IP and Innovation: What Kind of Protection Do You Need?
Published on June 13, 2024
Protecting intellectual property (IP) is a step that is sometimes overlooked or even ignored by the founders of startups. The idea that IP should only be part of a business strategy when operating in the tech industry is false.
IP can play a significant role in the growth of a startup, regardless of the industry you’re in. You’ll learn more about this in this BDC article how IP and entrepreneurial growth are closely linked. No matter how you look at it—even if it isn’t obvious at first glance—IP can help propel your business forward, whether here or elsewhere.
Let's go back to the basics: there are four types of intellectual property protection.
- patent
- industrial design
- trademark
- copyright
The Purpose of Patents: Protecting Technological Innovation
Unsurprisingly, patents are the best-known form of intellectual property protection. However, entrepreneurs are not always aware of the scope of this protection or even how it applies. Take, for example, a company that sells chocolate chip cookies. It is crucial for the company to ensure that competitors cannot access its recipe, since the recipe itself is the key to its success.
In Canada, when it comes to patentability, three criteria are essential: novelty, non-obviousness, and utility. Culinary creations are no exception to this rule; even though a list of ingredients and their quantities is not patentable as such, a company can patent certain key elements of its recipe. If a chemical compound in the ingredients or a process used in the recipe is innovative, it is highly likely that it could be eligible for a patent.
In Canada, patents grant the inventor 20 years of protection, according to Innovation, Science and Economic Development Canada, the ministry that administers patents in Canada.
What is the purpose of an industrial design?
An industrial design refers to the appearance of a product and includes its configuration and/or shape. In the case of our cookie company, we might have designed a cookie box with a new and original look. The company could then obtain exclusive rights to its creation by filing an industrial design registration.
Please note: To be protected, an industrial design must be registered. The registration is valid for 5 years and can be extended for up to 10 years, providing a total of 15 years of protection.
Trademark: Standing Out from the Competition
The commercial success of a sales and marketing plan cannot be achieved without addressing the issue of trademarks.
Among other marketing and brand identification elements, a trademark provides protection for the elements that distinguish a product or service from the competition. A trademark includes the company name, the logo, and the way you identify your goods and services.
All trademarks must be registered with the Canadian Intellectual Property Office (CIPO).
Copyright: Protecting Intellectual Works
We cannot overlook copyright and the protection it affords to so-called “intellectual” works.
Let's imagine that our cookie company ventures into the world of publishing; its cookbook would be protected by copyright as aliterary work. And unlike patents or trademarks, copyright is automatically granted for original works; in fact, copyright grants the creator exclusive rights to their work as soon as it is created, without the need for any formal procedure.
Trade secrets: staying one step ahead
Just like copyright, industrial or trade secrets do not involve any formal procedure, but can certainly be considered as a measure to ensure the protection of one’s IP. The goal, then, is to limit and restrict access to one’s intellectual property. Our cookie company could, for example, require its employees to sign confidentiality agreements or implement more restrictive security measures, such as limiting the number of people who have access to the cookie recipe.
Even in the absence of direct legislative measures, it is possible to take legal action against individuals who unlawfully steal trade secrets. To bring a lawsuit, the owner of the secret must prove that the stolen information has commercial value, that the information is secret, and that the company took reasonable steps to ensure that the information remained confidential.
In short, intellectual property is an essential asset for your company's growth
As you’ve likely realized as you’ve been reading, a solid intellectual property (IP) strategy can take various forms to protect your startup. Whether it’s to prevent counterfeiting of your product or service, to set yourself apart from the competition, or to prevent others from appropriating your ideas, you need to give careful thought to your IP strategy. After all, your ideas are assets that constitute the value of your business—right from the very start. Why not make the most of them?
Would you like to learn more about intellectual property? Check out our on IP for innovative entrepreneurs.
And if you'd like to learn more about the importance of having a solid intellectual property strategy, check out the episode "Why IP Matters" from the Canadian Intellectual Property Office (CIPO) podcast is a wealth of information on the subject.