Intellectual property rights are the single most important investment for high-growth companies

Iprbox® intellectual property rights services for high-growth companies cover all aspects from planning and implementing IPR strategies to supporting the patenting process.

Iprbox Oy supports companies throughout the entire research and development process. Before R&D activities have even begun, Iprbox Oy can survey the competitive environment at which the new product is aimed. In terms of the entire lifecycle of the product it is essential to know what kinds of patents already exist and who controls them. If the patent protection is already too wide, development work on the product has to be terminated, the product has to be changed, or licensing negotiations have to be undertaken with the patent holder.

During the R&D phase, Iprbox Oy creates a patent portfolio around the product to help prepare against challenges from competitors. The creation of this portfolio should be included as part of the company’s internationalisation targets.

When the product is finally launched, Iprbox continues to support companies by monitoring and defending their intellectual property rights. If any of a company’s patents prove to be unnecessary, Iprbox Oy can help to market them to other companies.

Intellectual property rights are the single most important investment for high-growth companies, as intellectual capital represents around 80 percent of their value.

Company value

Patents can be used to create a virtual monopoly. A patent is the right to prevent or exclude others from selling or manufacturing the invention, so the patent holder has the exclusive right to the technology and methods described by the patent. A company that succeeds in creating a significant patent portfolio within its own field of business can achieve much greater value than simply its assets or turnover. The company can benefit from the global growth of the entire business sector.

Companies owning a good patent portfolio can grow internationally by licensing its technology for global markets. In other words, the company can become international even if it continues its original operations in its home market alone. By contrast, a lack of intellecutal property rights can prove to be overwhelmingly expensive for companies attempting to grow internationally, as all their product ideas and innovations can be copied free-of-charge by competitors. There is no law to protect ideas.

Intellectual property rights are also useful when negotiating financing. The risk to the financier is significantly smaller if the company can present existing intellectual property rights and plans to acquire further rights.

Company decision-making

Patent publications are an important source of information. Patent applications are often published before any actual product is launched. Patent publications offer the chance to see what kinds of new features will be offered on competitors’ products and how they are protected. Similar information is not available anywhere else. Companies can utilise this information to hone their own strategies.

Since patents are nationally based, patent publications from other markets can be employed to find new product ideas.

Intellectual property rights and R&D

Research and development involves refining ideas into products. Companies strive to develop products that are in some way better than existing products already on the market. New products may be cheaper, longer-lasting or simply solve a given problem better than existing products. The difference between the new and existing solutions that are created as a result of R&D usually have to be protected by intellectual property rights.

Before initiating R&D activities, it is essential to be aware of the product’s intellectual property environment. The worst case is for a product to be fully developed and introduced to the market before noticing a patent infringement. The later the discovery is made, the greater the damage will be to the company.

Investing in ultimately fruitless R&D can be fatal for companies. Few are ready to admit their mistake and withdraw their product from the market, even when it clearly infringes a competitor’s patents. Companies prefer to solve the dispute in court. An unfavourable verdict is likely to prove a deadly blow for a high-growth company.

Brand building

Intellectual property rights are not confined to technology. Building a company’s brand through marketing is a considerable and key investment. Companies can use trademarks to effectively ensure the uniqueness of their own brands and products in international markets. A well-protected brand can significantly increase the value of a company.

Financing

Protecting intellectual property rights can be financially challenging for high-growth companies. For this reason, several channels have been created in Finland for obtaining public financing and support for purchasing IPR services. In other words, IPR strategies should not be left undone on the assumption that they are too costly. In fact, not creating IPR strategies can prove to be the much more expensive choice when faced with potential problem situations.