The present proactive policy of government which focuses on startups have led to the rise in the number of startup companies getting registered in India. Indian government has further worked on many supports system to support the ecosystem for startups. One important aspect where the present Indian government specially worked is in the domain of intellectual property rights. The policy changes which ultimately led to reducing the time for the final disposal has drastically been reduced. Another important factor is the cost reduction for start-ups. Still, we come across wherein the startups are not been getting the advantage. Timing is crucial when it comes to protecting startup’s intellectual property (IP). While it might seem tempting to delay the process due to costs or other priorities, the consequences of inaction can be severe. It is harmful also because one of the biggest strengths of the startup is the novel idea which is backbone of the business.
The Premature Disclosure Dilemma
One of the most common pitfalls startups faces is premature disclosure of their ideas. Sharing your invention with potential investors, partners, or even customers can inadvertently lead to IP loss. Once an idea is public, it becomes challenging to establish novelty and obtain patent protection. Here it is important to note that for the Patent to be granted one of the important prerequisites is its newness/ novelty. The moment the startups go public without filing for the protection of patent, they actually loose the novelty. It is common problem for startups that in due course of setting up of business, the owners meet a number of people and discuss resulting into loosing the novelty.
Example: A social media startup shared its innovative algorithm with potential investors without a non-disclosure agreement (NDA) in place. A competing startup later launched a similar product, claiming independent development.
The Missed Opportunity Cost
Delaying IP protection can result in lost opportunities. A strong IP portfolio can significantly enhance a startup’s valuation and attract investors. By securing IP early, you can establish a competitive advantage and deter potential copycats.
Example: A biotech startup delayed patenting a groundbreaking drug discovery. A competitor subsequently filed a patent for a similar invention, hindering the original startup’s commercialization efforts.
The Importance of Early Assessment
To make informed decisions about IP protection, startups should conduct a thorough IP audit early in their development process. This involves identifying valuable intellectual assets, assessing their novelty and commercial potential, and developing a protection strategy. For this the startup companies should talk to some IPR (intellectual property right) firms. These firms will be in a position to guide what all potential IPR is involved in business. Akhildev IPR and Research Services with its wide knowledge pool and vast experience can be of much help to startups.
Key factors to consider when timing IP protection:
What should one look into has been discussed below when it comes to timing IP protection. Stage of development, Competitive landscape, Available resources, Business goals are some factors to look into.
Stage of development: Evaluate the maturity of your idea or product.
Competitive landscape: Assess the level of competition and the risk of IP infringement.
Available resources: Consider the costs associated with IP protection and your financial capabilities.
Business goals: Align your IP strategy with your overall business objectives.
By proactively from the outset, STARTUP COMPANIES can lay a solid foundation for startup’s success by protecting the IPR of the startup. Moreover to claim one novel business idea to be yours, IPR certification is additional support specially when startups are struggling with the setup it position in the market. Feel free to contact us @ admin @ iprsrg.com.
