IP Basics

The business owners guide to

understanding your IP

Intellectual Property Office is an operating name of the Patent Office

Contents
Intellectual property and your business.................... 1
What is intellectual property?.................................... 2
IP in business planning............................................. 5
Valuing your IP........................................................... 6
Licensing and franchising IP..................................... 9
Patents for inventions.............................................. 15
Trade marks for brands........................................... 19
Design for appearance............................................ 24
Copyright for creative works................................... 29

Parts of this booklet

were reproduced with
kind permission of the
Commonwealth of Australia
www.ipaustralia.gov.au

The Intellectual Property Office helps businesses,

innovators and entrepreneurs understand how
intellectual property can create value from their
ideas, turning inspiration into sustainable business
success. In addition to granting patents, registering
trade marks and designs, the IPO supports
businesses to use, manage, and enforce their IP to
achieve their fullest potential.
A strong enterprise culture is central to creating
a dynamic economy and with over 160 years
experience and expertise, the IPO promotes
innovation and growth by offering a vibrant
programme of activities and informed advice and
support to UK business:
www.ipo.gov.uk/business

Intellectual property
and your business
Most successful businesses, large and small, are
built on well managed intangible assets or intellectual
property (IP). McDonalds has used their IP to
establish franchises across the globe, while Coca
Colas secret recipe and trade mark logo have
stood the test of time and kept their product on the
shelves.
For companies like these, the value of their IP,
whether its a trade mark, patent, design, copyright
or trade secret, far outweighs the value of their
physical assets.
IP Basics: the business owners guide to
understanding your IP explains the different types
of IP rights, where they fit in your business, how
to protect them and the ways in which you can
use IP to its full potential through licensing and
franchising. It does not provide legal, business or
other professional advice so if you are in any doubt,
you should get independent advice.

IP Basics: The business owner's guide to understanding your IP

What is intellectual
property?
IP assets cannot be seen or touched and its
sometimes hard to appreciate their true value.
However, a basic understanding of the law and its
principles will help make sure that you make the
most of the mechanisms designed to protect them.
Intellectual property rights are a form of protection
that gives the owner the ability to take legal action
under civil law to try and stop others from making,
using, importing or selling their creation. There are
different types of intellectual property rights:
Patents protect new inventions and cover how
products work, what they do, how they do it, what
they are made of and how they are made.

IP Basics: The business owner's guide to understanding your IP

Trade marks protect brands. This could be for

a business name, a product or a service. The
trade mark could be made up of words, logos or
a combination of both and can even be sound or
action based.

Design protects the overall visual appearance of a

product.

IP Basics: The business owner's guide to understanding your IP

Copyright protects books, art, music, websites,

photographs, software, databases, films and print,
radio and television broadcasts and promotional
material.

Did you know....?

You can keep ahead
of the competition
with our IP Equip
app for Apple iOS
and Android. Scan
the QR code below
to download the app
straight to your smart
phone. You can find
more information
about the app at
www.ipo.gov.uk/app

Trade secrets can be an important part of your

business. The law of confidentiality protects trade
secrets. To keep trade secrets protected, you must
establish that the information is confidential, and
ensure that anyone you tell about it signs a nondisclosure agreement (NDA). If they then tell anyone
about it, this is a breach of confidence and you can
take legal action against them. You can download a
template of a NDA from our website at www.ipo.gov.
uk/p-cda.
As well as protecting your own intellectual property,
you should make sure you dont infringe anyone
elses rights. Like other forms of property, you can
buy, sell and license IP.

IP Basics: The business owner's guide to understanding your IP

IP in business planning
Did you know....?
You can find advice
on creating a business
plan here: www.gov.
uk/write-businessplan.

IP can be the foundation of any business and should

be part of your business plan, including how you
plan to manage and protect it.
Day-to-day, businesses sell goods or services, but
year-to-year they develop ideas and build goodwill
and recognition linked to their brand, product or
standard of service. This value builds up over time
and is strongly linked to your businesss IP assets, so
its clearly important to identify them in your plan.
The success of your business depends on the
commitment to your IP assets. So dont forget, when
planning for your business growth, what seems
unimportant today might be worth millions of pounds
in the future.
One of the first things you should do is protect your
IP, otherwise you could invest lots of money and
resources in your business, only to realise later that
the IP already belongs to someone else.

Did you know....?

