Small company owners risk losing everything by failing to register their intellectual assets and protect their products with patents, copyrights and trademarks, according to a survey by law firm Browne Jacobson.
Less than half of those companies questioned (48%) have any policies in place to prevent breaches of their intellectual property, with 26% taking a sporadic approach to the issue and 25% openly admitting to having no provisions whatsoever.
The research suggested that 55% of company owners wrongly think that by registering their company name they have guaranteed their sole usage of that name. Only 45% knew that registering a trademark with the Patent Office is the only way to create a monopoly on a trading name.
A further quarter of directors (24%) thought that their company would automatically own copyright on all materials – such as names, branding and logos – produced on their behalf. But without including an express assignment of copyright in its terms and conditions of sale, a firm has no legal ownership of intellectual assets developed on its behalf.
“For many companies, their brand, reputation and innovations are often their most valuable assets,” said Declan Cushley, IP law expert at Browne Jacobson. “Yet our research reveals that more than half of UK companies are failing to protect their company name and brand, or to ringfence their significant investments in research and development.
“Moreover, a staggering 80% of companies have no idea what their ideas and inventions are worth,” he added. “UK directors must protect their IP assets in the UK, EU and beyond if they are not to risk millions in lost revenue and damage the value of their companies.
“A clear, structured focus on IP will unquestionably add to the bottom-line value of a business. IP is increasingly a key factor for all companies, whether their intention is to sell or to attract additional investment.”
The Department of Trade and Industry has recently announced that is offering free intellectual property health checks to small companies.