Intellectual property can take many different forms. It can also be protected in a variety of ways, such as trademarks, patents and the like. In many cases, intellectual property is incredibly important to business owners and may form the basis for the company in the first place.
But is this actually an asset that the company owns? It is—although it is often referred to as an intangible asset. But it does hold value to the company, and that is why IP violations can be so harmful.
A patented product
For example, say that someone designs a new product that they believe will revolutionize the market. They then get a patent on this product and start a company to begin manufacturing and selling it.
That patent is an asset that the company owns, and it gives them their value in the marketplace. Their product does something that their competitors can’t offer. The specifics of this advantage are not important in this hypothetical example, but it is critical for the company to protect its patent so that competitors can’t simply steal the product design and begin selling their own products.
When IP violations happen, it means that the original business loses potential customers. It can also harm the business’s reputation. Some consumers may be manipulated and not realize that they are buying knock-off products of inferior quality, for example—which makes them think less of the initial company, even though they never had an authentic product to begin with.
Do you believe that your company has suffered significant financial harm due to intellectual property violations? This can lead to complex litigation and IP disputes, so be sure you understand all of your legal rights.