In this second article in our ‘How to…’ series, we reflect on what we learned from Mugdha Joshi, IP & Licensing expert at Kings College London, in her training session on Intellectual Property.
What is Intellectual Property?
Intellectual Property (IP) is a term that refers to the ‘creations of the mind’ such as inventions, works of art and symbols, names and images used in commerce.
Types of IP
Patents - Works to prevent another person from being able to use the same invention. They cover how inventions work, how they do it, what they are made of and how they are made. A patent lasts for 20 years and it must be renewed on its fourth anniversary. It then must be renewed every year. After 20 years the patent is given to the public. To qualify for a patent, the invention needs to meet the following criteria:
- The invention needs to be undisclosed and not in the public domain before the date of filing. However, any disclosure under a non-disclosure agreement is fine.
- Your idea needs an inventive step that is not obvious to someone with knowledge of the subject.
- It must be a solution to a problem.
- It must be something that can be made and not just speculative.
Copyrights – Protects work created by their author. It must be the author’s own intellectual creation and not have been copied from somewhere else.
Designs – This refers to the aesthetic aspects of an article. It protects 3D objects, or the designs applied to them.
Trademarks – A distinctive sign that identifies certain goods or properties provided by an individual or a company.
Commercialisation of IP
The commercialisation process involves:
- Market analysis - What does your product solve? Why is it better than your competition? Who wants it and why? What are its limitations? What is the development time? (Click here for more on marketing).
- Due Diligence - In-depth research of your company and invention and will include schedules of patents, copyrights and trademarks
- IP protection - Prior art search and patent attorney. You must ensure there is no evidence of your idea already being known.
- Proof of concept fund
- Marketing - Reaching out to companies and sending non-confidential flyers
- Licensing - What’s down the pipeline? Exclusive or non-exclusive licence? What obligations are there, e.g. development milestones?
- Spit-out creation - What do venture capitalists look for? They will want to see all your documentation that demonstrates that you meet various requirements. They will want to see your granted patents. It is a good idea to have a portfolio with multiple aspects of the product covered. They want to see that your product and company is professionally managed and that there are no issues of contested ownership or opposition.
The Bright SCIdea Challenge 2020 Final
SCI are unable to protect any intellectual property submitted as part of the competition. It is in your best interest to not disclose any information that could give away key aspects of your innovation for others to reproduce.
On 6 December 2019 SCI held its entrepreneurial training day for this year’s Bright SCIdea Challenge. The first article in our How to series will take a look at what we learned from Neil Simpson, R&D Director at Borchers, in his training session on how to market and brand your idea.
In order to successfully promote a product or service, it is essential to understand the customer and the market. It is important to be more effective than your competitors in creating, delivering and communicating your idea.
Segmentation, Targeting and Positioning (STP) is a useful tool to help you to define your product and customer base.
When segmenting your customer base, consider the demographics including age, income and gender, as well as their geographical location and behavioural traits.
Once you have segmented your customer base, you will be able to identify which groups are the most suited for your product.
After you have considered which segments to target, you need to take into consideration what your product solves for these people – what is your unique selling point?
The 4 Ps – Marketing Mix
Once you have used the STP framework to define your product and customer base, you can use the 4 Ps Marketing Mix to develop a strategy to bring your product to the market.
Product – This can be a tangible product, for example clothing, or a service. You should consider: What does your product stand for? What needs does it satisfy? How does it differ to your competitors?
Price – It is vital to think carefully about the pricing of your product. Do you compete on price or quality? Consider the perceived value of your product, along with supply costs and competitors’ prices. Pricing your product too high or too low could harm your sales and reputation.
Place – Where is the best location to provide your product to your customer base, and how do you distribute it to them? If you understand your customer base, you will be able to answer important questions such as: Where do your target customers shop? Do they buy online, or in high street shops?
Promotion – What is the most effective way to market your product and which channels should you use? Will you run a social media and email campaign? Would you benefit from attending conferences and exhibitions?
Finally, a useful tool to analyse your current position is the SWOT model. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
Strengths – How are you perceived by your customer base? What separates you from your competitors?
Weaknesses – What do others see as your weaknesses? What do your competitors do better than you?
Opportunities – What are current market trends? Are there any funding opportunities you could apply for? Are there any gaps in the market?
Threats – Are there any emerging competitors? Do you have any negative media or press coverage?
Using STP, the 4 Ps, and SWOT will be invaluable when it comes to completing your business plan. The more you understand your product, your customer base, where you sell it, and how you sell it, the more successful you will be!