With small businesses, IP is no longer "something for the hard basket"
The surge of the online retail sector in light of the COVID-19 restrictions imposed in the past two years has made IP more important than ever.
“As global demand increased, local retailers saw the possibilities of selling to the mega markets of Asia, Europe and America. To be successful, you need clever and innovative products which, if they’re not protected by IP, tend to be copied as soon as others recognise their competitive advantage,” James & Wells partner Ceri Wells told NZ Lawyer in the 2022 Sector Focus: The New IP – Providing protection and opportunity report.
However, there are still many organisations, particularly small businesses, who remain focused on the cost aspect of IP protection.
“In my experience with small businesses, there’s still a perception that IP is something for the hard basket – too expensive to worry about when you’re starting out,” Zone Law patent attorney and lawyer Julie Ballance said. “They overlook the fact that it’s much more expensive to get out of a mess than to avoid it.”
Moreover, a December 2021 IP Australia report revealed that SMEs fail to capitalise on existing resources, even though a 2020 Ocean Tomo report indicated that intangible assets were critical to the competitive advantage of small businesses.
“Companies can use IP to drive value and growth at every stage of the business cycle. For example, an IP portfolio can make it easier to attract investors or to sell the business on. You might also be able to build on existing IP or license it to create new revenue streams,” Ballance explained.
“Education has always played an important role in firms like ours, but there’s still a lot more to do.”
