Chances are, your business has some kind of online presence, whether that includes a website, a social media page or two, an email system, or all of the above. With a digital presence comes exposure to a variety of intellectual property violations, including the misuse or theft of copyrighted images and text, the misappropriation of your trademarks, and more.
But in an era where the free exchange of information is considered standard operating procedure, it can be difficult for a small business to know when and whether to take action against intellectual property offenders.
Why Small Firms Need to Protect their IP
The sad truth is that small firms face as much risk of IP fraud as larger ones – in fact, they may actually face a greater risk. Why? Because defending yourself against instances of IP fraud or misuse can cost well into the hundreds of thousands of dollars and beyond. While larger companies like Apple and Google have the resources to fight IP cases, many smaller companies do not, making them attractive targets for fraudsters and hackers. (Read more about the risks small businesses face in "Why Small Firms Are More Vulnerable to Data Breach.")
Having your IP stolen, of course, can have serious financial consequences, especially if the perpetrators undercut you on price for knockoffs of what you sell. Here’s a brief guide to how you can protect your firm’s IP so that you aren’t victimized by your own success.
Protecting your Intellectual Property
Keeping your non-tangible business assets safe requires you to…
- Get your trademarks, copyrights, and patents in order. In order to have a legitimate legal claim to your intellectual property, it’s important to file the appropriate legal protections first. Patents protect processes and products; copyrights protect works that you authored; and trademarks protect symbols, images, slogans, and logos.
- Know the risks of working with international partners. While off-shoring with workers in China, Russia, and elsewhere can be a savvy way to cut costs for a small business, it can also expose you to IP theft. Reports show that knockoffs of products and services based on American-owned intellectual property have shown up in a number of countries, including Russia, China, Belarus, and the Czech Republic. If you’re worried about losing international market share to imposters, consider keeping your employees in the U.S.
- Automate tracking for key product and brand names. Chances are, you don’t have time to scour the web for misuse of your company’s intellectual property. Luckily, you can automate the process by setting up alerts through various online tracking apps (including HootSuite and Google Alerts). These will help you keep an eye on when and how others are mentioning your company and its products.
- Establish guidelines for responding to infringement incidents. In some cases, having your company mentioned or its logo used without permission isn’t a bad thing: think an influential blogger giving a positive review of your products or services. But in other cases (e.g., if someone lifts a blog or article you authored word for word), it probably makes sense to take action. Read on for more about when and how to respond to any infringement incidents you detect.
When and How to Take Action against IP Infringements
Broadly speaking, it’s probably not worth your time and money to respond to IP violations unless the incident has the potential to cause serious financial damage to your company. Even in cases where financial damage is considerable, your decision about whether to pursue legal action should take into consideration the amount of money the violation will cost you versus the amount a lawsuit would cost.
For ongoing use of intellectual property (in the form of a stolen app or software program, for example), the loss may justify a suit. For smaller incidents of IP theft, it may not be worth your time or energy to take any action, as much as the violation may frustrate you.
When you do decide to act against an IP theft, these steps can help you pursue justice…
- Know the rules of the various websites you use. Each social media channel and website you rely on has its own terms of use and privacy policies. Reading through them (or hiring a lawyer to do so) can help you determine whether an incident has truly violated your rights.
- Make direct contact. In some cases, a violator may be genuinely unaware that they’re breaking the law, and a simple message is enough to make them stop. Even if you aren’t able to convince a violator to stop, you may find your way to a higher-level offender by making contact.
- Take advantage of the protection provided by the DMCA. The Digital Millennium Copyright Act allows you to block violating websites from search engine results.
- Go to court. Because of how costly and time-consuming court actions are, this should be a last resort. If you aren’t sure whether your case warrants legal action, hire a lawyer to review the circumstances and recommend a course of action that makes sense for your finances and goals.
Writtten by Brenna Lemieux - check her out at Google+ or Twitter