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How to protect a business idea: the 4 types of protection

In recent years, there has been an increase in interest in entrepreneurship . Consequently, there is much demand for innovative ideas able to create something of value to society and to generate a good financial performance. What many of these do not know is that when they are faced with a business idea Must protect it at all costs. Yet, startups still struggle on securing an idea .

Entrepreneurs should understand the basic principles of Intellectual property (PI) for protect your ideas aggressive competition. This is suitable for all companies, regardless of their size or the sector in which they are embedded, whether technology is a more traditional industry.

The rights of intellectual property They can be about a brand, logo, corporate identity, products, services or even processes that differentiate the commercial offer. These are the most valuable assets that a company can own.

Today, almost all companies bet and benefit from communication marketing digital in order to get their products to a huge audience and at relatively low cost, which in a more traditional method would be impossible. But also increases the likelihood of business idea be stolen by third parties. That's why the intellectual property protection It is essential to the success of business and entrepreneurs should understand their rights, duties and securing an idea .

Importance of intellectual property

As already mentioned, intellectual property It plays an essential role for the business success. Especially in the case of a startup where innovation of the idea and the risk on investment and success of this are united. Of the various advantages that this protection features, it highlights the following:

• Is the exclusive right by preventing third parties to produce, manufacture, sell or to economically exploit the developed solution, without the permission of the holder;
• Facilitates business growth as this is protected legally impossible competition to adopt the ideas;
• It demonstrates the commitment of entrepreneurs for their ideas;
• Values ​​the investment for the development of products or services;
• It allows for differentiation from competitors by offering customers something new and innovative;
• It generates money by selling or licensing the product or service;
• Transmits security, credibility and commitment to the customer by the holder.

At first glance, this process protection of their ideas It can seem quite complex and complicated, leading to many entrepreneurs ignore this step. However, it is simpler than it appears and is an asset to any company or entrepreneur, worth the time and effort devoted.

The good news is that there are certain rights intellectual property which are automatically protected by law. However, there are also other types of protection cool that the entrepreneur should ask.

When starting a business you need to confirm that there is no longer patented. This process avoids having to deal with the possibility of proceeding by the holder. Similarly, you must verify that the intellectual property your idea is not being violated. It is up to the entrepreneur to exercise since no one else will do it.

Next are listed the types of protection existing and steps securing an idea .

Types of protections

The kind of intellectual property protection an entrepreneur or business can get depends on the setting in question. Thus, it is necessary for them to decide which of his ideas fall into which of the options available and that action is taken as soon as possible in order to reduce the likelihood of losing protection .

There are four main types of business ideas protection : Patent, trademark, copyright and design registered.

If the entrepreneur is facing an invention may consider protect it with a patent. A patent grants property rights to an invention, new products and innovative processes. That is, this gives the holder the right to prevent others from making, using, importing or selling these without your permission.

This type of protection It is granted by the government, making the idea of ​​property holder. Usually remains in effect for 20 years, should be renewed regularly. It also allows the holder to license third parties to use their invention, generating royalties (periodic payment to the holder for the use of the product or service) thereby providing an important source of revenue for your business.

There are three main types of patents of which the entrepreneur must learn about how to protect a business idea in these circumstances:

Patent utility

It is the most common type of patent that entrepreneurs and companies seek. It covers any process, machinery, material composition, articles of manufacture and new and useful improvements. Processes refer to any industrial or technical acts or methods of doing something, machines include objects that can be considered machines (such as a computer), compositions of matter are basically chemical compositions including a mixture of ingredients or new chemical compounds and lastly, articles of manufacture are goods that can be manufactured or manufactured.

The holder to apply for a utility patent, as indicated by name, must have a breakthrough with some useful, novel and non-obvious. Ie, it may not be immediately obvious to anyone with basic skills in the same industry. This patent lasts up to 20 years where the holder during this period may have to renew it.

Design patent

The design is defined as the ornamentation of the surface of an article of manufacture, whether the shape or configuration of this. For this type of patent, the design should be separable from the article since it only protects the look of this. For to protect the other aspects, such as structural or functional features, the holder should look for a utility patent. These patents last for 14 years and are notoriously difficult to investigate because the documentation is mostly done in the manufacture of the article pictures or drawings. That is, the entrepreneur should seek help on securing an idea through such patent.

Plant patent

This type of patent, as indicated by the name, is intended to protect plants and any new and distinct variety of plants. In order to apply for this protection , The plant can not be propagated by tubers, it can not be found in an uncultivated state and can be reproduced asexually, to ensure that the holder can reproduce the plant. The plant patent lasts 20 years.

It is important that patents are requested as soon as possible. There is a risk of other companies or entrepreneurs also create patents for their ideas and if they are of the same type, the likelihood of getting a patent may decrease. Also, if it takes a lot to ask the patent, the entrepreneur may lose the chance to do so. This is because past 12 months after launching the product on the market, this opportunity will disappear.

This type of protection are signs that distinguish the products or services of one trader from another. They can take many forms, such as, words, slogans, logos, shapes, colors, sounds, symbols, distinct product names or marks or even a combination of these elements.

Trademarks are registered for specific products of a certain class. It is possible that other companies or entrepreneurs register their marks that are identical or similar, provided that they belong to different classes of brands already registered.

For a holder to apply for this type of protection , It must have a clear representation of the mark as well as identified the class of products for which the mark is applied. This mark must not be descriptive, include common last names, geographical names, registered company names or any indication of royal patronage.

A trademark lasts 10 years and that the holder can renew it indefinitely.

Copyrights protect original works of authorship. Examples of these are literary works, music, sound recordings, dramatic works, pantomimes, and cinematic choreography, sculptural works, pictorial and graphic, architectural works, software, web content, among many others.

A company or entrepreneur automatically owns the copyright in any work that they or their employees create. That is, your registration is voluntary. With this protection , The holder has exclusive rights and can decide how their work can be modified, performed, licensed, displayed or copied by others.

