Friday, August 20 2021 .

Why a clear Intellectual Property strategy is critical to securing venture capital funding

Intellectual property (IP) is not an end in itself. Nobody ever needed IP to make, market or sell a product or service and, in fact, many businesses compete in the market on the basis of price, service and quality without ever registering or enforcing any intellectual property right. That being said, there are significant benefits to be gained from having an IP portfolio, even during early start-up years. It’s no wonder then that venture capitalists (VC’s) will seek to understand not only what IP your business has, but also if you know how to use it. A well-managed IP portfolio will likely add value to your business case and increase your prospects of obtaining VC funding.

To understand the importance of IP and how it can benefit your business, you must first understand these unassailable truths:

1. Copying is not necessarily unlawful, but it is unlawful to infringe the intellectual property right of another person or to compete unlawfully with them. Also, you can’t own “a technology”, but it is possible to own intellectual property rights associated with that technology. The owner of those IP rights is entitled to prevent others from performing certain acts in relation to that technology.

2. Different commercial mechanisms and strategies are better suited to different types of IP.  Continue Reading


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