The British Library
Business & IP Centre
in London supports
entrepreneurs,
inventors and small
businesses from
initial inspiration to
successfully launching
and growing a
business. For more
information go to www.
bl.uk/bipc

The free, fast and easy-to-use online IP

Health Check tool can help you identify
your IP assets and provide you with the
next steps on how to protect them:
www.ipo.gov.uk/iphealthcheck
Having an IP strategy and building up an IP
portfolio could prove a valuable asset to your
business.

IP Basics: The business owner's guide to understanding your IP

Did you know....?

You can find help
on valuing your IP
www.ipo.gov.uk/
iprpricebooklet.pdf

Valuing your IP
It is essential to do an assessment and keep an
inventory of your IP assets. This is called an IP
Audit and will help you when it comes to valuing
your IP.
When conducting an IP audit, you should:
1. Identify the products and services that are key to
your business.
2. Identify your IP assets and the legal rights
associated with them.
3. Identify what market advantage these rights give
you.

Did you know....?

Cyber attacks cost
UK business billions
of pounds a year.
Government estimate
that up to 80% or
more of currently
successful cyber
attacks could be
defeated by simple
best practice, such
as updating anti-virus
software regularly.
Find out how to
protect your business
at www.getsafeonline.
org/businesses.
6

After you have done this, you should value your

IP assets as you would your physical assets. For
example your customer list or database can be
a competitive intangible asset you should identify
and protect. A secret recipe or a unique service
technique also falls into this category.
As a starting point, you can try to calculate how
much time would be required to develop these
assets from scratch or estimate how much a
competitor might pay for them. An accountant may
be able to help you value these assets and place
them in context of your business.

IP Basics: The business owner's guide to understanding your IP

Everything at Aardman starts with an

idea

Sean Clarke
Head of Aardman Rights and Brand Development
Peter Lord and David Sproxton first met at school
where they established their creative partnership. In
1972 they registered the name Aardman Animations
and after moving to Bristol they created the loveable
character Morph for the childrens TV show Take
Hart. Aardman had various successes afterwards
but the introduction of Nick Park in 1985 took
Aardman to new heights.
In 1990 Nick Parks Creature Comforts won the
Academy Award for Best Animated Short Film
and just three years later The Wrong Trousers,
Aardmans first 30 minute film featuring the infamous
Wallace and Gromit was completed. The Wrong
Trousers went on to win over 30 awards including an
Oscar and set the benchmark for the future success
of the company.
Sean Clarke, Head of Aardman Rights, explains how
everything at Aardman starts with an idea and how
these ideas are then developed further, through a
TV series, a film, or for a third party such as a TV
commercial or computer game.
Because of the way in which Aardman operates,
Sean thinks it is essential to protect their ideas in
the early stages so that a sustainable plan can be
developed to exploit and create long term value,
allowing the company to continue to grow. Its very
important to have a system in place for protecting
what we do. If we dont protect the ideas then it is a
free for all and it doesnt allow us to create value to
reinvest in future ideas.

IP Basics: The business owner's guide to understanding your IP

Aardman subsequently register the key images,

characters and word marks from their work i.e.
Shaun the Sheep to protect others from using
them. They also license this work to third party
organisations for a fee, who then use Aardmans
registered trade marks on the products they create.
Aardman currently produce approximately 75
commercials a year for companies such as Kelloggs
and Hersheys and Wallace and Gromit have become
the faces of the British Tourist Board to promote
holidays in the UK.
By registering and licensing their work correctly,
Aardman is able to use their intellectual property to
its fullest potential. They can generate extra financial
income for the company and further establish
themselves as a global brand, safe in the knowledge
that their work is properly protected.
Sean describes the many man hours and blood,
sweat and tears that the Aardman team invest in
their work and as such, he urges other companies
to protect their IP if they want to benefit from it. If
youre looking to create an idea you really need to
protect that idea if you want to create value from it.
At present, Aardman have a back catalogue of work
to be proud of, including the feature films The Curse
of the Were-Rabbit and Chicken Run, created in
partnership with DreamWorks. Aardman continues to
grow from strength to strength and are considered to
be one the worlds best animation companies with an
array of awards to prove it.

IP Basics: The business owner's guide to understanding your IP

Did you know....?

A common example of
an IP licence is the one
you receive whenever
you buy a copy of
computer software to
use in your business.

