Protecting your Innovation

Digital week is sure to demonstrate yet again that the region is bursting with new media SME’s keen to show off their talent and itching to win that big client which will make their fortunes. Just make sure that in your efforts to win that account you aren’t in danger of giving your ideas away for no reward.
'Ah but I’ve got copyright protection' I here you cry, 'no one can steal my code' but the simple fact is there are a number of different coding structures and languages which can achieve an identical end result in terms of function, and if your innovation is based on a process, then that process can be recreated without breaching your copyright.

For a moment think about what your digital innovation actually does, rather than how it does it; this can be a tough thing to do for anyone who has just spent the last year focused on how to make the software work.

The essence of what you’ve created is the solution to a problem – either a new way of solving an old problem or a solution for a problem which has only recently emerged. Either way, it’s that solution which is where your value lies, not in your code. Ask yourself, if I was starting again today could I create the same outcome via a different method, either a different language, software interface, or coding structure? Think like a buyer for a second, is he or she going to look at what you show them and think to themselves – 'I like it, can I get it created for less than these guys are asking?'

If the answer to either of these questions is yes (be honest with yourself) then you need to think about an alternative form of Intellectual Property protection before you start trying to sell your innovation for millions.

There are a variety of forms of Intellectual Property protection, but for ease we’ll quickly look at two, Trade Marks and Patents.

A Trade Mark is a ‘sign’ (most typically a word or logo) that distinguishes your brand from those of your competitors. It can be used to prevent anyone else using the same or similar mark in the territory in which you trade. If you plan to sell your innovation under a brand name, then the simplest step you can take is to register that brand name as a Trade Mark. If your reputation for innovation is what makes the difference for you, then a Trade Mark is the best form of defence for your reputation. Don’t think that putting the letters TM after your name is enough – they might well serve to deter
some from misuing your brand but they don't carry any legal weight in a courtroom fight.

It used to be the case that Patents for software were hard to come by, not any more, software patents are filed all over the world every day. Patents can cost a fair bit, so unless you are going to sell your elegant and innovative solution for a decent amount, take some commercial advice. A decent patent attorney will give you at least 30mins worth of free advice before the clock starts, so get your thoughts in order and have your questions ready. They’ll want to know what your innovation does and how it represents a clear innovative step – not a bad question to ask yourself in any event.

Holding a Patent gives you a monopoly right to your innovation for up to 20 years, and during that time your can choose to licence the use of your innovation, to sell exclusively and therefore at a premium, or you can sell your IP as part of an exit strategy which enables your to relax in the Bahamas.

So if you’ve always thought that copyright was the only protection you need, think again, to avoid giving your ideas away, talk to an IP Attorney.

This post was written by Ben Wyatt, Business Development Consultant at Matthys & Squire on behalf of Montpelier.

You can bid for consultation time with Montpelier at the Knowledge Auction on Mon 9th November, a free event at Revolution, Leeds. Visit www.digital-week.co.uk for more details.