Starting a Business? Don’t Forget Your Intellectual Property!

There is a lot to consider when starting a new business. Where should the business be registered? Should it be an LLC or a corporation? Will there be an office space? Will there be employees? How will it market and grow its customer base?

One critical element that new business owners often forget, or think that they will deal with later, is their intellectual property (IP). However, a business’s IP should be among the first considerations. Does your business include a new process or invention? You may have the ability to patent that, but a patent application should be filed before there is any public disclosure of the invention or process.

Trade secrets are another form of intellectual property that need to be protected right from the start. Are you starting a bakery with a secret recipe? Do you have a private list of contacts for customers? Have you conducted product research and development? All of these and more can be trade secrets. Critically, though, a trade secret must be just that: a secret. If it is not properly protected or gets disclosed, that secret is lost. Making sure you know what can and should be protected, and how it needs to be protected, is something a business owner should know before they open their doors.

A business should analyze its potential trademarks before launch. There’s nothing worse than naming your company, building an identity, designing logos and products, going to market, and only then finding out that you can’t protect your brand, or worse, someone else can prevent you from using it. It’s far better to take time on the front end to confirm your name, slogan, logo, and other potential marks are available to you and can be owned by you and your business.

Taking a little bit of time with a lawyer to help plan your business before you launch can save tens, if not hundreds, of thousands of dollars down the line or prevent the total loss of a business’s intellectual property. We understand that many start-up businesses are tight on funds, and paying legal fees doesn’t always seem like the best use of that limited money. However, making sure your company is properly incorporated can protect your personal assets. Having an attorney review your lease can identify whether the business is getting into a long-term lease with a personal guaranty at a rental rate that isn’t actually sustainable by the business, which can help to avoid large judgments arising from a breach of that lease. When you have full ownership of your business name and trademarks, you can’t be forced to change them later. This security protects your customer base and goodwill. An ounce of prevention is worth much more than a pound of cure.

Finding an attorney experienced in advising start-ups, and especially one experienced in both business and intellectual property issues, can be as beneficial to your business as a good accountant or a trustworthy supplier. Attorneys can play a critical role in helping you grow and protect your business investment. The earlier in the process you involve an attorney, the more likely you will avoid headaches down the road.

Stites & Harbison, PLLC’s full-service Intellectual Property & Technology Group regularly assists clients in the acquisition, management, licensing, and litigation of patents, copyrights, trademarks, and trade secrets. For questions, comments, or assistance with any intellectual property-related matters, please contact the author or any of the other attorneys in the IPT service group.