Licensing and
franchising IP
Licensing intellectual property is important to
all sorts of businesses. Companies can derive
significant income from licensing, and licensing can
offer flexibility in the way a business develops.
The management and licensing of the different
forms of intellectual property can be important to
the success of the business that invents or creates
a product, to manufacturers who make the product,
to the designers who configure or refine a products
appearance and to the producers of the packaging
and marketing literature and materials.
You could consider licensing your own IP, or
acquiring the right to license others IP for the
following reasons:
Sharing risk: Where a licensor licenses the right to
manufacture and sell products, the licensor receives
revenues from that licensing but does not take the
risk of manufacturing, promoting and selling those
products. On the other hand, the licensee has the
right to use the IP without the expense and risk
of the research and the costs of developing the
product.
Revenue generation: An owner of IP may
commercialise the IP themselves and may obtain
additional income by licensing the IP to someone
else to commercialise it in a different field.
Increasing market penetration: An owner of IP may
license another business to sell in territories that the
owner cannot cover.

IP Basics: The business owner's guide to understanding your IP

Reducing costs: A business may buy-in innovation

to reduce its research and development costs.
Saving time: A business may get its products or
services to market more quickly by acquiring a
licence to use existing IP, instead of re-inventing the
wheel (sometimes referred to as an engineering
workaround).
Accessing expertise: By taking a licence, a
business may tap into expertise that it does not have
in-house.
Obtaining competitive advantage: By acquiring
a licence to use IP, a business may obtain an
advantage over its competitors.
Collaboration: Businesses may want to work
together to develop new products and services.
Whenever you think about taking or granting a
licence of any IP the first step should be to assess
the needs and objectives of your business and how
licensing might help meet them. The terms and
conditions on which IP is licensed may vary. The
licensor and licensee usually agree those terms and
conditions by negotiation.
More information on licensing can be found here
www.ipo.gov.uk/licensing

10

IP Basics: The business owner's guide to understanding your IP

Franchising
Did you know....?
The IP Health Check
tool can help establish
what IP your business
has so you can see if
franchising could work
for your business. Take
the test at www.ipo.
gov.uk/iphealthcheck

When a successful business wants to expand its

operation without borrowing capital to develop, one
option is to license IP to franchisees. In addition to
the actual product or service of the franchisor, the
various forms of IP such as trade marks, promotional
material, business and marketing systems, shop fitouts and confidential information is licensed to the
franchisee to use.
Franchising is a way of systematically sharing IP with
others to distribute goods or services. The franchisor
owns the IP rights and the franchisee pays a fee or
regular royalties to use them.
A major benefit of the franchise system is the ability
to trade under a well known trade mark. Typically,
the franchisor grants a trade mark licence to the
franchisee in return for a percentage of the gross
turnover.
An example of a successful franchise is Costa
coffee. They give the franchisee permission to use
their brand and a business template to use, which
sets out how the premises must look, the service
levels and training required. The franchisee then
gives Costa a percentage of their earnings.
More information on franchising can be found here
www.thebfa.org/

IP Basics: The business owner's guide to understanding your IP

11

If people copied our idea it would

be detrimental to our business. The
patent warns people off, gives us
protection and was important for
our innovation.

Claire Mitchell
Inventor, www.chillipeeps.com
One afternoon in 2007, when taking their newborn
daughter to meet the extended family, Claire Mitchell
came up with the invention behind the Chillipeeps
Company. Knowing the baby would need feeding
whilst they were out, Claire had packed a carton
of formula milk but couldnt remember if she or her
husband had picked up a sterilised bottle. As her
husband was frantically rummaging through the baby
bag she exclaimed why hasnt anyone invented
anything that can directly attach to the carton?!
Although they found the bottle, Claire couldnt get
the idea out of her head and as soon as she got
home she searched the internet for such a product.
When the search returned no results she emailed
Peter Jones from the Dragons Den, excited to tell
him she had an ingenious idea she wanted to share
with him. Peters automated response asked if the
product was patented and for those who were not,
explained how to go about it.
This was Claires first introduction to the Intellectual
Property Office (IPO). She contacted the information
centre and briefly described the situation and the
IPO offered her a free 30 minute appointment with a
patent attorney. For ease, the advisor located a CIPA
Clinic near Claire, a service run in partnership with
the Chartered Institute of Patent Attorneys to give
intellectual property advice to small businesses and
the general public.
12

