Business management during crises requires careful risk management. In addition to the risks associated with labor & environmental protection, risks associated with IP rights violation pose a direct threat to businesses unless they are timely identified or adequately mitigated.
In this material we will be looking into IP risk management and ways of properly managing one’s intellectual property.
Assessing & Managing Internal & External IP Risks
Internal IP risks are inherent in the company & may include the loss of the novelty of an invention due to it being publicly disclosed. External risks in the field of IP are caused by the environment of the company & may include, for instance, being sued for the violation of IP rights. If IP registration abroad took place in good faith, there should be no wrongdoing because the invention, service or product itself is already unique. Accordingly, they cannot violate the rights of the 3rd parties.
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Managing IP Risks Abroad
If neglected, external IP risks may lead to increased costs, especially when it comes to the breaching of 3rd parties’ IP rights caused by a lawsuit, licensing-related issues, or costly & belated development of bypass solutions. Sometimes, a company can even face legal consequences for its partners’ failure to solve their IP problems.
During a crisis, most companies have trouble generating revenue or are even forced to stop doing business. Therefore, it is absolutely vital for them to have a constant source of income to support their business and satisfy their customers’ needs. IP protection is indispensable when it comes to stopping others from using your innovative ideas, services or products. If for some reason you are unable to do this, then this is a typical example of internal IP risks, which often lead to exclusivity & income being lost.
By systematically assessing their IP portfolio, companies can identify gaps in their IP protection or enforceability-related issues. Also, timely assessment of IP risks will help them protect their core activity in the target markets.
Avoiding IP Risks
As far as external IP risks are concerned, it should be noted that the current crisis hasn’t affected regions and industries worldwide in equal measure. While some of them haven’t sustained heavy losses or are already recovering, others still remain seriously affected and are likely to face a longer period of economic instability. And the last thing the companies in the crisis-ridden countries need right now is bullish competitors, improper IP risk management strategies or lawsuits seeking an annulment of their IP rights. And the worst of the three is, undoubtedly, lawsuits, because quite a few companies at the moment can ill afford having costly litigation on their hands.
Conclusion
Being an absolutely crucial intangible asset, IP becomes even more vital during and after a crisis. We hope that our analysis will help you reduce costs and minimize monetary losses caused by violation of IP rights.
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