To qualify for copyright registration, the work should be represented in a tangible means of expression, such as a piece of paper. The duration varies according to the type of work, when and where it was created. Thus, the company should seek information on securing an idea .

trade secrets

A trade secret is something that companies keep secret in order to provide an advantage over its competitors. This kind of protection may include, but are not limited to the following, formula, process, device, business information, list of customers or suppliers, financial data, computer algorithms, programs, techniques.

Unlike other types of intellectual property , a protection by trade secret is not registered. Its duration depends on the measures taken by companies to control the dissemination and use of information. Thus, companies use confidentiality agreements, restricted access to confidential information, post-employment restrictive agreements, regular meetings with employees to keep them aware of what can not be transmitted outside the company and other security practices to keep information important within the company.

Innovative ideas allow many companies to succeed. This is because develop new and better alternatives that already exists in the market, offering a competitive advantage. THE intellectual property It is essential to ensure safety to the entrepreneur and facilitates a possible internationalization of the business.

Before boarding no product development Should confirm that there is no patent or other form of protection already registered, you can limit the planned development of the business idea.

If you need or feel better, the entrepreneur should seek professional help from lawyers, for example in order to determine the best protection that fits business and securing an idea . The aid of experienced entities can help the entire application process is done correctly.

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About Sara Pereira

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Przemysław Ćwik

Senior Editor.

17 November 2020

How to protect your business idea from being stolen (and what to do if it happens).

I have a business idea no one has ever had before! I need to consider it a bit more, improve it, develop it with some super digital agency, and then I will reap the fruits of the project. There is only one thing I am afraid of - that someone will steal the idea. How can I protect it from being stolen?

Let's start with bad news and good news at the same time. Your business idea is certainly valuable, but at this stage only for you. The probability that someone "from outside" will be interested in it, otherwise than just being polite, is relatively low. The reason is simple: there are plenty of business concepts on the market. There are currently about 300 million startups worldwide, nearly 3 million apps are available in the Google Play store and more millions of business concepts are waiting to be implemented.

Companies that would be potentially interested in taking over your idea try to put their own ideas into practice, believing in them as strongly as you believe in your concept. This does not mean that your business project is not perfect. Maybe it is. Therefore, it should be protected. However, it is not worth worrying that the idea is actually at risk of being stolen and that someone is lying in wait for it.

Business secret, i.e. the law helps those who are discreet

The basic preventive measure protecting a business idea from being stolen is discretion. It seems obvious but it is worth mentioning because problems are often caused by trivial negligence. Discretion is important not only for practical but also legal reasons. Being discreet is key to protecting the so-called business secret (also: trade secret). It is a legal term that refers to " any technical, technological, organizational information , or other information of commercial value, concerning an enterprise, undisclosed to the public, with regard to which an entrepreneur has taken necessary steps to maintain confidentiality".

In other words, information constitutes a business secret if it meets three cumulative conditions:

• has a technical, technological, organizational character of the company or has economic value,
• was not disclosed to the public,
• the necessary measures have been taken with respect to it in order to maintain its confidentiality.

The business secret is, therefore, subject to legal protection on condition that the entrepreneur has – attention! – a “recognizable” will to keep it a secret. Without such a clearly expressed will, even if the information is unknown to third parties at the given time, it will not be regarded as a business secret. However, it will remain so even if we share it with people obliged to keep it confidential, e.g. under an NDA agreement.

Copyright can protect your code, but not your business idea

When it comes to protecting business concepts from being stolen, discretion is all the more important because such ideas cannot be copyrighted. – Ideas, even the most revolutionary ones, in most cases are not protected under copyright law, as pointed out by Rafał Wysocki, legal adviser, specialist in new technology law, who has been running his own law firm in Krakow for over 10 years. Someone who was the first to create such software has no monopoly on the production of such software in the future. In Poland alone there are at least several hundred products of this type. The situation is similar with web or mobile applications, the expert explains.

Does this mean that apart from discretion, we have no tools to protect our concept? Not exactly. A lot depends on what we understand by the concept of a business idea. If the concept is a solution that can be concluded in a few paragraphs of the text, it will be rather difficult to copyright it.

If the idea is at an advanced stage of development and includes ready-made creative elements, the chance that it will be legally protected is greater. – Take a web application as an example. It consists of both the code and the conceptual and visual layer, i.e. the design, functional layout, colors, UX elements, and also the name, which further individualizes the product. All of this creates a subject that can be protected under copyright law, Wysocki explains. If, in addition to the creative aspects, the concept is also technical or technological in nature, it can also be protected under the provisions on business secret (unless it is already protected by a patent).

However, this is not an either/or issue. The condition for copyright protection is the creative nature of the solution. – In the case of an algorithm that counts the net and gross amount under the VAT rate, we cannot speak of a creative and innovative project, the lawyer notes. Therefore, such a product will not be subject to legal protection.

Where then is the borderline between creativity and reproduction? It is hard to say. It depends on the specific case. It is often determined by the "context", i.e. the nature of the project where a given solution, e.g. code, is a component.

– If we are dealing with a copyrighted solution that is part of a larger creative project, there is a greater chance that the code or visual identity will be protected under copyright law, as explained by the expert. Just a chance because when a disputed situation occurs (e.g. someone actually "gets inspired" by your idea) and the case goes to court, it will be settled to a large extent on a discretionary basis.

How to copyright the name and logo to better protect your business idea?

Among the elements that can make up a business idea, the name is an exception. Usually it is not the essence of the concept, but it is often of great importance in its implementation. Therefore, it is good to know that it can, and even should, be copyrighted: both as a word mark (company or project name) and as a word and figurative trade mark (logo). This can be done at the Patent Office by applying for trademark protection. You should check beforehand whether the name is already registered.

We are not going to describe the whole procedure here, a detailed overview of the process and its costs can be found on UPRP.gov.pl website . Table of application and protection fees is available HERE . It is worth adding that if the business is to have an international reach, extending the territorial scope of the use of the trademark to other countries will be a good idea.

A separate but related issue is the registration of the domain corresponding to the name of the project. We discussed this topic more in one of the previous texts: “Domain for startup. What is it, how do you choose it and where do you get it from?" . To put it briefly: it will be perfect if you manage to register a name directly in the .pl domain (if you want to operate on the Polish market), as well as the .com domain (if you want to operate on the international market).