IP Basics: The business owner's guide to understanding your IP

Claire recalls the initial meeting with the patent

attorney, who was a father to three children, and
how his knowledge and enthusiasm for her idea
motivated her to take the product to market. He
gave me lots of business advice and I knew when I
left the meeting it was the start of the journey.
She subsequently had further meetings with the
patent attorney who helped broaden her patent
application and deal with the legalities. Initially,
Claires idea covered only teats for formula milk but
they expanded this to cover any flowable matter. The
design was then developed to fit directly onto bottles
of water to allow Claire to cover a broader market.
Claire highly recommends getting professional
legal advice to ensure you are on the right path for
your product and your work is properly protected.
I would suggest that anyone gets professional IP
support so they can look at their strategies and get
the correct advice they need to help them take their
products forward.
To date, Chillipeeps has won multiple awards
including the Baby Products Association Concept
& Innovation Award and the Women on Their Way
Outstanding New Product Award. Chillipeeps teats
are stocked by several major retailers throughout the
UK and are now selling in 14 countries worldwide.
Claire has also expanded the range from her original
patent to include a training spout, which she hopes
will be equally as popular.

IP Basics: The business owner's guide to understanding your IP

13

As Claires innovation was the foundation for her

business, it was important to patent her idea to
give her the best protection possible and prevent
competitors from creating a similar product. If
people copied our idea it would be detrimental to
our business. The patent warns people off, gives us
protection and was important for our innovation.
Claire credits the IPO for guiding her on her path to
success and urges others to do the same. It was an
ingenious step to contact the Intellectual Property
Office and I would suggest any business did exactly
the same...without that step, I dont know if we
would ever have made it to market.

14

IP Basics: The business owner's guide to understanding your IP

Did you know....?

A list of patent
attorneys is available
from the Chartered
Institute of Patent
Attorneys (CIPA) www.
cipa.org.uk

Did you know...?

You can access advice
and support though a
network of 13 PatLib
Centres (Patent
Libraries) covering all
regions of the UK. The
centres have qualified
and experienced staff
who offer practical
assistance on a
variety of services
including patent
searching, clinics with
IP professionals and
business advice. To
find a centre near you
go to www.ipo.gov.uk/
patlib

Patents for inventions

A patent can be granted to someone who has
created something that is inventive, new and useful.
Essentially, a patent is an exchange where the patent
holder is granted a monopoly which allows them
to stop others from making, using or selling their
invention. In return for this monopoly, their invention
and how to create or replicate it is then published
in publicly available patent databases that others
can use after the patent expires. This trade-off
strikes a balance between private interest to make
money from an invention and the public interest for
innovation in society.
A patent can protect inventions and innovations such
as machines, industrial processes, pharmaceuticals
and their productive methods, computer hardware,
electrical appliances and biological products and
processes. You cannot patent artistic creations,
principles, theories, mathematical models or any
purely mental processes that have no tangible
commercial application.
There is a fee payable to the Intellectual Property
Office for UK patent applications and the process
can take several years before you receive a granted
patent. Patents can give protection for 20 years
provided renewal fees are paid each year.
Deciding whether to apply for a patent should form
part of your business planning. Obtaining a patent
is not a guarantee of business success. You should
consider how you are going to use the patent and
what you will gain from it. It is your responsibility
to enforce your patent and ensure it is properly
protected, meaning that any legal action against
another party will need to be initiated and funded by
you.
IP Basics: The business owner's guide to understanding your IP

15

Did you know...?

Whilst patent law
prevents the granting
of patents for a
computer program,
inventions which are
implemented through
the use of a computer
can be patented. As
such, this is a complex
area of law where you
would be well advised
to seek professional
advice.

Preparing a patent application can be difficult as the

basis of a UK patent is a legal document. Its content
decides the exact scope of the patent right, and
it also must disclose the invention completely so
others can understand how it is done.
You can prepare a specification and apply for a
patent yourself. However, we recommend you use
a chartered patent attorney or other professional
adviser who has the skills needed to assess whether
your idea is appropriate for patent protection, and
who can prepare an application for you. Many patent
applications that are made are not granted; between
1991 and 2006, around a third of patent applications
filed using professional advisers were granted but
only around one-in-twenty patent applications filed
without professional help were granted.
Patent attorneys are legally qualified and
independently regulated; some will give you initial
advice free of charge. To make the most of this
free advice it is recommended that you think about
the questions you want to ask beforehand in order
that you can gain as much information from the
consultation as possible.
There are other patent advisers, consultants and
inventor-support organisations that may also be able
to help or advise you.
One important point to remember is that you must
not publicly reveal your invention before you apply
for your patent. You must keep your idea secret
otherwise it may put your chances of being granted a
patent at risk.
You can find out more about applying for a patent in
IP Basics: Do I need a patent? at www.ipo.gov.uk/
ipbasics.

