Intellectual property (IP) protection could help your business copyright printed or digital content, secure visual designs, patent technical aspects of your product or service, and protect trade marks. Even beyond these key areas IP protection exists to protect and nurture innovation and creativity.
Protecting IP can be critical to ensuring success. It’s therefore essential for any business to review what IP assets they own, decide how valuable IP is to their business, and what they need to do to protect it.
Government action
A recent independent review of intellectual property reported to the Government in December 2006, suggesting a number of reforms to ensure the UK’s Intellectual Property system is compatible with the digital age.
The review highlighted the need to tackle IP crime in the creative industries. From April 07, Trading Standards Officers will have the authority to enforce copyright offences. In addition, IP crime has been recognised as an area for Police action in the updated National Community Safety Plan.
The government also wants to help businesses “recognise, protect and maximise the value of their intellectual property”. As part of the Patent Office’s Innovation Support Strategy, a pilot scheme offering IP health checks to small businesses began last month and will report on its progress in 2008.
Further consultations are taking place reviewing areas including:
- options for implementation of the recommendations on UK copyright exceptions,
- Patent Office fees,
- fast-track services for the grant of patents and registration of trade marks,
- civil damages and fast track litigation,
- accelerated examination of a patent application where examination has already taken place in another country.
Source - Budget 2007 - Economic and Fiscal Strategy Report, Chapter 3
More info: Protecting intellectual property
In exchange for cash, equity finance investors will often expect a stake in your business and may also demand further rights, such as a share of future profits or some level of decision making control over business operations.
If your business attracts interest from equity finance investors you might conclude there is already big potential in your business. If so, why give up equity at a time when your business appears primed to succeed? This may be a legitimate concern, but it’s not necessarily a deal breaker. The cash injection could be the boost you desperately need, and equity finance investors may also offer additional skills, experience and resources to help your business. In this respect the finer detail of the agreement may define the true value of an equity finance deal.
Business Link Business Adviser Peter Weeks says “It’s worth talking to equity finance investors to see where they are coming from. Ask questions, find out how the deal will work in practice. But come prepared, you have to sell yourself too. A professional pitch and a firm grasp on your finances will help if want to impress. It’s a two way dialogue”.
Regardless of such judgements, how you approach the decision to consider equity finance may depend on practical considerations such as your alternative finance options. If your growth plan prohibits interest payments on borrowing, or you simply can’t raise the levels of investment you need from friends, family, grants, loans, or elsewhere, equity finance could be your best option.
More info:
Equity finance
Alternatives to equity finance
Last month’s budget saw the introduction of further improvements to research and development (R&D) tax credits:
“As innovation becomes increasingly important in maintaining the UK’s globally competitive position, R&D tax credits play an even greater role in the UK’s response to globalisation. The Government is introducing further improvements to R&D tax credits, increasing the enhanced deduction of the SME R&D tax credit to 175 per cent and the large company R&D tax credit to 130 per cent from April 2008.”
Source: Budget 2007 - Economic and Fiscal Strategy Report, Chapter 3
Research and development has a distinct statutory meaning. DTI guidelines state that:
- R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology.
- The activities that directly contribute to achieving this advance in science or technology through the resolution of scientific or technological uncertainty are R&D.
- Certain qualifying indirect activities related to the project are also R&D. Activities other than qualifying indirect activities which do not directly contribute to the resolution of the project’s scientific or technological uncertainty are not R&D.
Source: R&D tax relief: conditions to be satisfied: DTI guidelines
If your business undertakes R&D that matches this definition, you may be entitled to tax relief and should investigate what credits are available and how to claim.
Whether or not tax credits are available to your business, the principles of innovation, research and development are key drivers of competitive advantage. By identifying customer need and anticipating future change - a research, design and development process can make your business more profitable and productive.
More info:
Tax relief and allowances for research and development
Managing your research, design and development
Before assessing your options for growth it’s useful to review your current business performance. Making sure your business is performing well and considering how growth may affect performance could highlight problems before they arise.
Once you have reviewed and consolidated existing performance you can properly assess options for growth… So what are the options?
- Increase market share - Finding new customers and attracting custom away from competitors will help you grow through increased market share.
- Diversification - Developing new products or services and/or targeting new markets can achieve growth for businesses wishing to expand their business offering or manage risk through diversification.
- Partnerships, joint ventures, mergers and acquisitions - Teaming up with another business can enable growth by delivering more resources, an influx of new talent and skills and a larger pool of customer prospects.
Assessing next steps towards growth is a matter of analysing the options within the context of your current business performance. Consider options that appear most logical in your situation based on the strengths and opportunities identified in your business performance review.
Review business practicalities - consider how growth might impact key areas such as staffing levels, the size of your business premises, IT systems, or company culture. This will help you predict what growth may do to your business and could also raise additional questions such as how to finance your growth strategy.
If your chosen options for growth do not appear logical or viable consider how to further consolidate your business performance to get yourself ready for growth.
More info:
Assess your growth options
Review your business performance
UK businesses are being pitted against each other ‘on the green’ in a game launched this week in the most unlikely of locations – an online golf course.
The Envirowise ‘Putt It Away’ challenge will reveal if the West Midlands knows its bogeys from its birdies, and if the North East is on a ‘par’ with the South West when it comes to the environmental impact of their businesses.
The new game at www.puttitaway.co.uk will invite players to try their luck on either a driving range or 11-hole golf course, and flag-up practical advice on resource efficiency along the way.
Business tips will vary from how to reduce paper or water waste, to topical issues such as packaging waste or cleaner product design. And crucially, a live scoreboard will pit region against region in this nationwide business challenge.
John Barraclough, Envirowise Regional Manager for the West Midlands, says: “UK office workers waste enough printing and writing paper every day to cover a championship golf course over 300 times! Yet improved resource efficiency could save a company up to £250 per employee per year – both a financial and environmental reward.
“This new golfing game is a fun way to help West Midlands businesses understand the sorts of simple steps they can take – and probably reveal a few competitive streaks along the way!”
To find out more and play the game, visit www.puttitaway.co.uk. Further information on resource efficiency can also be found at www.envirowise.gov.uk or by calling the Envirowise Helpline on 0800 585 794.