Court, OCCP or mediation? What to do if someone steals your business idea?

Registering a name and logo is a bit tricky (domain registration is simplier, unless there is a need to purchase it from its current owner), but if you complete the formalities, you get unconditional trademark protection. Copyright is more convenient in this respect as it does not require any official action and provides protection of the creative work in an automatic mode. The problem is that it is not as "unambiguous" as a trademark because the object of the protection is also devoid of this "unambiguity". As a result, disputes related to cases of alleged theft of an idea or rather a specific achievement are more difficult to resolve.

– In such a situation, it is crucial to show that we are the author of a given solution, i.e. most often to demonstrate that we were the first to create this project, Rafał Wysocki explains. What institutions can help us in our dispute with the competitors we accuse of plagiarism? The Office of Competition and Consumer Protection (Pol. UOKiK) or a common court. Usually, however, cases do not go that far. – Most often such conflicts are solved by mutual agreements, the expert says. Not only because nobody wants to spend many hours in courts and cover the costs of proceedings. – Cases where a company operates in a very "offensive" way and commits a gross plagiarism are rare. Usually, disputes arise from carelessness, e.g., two companies introduce two similar products on the market independently of each other in a short period of time, the lawyer explains.

It is also possible to refer the case to mediation. This is an increasingly common form of dispute resolution. These types of proceedings are conducted by qualified experts – lawyers or "practitioners" who know the realities of a given industry. Therefore, there is no fear that issues related to code authorship will be resolved by a lawyer dealing with family conflicts. Lists of mediators can be found in common courts.

Do you want to protect your business idea? Work with companies that care about data security

Mediation is certainly an exciting experience, but it is better to prevent it. The basic precaution is the aforementioned discretion. It is worth extending it with technical safeguards and various "good practices", such as protecting computers against intrusion, using paper shredders, controlling access to the company, securing rooms where equipment or documents with sensitive data are located, etc.

Information security issues are regulated by the international standard ISO/IEC 27001. However, it is worthwhile to read the recommendations and implement at least some of them. It is also a good idea to pay attention to how your business partners approach data security. A company that has the ISO/IEC 27001 certificate - like KISS digital - can take care of information security in a more professional way than a company that has not heard of such a certificate.

Regardless of who you are working with, it is always worth signing the so-called non-disclosure agreement (NDA) . – Signing an NDA has two benefits. First, it gives you a fairly solid guarantee that a person or company that gains access to sensitive data will not disclose or misuse it. Secondly, such an agreement certifies that the information covered by that document falls under a business secret and the entrepreneur has taken appropriate steps to protect the secret, Rafał Wysocki explains.

Of course, in order for the NDA to be effective it should provide for the consequences of breaching it in the form of a contractual penalty. It is up to the parties who sign the NDA to determine the amount of the penalty which is usually proportional to the value of the information entrusted. In KISS digital we suggest the client to sign a confidentiality agreement already at the initial stage of contact. It is simply a convenient solution that provides a good mood and a peaceful sleep for both parties discussing their interests.

If you want to develop your business idea in cooperation with a company that takes business secrets seriously and adheres to the highest standards of data protection – contact us .

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Fighting with counterfeiting of products is becoming a priority for many companies. See how can you protect your brand with use of 2D codes.

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Best app marketing tips to launch and promote your mobile app.

Is your mobile app ready to launch? Congrats, the most difficult part is already behind you. Almost. It’s high time to learn more about mobile app marketing!

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Whether you’re starting your new business, or your company has been up and running for a while, protecting the business you have worked hard to build is essential.  However, in the excitement of managing a small business, many entrepreneurs may skip this very important step.

Here are seven ways you can protect your small business from risk.

1. choose the right form of business..

Operating as a sole proprietorship is the default business structure for a one-person business. But while this option may be easy, it's not necessarily the best choice to protect your business. For one thing, the sole proprietorship structure doesn’t shield your personal assets. That means if a customer decides to sue you or a vendor demands payment that your business can’t afford, your savings, home and other assets could be fair game.

Depending on your future goals for your business, a corporation or limited liability company (LLC) could be better for you. Learn more about  how to choose the right form of business .

2. Get legal help.

For some basic legal matters, an online legal resource can provide helpful guidance and tools, such as Rocket Lawyer , Nolo or LegalZoom . You’ll typically find:

• Access to information. The specifics vary by the legal websites, but most include articles, blogs, checklists, templates and legal forms including non-disclosure agreements, business contracts and LLC operating agreements. This information can help you understand your legal rights and obligations and provide guidance to help you navigate your legal needs.
• Legal tools. These kinds of legal websites can offer tools such as business formation documents, trademark, copyright and patent information, as well as annual reports that you’ll need to file and more.
• Helpful compliance resources. You’ll typically find sample privacy policies, terms of service and website cookie notices.

However, there may be times you need a lawyer to represent you. If that happens, here are some steps to follow:

• First, identify the specific legal issues your business is facing. Do you need help with business formation, contract review, employment law, intellectual property or something else?
• Ask your friends, family and business associates for recommendations for lawyers who specialize in the area of law you need help with. Check with your local bar association or chamber of commerce for referrals.
• Once you have a list of potential lawyers, schedule interviews to learn about their experiences working with small businesses, expertise and fees. Ask about their availability and who in their office will handle your case.
• Be upfront about your budget. If cost is a concern, discuss payment options — many attorneys have affordable solutions or may be able to refer you to a less expensive colleague.

3. Find an accountant.

Even if you plan on doing business bookkeeping yourself, getting a good accountant is worth the price. Who has time to keep up to date on tax law changes? You sure don’t — but accountants do. Not only can they ensure you take advantage of any tax breaks, but they can also provide valuable advice on how to structure your business, the best way to finance business expansion, and how much you should pay yourself.

During your startup phase, an accountant can help you assess your financing needs, advise whether your financial projections are realistic, and help you assemble documentation and a presentation that will convince investors and lenders to finance you. 