16

IP Basics: The business owner's guide to understanding your IP

The brand has been very

central to everything weve
done. In the early days it was
very much about patents but
as the business has grown
and become more successful,
trade marks have become
increasingly important to
protect what weve built up.

Nick Rutter
Inventor and Managing Director of FireAngel
www.fireangel.co.uk
After graduating from Coventry University, Nick
Rutter and a fellow student devised a business
model before deciding upon a product to sell. Shortly
after, when walking through a typical home scouting
for opportunities to modify and manufacture a
general household item, they spotted a gap in the
market. Whilst most household goods are produced
by several well known brands, they noted no such
connection with the all important smoke alarm that
was hanging loosely from the ceiling. This offered the
scope for development they were searching for.
Deciding to focus their efforts on home safety
products, Nick and his team then set about
improving the typical smoke alarm. They knew they
needed to deliver something very new in order to
make their mark on the industry and after three
years of hard work they launched a highly innovative
smoke alarm called FireAngel. The alarm, which
fits directly onto most light fittings and is powered
by the mains, was the first of its kind and eradicated
the common problem of replacing the battery. This
additional safety feature proved popular and before
long, the FireAngel brand was snapped up by two
major retailers in the UK.
IP Basics: The business owner's guide to understanding your IP

17

Following the success of the first product, FireAngel

have expanded their range of alarms to include
ionised, optical, wireless and portable versions. They
also supply carbon monoxide detectors and smoke
alarms suitable for use near a cooking area, cleverly
branded as Toast Proof.
FireAngel currently have more than 50 granted
patents, registered trade marks and registered
designs and recognise the importance of protecting
their intellectual property to maintain a competitive
advantage in the market place. Weve worked very,
very hard and invested a huge amount of money in
order to get the business into the position it is today. If
someone were to copy us, it would really take a lot of
that value away and we need to be confident that we
can protect our position in the market place.
Whilst the numerous patents and designs play a
significant role in the success of the company, the
name FireAngel has been equally as influential. A
registered trade mark has established the credibility
of a business or product and as such, FireAngel have
established themselves as the leading name in fire
safety products in an industry that was once faceless.
The brand has been very central to everything
weve done. In the early days it was very much
about patents but as the business has grown and
become more successful, trade marks have become
increasingly important to protect what weve built up.
Today, FireAngel is the main supplier of smoke
alarms in the UK, within the retail and fire and rescue
services. Last year, the Thermoptek smoke alarm was
the highest selling smoke alarm and they currently
supply more than 95% of the UK population in
partnership with the fire and rescue service. They
are continuing to expand globally and the products
are currently selling in countries as far away as New
Zealand.
18

IP Basics: The business owner's guide to understanding your IP

Trade marks for brands

Did you know....?
Owning the domain
name for your website
provides no legal
rights to use that
name as a trade mark.

A trade mark distinguishes the goods and services of

one trader from those of another. Many people refer
to their trade mark as their brand, although a brand is
more than just a companys logo.
A brand is a 'promise of an experience' and conveys
to consumers a certain assurance as to the nature of
the product or service they will receive. Intellectual
property rights provide legal protection for some of
the most important aspects of a brand.
A trade mark can be a word, a phrase, a picture,
and can even be a shape, colour, sound, aspect of
packaging or any combination of these. You can
use your trade mark as a marketing tool so that
customers can recognise your products or services.
Registered trade marks
Registering your trade mark gives you the exclusive
right to use your mark for the goods and/or services
that it covers in the UK. In addition it:

may put people off using your trade mark without

your permission;

makes it much easier for you to take legal action

against anyone who uses your trade mark
without your permission;

allows Trading Standards Officers or Police to

bring criminal charges against counterfeiters if
they use your trade mark;

is your property, which means you can sell it,

franchise it or let other people have a licence that
allows them to use it.

IP Basics: The business owner's guide to understanding your IP

19

Did you know....?

