Businesses in California and throughout the nation take specific steps to stand out among the rest. The competition can be high in certain industries, making it imperative that a business take measures to market themselves and increase their value. In order to overcome the competition, a business may seek out groundbreaking innovations. However, when utilizing intellectual property, it is important that businesses and corporations understand the challenges they are likely to face and ways to resolve them, especially if business litigation arises.
IP challenges
To begin, it can be challenging for a business to create a valuable IP. In essence, if an IP does not generate value, it is likely to not be utilized. In fact, studies indicate roughly 80% of patents go unutilized if they do not generate any value to the company. The next challenge is managing an IP portfolio. This is not just paying maintenance fees but rather using the IP to achieve broader objectives for the business.
The third common challenge faced with intellectual property is the competition. This not only means standing out among the competition but also considering legal issues associated with duplicate innovative technology. That brings us to the next challenge, which is IP lawsuits. These could cause major financial losses for a company, as it could result in the loss of customers and tarnish the reputation of the brand.
Finally, it can be challenging to maintain the profitability of IP departments. Intangible assets tend to contribute to the growth of the company, but this is often overlooked when it comes to budget cuts.
Possible resolutions
While there are many resolutions to these challenges, those concerning legal issues arising with intellectual property will be discussed. To begin, for issues involving competition, having a strong patent portfolio can help protect the service and product offered as well as aiding in matters that arise to a patent-infringement lawsuit. If a lawsuit does arise, having a freedom-to-operate assessment as well as IP-indemnification clauses could help a business avoid litigation.
When dealing with intellectual property, a business not only seeks to crush the competition with it, but they also seek to protect it and avoid litigation because of it. As such, businesses should understand the potential issues that could arise and how to prevent them or address them if they arise.
