COMMON MISTAKES IN IP FILING

Many businesses and entrepreneurs have only a vague understanding of the exclusive rights granted through IP registration. This lack of awareness can leave their brand identity and products vulnerable to infringement.

A successful business demands perseverance, and understanding intellectual property (IP) is crucial to that success. IP protects trademarks, copyrights, patents, designs and trade secrets while enhancing public visibility and monopolizing the business.

1. Conducting Insufficient Research

Most startups tend to avoid this step because of the general assumption that their brand name is ‘the only one’ in the competition. There can be a bunch of same named businesses in the market, without IP registration, creating confusion in the minds of the consumers. To perform a full search for similar marks, inventions, or designs, entrepreneurs may use official databases, e.g., IP India, WIPO, etc. Following which they must consult an IP attorney or seek professional advice for detailed assessment.

2. Generic Names

An important step towards creating reputation in the market is by making a company’s identity distinguishable from other companies. Band-aids, xerox, airfryer etc. are generic names due to overuse by the public in reference to the general product itself. Therefore, it is crucial that a trade name is suggestive of its product. For e.g. NETFLIX, OLA, APPLE, which suggests the products and services provided by them. A fanciful trade name is highly in favor of getting registered.

3. Overlooking certain IP assets

Many startups and entrepreneurs often concentrate only on patents or trademarks and underestimate the registration of other IP assets such as copyrights, designs, or trade secrets. They often neglect the combination of registrations. This mistake can be avoided by taking the simple step of conducting an IP audit in a timely manner and identifying what makes their business different from competitors.

4. Revealing ideas publicly before IP filing

To seek appreciation and recognition of company’s unique creativity, they make a huge mistake of disclosing their ideas in the public domain attracting imitators resulting in infringement of such ideas. Publicly revealing an invention can destroy its novelty, making it ineligible for a patent. Likewise, sharing confidential information without a non-disclosure agreement can result in losing trade secret protection. For e.g. COCA-COLA has registered its formula ingredients so that other companies cannot use the same.

5. Postponing IP registrations

IP registrations usually give preference to early comers. There are high risks of competitors registering the same or similar IP. Therefore, delays can lead to loss of business monopoly and valuation. Further, increasing legal disputes and the related costs.