If you want advice on
building your brand,
registering overseas or
more complex aspects
of the trade mark
process you should
consider seeking
professional advice
from the Institute of
Trade Mark Attorneys
www.itma.org.uk

20

Trade marks are registered by the Intellectual

Property Office in the UK and other bodies
worldwide, for a fee. They must be renewed
every ten years, but can be renewed indefinitely.
Registered trade marks can be identified by the
symbol.
The most effective trade marks are those which are
distinctive for the goods and services they seek
to protect. A distinctive trade mark will enable the
consumer to differentiate your goods or service as
being different from someone else's.
Not everything can be registered as a trade mark.
Trade marks which can be difficult to register include
those which:

describe the products you sell or the services

you offer, for example Cornish Clotted Cream;

are incapable of being perceived as an indicator

of commercial origin by the customer, for
example, the phrase Putting Customers First;

have become customary in your line of trade, for

example China Garden for Chinese restaurant
services;

include a specially protected emblem, for

example, the Red Cross or the Olympic Rings;

are offensive to the public, for example,

trade marks which contain taboo words or
pornographic images;

deceive the consumer. There should be nothing

in the mark which would lead the customer to
think that your product has a quality it doesnt
actually possess, for example, use of the word
Organic on goods which arent organic;

IP Basics: The business owner's guide to understanding your IP

are three dimensional shapes which are typical

of the goods (or part of the goods) you are
interested in, for example, the shape of a simple
plastic bottle for drinks;

are three dimensional shapes which are designed

in order to perform a technical function (such
shapes are more suitable for patent protection).

Did you know....?

Registration at
Companies House
provides no legal
rights to use that
name as a trade mark.

Provided that your trade mark does not fall into

any of the aforementioned categories, there is a
good chance that it will be considered acceptable
for registration. If, after being published, your trade
mark does not then attract any objections from other
trade mark holders, it will be registered. This process
usually takes around three months.
Unregistered trade marks
If a business doesnt register its trade mark, it may
still be able to take action if someone uses the mark
without permission by using the common law action
of passing off.
However, reliance on an unregistered trade mark for
protection of your brand and reputation would not
be a recommended course of action. It can be very
difficult and expensive to prove a passing off action.
Broadly speaking, to be successful in a passing off
action the trade mark owner must prove that:

there is protectable goodwill in the mark;

there is a misrepresentation of the mark, and

that misrepresentation caused damage.

Without misrepresentation there is no passing off. This

is a complicated area of law and in any such situations
it would be wise to seek advice from an IP Attorney.
For more information on trade marks, including how
to search for existing registered trade marks and how
to register internationally go to www.ipo.gov.uk/tm
IP Basics: The business owner's guide to understanding your IP

21

If you have an idea and its

unique, do lots of research
and before introducing it to the
market get it protected. There
are so many big companies
who can make it happen
in a few weeks and all that
investment and work will be for
nothing.

Malin Granfors
Designer at www.bradadoo.com
Malin Granfors came to the UK at the young age of
19. After working in catering and travelling the world,
Malin returned to Sweden to study for a year, during
which time a friend in the UK was celebrating their
birthday. Unfortunately, Malin didnt have enough
money to send them a present and felt that the
standard greetings card was impersonal and boring,
so she got creative.
Malin took inspiration from the traditional playground
game often referred to as a fortune teller. One
person writes various messages inside a folded
piece of paper and then, using numbers chosen by
another person, reveals their fate.
Of course, Malin put her own stamp on the concept
and used her artistic skills to decorate the piece.
She tailored the content to her friend which added
both personal and sentimental value and ensured
the design was lightweight and folded flat so it
could be sent via the general post. Needless to say,
Malins friends loved the idea and this was how the
chatterboxes were born.
One night shortly after, Malin had another eureka
moment. She jumped out of bed and started cutting
away at one of the chatterboxes, adding a 3D
design to the outer edges which stood out from the
chatterbox like a pop-up book. This unique touch
22

IP Basics: The business owner's guide to understanding your IP

inspired Malin to search the IPOs designs database

for any similar designs that were already registered,
so as not to infringe anyones work or to waste time
on a product that was already available. When she
realised that her design was unique, she decided
to protect her intellectual property before going any
further.
Although Malin had planned to register her design
in the UK, she was now living between the UK and
Sweden and wanted to ensure that her design was
protected in both countries. She therefore chose
to apply for a Registered Community Design (RCD)
which protected her intellectual property in the
UK and Sweden, plus many other countries in the
European Union. As Malins business began to grow
and the range expanded, the additional protection
proved invaluable, especially when importing and
exporting goods.
Malin strongly recommends getting the correct
protection before going into business to prevent
others from exploiting your work, time and money.
If you have an idea and its unique, do lots of
research and before introducing it to the market
get it protected. There are so many big companies
who can make it happen in a few weeks and all that
investment and work will be for nothing.
Malins chatterboxes have become increasingly
popular with all age groups and there are now many
different designs to choose from. By registering
her intellectual property in the early stages, Malin
has protected her assets in the best way possible,
allowing her business to develop and expand
globally. At present Bradadoo, the company she runs
with her long term partner, are trading as far as New
Zealand and Canada and Malin is currently working
on a Christmas cracker chatterbox.

