Patents and Intellectual Property (IP)

The existence of a patent or other protected IP helps to show how the product or service is differentiated, and also that the barrier to compete has been raised. It is clearly a positive indicator to an investor and should be disclosed if it’s in progress or granted.

Note that in many jurisdictions, IP protection does not prevent blatant copying and reproduction, and even where protection is upheld it is necessary to instigate legal proceedings to enforce it. IP protection should therefore not be considered absolute, and the cost is not always justified.

In many industries, IP protection is shunned because it exposes the technology to public view and could actually aid a competitor to understand how the solution has been made and to design a different product or service to solve the same problem.