4. Buy business insurance.

Most businesses need general liability insurance, which protects the business from a variety of claims that can arise from business operations. A business owner’s policy combines general liability with property coverage and is a popular solution for many small business owners. If you provide advice or professional services to customers, you may also need professional liability insurance, also known as E&O (errors and omissions) coverage. If you use a vehicle for business purposes, such as traveling to customers to perform services, transporting materials or people or delivering products, you will likely need commercial auto insurance. Depending on which state you operate in, you may be required to have workers’ compensation insurance. Other insurance products to consider include employee life insurance, business interruption insurance and cyber insurance. Learn about protecting your business from common and uncommon risks in Progressive’s Prepare and Protect Guide . An independent agent in your area can also help you determine which coverages will best serve your business .

5. Be smart about new customers and clients.

Small business owners can face cash flow issues due to late or unpaid invoices. Fortunately, there are some things you can do to mitigate the risk.

• Start with a contract.  A written contract outlines the terms of your agreement, including the scope of work, the price, the payment terms and any deadlines. Considering having an attorney review your master contract template before customizing it for clients.
• When the contract is signed. (Your deposit.)
• When the work begins.
• Interim milestones. These will vary by the type of business you own. For example, for a home remodeler, the milestone could be finishing one room; for an accountant, it may be completing an audit; and for a graphic designer, it could be developing a specific number of website pages. 
• When the project is finished.
• Send invoices promptly.   S end an invoice for every payment milestone. The invoice should be clear and concise and include all relevant information, including the date, invoice number, contact information and payment terms. Remember to thank the customer for their business.

6. Protect your employees.

From an electrical fire that destroys your inventory to a natural disaster like a flood or hurricane, disaster can strike your business at any time. That’s why having a disaster plan for what you will do in an emergency is important. A good disaster plan protects both your business and your people. Create a plan and assign responsibilities for how to get employees and customers out of the building safely, what to do if a disaster keeps you and employees from getting to your business, and how you will keep running even if you can't get to your physical location.

Ready.gov, an official website of the U.S. Department of Homeland Security, offers business disaster toolkits for hurricanes, earthquakes, flooding, power outages and other types of hazards.

7. Protect your business data.

Cyber threats are on the rise, and small businesses are frequent targets. To protect your business, start by backing up your company data and documents and storing them securely. A cloud-based file storage solution keeps your data safe off-site and accessible no matter where you are. To protect your business from cybercrime and hackers, install appropriate firewalls, use business-grade computers and antivirus software, and train your employees in cyber security measures, such as creating strong passwords. SCORE’s  Small Business Guide to Cyber Security  can help you get started.

Your  SCORE mentor  can help you determine additional ways to manage risks and protect your business.

Progressive Commercial Insurance

With over 50 years of experience,  Progressive Commercial Insurance  offers a full range of business insurance products featuring competitive rates and first-class service. They offer customized insurance solutions for both heavy and light commercial vehicles, as well as business insurance coverages including general liability and business owners policies, professional liability, workers’ compensation and more. Progressive is a Fortune 100 company and trusted by thousands of small business owners to protect their livelihood.

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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Safeguard Your Business Idea: Expert Tips for Protection

Intellectual property rights are important to protect your bottom line. From the proprietary recipe for coke to famous patents for the lightbulb, telephone, gas motor engine, and refrigerator, entrepreneurs and investors have worked to protect their business ideas for centuries, and you should, too. 

As of 2022, Samsung is the world’s largest patent holder, with 6,248 patents granted during the year. Protecting your business concept is important even if you haven’t invented a new cell phone or lightbulb. Read on to know about how to protect a business idea and grow your business.

Why Is Protecting a Business Idea Important?

Protecting a business idea is crucial as it helps prevent others from copying or stealing your concept, ensuring that you have a competitive advantage in the market. For example, while “smartphone” is a broad idea, and most perform similarly to the end user, key differences drive Apple, Samsung, and every other major cellphone producer to protect their unique offering. 

Whether you’re developing a line of children’s clothing, a hair business , planning to become a nurse entrepreneur , creating a seasonal business , or developing a type of business coaching, you’re bringing something into the market that is fundamentally unique and valuable. 

When you protect those business ideas, mass producers in China or stores down the street can’t legally replicate it and sell it for half the price, driving away your business. From design patents and trademarks to intellectual property rights, read on to learn how to protect a business idea. 

How to Protect a Business Idea in 7 Ways

Businesses, including Wyoming LLCs and other LLCs and corporations, rely on IP protection, patents, copyrights, and trademarks to protect their ideas, logos, and other intellectual property. Here’s how each of these work:

1. Intellectual Property (IP) Protection

According to the World Intellectual Property Organization , intellectual property or IP refers to creations of the mind or intellect, including inventions, literary or artistic works, designs, symbols, names, and images used in commerce. Patents, copyrights, and trademarks are the primary means companies use to protect IP, although companies may also hold IP rights for trade secrets, geographical indications, or industrial designs. 

IP law allows individuals and businesses to earn recognition or financial benefit from what they invent or create.

Patents are generally granted to the inventor of something new. When someone invents something unique, a patent gives the owner the right to decide how or whether others can use the invention. Interestingly, to hold a patent, the patent owner must make technical information about the invention publicly available in the patent documentation. 

Meanwhile, widely used inventions that have patents include the slinky (toy), hula hoop, and television. 

Trademarks are signs that distinguish the goods or services of a company. Think of Nike’s swoosh symbol or the Starbucks logo as common examples of trademarks. Interestingly, the history of trademarks dates back to ancient times. Artisans would put their signatures or marks on their products, making them the first trademarks. 

Copyrights are used to protect the rights of creators over their literary and artistic works. Works covered by copyright can include books, music, paintings, sculptures, films, computer programs, databases, advertisements, maps, and technical drawings.

2. Trade Secrets Law

Trade secrets are specific IP rights related to confidential information that may be sold or licensed. According to the US Patent Office , trade secrets include any information with actual or potential independent economic value that is not generally known. It must also have value to others who cannot legitimately obtain the information, and a company must demonstrate reasonable efforts to maintain its secrecy. 

