Protecting and Leveraging Intellectual Property in International Markets
04.28.2010
Before your business sends goods or services across borders, it should develop an export plan, identifying target markets, demand, local partners and channels of distribution, and market research on branding, packaging, and pricing in the market and culture. As you plan to build your brand in another country, your export plan should specifically consider how to best utilize and leverage its intangible assets, or intellectual property, in commerce; this is what sets your business apart in any market.
Intellectual property (IP) can be defined in many ways, but includes a variety of intangible creations that are protectable by applicable laws, that grant the owner of the creations certain exclusive rights. On a very basic level, copyright law protects original artistic or literary works (i.e. software code, schematics, plans), trademark law protects protect words, names, symbols, sounds, or colors that distinguish your goods and services from those of competitors as a source of goods or services (i.e. company or product name, logo), patent law protects novel and unique inventions (i.e. new chemical compositions or products), and trade secret law protects information that is valuable to your business because competitors do not know it (i.e. secret formulas, customer lists, or business methods). Assessing and protecting these types of assets in commerce allows your business to maximize value and prevent theft or counterfeiting of your brand, goods, or services.
As protection is limited by jurisdiction, you will need to consider obtaining protection in the United States, Canada, and other international markets you plan to do business in. For example, Tex-Tech Industries, a Maine manufacturer of high performance engineered textiles, manages research and development, ownership of new technologies, and leveraging of assets in international markets. This company has grown in part because of its priority on protecting, licensing, and selling cutting edge products and IP assets in the United States and elsewhere. David Erb, Director of Research & Development at Tex Tech Industries, summarizes the process of creating, obtaining, and leveraging IP:
"Tex Tech Industries enters into agreements with employees and contributors to maintain ownership rights in patentable and protectable assets of the company. We also file for patent registrations in the markets in which we sell, license, and distribute our products. Without proper protection, the revenue stream generated from our IP assets in the United States and international markets would be unstable and less valuable."
Once you have protected an asset in the name of your business, the most important step for your business' bottom line is leveraging the IP assets in commerce, through strategic licensing and assignment agreements, as well as local partnership and distributor relationships. By granting distinct elements of your ownership rights in IP to third parties, your business can create multiple streams of revenue from the same assets. Proper planning and protection prior to exporting goods or services to Canada or other markets increases the likelihood that you can safely and profitably build your brand, and become a distinguished competitor in the marketplace of your choice.