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The Importance of Intellectual Property

As manufacturers we are in a daily dance surrounding intellectual property (IP). The typical dance partners include our own IP, utilizing the IP of others or working around the IP of a competitor. The three main areas of IP that we need to be concerned with are Trademarks, Utility Patents and Design Patents. All of these IP items are registered at the United States Patent and Trademark Office (USPTO). Usually, as a manufacturer, we have a close relationship with a patent attorney who helps to guide us through the legal and sometimes arcane situation of dealing with the USPTO.

IP is very important and must be a priority in the corporate strategy of every company. Even if you are not filing patents you certainly need to register your trademarks with the USPTO. Filing your trademarks for the business is a great first step to begin your familiarization with working in the world of IP. It is inexpensive and your patent attorney can step you through the procedure easily. This procedure also applies to filing your trademarks in foreign counties where you intend to do business.

I have many product ideas that end up falling to the wayside; one of the reasons is that when I research the potential for a patent and it looks weak, my interest level fades. It is so important to have IP associated with your product that I do not suggest pursuing it unless you can obtain the IP. The strongest patent is a Utility Patent and this should be at the basis of your plans. A utility patent must teach how to make the item, formulation or define the process; in addition it fully describes the novel concept along with a set of claims. The claims are the most important part of the patent and it takes skill to write the claims in a defendable manner. Unless you are an expert, lean on your patent attorney to do this heavy lifting. If you can concentrate on describing your invention to your patent attorney, he will take care of the rest of the process through a question and answer process in your interview.

In addition to the Utility Patent, if possible, file a Design patent on your product. Design patents are not as defendable as Utility Patents; however, they can cover subject matter that is not included in the Utility Patent. A bottle is just a bottle; unless it is covered by a Design Patent, examples include the classic shape of the Coca-Cola glass bottle. Make you design unique, stand out from the others, it all helps in the world of commerce.

It may be that you want to gain royalties from the patent and have no interest in making it yourself. This is all possible once your patent has been issued by the USPTO. Regardless, do not underestimate the value of a Non-Disclosure Agreement (NDA). Before you communicate or attempt a business deal that involves your IP, no matter the stage it is in, I strongly suggest an NDA to protect all parties.
Over time, your inventory of IP will grow and it will be time to decide what stays and what goes. That great idea may have had its time and there is no reason to continue to pay the maintenance fees of an obsolete item.

In addition, it is highly recommended that you keep your IP and all associated documentation with how you developed the product in a safe location, it has value and you may need that one scrap of paper that describes a critical subject. I have seen patent cases resolved over a torn sheet of notebook paper with a description and a date scribbled in the corner. Take the time to write those good ideas down and call your patent attorney; your patents are that close to reality. Just to note, in 2012; 576,763 patents were filed with the USPTO, it was a record year!

Roy Paulson is President of Paulson Manufacturing Corporation. www.paulsonmfg.com