IP Basics: The business owner's guide to understanding your IP

23

Did you know....?

UK registered designs
need to be renewed
every five years and
last for a maximum
of 25 years and UK
unregistered design
right lasts between
10-15 years.

Design for appearance

Design describes the appearance or look of
manufactured products. There are two types of
protection in law; registered design in which
your designs are examined and registered by the
Intellectual Property Office or other international
bodies; and unregistered design right which is
automatic but offers less protection.
Unregistered design right
You can benefit from automatic design rights in the
UK (UK Unregistered Design Right) and in Europe
(Unregistered Community Designs). These provide a
similar kind of protection to a registered design, but
are limited in certain ways, can be harder to enforce
and have a much shorter duration.
You should carefully consider whether it would be
wise to rely solely on unregistered design right,
because where disputes arise you may have to show
evidence of the existence of the rights, and it is
important to note that unlike registered designs, it is
your responsibility to prove intentional copying.

24

IP Basics: The business owner's guide to understanding your IP

Registered design
Did you know....?
If you are a designer,
designer maker or
design innovator,
Anti Copying in
Design (ACID) offers
practical advice and
specialist support to
help you understand
and manage your
intellectual property at
www.acid.uk.com.

A registered design gives you a legally enforceable

right to use your design to gain a marketing edge
and prevent others from using it without your
permission.
Design registration protects the appearance or look
of a product providing it is new and has individual
character. The design must have a special shape,
configuration, pattern or ornamentation to be
registered. Some people confuse patent protection
and design protection. Designs protect the visual
appearance of a product whereas a patent protects a
technical product and how it functions.
A registered design cant be for an idea or concept,
it is a what you see is what you get right, so its
important that the registered design application
contains images of the product or the packaging you
wish to protect which are identical to those which are
actually placed on the market.
Some products cant be registered because they
dont fit the criteria to be considered a design. In
general terms these are products which are shaped
in a particular way solely to achieve a technical
function, or products which are shaped in a particular
way solely to fit to something else. You also cant
register designs which are immoral or illegal, or
contain a protected emblem such as the Royal
crown.
There are fees for registering a design, and the
process takes around four weeks providing your
design meets the above criteria.
You can find out about more about designs at www.
ipo.gov.uk/design

IP Basics: The business owner's guide to understanding your IP

25

The work we produce becomes very

personal to us. We dont tend to treat it
as a job, this is our life

Steve Benbow,
Director www.videowales.com
Video Wales was formed after a group of friends,
all former photographers working in different fields,
recognised that the industry was moving more
towards video. To keep up with the market they
pooled their skills, equipment and experience to
form a filming company and registered the name
Video Wales. Their work is currently broken down
into three areas; corporate videos for businesses,
documentaries and dramas.
Steve Benbow, Director at Video Wales, explains
how the creative process starts by taking a brief
from potential clients. Once they have determined
the clients expectations, the Video Wales team
then research the client and their business model
and combine their ideas into a unique package,
sometimes using extracts of work to demonstrate
their proposal.
As copyright is automatic and exists when a work is
fixed in some form (i.e. in writing or on film), Video
Wales do not need to register their work as you
would with a patent, trade mark or design. However,
whilst commissioned work is generally owned by the
organisation that created it, the contract between
parties may state otherwise. It is therefore vital that
Video Wales determine copyright over their work in
the first instance so that their work is not exploited
and the other party are not misled. If the work is
commissioned, you really need to sit down with the
commissioner and work out what each person gets...
so you all understand where you are.

26

IP Basics: The business owner's guide to understanding your IP

In an effort to prevent contractual disputes, Video

Wales ensure the terms and conditions are clearly
displayed on their website, outlining copyright,
licensing and the way in which the company works.
From the initial dealings with the client they keep a
paper or electronic trail of all correspondence and
contracts, which is carefully logged in case they
need to be revisited, a measure that Steve deems
essential for businesses. Although its not the
most glamorous part of the business, its very, very
important because companies, in particular small
companies that dont have large financial backing,
get into serious problems if there is any legal action.

