Lesson 2: IP Strategy
Why is it Important to Develop an IP Strategy for Your Business from the Very Beginning?
An IP strategy is important because it can be used to create a “sustainable advantage for your business” in the same way as a robust business strategy does. In some cases, an IP strategy is essential for commercial survival.
In 1924, a New Zealand horticulturalist developed a new type of kiwi fruit, which has become the most commercially successful variety of the fruit.
Unfortunately, the inventor did not secure any legal protection over this new variety, and other growers around the world quickly began to produce and sell the “Hayward” kiwi fruit without his permission and without compensating him. The inventor lost control over the new variety, and the Hayward kiwi fruit lost its commercial advantage by having become a common, undifferentiated product.
In other cases, an IP strategy can offer a competitive advantage in the marketplace and should form part of an overall business strategy. A successful IP strategy may allow a business to realize greater profits than its competitors.
Specifically, an IP portfolio can be used to generate or enhance revenues, realize higher prices, increase market share and/or maintain lower costs as a result of the following.
Select each of the sample benefits below to learn more about how these benefits can be achieved.
Achieve it by having a large IP portfolio to cross-license. Generally, the stronger the IP portfolio, the lower the royalty amount that will have to be paid for permission to use a competitor’s IP.