It still amazes me how far intellectual property (IP) has come in the past few years. I remember when working in the IP industry was about as unsexy a career as it gets. Nowadays, people seem to know a bit more about IP and its importance in the global, hyper-competitive markets in which we now operate. And yet, that newfound knowledge has given rise to a great number of myths.
1. What in the World is IP?
IP refers to creations of the mind that have commercial value and can receive legal protection. This can encompass creative works, products and processes, source identifiers, secrets and a whole host of other products of intellect. Because of the “legal protection” bit, a lot of people think that IP is a legal matter best left to the lawyers, which is the greatest IP myth of all time.
2. IP is About Business, Not About the Law.
IP exists to serve and protect your business. IP issues should be discussed as a business concern and have a place in the boardroom as strategic, and sometimes tactical, considerations. Thus, it is a mistake to simply park IP in the legal or finance department without giving it any further thought. IP lets you differentiate your business from that of your competition. Your competitor has no access to your IP without your permission. This affords you a freedom to operate and premium price, and it gives you a real business advantage.
3. Exclusivity Through Uniqueness™
If you only had five seconds to teach someone about IP, “exclusivity through uniqueness” would be my preferred sound bite (so much so that we applied to trademark it!). This saying sums up the entire IP concept. You can only get IP if you’ve come up with something unique, be it an invention, a brand, a new song, a recipe, whatever. The single, central premise running through the various types of IP is exclusivity. IP arises when you have something unique and you get exclusive rights to it. A smart entrepreneur should take due advantage of that.
4. The Fatal Misconception
The most dangerous myth of all is the belief that owning IP is all you have to do, and that ownership alone equates to your own cave of riches. Time and again I have met who are disillusioned with IP. I always ask what have they done with it, and I always get a puzzled look in response. “I own it, what more is there?” they say. The fact is, it’s not what you own that is key, it’s how you put it to use in your business. IP is an asset, like any other, and it has to be used in your business. Like all assets, it can depreciate in value and quality, and if you don’t use it to support your business, it will never give you proper returns. It will simply be a wasted expense.
I believe that the primary characteristic of an entrepreneur is that he or she creates something new and different by changing what is presently known or valued. As entrepreneurs, we always search for change, address it and use it as an opportunity. Our innovations are the means by which we take advantage of change to create a different product, business or service. All in all, IP is an important means for rewarding and recognizing our entrepreneurship and innovation.