Unicorns are a team effort. Studies say that 18% of startups fail because of team problems and 14% of startups fail because they haven’t built the right teams. People are key assets for any organization. This is especially important for startups that typically have only 2-10 people in the early stages of the company when the foundation is built. Based on the business strategy, every team member in a startup has their specific role that supports the business strategy.
In addition to people, intellectual property (IP) assets are crucial for startups. IP is property that includes intangible creations of the human intellect. IP assets are protected by intellectual property rights (IPR), like patents, trademarks, and copyright, that provide the startups a competitive edge, secure their market position and help them to defend themselves against potential threats. Great IP is also a result of team effort.
Great IP needs teamwork
Startups, like any businesses’, can maximize the utilization of IPRs with the help of IPR strategy. IPR strategy then again is aligned with the general business strategy and supports the business goals. Thus, the startups need people, either own or external, who 1) create IP, 2) protect IP, and 3) manage and plan actions for maximizing the value of IP with IPR strategy. Businesses are legal entities, and thus startups also need people who 4) take care of the legal contracts connected to the business operations.
IP creation is naturally at the core of startups. Startups have little tangible assets and thus the role of intangible assets, like IP, is emphasized. IP assets are for example invention, brandname, logo, slogan, design, invention, and content. Synchronizing different IPs creates even more value – a strong brand supporting the main goal of the startup – selling the product or service.
Protect what’s yours
You don’t leave your door unlocked and open, similarly you shouldn’t leave your IP unprotectedto be freely used by anyone. Products stemming from inventions can be protected from different angles. Technical features can be protected with patents, appearance can be protected with design rights, brand created around the product can be protected with trademarks and domain names, and marketing materials may enjoy copyrightprotection.
Maximize the benefits
Startups’ resources are limited. Thus, IPR management and planning is important to maximize the benefit gained from the existing resources. Understanding the return on investment of different IPRs, and how they can support business strategy, helps to make the rights decisions. IPR strategy is also about risk management. Furthermore, by managing the issues that affect valuations of IPs, a good IPR strategy enhances the ability of the startup to raise funding. It’s good to keep in mind that in addition to utilizing their own IP, startups can also sell or license the IP. Either when selling or licensingIP, IPRs become crucial.
When talking about licensing of IP, contracts cannot be forgotten.They define the rules and safeguards under which the licensing can operate. Also, there’s only so much one person can do and with a limited number of employees startups can also outsource some of the tasks connected to e.g., in R&D. Some of your IP, for your own use or for licensing, may arise from the outsourcing activity. Contracts are needed to ensure that the IP is actually yours.
So, to maximize the benefits of IP, having the right team helps to create and execute IPR strategy and contracts that support your business.
The blog post was published in collaboration with the Tahko Ski Lift event. We'll delve further into this topic during our presentation at the TahkoSLP Growth Seminar.