WIPO Publication No. 488(E) ISBN 92-805-0966-7

Intellectual Property for Business

In the increasingly knowledge-driven economy,intellectual property (IP) is a key consideration inday-to-day business decisions. New products,brands and creative designs appear almost dailyon the market and are the result of continuoushuman innovation and creativity. Small andmedium-sized enterprises (SMEs) are often thedriving force behind such innovations. Theirinnovative and creative capacity, however, is notalways fully exploited as many SMEs are notaware of the intellectual property system or theprotection it can provide for their inventions,brands, and designs.

If left unprotected, a good invention or creationmay be lost to larger competitors that are in abetter position to commercialize the product orservice at a more affordable price, leaving theoriginal inventor or creator without any financialbenefit or reward. Adequate protection of acompany's intellectual property is a crucial step indeterring potential infringement and in turningideas into business assets with a real marketvalue. Taking full advantage of the IP systemenables companies to profit from their innovativecapacity and creativity, which encourages andhelps fund further innovation.

To help SMEs more fully utilize their IP assets intheir business activities, the World IntellectualProperty Organization (WIPO) has established aprogram to assist entrepreneurs, SME-supportinstitutions, and national governments inincreasing awareness and use of the IP systemamong SMEs across the globe.

Intellectual Property – some basic definitions:

Patent: A patent is an exclusive right granted for aninvention, which is a product or a process thatprovides a new way of doing something, or offers anew technical solution to a problem. A patentprovides protection for the invention to the owner ofthe patent for a limited period, generally 20 years.Trademark: A trademark or brand-name is adistinctive sign which identifies certain goods orservices as those produced or provided by a specificperson or enterprise. The period of protection for atrademark varies, but can generally be renewedindefinitely.Industrial Design: An industrial design – or simply adesign – is the ornamental or aesthetic aspect of anarticle produced by industry or handicraft; registrationand renewals provide protection for, in most cases, up to 15 years.Copyright and Related Rights: Copyright is a legalterm describing rights given to creators for theirliterary and artistic works (including computersoftware). Related rights are granted to performingartists, producers of sound recordings andbroadcasting organizations in their radio andtelevision programmes.Geographical Indication: A geographical indicationis a sign used on goods that have a specificgeographical origin and often possess qualities or areputation that are due to that place of origin. (For a more thorough description of each of theseelements of intellectual property seehttp://www.wipo.int/about-ip/en/ and relevant WIPOleaflets)Trade Secrets/Undisclosed Information isprotected information which is not generally knownamong, or readily accessible to, persons that normallydeal with the kind of information in question, hascommercial value because it is secret, and has beensubject to reasonable steps to keep it secret by theperson lawfully in control of the information.

For more information contact theWorld Intellectual Property Organization at :

Address: 34, Chemin des ColombettesP.O. Box 18 CH-1211 Geneva 20Switzerland

Telephone:+41 22 338 91 11

Fax:+41 22 733 54 28

or its SMEs Division:

Director :Guriqbal Singh Jaiyaguriqbal.jaiya@wipo.int

Fax:+41 22 338 8760

E-mail : sme@wipo.int

Visit the WIPO website at :http://www.wipo.int

the SMEs web page at :http://www.wipo.int/sme/and order from the WIPO Electronic Bookshop at :http://www.wipo.int/ebookshop

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Intellectual Property and Small and Medium-Sized EnterprisesEnhancing CompetitivenessThrough IP Protection

Many new products or services embody differenttypes of intellectual property. Forward-lookingenterprises face the challenge of extracting thelatent value of their IP and using it effectively intheir business strategy. Companies that dedicatetime and resources to protecting their intellectualproperty assets can increase their competitivenessin a variety of ways. Intellectual property protectionhelps in:

preventing competitors from copying or closely imitating a company’s products or services;avoiding wasteful investment in research and development (R&D) and marketing;creating a corporate identity through atrademark and branding strategy;negotiating licensing, franchising or other IP-based contractual agreements;increasing the market value of the company; acquiring venture capital and enhancingaccess to finance;obtaining access to new markets.

In addition, enterprises which search systematicallyfor conflicting IP rights of others prior to seekingIP protection are able to avoid unnecessarylitigation, thereby saving time and resources.

Effective IP Management

Effective IP management enables companies touse their intellectual property assets to improvetheir competitiveness and strategic advantage.

in IP-related issues to help its Member Statesovercome these obstacles and take betteradvantage of the IP system. Given the importanceof SMEs to the economies of all nations – theyconstitute some 90 percent of all enterprisesworldwide and account for more than 70 percentof the production of goods and services – effectiveuse by SMEs of IP assets is a key factor in ongoingeconomic development.

Main Objectives

WIPO’s SME initiative aims to:

Promote a greater use of the intellectualproperty system by SMEs;Strengthen the capacity of nationalgovernments to develop strategies, policiesand programs to meet the intellectualproperty needs of SMEs;Improve the capacity of relevant public,private and civil society institutions, such asbusiness and industry associations, to provideIP-related services to SMEs;Provide comprehensive web-basedinformation and basic advice on IP issues toSME support organizations worldwide.

WIPO’s SME Activities

WIPO is identifying existing programs and activitiesdesigned to enhance SME competitiveness atnational, regional and international levels to helpassess the needs of SMEs, identify anddisseminate information on best practices, andforge partnerships with appropriate institutions.Cooperation with these institutions and

strengthening their IP component is a key focusof WIPO’s SME program.

WIPO’s outreach activities include distancelearning programs, distribution of publications,self-help kits, pilot training workshops, web-baseddissemination of information, press campaigns,and direct support to business associations in theirown outreach activities.

Information on the role of intellectual propertyrights in the overall business strategy of anenterprise are presented from a managerialperspective, with an emphasis on the role ofpatents in product development strategy, as wellas the use of trademarks, designs andgeographical indications as marketing tools.Workshops, seminars, and information materialsfocus on:

Introduction to IP concepts from a businessperspective;IP management for business success;Use of patent and trademark data as asource of technological and commercialinformation; Exploitation of IP assets through licensing,franchising, technological alliances and jointventures.

WIPO is continuing to enhance and expand itsprogram for SMEs. For further information, pleasecontact WIPO at the addresses on the back of thisbrochure.

Acquiring IP protection is a crucial initial step, buteffective IP management means more than justprotecting an enterprise’s inventions, trademarks,designs, or copyright. It also involves a company’sability to commercialize such inventions, marketits brands, license its know-how, conclude jointventures and other contractual agreementsinvolving IP, and effectively monitor and enforceits intellectual property rights. Indeed, a company’sportfolio of IP must be viewed as a collection ofkey assets that add significant value to theenterprise.

SMEs can also benefit from the wealth oftechnological and commercial information availablein patent and trademark databases to learn aboutrecent technological breakthroughs, identifyfuture partners, and find out about the innovativeactivities of competitors. Managing IP effectivelyand using it to devise business strategies is anincreasingly critical task for entrepreneursworldwide.

The Challenge Ahead

Insufficient information on the relevance of IP inday-to-day business, high costs associated withobtaining and enforcing IP rights, perceptions thatthe IP system is esoteric, too cumbersome andtime-consuming: These are among the reasonswhy many SMEs are sometimes slow to protecttheir intellectual property assets.

As an international intergovernmental organizationdedicated to promoting the creation, use, and protection of intellectual property worldwide,WIPO draws upon its experience and expertise