Your business brand might not seem that important today, but it’s important not to underestimate its potential future value as it could well be your business’s most valuable asset
So frequently entrepreneurs have great ideas, ideas they turn into businesses. Often a lot of thought goes into the product or the service, what will make it different, unique; how one day it might make a fortune. However, little thought is given to the potential value of the brand and ensuring it’s not already registered by another organisation.
I frequently meet new businesses looking for an accountant to help them with their accounts. They’ve done their research and decided the business name; it’s available at Companies House, and there’s a domain available for the web site…….first hurdle sorted……website paid for, stationery printed….ready to go. Only a couple of grand spent so far.
Imagine five years down the line, the business is well established, a recognised extremely successful business brand carried on all the business’s visible assets including the hundreds of thousands of pounds worth of stock.
Then an unusual item of post arrives one day, from a very nice lawyer, who explains in no uncertain terms that the brand your business is using was previously registered by his client. He insists that you stop using the brand name immediately or face legal action and a very large compensation claim, or worse!
Unravelling the situation would be a hugely expensive nightmare for any business, and yet it could all be avoided by seeking advice from an intellectual property lawyer or other professional at the outset. Trademark and design registrations are low cost and not a formality to overlook.
Make sure that you think about your Intellectual Property at the beginning. There are many things to consider so take advice, and do your research. If your business has employees then make sure that their contracts are worded so that any IP is owned by the business and make sure that you have written agreements with suppliers and other third parties so that the ownership of any IP is agreed at the outset.
Your employees need to understand the value of your IP too. Do they know the importance of confidentiality? Make sure they do. Don’t forget that an invention in the public domain will be difficult if not impossible to patent. Confidentiality agreements and Non-Disclosure agreements may help but beware, loose tongues can be so costly!