IP Basics: The business owner's guide to understanding your IP

27

Steve clearly recognises the difficulties of protecting

your work in the current climate, especially for young
filmmakers who may feel forced to sign a contract
not in their best interests to keep them afloat. In these
instances, Steve urges them to retain their rights
as they may regret their decision in years to come.
I think its very important, in particular for young
students leaving film school, from day one they are
very aware of copyright, what it means and what it will
mean to them years down the line. If they maintain
copyright they will be in a much better position.
Steve then emphasises the significance of protecting
their work, both for their personal and professional
needs. The work we produce becomes very
personal to us. We dont tend to treat it as a job, this
is our life. He also adds for us, all we really have is
our work and the past work that weve done. Thats
all we can show to somebody to try and get more
work, so its very important that we control that work
and we have access to it and the rights to it. From
day one, we ensured we had that control.
Video Wales have now been in existence for over
four years and have recently moved to a bigger
studio with more equipment, allowing them to take
on larger projects. They have just completed their
biggest project to date for an International aerospace
company and are about to embark on a drama
documentary, solely produced, edited, distributed
and promoted by Video Wales.

28

IP Basics: The business owner's guide to understanding your IP

Did you know....?

Counterfeiting
and piracy relate
to certain trade
mark and copyright
infringements
respectively. These
are criminal acts, and
Trading Standards,
HM Revenue and
Customs and the
Police have powers
to seize and destroy
infringing goods and
to bring criminal
proceedings

Copyright for creative

works
Copyright gives the owner of a creative work the
right to exclusively control and exploit its use.
It covers books, art, music and sound recordings,
photographs, software, databases, films and print,
radio and television ads and other promotional
materials. Copyright protects the expression of, but
not the idea behind a work. For example, the text in
a manual is covered, but not the ideas conveyed in it.
The term of protection for most copyright material is
the life of the creator, plus 70 years from the date of
their death.
In the UK copyright exists automatically when
something is written down or recorded; there is no
formal registration. It is a good idea to put the letter
c in a circle () at the end of your work, followed by
the year, for example, John Smith 2013, to ensure
others know that copyright in the work is claimed by
the author.
Additionally you could lodge your work with a bank
or solicitor. It is important to note that this does not
prove that a work is original or created by you, but it
may be useful to be able to show the court that the
work was in your possession at a particular date.

IP Basics: The business owner's guide to understanding your IP

29

Copyright and your business

Did you know....?
The IPO runs a
mediation service
for IP disputes.
Mediation is a type
of alternative dispute
resolution, a way of
resolving disputes
without going to court.
It is cheaper and
quicker than litigation
and the outcome is
usually beneficial to
all parties. You can
find more information
at www.ipo.gov.uk/
mediation.

Businesses create and use copyright works all

the time perhaps without even realising it. It is
important for a business to understand how to
commercialise and protect its copyright works, as
well as the ways it can make use of copyright works
belonging to others.
If you commission third parties to create copyright
works for your business it is really important that
you agree on who will own the copyright before
the work is created. Some businesses commission
work only to later find out that the creator still owns
the copyright, meaning the business is limited in
how it can use the work. You should always check
the terms and conditions, and if you are unsure you
should check with the business from which you are
commissioning the work.
Dont use other peoples copyright work unless you
have permission. The owner has the right to take
legal action to stop the infringement and to seek
damages.
For more information about copyright, please visit our
website at www.ipo.gov.uk/copy

30

IP Basics: The business owner's guide to understanding your IP

Everyone owns intellectual property.

What do you own?
Straightforward free
guides to understanding
your IP.
Free, interactive and
basic IP training for
professionals who advise
businesses.
Free, quick and easy
IP information at your
fingertips.
Assess your own
business for free with a
tailored report to identify
and value your IP.
Reach your potential with
quality and accredited IP
adviser training.

Achieve your
potential at:
www.ipo.gov.uk/
business

Businesses create and use

intellectual property all the time,
perhaps without realising it.
The value of your IP whether
its a trade mark, patent, design,
copyright or trade secret can
far outweigh the value of your
physical assets.
Keep ahead of the competition
with the Intellectual Property
Offices IP for Business tools
and guidance which can help
you create value from your ideas,
turning inspiration into sustainable
business success.
The Intellectual Property Office
promotes innovation and growth
by offering a vibrant programme
of activities and informed advice
and support to business.

follow us:

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Tel: 0300 300 2000
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www.ipo.gov.uk
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