obtains protection upon being reduced to tangible form.
Copyright covers the expression of an idea but to obtain protection for a product or process, the patent system is more appropriate.
Trademark
Obtaining an IP right like a trademark is imperative in creating a brand for your business.
Trademarks enable differentiation of your products to make them easily recognisable and create client loyalty.
Everyone associates McDonalds with its hamburgers and trust that the quality is ensured no matter which McDonalds restaurant made the hamburger. Thus, the value of the McDonalds brand is worth tens of billions.
2. Register your IP
Trademarks and patents
A number of IP rights (save for copyright) must be registered to be effective. In Singapore, the Intellectual Property Office of Singapore (Ipos) is responsible for the registration of trademarks, patents and registered designs.
Ipos conducts clinics as well as operates hotlines to assist businesses wanting to register their IP.
Domain names
Before you register a domain name, conduct a trademark search to find any trademarks that conflict with the name you want. As the domain name system is awarded on a first-come, first-served basis, disputes have arisen between trademark holders and domain name owners.
Trade secrets
In addition, SMEs with confidential information like trade secrets which cannot be protected by copyright or patent law should use non-disclosure agreements or NDAs.
These NDAs protect against disclosure and misuse of such information by parties such as business partners and vendors who may have been given such information.
3. Use IP from third parties
Software licences
Today's companies also use IP obtained from third parties.
For instance, a lot of the software used in modern business is licensed from third parties.
Use of software without a licence or in excess of its licence could amount to an infringement of the owner's exclusive rights.
Source codes
If you have invested great sums in your mission-critical software, you should deposit the source code of the software with a third-party escrow agent.
An escrow arrangement is requested by a party licensing software to ensure the ability to maintain the software in the event of an emergency such as the bankruptcy of the software developer.
Although it does cost a bit, a source code escrow agreement protects the value of your investment.
Contributed by lawyer Mr Bryan Tan and intern Ms Wang Zhengmin, Keystone Law Corporation.