The unauthorized acquisition, use, or disclosure of trade secrets is considered unfair business practices and a violation of trade secret protection. You can file claims against an individual or company who has illegally acquired company trade secrets. 

3. Non-Compete Agreements

A non-compete agreement, non-compete clause, restrictive covenant, or clause is commonly used with employees. Under a non-compete agreement, the employee, who could also be a trade partner, generally agrees not to enter into or start a similar profession or trade in competition against the company requesting the non-compete agreement. 

For example, a software company may ask employees to sign non-compete agreements for five to ten years after they stop working at the company before allowing them to see its proprietary software or other trade secrets. 

4. Non-Solicitation Agreements

Non-solicitation agreements are another way businesses protect their connection with employees and client bases. A non-solicitation agreement is a contract clause that states, again usually for employees, that if they move to work for a competitor, they won’t solicit any current business clients or employees. Non-solicitation agreements usually extend to confidential information connected to the employee’s current job, adding additional protection to trade secrets. 

In the example of the software company employee above, with a non-solicitation agreement, the employee can’t share details about the original company’s clients, employees, or trade secrets if they went to work for a new software company.

5. Non-Disclosure Agreements

A non-disclosure agreement (NDA) is signed between companies or with an employee. It simply states that one or more parties agree not to disclose confidential information related to the business. For example, if two companies enter into a partnership or collaboration, both may agree to sign a non-disclosure agreement to protect their IP. 

6. Work-For-Hire Agreements 

A work-for-hire agreement is a one-time contract that allows companies to hire freelancers or other professionals for a set upfront cost or another form of payment in return for their services. Work-for-hire agreements are commonly used for writers, actors, or other professionals who create unique work. 

In the case of a work-for-hire agreement, the copyright or trademark is passed on to the company. For example, if you hire writers to produce a screenplay or write regular blog posts for your company, with a work-for-hire agreement, your company owns the screenplay or blog posts. 

7. Provisional Patents 

According to the US Patent Office, when you apply for a provisional patent , you may file without a formal patent claim, oath, declaration, or any information disclosure statement. Generally, a provisional patent filing will protect your company for 12 months after which you need to file a non-provisional patent application. 

Other Tips to Protect Your Business Ideas

In addition to the legal protective structures, there are other steps you can take to protect your business, including:

1. Employ Secure Communication Channels

Employing secure communication channels includes secure, password-protected company wifi and strong and unique passwords for real-time communication channels, including email and chat. Basic security precautions and company-wide protocols can help ensure information doesn’t fall into the wrong hands.  

2. Timestamp Your Ideas 

Timestamping allows businesses to secure and protect ideas and includes the ability to record the current time of an event from any computer. Common mechanisms, such as Network Time Protocol, allow networked computers and applications to communicate effectively while securely protecting information. 

3. Only Share Your Idea Once It Has Received Protection

This is the simplest protection. Until you’ve established IP protection for your company’s idea, don’t tease it on social media or tell investors or anyone else about it. Ensure the protection of company ideas, and then move on to the next steps, from securing funding to marketing. 

4. Monitor for Infringements of Your Protected Business Ideas

There are various software protocols online to monitor for infringement of your protected business ideas. Brand protection software like PhishLabs, Adthena, Allure Security, Corsearch, EBRAND, and Red Points can help you monitor for infringements on a large scale to help protect your business ideas and IP.

What to Do if Someone Steals Your Business Idea?

If you suspect someone has stolen your business idea, consult an attorney to understand your legal options, gather relevant evidence, and consider pursuing legal action if necessary. The sooner you take action, the better. Specialized IP lawyers can help you take the relevant actions and secure your IP, even without going to court.

Building in Business Protection

From starting a small business to developing one-person business ideas , Doola business formation and compliance services can take your idea into reality. While working to protect your intellectual property, Doola can help you secure the legal structure, EIN, and business bank account to get your company up and running. It can also ensure legal compliance. Get Doola formation services here!

What legal documents can help protect my business idea?

You can protect your business idea by filing for the relevant copyrights, trademarks, patents, and trade secrets.

How do I prevent others from stealing my business idea?

You can prevent others from stealing your business ideas with copyright protection, trademarks, patents, trade secrets, and provisional patents, as well as non-compete, non-solicitation, non-disclosure, and work-for-hire agreements. 

How can I prevent employees from using my business idea for personal gain?

You can prevent employees from using your business ideas with non-compete and non-solicitation agreements. 

Is it safe to discuss my business idea with potential investors?

Discussing business ideas with potential investors is safe if they have signed a non-disclosure or non-compete agreement. You can speak with an IP lawyer to ensure you protect the company with the best possible options.

Can I protect my business idea forever?

Yes, you can protect your business idea indefinitely with copyright, patent, trademark, or trade secret laws. 

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Writing a Business Plan & Protecting Your Idea Don't know where to start? Here are the first steps, plus how to protect your business idea.

By Stever Robbins Jul 17, 2000

Opinions expressed by Entrepreneur contributors are their own.

Q: I'm a budding entrepreneur, and over the years, I've brainstormed about many different business ideas. What's the first step in getting my concepts rolling? Is it setting up the Web site and launching a direct-mail campaign, forming the company structure or writing a business plan?

A: Unfortunately, there's no magic formula. Successful companies use every combination, and then some. Here's my recommendation, but check with your lawyer and accountant before making final decisions.

• First, create the business plan. A plan structures your idea. It lets you think through your market assumptions, product, distribution, management and financial needs. Even if you never need to raise outside money, now may be your only chance to think through everything from top to bottom and know where and how you're going. You can also work with a lawyer to choose a corporate structure that's most suited to your operational and financial needs.
• Next, incorporate. That way, start-up expenses clearly belong to your business and not to you as an individual. Incorporating early will also start your company's legal history, which can make it easier to get credit and raise bank financing later on. Furthermore, lawyer Joe Volman ( [email protected] ), a specialist in early-stage deals, points out that incorporating limits your liability once you start dealing with customers. In addition, he says you want as much time as possible between incorporation and outside investment to justify a low share price at incorporation. Your founder's shares are considered income by the IRS, and it's hard to value them at a penny per share two weeks before outside investors pay $1 per share. But always check with your own lawyer who knows your situation and your state's tax laws before deciding when to incorporate. Doing this properly at the start can save thousands (if not millions) of dollars down the road.
• Finally, build your site and market it. Your business plan is your chance to identify your customers, value proposition, financials and the response rates you need to be successful. If you begin building and marketing without the up-front thought, you won't know if your time and money are going toward the right things. A 3 percent direct-mail response rate is incredibly good, but if your business plan requires a 10 percent response to be profitable, it's best to know that before you pay for a direct-mail campaign.

