The excitement of starting a startup is one of the biggest highlights in a person’s life. You’re taking an original idea and building it into a potentially successful enterprise while solving real-world problems and creating a way for people to see your vision. It’s all happening at lightning speed, from drafting your business plan to building your brand to creating your product. Unfortunately, while you are rushing through these steps, one of the most important pieces of your business is usually overlooked: Intellectual Property (IP).
It is vital that all founders learn about the Intellectual Property rights in India, Start-up IP Rights and the basics of Patents, Trademarks and Copyright in India. These are legal terms but they are also tools to assist entrepreneurs in the protection of their business ideas in India and their growth without worrying about other companies taking them.
This blog is meant to help you understand the laws pertaining to IP and start-ups in the simplest way and what every start-up must understand.
What is Intellectual Property?
Intellectual Property (IP) is basically anything you create with your mind, such as a trademark (or “brand name”), logo, description of how your product or service works or does not work and so on.
As a startup, your Intellectual Property could be:
- Your trademark
- Your logo and tagline
- Your idea for a product or service
- Your mobile application or website
- Your content, video, music or artwork
- Your software or technical process.
While these things do not exist physically, they are all still property, and just like your home and/or land are protected by property laws, so too must your ideas be protected.
In India, there are various laws to protect different types of IP material, and knowing the relevant IP laws applicable to your startup may help you avoid potential loss of your Intellectual Property, fights with others over it, and/or court cases.
Why Intellectual Property is Important for Startups
Ideas are the foundation of startups. The idea can be in the form of a product, a service, or a method to solve existing problems. However, without the proper legal rights to the idea, the idea is not fully protected.
When you register your intellectual property (IP), you will obtain legal rights.
The legal rights obtained by registering IP are:
- You designed the logo and/or name for your brand; no one else can use your logo or tagline for their company.
- Legally, no one can copy your invention.
- You have the right to sue any person or business that tries to infringe on your IP rights.
- Investors will be more likely to invest in your business if you have registered IP.
- The value of your company will increase if you have registered IP.
A study showed that startups that had at least one registered type of IP were three times as likely to attract investors than startups that did not register IP. Additionally, startups that registered IP were more likely to succeed in the international marketplace.
Main Types of Intellectual Property Every Startup Should Know
1. Trademark – Brand Protection
A trademark protects the identity of a business, including its name, logo, tagline, symbols, and in some instances, colour combinations.
Trademarks are one of the most essential types of intellectual property registrations for start-ups to protect their customers and enhance the trust customers place in them. Additionally, trademark registration prevents others from copying the name or logo associated with the business.
Trademark registrations in India are generally valid for 10 years before needing to be renewed. Once a trademark is registered, the registered owner of the trademark has exclusive rights to use the trademark and also has protected their trademark.
Registering a trademark is the very first step every start-up should take when registering its intellectual property by way of patent, trademark and copyright registrations in India.
2. Patent – Protecting your invention
Patent registrations protect new inventions created by the inventor. A patent registration covers new inventions for products, machines, formulas, devices, or the application of technology through a technical method.
Intellectual property laws in India define a patent as an invention that is:
- Original
- Valuable
- Unique or novel
- Non-obvious
Therefore, it is important for start-ups that develop a new technology to become familiar with the intellectual property laws in India regarding patent registrations before registering their start-up.
3. Copyright – Protecting Your Content
As an individual or company creating or marketing content, Copyright Laws protect the following types of works:
- Website Content
- Blog Posts
- Graphics/Designs
- Software Code
- Videos/Music
- Photography/Digital Art
For a startup, marketing agency, creator, or developer creating content, copyright is a critical part of your business plan.
With the Copyright, you will have an official legal document proving ownership of your work and an easier process for taking action against someone who attempts to steal your work.
Copyright Protection in India can protect your original work from being copied or misused by others.
4. Design Rights – Protecting the Look of Your Product
A design registration protects what a product looks like. This can be represented in a variety of ways such as its form, but does not extend to its use; therefore the design does not protect its function—only its appearance.
This will be of particular benefit to start-up companies that operate in the fashion and furniture industries as well as electronics, accessories and packaging based businesses. If your finished merchandise stands out because of its distinctive and aesthetically pleasing design, consider applying for design registration in order to prevent others from replicating your products’ look.
Additionally, registering your design under design registrations will provide you with the opportunity to protect your business concept in India.
Common IP Mistakes Made by Startups
A lot of entrepreneurs will postpone registering their intellectual property because they feel that:
- Their company is too immature
- The cost will be prohibitive
- They don’t require it at this point
- They’ll handle it later
However, there is a danger of someone else registering your intellectual property idea prior to you. Specifically, this could result in:
- Loss of marketability of your brand name
- Legal Issues
- Need to Change Your Brand / Re-Brand Your Company
- Loss of Financial Viability
Registering your IP is generally much easier and cost effective when your business is launched than later when your business has grown or matured. As time passes, it becomes increasingly difficult and costly to register your ideas
How to Start Protecting Your Intellectual Property
A person does not require extensive legal expertise to begin the process. By following these 5 straightforward steps:
- You will need to create an identity for your business by selecting a name and logo;
- Confirm that the name and/or logo have not already been registered by another company or entity;
- Apply for a trademark for both the name and the logo;
- Document any inventions made or products developed by your business; and
- Register any software or other written content produced by your company under copyright.
The Startup India initiative also includes several benefits for new businesses, including lower registration costs and quicker processing times.
If you have an interest in protecting your business’s innovation and concept in India, begin working on these steps today rather than waiting until tomorrow.
Final Words
All businesses, whether small start- ups or large corporations, protect their intellectual property. As an entrepreneur, creator, innovator, or small business owner, if you are developing an innovative product or service, you will want to have your intellectual property protected.
Having knowledge about intellectual property India, as well as having knowledge about startup IP Rights, Patents, Trademarks, Copyrights and IP Laws, will enable you to become confident, secure, and competitive.
Your idea has the potential to change the world. However, the key component is to own that idea.