It is a matter of fact that yes – the continuous increase in the number of Intellectual Property (IP) applications across different jurisdictions results in the rising costs of Intellectual Property Protection for every other business out there, due to which, the concept of IP benchmarking has become all the more essential. Although every business must maintain a well-protected IP portfolio, it can indeed become a costly affair to maintain a mismanaged IP portfolio. As such, it is equally imperative for every asset to contribute well to the financial and strategic goals of a business.
The way businesses evaluate their position in the market with the help of benchmarking methods; IP benchmarking can be efficiently used to evaluate the profitability and effectiveness of assets in the IP portfolio. By using IP benchmarking, a business can understand the ROI generated on its assets and the business direction of the IP assets. Moreover, it shall also help a business to protect its core IP assets legally and cost-effectively.
Understanding the Costs Associated with IP Protection
There are two main types of costs associated with IP protection, namely, obtaining IP protection and maintaining IP protection. Although we will be only talking about the legal costs associated with IP protection as of now, it is essential to make a point of the fact that there are other costs as well, which are crucial for a business in IP protection, including product development and marketing. Apart from these, there are other legal processes, too, like conducting a Trademark Search, which may be required and are also chargeable.
- IP Application Costs – Based on the markets where your business operates, the cost associated with obtaining IP protection may differ. However, the structure of IP applications and the associated costs are, in general, similar among all the markets. There is always an initial cost for preparing the corresponding documentation for your trademark, patent, industrial design, or copyright. This cost usually depends on the complexity of your case documentation. After preparing your documentation, you need to submit the same for review. Based on the market, where your business is looking forward to obtaining IP protection, you may require applying to several authorities, be it regional or national. Without any second thoughts, the IP applications can prove to be complicated and costly; hence, it is beneficial to get in touch with an IP management specialist, who can help you throughout the process in submitting the correct documentation to the relevant authorities within the necessary deadlines.
- IP Maintenance Costs – After obtaining IP protection for your IP assets, your business shall have the required protection for varying periods according to the country of application and the type of IP, be it a patent, trademark, industrial design, or copyright. In any scenario, the most predictable costs for enforcing IP protection are corresponding to the renewal fees. However, it is also worth noting that the renewal fees can also vary among different regions and countries. Although it can be beneficial for a business to enforce its IP across different markets, the process of IP benchmarking can indeed help it in determining the markets, which shall have a positive impact on its bottom line. By doing the same efficiently, you can conveniently prevent unnecessary application and maintenance costs in your overall business strategy. Besides, the IP maintenance costs may include the legal and attorney fees required to protect the Intellectual Property Rights (IPRs) in the case of litigation.
How can you Save Money with IP Benchmarking?
There are undoubtedly many reasons to have a well-protected IP portfolio. By understanding the value of IP assets, you can have a positive financial impact on your business. With regular assessment and evaluation of the IP assets within different markets, businesses can compare their costs with those of their competitors and ensure not overpaying for IP protection. Furthermore, IP benchmarking can offer insights into the overall value of the IP assets, both individually and as a part of the IP portfolio. Consequently, businesses shall be able to reduce their IP application and maintenance costs and subsequently increase the ROI of their portfolio.