Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce. IP is protected in law by, for example, patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create. A proper exploitation of your IP can add value to your business, generate revenue streams and give you a competitive advantage in negotiations.
Making the right investments is crucial for enhancing the market value of your SME. Investing in equipment, property, product development, marketing and research can strongly enhance your company’s financial situation by expanding its asset base and increasing future productivity. Acquiring intellectual property may have a similar effect.
Similarly, a good trademark with a good reputation among consumers may also enhance your company’s current value and may decisively contribute to making your company’s products and services more attractive to consumers. Investment in developing a good IP portfolio is, therefore, much more than a defensive act against potential competitors. It is a way of increasing your company’s market value and improving future profitability.
Benefits of Intellectual Property Investment
1. Barrier to market entry
The owner can use the registered intellectual property right to create a barrier preventing or discouraging competition. Competitors may be forced to seek alternative markets or compete with inferior products or services.
2. Licensing
The owner can trade the exclusive rights provided by the registered intellectual property to create an income stream or gain some other commercial advantage. This is particularly advantageous if the owner cannot exploit the exclusive rights provided by the registered intellectual property in all available markets.
3. Confidence to invest, return on investment
Owning registered intellectual property rights can give companies the necessary confidence to invest. The government is now actively encouraging investment in IPRs as a driver for business growth. It is, for example, proposing to offer tax incentives to invest in patent.
4. Investment
The barrier to market entry provided by registered intellectual property has enormous value to potential investors. Registered intellectual property is extremely important for technological startup companies but also for other companies where there are no natural barriers to market entry by competitors.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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