Q: I'm also uncertain about showing my plan around once it's completed. Should I take measures to protect my ideas and concepts at that stage, and if so, what types of actions can I take to ensure my concept stays mine?

A: Protecting intellectual property (IP) is best done early by using a good intellectual capital lawyer. IP protection covers many areas, including the business idea, technology ownership and trademarks.

Entrepreneurs often ask investors to sign nondisclosure agreements (NDA) to protect the business idea. Few angels and almost no venture capitalists will sign an NDA. If one of their portfolio companies is already working on a similar idea, they can't sign it. If they did, you could show up years later claiming they stole your idea.

VCs also say you can trust them anyway since breaking confidentiality would hurt their deal flow. Really? If a VC has track record of making entrepreneurs multimillionaires in 18 months, would you talk with them even if you heard rumors they steal ideas? Probably. Especially since those rumors can be dismissed as sour grapes from unfunded entrepreneurs. Indiscretion might tank a VC's deal flow, but I doubt it would be as devastating as they portray.

Business Plan Guide "

• How Long Should Your Plan Be?
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But they have a much more solid argument: The idea doesn't make the difference-entrepreneurship is all about execution. And I agree wholeheartedly. Dreamers with good ideas are a dime a dozen. But in my daily work with entrepreneurs, it's the day-to-day implementation that makes or breaks them, not the grand ideas.

Specific technology is easier to protect than ideas. You can apply for patents and trademarks to protect proprietary technology you bring to the table. Patents protect, and they become assets that increase your valuation. Patents may even protect your business models. One company I've worked with has been told that some of their ways of doing business are patentable.

Caution: Don't rely too much on patents or trademarks in a practical sense. If someone infringes, your patent is only as good as your ability (time and legal resources) to prosecute infringements.

If your idea is all you have, as soon as you start sharing it to raise money, hire employees or establish trade accounts, then it's time to start executing for everything you're worth.

As an entrepreneur, technologist, advisor and coach, Stever Robbins seeks out and identifies high-potential start-ups to help them develop the skills, attitudes and capabilities they need to succeed. He has been involved with start-up companies since 1978 and is currently an investor or advisor to several technology and Internet companies including ZEFER Corp., University Access Inc., RenalTech, Crimson Soutions and PrimeSource. He has been using the Internet since 1977, was a co-founder of FTP Software in 1986, and worked on the design team of Harvard Business School's "Foundations" program. Stever holds an MBA from Harvard Business School and a computer science degree from MIT. His Web site is a http://www.venturecoach.com .

The opinions expressed in this column are those of the author, not of Entrepreneur.com. All answers are intended to be general in nature, without regard to specific geographical areas or circumstances, and should only be relied upon after consulting an appropriate expert, such as an attorney or accountant.

Stever Robbins is a venture coach, helping entrepreneurs and early-stage companies develop the attitudes, skills and capabilities needed to succeed. He brings to bear skills as an entrepreneur, teacher and technologist in helping others create successful ventures.

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5 Ways To Protect Your Business Ideas and Innovations

Editors - paruli upadhyaya

A thriving business can easily be robbed of its fruits of innovation with notorious IP counterfeiting and infringements, making it difficult for a business to survive. The significant amount of time a company invests in strengthening its reputation, and the resources it infuses to innovate, can be crushed in a matter of seconds with IP infringement. Therefore, experts lay emphasis on the importance of making one’s products and services infringement-proof through several available methods.

Table of Contents

Why Opt For Infringement Protection

Digitalization has hastened the production and distribution of counterfeit products, which reach worldwide consumers and gather negative reviews for poor quality. The practice accelerates the process of brand erosion.

Bearing this setback in mind, it is crucial that businesses equip themselves with powerful information on infringement of intellectual property rights (IPRs) so that they can be effectively enforced. IPRs ensure that in case an IP infringement occurs, the plaintiff is fully compensated for the damage caused to their creation.

Discussed below are 5 Ways To Protect Your Business Ideas and Innovations:

A patent is essentially a right granted by the country’s government to assure and fend off other companies from manufacturing, selling or using a business’ apparatus, design or software. The assurance can be achieved by filing an application with the Patent and Trademark Office of the country. The patent is issued after verifying its ingenuity. The process takes approximately two years. Once the patent is issued, you can prosecute or prevent others from copying your invention. While the company awaits the patent, it can use the “patent pending” tag on promotional materials such as flyers and advertisements to convey the exclusivity of its products.

2. Trademarks

 A trademark is a symbol or notation that specifically identifies and differentiates a company’s product in the market. Shapes, building designs, ornamentation or even brand taglines can qualify as a trademark. To establish the ownership of a trademark, it is customary to initially use it during the commercial sale of goods and services, followed by prompt filing of the application at the Trademark Office. Upon confirmation of the similarity of the mark, the official registration will be granted.

3. Copyrights

A copyright can impede the duplication of any writing, artwork and computer program. The copyright for creation exists as soon as it’s created. However, if the work is disclosed in the public arena without proper notice – the symbol ©, the year it was publicized, the name of the owner, and the ownership can be forfeited. Pre or post-publication, copyright can be federally registered by applying to the Copyright Office. The copyright laws protect books, pamphlets or any form of conventional texts and artwork as well.

4. Trade Dress & Unfair Competition Law

It is always helpful to be aware of the protective law meant to safeguard your goods and services, known as “trade dress & unfair competition law”. “Trade dress” here implies the distinctive way products are “dressed” – packaging, labels and colours. This law henceforth shields the product against unauthorized copying of design and ornamentation. Designs that fail to gain protection via trademark are sometimes encompassed by this law.

