CONTRACTS AND AGREEMENTS IN IP MANAGEMENT
Contracts And Agreements In IP Management
Intellectual property (IP) is that intangible asset which an owner claims a right to use or exploit. Intellectual property (IP) is a term used to describe natural resources and human creations that are not material in nature.
The term “intellectual property” encapsulates a broad range of creative endeavors including patents, copyrights, trademarks, industrial designs, and trade secrets. Generally it is found that businesses have no idea that they already have valuable intellectual property in their possession that needs legal protection.
Intellectual property protection is one of the most important considerations a business has to take. For example, if a trademark or an image is used without permission, the owner or creator of the image can file a lawsuit to claim damages for infringement of their rights.
Intellectual property (IP) management done strategically creates value addition to the business. The development of commerce and trade happens globally through inventions, sharing, and exchange of such inventions and knowledge. An invention that is kept to oneself neither does any good to the inventor (except for his own use or limited eranings) nor to the society at large.
Registering your ownership alone will not suffice to make work these assets as wealth creation tools. You need to have appropriate protective agreements and contracts in place to prevent misuse of your digital assets on the one hand. And on the other hand, these protective contracts obligates third parties with duties and responsibilities to use your digital assets. Different types of agreements and contracts are used depending on business needs and situations.
These protective agreements help you not only prevent its misuse but it opens up a win-win situation for the parties to join hands, collaborate, and make more money in the process.
Protecting your digital assets begins by taking complete stock of all possible digital assets your business has. First, a survey of your business has to be done and a full inventory of your digital assets has to be arrived at. The second step would be by restricting access to digital assets and systems to reduce the risk of loss or theft of your intangible assets. Apart from employing data security best practices, proper authentication and authorization should be in place for its use and accessibility. Here protective agreements for usage and access have a crucial role to play.
Legal Strategies in IP Management
Intellectual properties are the creations of the mind. Businesses invest considerable amount of money, resources and time in developing new inventions and products. Of course, these inventions will definitely yield results in their own growth. Many times that is the end - meaning the businessess who developed these new products keep it to themselves and is satsfied with the ROI it brought in and the profits it is bringing.
BUT, that is only a fraction of the potential business revenue it can generate to you the inventer provided the business new how to legally diversify its IP portfolio to create more wealth. And the sad truth is in majority of cases, it is not so and great opportunities to make additional revenue are lost.
By empolying legal strategies such as licensing, franchising, joint ventures, revenue sharing or through sales with different types of legal rights attached to, a company can exploit its intellectual properties to earn additional income.
For example, if a company owns song lyrics and has no idea of how to use them to be able to make a lot of money, then that IP ownership goes to waste.
Lucrative business collaborations and joint ventures are possible if you know how your intellectual properties are strategically made use of in revenue generation using different legal methods.
Globally about $60 billion a year is spent on licensing. According to Microsoft, almost 40% of companies do not license their intellectual property.
The most common form of legal tool used is “licensing” the right to use your patented product. For example you had copyright over a unique softwre you had developed and make profit selling it. Here you are permitting the buyer to to use the software. Better legal startegy would be to “license” the software for specific period of use and charge “license” fee. So that it becomes a continuity income for you. Not only that, regular upgrades will be happening to the software and for availing the newer versions, you can charge the user an extra fee. See how simple twist from outright sale to “licensing” the product provides newer revenue sources.
To go through licensing, a company has to create a license agreement that allows the buyer to use your proprietary product for a licensing fee. The license agreement can include any number of restrictions on how the licensee is allowed to use, when it gets canceled etc. Afterall it is your babay and you have every right to decide its use and accessability.
Copyrights, Patents, Trade secrets and Trademarks are the common business related IP Rights. A business can obtain a patent for the unique business method it employs, for the designs it has developed, or for the usability (utility of the product).
However, over and above the stautory protections in the form of grant of copyright, patent etc., business related IP Rights do need different contracts to transform them into revenue multipliers.
Contracts and Agreements in IP Management changes your welath creation capabilities.
The various types of contracts and agreements used to protect the intellectual property rights are:
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Transfer of IP Ownership;
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Technology Transfer;
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IP Ownership Assignment;
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Franchisee; Licensing;
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Research and Development;
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Confidentiality Agreement;
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Non-Disclosure Agreement;
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Work for Hire Agreement etc.
The most common intellectual property violations are:
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Infringement of copyright, trademark, domain names
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Infringement of patent,
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Counterfeiting of copyrights or trademarks
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Misappropriating trade secrets
Effective legal agreements and contracts coupled with preventive legal measures can save a business from becoming prey to such arm-twisting tactics.
Biz Legal Guard can help your business have win-win strategies in managing your intellectual properties. We will work with you to protect the lifeblood of your business in safeguarding your intellectual properties. Reach out to us.