Intellectual property is an asset created by the mind or intellect that can be bought, sold, licensed out or bequeathed.

It might be your business name or logo, a unique product or unique packaging.

Intellectual property is administered by the federal government agency, IP Australia (www.ipaustralia.gov.au).

IPAustralia makes the point that what might seem unimportant today might be worth millions of dollars to you in the future so that’s why it’s important to be IP smart from the start.

You can protect your IP by way of patents, trade marks, registered designs and copyright. In most cases you need to formally register your IP in order to gain legal ownership.

Integrating IP in your business strategy can be key to your success by making sure you don’t forfeit any competitive advantage you have in the marketplace.

IP has a monetary value which needs to be recognised in the balance sheet and if you plan on selling or licensing your IP, you need to be aware of any tax implications.

Patents

A patent provides a temporary monopoly giving you the exclusive right to commercially exploit an invention for the life of the patent. A standard patent lasts for 20 years and an innovation patent for eight years.  The cost for a standard patent in Australia is between $6000 and $10,000 depending on how complex your application is. To maintain the patent over 20 years would cost you a further $8000.

Trade marks

A trade mark is used to distinguish the goods or services of a business. It is not compulsory to register a trade mark but it makes sense as that then gives you exclusive use of it.  However, if the trade mark does not distinguish your goods or service from similar ones in the workplace then it is not registrable. In addition a trade mark should be something other traders don’t need to use in the normal course of their trade. TM Headstart (www.ipaustralia.gov.au) is an online tool to help you determine whether you proposed trade mark is suitable for registration.

Registered designs

Designs are the features that give a product a unique appearance. Registration protects your design for five years and is then renewable for a further five years.

Copyright

Copyright protects the original expression of ideas but not the ideas themselves.  Protection is provided under the Copyright Act 1968, which is administered by the Attorney-General’s department. Copyright is free.