by Ammara Farooq Malik, Partner AFMalik Law.
While advising businesses expanding in Pakistan or Pakistani businesses planning to export their goods or services beyond Pakistan, it is essential to focus on one of the basic areas of business law that protect your business’ identity, integrity and ensures a uniform standard to your customers and clients: Intellectual Property Laws. [1]
In this article we will discuss the advantages and benefits registering your intellectual property.
- Increases the market value of your business:
Often times, businesses are unsure about how to capitalize on their ideas and unique content, afraid of disclosing them with the apprehension that, their creations might get stolen before they have had the opportunity to reap benefits in profit. We advise our clients to register their creations’ trade mark and content in the form of trademark and copyright registration to be able to enhance the value of their business. IP can generate income for your business through licensing, sale or commercialisation of protected products or services.
- Increases business profits:
Registered intellectual property has the potential to increase the share of the market that your business can capture and hence increase the probability of reaping in profits.
- Position of IP in case of merger or acquisition is stronger:
Often at the time of mergers and acquisitions, the value of a business is decreased on paper to suit the stronger party, or increased by the party not aware of the true market value of their ideas. Having registered and protected IP assets can raise the value of your business at the time of such sale, merger or acquisition.
- Converts ideas into profit generating assets:
An idea on its own is of little value unless it is coupled with action. An IP registration can however, convert an idea into a commercially viable service or product. Licensing your patents or copyright, for example, can lead to a steady stream of royalties and additional income that can boost your business’ bottom line.
- Creates an image for your business:
In order to market your business’ products and services, it is essential to create the image for your business or brand. To create value in your brand, it is imperative to register its trade mark, logos and the designs of your products. IP can help business owners, differentiate their products and services in the market so as to be able to promote them in the market.
- Assists in accessing or raising finance for your business:
IP assets can be commercialized through sale of products and services, licensing of your patents or using your intellectual property as collateral for debt financing. IP assets can also be used at an advantage by the IPR owner when when applying for public or government funding, such as grants, subsidies or loans.
- Enhances export opportunities for your business:
IP can increase your competitiveness in international export markets. You can use brands and designs to market goods and services abroad, seek franchising agreements with overseas companies, or export your patented products.[2]
[1] See Intellectual Property Law Category on this blog for more details.
[2] https://www.nibusinessinfo.co.uk/content/advantages-protecting-intellectual-property