5. Trade Secrets

Trade secrets refer to those documents and information that the company keeps confidential from outsiders. The information is not disclosed during sale or advertisement of the products or services. Blueprints, recipes and customer lists belong to this category. Maintaining this secrecy is essential as protecting a company’s trade secret can prevent unlawful disclosure, acquisition, and use of the company’s trade secret by other companies.

The above-mentioned legal tools are indispensable means of protecting your ideas and products from marketplace predators. Most often, more than one legal remedy can be used to protect a single innovation or design. Intellectual property is prone to theft because it’s an integral part of a business’ revenue and growth story. Have a revolutionary idea in your head? Be cautious before discussing in unprotected space – fallen into the hands of a wrong company or person, your rightful property can be plagiarized and produced in the market. Hence, the salient step following the inception of an idea is to protect it.

Sagacious IP works extensively to protect businesses from intellectual property thefts by providing them tailored intellectual property management solutions . Be it patent information searching or trademark search , we have got you covered.

-The Editorial Team

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Intellectual property: What it is, how to protect it

Safeguard your company’s ideas, trade secrets, and branding.

As a business owner, you manage many assets on a daily basis, but you may be overlooking an important one: intellectual property.

Your intellectual property includes the intangible assets you create for your business, such as names, designs, and automated processes. And just like tangible possessions — such as supplies, equipment, buildings, and inventory — your intellectual property contributes to the value and success of your business. So it needs to be monitored and protected against intellectual property theft and infringement.

So what exactly is intellectual property? Intellectual property refers to creations by humans (as opposed to artificial intelligence) that are protected by law. Here’s a breakdown of common types of intellectual property and tips on how you can protect these assets.

Trademarks are the words, phrases, and symbols that differentiate your brand from others in your industry. In order to qualify as trademarks, they must be distinctive and used in commerce to sell or promote a product or service.

• Company and product names
• Slogans and taglines
• Logos and symbols
• Brand colors

How you can protect them : Trademarks may be registered with the federal government or your state government. Federally registered trademarks protect your rights throughout the U.S., while state-registered trademarks protect your rights only within the state’s territory.

While you’re not required to register a trademark, having a registered trademark can make it easier to challenge anyone who infringes on your trademark rights.

The United States Patent and Trademark Office (USPTO) provides information on how to register your trademarks at the state or national level.

Federal trademarks last as long as you use them with the public to promote your goods or services. Trademark applications generally cost between $250 and $350 per class of goods or services. To see if your desired trademark is available, you can begin with a general internet search or by checking the USPTO website . A trademark lawyer can help you do a more detailed search to determine the availability of your desired trademark.

A copyright grants you legal rights to anything you create that expresses or embodies an idea. It gives you exclusive rights to copy, distribute, reproduce, display, and license the work.

• Architectural designs
• Graphic arts
• Video and sound recordings
• Books and blog articles

How you can protect them : Like trademarks, you have some rights to your original work even if you don’t register the copyright at the U.S. Copyright Office . However, registering can give you more leverage if a case ever goes to court. For instance, if an employee writes an article or takes a photo within the scope of their employment, the employer is the copyright owner automatically. However, an independent contractor who writes an article or takes a photo will be the copyright owner of that asset unless they transfer the copyright through a written contract. As with trademarks, registering them officially can give you more leverage in the event of a dispute.

A copyright empowers you to profit from your creative assets. You can sell your copyrighted assets and lease them in exchange for license fees and royalties.

A new copyright owned by an individual typically lasts 70 years after the death of the copyright owner. A copyright owned by a limited liability company (LLC) or other legal entity will last 95 years from the first date the work was used with the public. You can file to register a copyright with the United States Copyright Office . The current online application fee for basic registrations is $45 to $65.

Patents are granted for new, useful inventions, and they will give you the right to prevent others from making, using, or selling your invention.

• Utility patents : for tangible inventions, such as products, machines, devices, and composite materials, as well as new and useful processes
• Design patents : the ornamental designs on manufactured products
• Plant patents : new varieties of plants

How you can protect them : Patent applications can be filed in the United States with the USPTO , and internationally in the patent office of the applicable country or region. U.S. utility and plant patents have a term of 20 years, while design patents have a term of 15 years. Patents require a nonrefundable filing fee, along with issue, service, and maintenance fees. This can add up to thousands of dollars, but some small businesses qualify for discounts.

Before submitting your patent application, you can (but are not required to) search existing patents and published patent applications to see if your concept has comparatively novel features. A patent lawyer can help you do a more thorough search to determine the availability of patent protection for your concept. They can also help you investigate whether any third parties have patents that could prevent you from bringing your product or service to market.

Trade secrets

A trade secret is a piece of confidential business information whose secrecy gives you an advantage over your competitors.

• Methods, techniques, and processes

How you can protect them : Though trade secrets cannot be registered, they can be protected in other ways. For instance, to keep valuable trade secrets safe, businesses use a variety of methods, including internal policies that restrict access to the trade secret, employment agreements, and non-disclosure agreements. You can take legal action against those who misappropriate your trade secrets.

Get started: Put protections in your business plan

Intellectual property rights can help you establish your brand identity, profit off your unique assets, and prevent others from using your creations. Making them part of your business plan can help ensure nothing’s missed.

Start by listing all your intellectual property assets, then consider which assets need to be protected. Budget for the time and money you’ll need to properly secure the rights to your creations, and outline how you plan to protect your intellectual assets. Finally, set deadlines for research, filing, and finalizing these steps and work toward them as you would any other business goal.

As you build and protect your company’s value, Wells Fargo is here to assist. Explore our helpful products and services , and make an appointment today.

Sources: U.S. Patent and Trademark Office , U.S. Copyright Office Fees , U.S. Copyright Office FAQ

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How to legally protect a business idea

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Last updated on: September 2, 2024

Do you have an exciting business idea up your sleeve? If so, it’s crucial to safeguard it from potential threats. Until it’s legally protected, scammers, malicious entities, and even legitimate competitors might be tempted to copy your idea and, consequently, your potential earnings. 

