What is this “IP” of which you speak? How do I get some?

The concept of “IP” gets batted around in the startup world like we all know exactly what it means and what to do with it. This article is a safe space to wonder if we really do. 

IP might not be the first thing you have time to think about. You're moving fast, focused on product, chasing validation, or maybe closing your first sale. Or maybe IP is all you’re thinking about, because you assume that owning your idea is the only way to maintain its value. You need a patent, right?

Intellectual Property (a.k.a. “IP”) is a strategic undertaking, a matter of aligning cost and benefit with your startup’s value. You can master this strategy from a founder’s point of view.

To begin, here’s a quick breakdown of the main types of IP. (We’ll go deeper into each in upcoming posts). Then we’ll ask the big questions. Where is your startup’s value? How do you protect it?

Trademarks – Your Brand’s Armor

What are Trademarks?

Your brand has “marks” - a name, logo, tagline, product names, or anything else that identifies your company, products, or services to the public. A registered trademark is a legal protection for your name, logo, tagline, or anything else that identifies your product or service to your stakeholders. If someone tries to copy your name or logo, having a registered trademark gives you legal leverage to stop them. It also provides a shield from other trying to stop you from using your marks.  

All these things - name, logo, tagline, product name, etc. - are part of your “brand.” Your brand is part of your value. (This is literally the case when you sell your company. Your brand gets assigned a value.)   

The Strategic Question(s)

Do you need a registered trademark to protect your brand? It’s usually a good idea. The initial cost is relatively low. Seeing your mark registered is a good way to ward competitors off. 

But….maintaining your portfolio of trademarks over time can get expensive. (Hopefully your business grows proportionally, and it’s not a big deal.) And a registered trademark is not a guarantee. Participation and penetration in the market also matters, and registering your mark can invite attention. 

Ultimately, trademarks are one of those things where frontloading the work is best. If you understand your milieu of competitors and similar marks, you can figure out the best strategy of whether to apply, what to apply for, where (there’s more than just the USPTO), and when. 

Patents – Defending Your Invention

What is a Patent?

Patents protect inventions, processes, and technical solutions. If you're building a novel product, feature, or piece of technology — something that actually solves a problem in a new way — patents might be a viable pursuit. They’re expensive and take time, but in some cases, they’re worth it, especially if you're in high tech or hardware. 

Software is patentable, and it might be worth it, but the calculus tends to be different. We’ll address this in a future post. 

The Strategic Question(s)

Patents protect your invention, but they also make its design a matter of public record. Is secrecy or protection more important to your venture? 

What are the kinds of value that come with a patent? There’s the legal protection, the ability to fend off copycats. A patent can also be an asset, literally an asset on the books when you put a value to your company. It can also offer prospective investors some peace of mind. 

Usually the calculus when it comes to patents is how much money do you need to spend and over what time period. Can you afford it and when? 

Trade Secrets – Your Quiet Competitive Edge

More or Less What it Sounds Like

Trade Secrets are things you keep private to gain an edge — your algorithm, internal processes, pricing model, client list, secret sauce. The key with trade secrets is not just having them, but knowing how to protect them with NDAs and internal policies.

The Strategic Question(s) 

Is your idea more valuable as a secret than a patent? Sometimes the black box is important to stay competitive. Sometimes it’s sexy to customers. Sometimes it’s hard to protect and frustrating to customers. Sometimes investors don’t appreciate the value of a trade secret. Patent or patent pending can be magic words.

Copyrights – Safeguarding Creative Work

What is Copyright?

Copyright automatically protects creative work, things like your software code, marketing content, website copy, videos, or designs. It's the most overlooked type of IP by founders. Registering a copyright is not necessary. Unlike trademarks, you own what you create. But if you’ve ever had your content ripped off, you know how useful registration can be in proving your claim to your work. 

The Strategic Question(s) 

The strategy comes down to budget and bandwidth (as it usually does). Registering copyrights takes time, effort, and/or money. 

The Zen of IP

There’s that saying - don’t let the things you own own you. 

Sometimes the relationships you have with your community of users and stakeholders is just as important as any legal protections, and it’s not clear that any legal protections make a big difference maintaining that relationship. As an example, maybe your company provides a service or an add-on product related to open source software. The ideas you capitalize on are out in the world. You just do it best, and your community knows it. 

Sometimes you’re the proud owner of a breakthrough in a jungle of predators trying to protect their territory. You need walls, swords, and shields at your disposal when you brush past another predator or start to challenge the kings of the jungle.  

Got questions? Join us for Startup Office Hours. We host free, no-pressure sessions where founders can ask legal questions, get quick feedback, or just talk through what’s keeping them up at night. Whether you’re wondering if you should trademark your name or worried your pitch deck might spill too much — we’re here.

Spots are limited each month, so grab yours Here.

Looking forward to meeting you 👋