Kaimai_Law_Bethlehem_-_Winter_2012_-_Commercial_eSpeaking.pdf
All businesses, no matter how different, strive for success in a sustainable way. Intellectual property is one tool a business can use to sustain itself. The term ‘sustainable business’ means different things to different people. Originally synonymous with ‘green business’, it now has a broader meaning more closely aligned with the true priorities of most enterprises. A sustainable business strives to meet commitments to people, planet and profit, the so-called three pillars. Crucially, a sustainable business also does exactly what it says on the tin – sustains itself over an extended period. The benefits of fulfilling commitments to the three pillars have no consequence if a business cannot continue providing those benefits.
IP rights and sustainable profit
Out of the three pillars of a sustainable business, intellectual property (IP) principally helps to maximise and maintain profits. By ensuring its profitability, a business will be in a better financial position to look after its people and make decisions that are better for the planet.
A trade mark is a badge of origin which distinguishes products or services of one business from those of another and can be a word, phrase, logo or even a shape, colour, sound or smell. Registering a trade mark prevents others trading off the goodwill or reputation established by one company in particular products or services. Trade marks enable customers to clearly distinguish one company’s products or services from those of its competitors, meaning its profit streams can be protected. Registered trade marks can be renewed indefinitely, giving sustainable protection for a long time.
Patents give exclusive rights in an invention for up to 20 years. Protecting new innovations is critical for
obtaining and, subsequently, sustaining the market share won by virtue of the advantage innovations provide over existing technology.
Trade secrets refer to information kept confidential to provide a competitive advantage. Examples are the Coca-Cola formula and KFC’s 11 herbs and spices recipe. Only information that cannot be easily ascertained (for example, by reverse engineering) is suitable for protection as a trade secret. A trade secret has the potential to endure indefinitely. Maintaining the secret may mean ensuring staff work on a need-to-know basis and minimising the number of people (usually only executives) who are privy to the entire secret.
IP rights and sustainable people
Many forward-thinking businesses use IP to reward the innovation of their employees. Companies such as 3M actively encourage innovation by staff at all levels by allowing ‘inventors’ to benefit financially from the return generated by the innovations they create. Some trade marks show accreditation to particular standards, for example, safety standard marks. By conforming to the requirements for such marks and using them in relation to goods and services, a company can demonstrate care for its customers in a universally recognisable way.
IP rights and sustainable planet
Trade marks can also certify that a company has reached specific standards demonstrating its commitment to the environment, for example, carbon emission standards. Many modern innovations involve technologies that lessen environmental impact. From an altruistic perspective, it would be beneficial for improvements such as these to become industry standards. Patents not only encourage innovations to be developed in the first place, but also enable quick, global licensing so that innovators can realise financial rewards from these innovations while enabling their rapid, widespread use and consequent benefits to society.
IP is critical to sustained success
Every business, no matter how big or small, should formulate an IP strategy. Clever use of IP can minimise the risk posed by competitors and open up new markets and revenue streams. The value of intangible assets to a business should not be underestimated. While physical assets such as bricks and mortar may come and go, reputation, ideas and relationships will sustain a business for a long time and should be nurtured carefully through smart IP protection.