The loss of your intellectual effort and innovation due to inadequate protection is a risk you don’t want to take. But in the realm of business, it’s a common oversight among entrepreneurs. This lack of preparedness for asserting and enforcing their intellectual property rights means that others can appropriate their ideas freely. 

In this guide, we’ll explain how to address this issue, and the steps you can take to legally protect your business idea. We’ll also share strategies for asserting your ownership and combating intellectual property infringements as they arise.

How to legally protect your business idea 

• Register your intellectual property (IP) portfolio
• Monitor for infringements of your protected business ideas 
• Enforce IP ownership and take down infringements 
• Employ a brand protection software 

Register your intellectual property portfolio

The first step to legally protect a business idea is fairly straightforward: you want to register ownership of your intellectual property. Intellectual property refers to the ownership of intellectual creations, ideas, and concepts. Common examples of business IP include brand logos and names, inventions, and product designs. 

Having formal registrations for each of your business ideas will help stop infringements of your intellectual property . There are four distinct types of IP that will protect your business ideas, and it’s important you register them correctly. The four types of intellectual property are copyrights, trademarks, patents, and trade secrets. 

1. Copyrights

Copyrights protect original creations. Copyrights protect your unique business content from being replicated. This means that someone can’t legally make a copy of your creation, whether they go on to sell it or simply copy it for themselves. 

There are many types of content that would fall under copyright protection as it pertains to your business. For example, blog articles, web content, unique patterns, and graphic designs are all forms of business copyright content that you can register. 

While copyright applies automatically to the creator, it’s still a good idea to get it registered to best protect your copyrighted content . This will create a record and make it easier to prove your ownership of creations if you have to take down an infringement. 

2. Trademarks

Trademarks protect the content and ideas that help customers distinguish your brand from others. Common business trademark examples include brand names, logos, slogans, and particular product packaging and/or design. 

Trademarks, like copyrights, are automatically applied and protect your unique brand identifiers from being used by scammers or competition. 

Again, we do recommend you officially register your business trademarks if you want the best protection for your business ideas. Registering your business trademarks grants you the right to take legal action against anyone infringing on your IP and using it for themselves. 

Patents protect inventions that may or may not yet exist, and therefore help protect ideas and concepts vs. existing creations like copyrights and trademarks. 

Unlike the former types of intellectual property rights, patents aren’t automatically applied to inventions and require registration with the United States Patent and Trademark Office .

Patents are necessary to protect your invention and keep it from being stolen and replicated. To enforce a patent and take down anyone stealing your idea, you’ll need this legal registration in your IP portfolio. 

4. Trade Secrets

Trade secrets protect the particular processes and information a business uses to operate and succeed. Common examples of trade secrets include recipes, processes used to create or analyze content, and client lists used for sales. 

Trade secrets are another type of intellectual property that is automatically granted to the owner. To be considered a trade secret legally, you must ensure the information is:

• Beneficial to your business because it is a secret
• Beneficial to others (like consumers) who can’t access the information
• Reasonably protected by the owner to ensure the information does not become public knowledge

If someone steals your trade secrets, you have the legal right to enforce your ownership and take legal action against them. This is vital to ensure your competition cannot benefit from your unique business ideas.

Once you have the proper registrations for all of your intellectual property, make sure you keep a detailed record. Developing an IP portfolio will mean that you and the rest of your team know exactly which of your content is protected. It will also be necessary to prove ownership of your IP if you have to deal with infringements. 

Monitor for infringements of your protected business ideas

Registering your IP will help you claim legal ownership of your business ideas, but it won’t necessarily stop bad actors from stealing your IP anyway. It’s especially easy for scammers to steal your content and business ideas and infringe on your IP online, where counterfeiting and brand impersonation are rampant. 

To protect a business idea from being stolen, you must be on the lookout for anyone infringing on your content. Monitor for infringements across all of your sales channels, as well as places where you don’t currently sell your products or operate your business. 

Common places for IP infringements to occur include fake websites , Ecommerce marketplaces like Amazon and Shopify , and social media platforms like Facebook and Instagram . To best protect your business ideas and content, it’s important to monitor for infringements on as many of these channels as possible. 

Enforce IP ownership and take down infringements 

If you do notice someone infringing on your intellectual property, enforce your ownership and submit a claim to have it taken down immediately. If left alone, someone can completely damage your brand reputation and steal your revenue by producing and selling your intellectual property.

How are intellectual properties enforced? 

One universal way to enforce ownership of your IP is to send a cease and desist letter to the infringer. This notifies them that they have unlawfully used your protected content and will face legal repercussions if they don’t take down the infringement. It also creates a record for you to use in court if you need to proceed with legal action. 

You can also report an infringement to any platforms the stolen content appears on, if applicable. You can report an infringement on Instagram , for example, and other social media platforms, Ecommerce marketplaces, and search engines. 

No matter what methods you use to enforce your intellectual property, it’s important to keep following up until the infringement is taken down. If you aren’t successful with these tactics, it’s a good idea to invest in an IP lawyer or brand protection expert . 

Employ a brand protection software

With the volume of scammers and bad actors online, protecting your business ideas from being stolen can be nearly impossible alone. Employing a Brand protection Software like Red Points can help you monitor for infringements on the scale you need to properly protect your business ideas. 

Red Points software can change the way you enforce your IP by making the process completely automatic. Instead of spending days scouring thousands of sites and platforms yourself, this software keeps a constant monitor for infringements all across the web. It also sends automatic takedown requests when infringements are identified, so you don’t have to waste time writing and sending C&D letters. 

What’s next

There are thousands of scammers, bad actors, and even industry competitors out there who can easily steal your intellectual property. It is vital to protect your business ideas and enforce your IP to ensure others aren’t stealing your revenue and profiting off your ideas.  Red Points can help protect your business idea with 24/7 infringement monitoring and automatic takedowns that save you time, stress, and money. Request a demo today and learn more about our services. See how you can protect your business with the most advanced Brand Protection Software ..

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Jordan Safranski

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