The protection of intellectual property and the acquisition of safeguards are crucial steps for businesses. This protection enhances their market value, ensures the long-term success of their innovations, and makes them more attractive to investors.
Domestic small and medium-sized enterprises (SMEs) and startups in Hungary are highly creative, often introducing new ideas to the business world. Many times, we may not even be aware that some products are actually Hungarian inventions. Unfortunately, local companies often do not understand the importance of innovation and intellectual property protection, and they fail to safeguard their solutions from competitors.
The National Office of Intellectual Property has compiled a comprehensible publication titled "IP GUIDE FOR SMEs," which explains why it is worth dealing with protection issues, the benefits a SME can derive from it, the steps involved in the protection process, and also presents protection strategies by industry.
Everyone has intellectual property, but the intellectual property right belongs only to those who seek protection for it!
An example is Julius-K9, which developed dog harnesses that were safer and more practical for animals. They successfully protected their products with trademarks and obtained monopoly rights, selling them in numerous countries.
Another example is teqball, which created a new sport combining football and table tennis. They also emphasized the importance of intellectual property protection to safeguard their innovative idea.
Industrial property protection and the protection of intellectual property increase the attractiveness of companies to investors, thereby enhancing their company value. In the European Union, only a small percentage of SMEs have industrial property protection (8.8%), while in Poland, this ratio is higher (10%). In Hungary, however, it is lower, at only 3.4%. This indicates that domestic SMEs need to pay even more attention to industrial property protection and intellectual property protection.
But why is it worthwhile? What are the benefits of safeguards?
License for exploitation: Protection provides the right to exploit innovations, products, or brands and grants the owner exclusive rights to use it or grant permission to others for exploitation.
Protection against infringement: Protection allows the owner to take legal action against infringers who copy or imitate protected products or innovations.
Brand protection: Protection, such as trademark protection or design pattern protection, helps prevent copying and counterfeiting, crucial for preserving brand and image.
Increase in market value: Protections can increase a company or product's market value, making it attractive to investors.
Income source: Intellectual property rights, such as patents, trademarks, or design patterns, can be sold or licensed, providing a source of income for the company.
Competitive advantage: Companies with protection can gain a competitive edge as they can defend their innovations and products from competitors.
Preservation of reputation: Protection helps maintain a company's reputation and image by protecting it from counterfeiting and legal disputes.
Attraction of capital: Companies with protections can be more attractive to investors, as protections represent value.
Companies with protections can more effectively defend their innovations, increase their market value, and take legal action against infringements, contributing to long-term success and growth.
As part of its research and development activities, FIEK collaborates with small and medium-sized enterprises, assisting in the protection of intellectual property and the development of innovation. Additionally, it offers opportunities for networking and relationship-building to help SMEs bring new technologies and ideas to the market. Take advantage of university resources to enhance the competitiveness and success of your company!
