There many ways intellectual property (IP) can be exploited to make commercial gains and add value to the business.
When integrated into business strategies, IP can build competitive advantages by creating a legal monopoly in the market, generating extra revenue through licensing arrangements or even maintain a competitive edge by protecting business image and goodwill.
IP can be used as a business strategy by:
- forming a monopoly over a protected product, process or technology
- licensing rights to a brand or design – through franchising or royalty arrangements
- maintaining the position of the business in the market through a distinctive business name or logo
- leveraging a competitive advantage by gaining exclusive rights over an efficient process or new product or service
- developing an exclusive image of the brand, product and business through registered trademarks
- stop or deter competitors from entering the market
- entering into joint ventures through the supply of IP
- increasing the value of goodwill by protecting the registered trademarks.
The benefit of incorporating IP into the business plan is that the value is formally recognised and steps can be put in place to leverage the IP accordingly. However, if not properly protected, IP could be lost or abused by other businesses.
To ensure the success of business strategies, maintain secrecy around IP until it is protected. IP protection can be denied if IP has been exposed to others in the absence of confidentiality agreements or formal protection. Be first in the market and continue innovating to stay ahead of imitators.
Refer to IP Australia for more information about IP and strategy.
Identify and protect your IP assets with the Intellectual Property Explorer.
To ensure the success of business strategies, maintain secrecy around IP until it is protected. IP protection is denied if IP has been exposed to others in the absence of confidentiality agreements. Be first in the market and continue innovating to stay ahead of imitators.