May 2025 – Rosemary Saad

WHAT EVERY STARTUP NEEDS TO KNOW ABOUT PROTECTING THEIR IP

Startups thrive on innovation, but without proper intellectual property (IP) protection, their innovation could be at risk.

IP is intangible – something you can’t physically touch or see – but that doesn’t mean it can’t be stolen or exploited. Just like any asset, IP needs careful nurturing and safeguarding.

While asset protection is a complex and startup-specific issue, this article should get you thinking about some key initial steps to take, before consulting a lawyer to cover you on the rest.

The most important thing to keep in mind is that you cannot protect ideas themselves! However, you can protect their tangible expressions or manifestations, such as a written work, a design, or a product. Keep reading to find out more about this.

Understanding IP

IP refers to creations of the mind, including inventions, designs, trademarks, and artistic works. For startups, IP can be their most critical asset, giving them a competitive edge.

IP rights give you the exclusive right to exploit your work.

Investors often prioritise startups that protect their IP, seeing it as a sign of innovation, market strength, and profitability. A strong IP portfolio can boost a startup’s valuation, attracting further investment or acquisition opportunities. Additionally, IP rights can generate revenue through exclusive licensing or sales.

The Australian Government agency responsible for administering IP rights is “IP Australia.”

You Cannot Protect Ideas!

What? Isn’t the whole point of “intellectual” property law to protect “intellectual” concepts? Not exactly…

It would be too complex to prove who came up with an idea first. That’s why you can only protect an idea once it has been expressed tangibly.

It sounds simple when you put it that way, but the question remains: what can you actually protect?

Key Types of IP Protection for Businesses 

  • Patents: Protect inventions and processes.
  • Trademarks: Safeguard brand identity (e.g., names, logos).
  • Copyright: Covers original artistic and literary works.
  • Trade Secrets: Protect confidential business information.

What Practical First Steps Can I Take to Protect IP?

1. Conduct a thorough IP audit of your business to identify valuable assets.

Have you got unique logos? Brand names? Product names? Unique processes? Innovative products?

What about a website design? A song? A script for your next play? A book? An article (like the one you’re reading now)? Or a comprehensive research paper that took months to write?

Trade secrets? Confidential information?

2. Register patents, trademarks, and designs with IP Australia.

You will need to conduct all the necessary searches of existing material to ensure that yours is unique (and of course, not in breach of someone else’s IP rights).

An application needs to be made to IP Australia for approval. There are certain restrictions on what you can do with your IP before your application is approved.

3. Be careful who you share your ideas with!

Remember, as mentioned earlier, ideas are not protected until they are recorded in some tangible manifestation.

4. Use non-disclosure agreements and clauses with collaborators and employees.

You should have a lawyer help draft these clauses.

5. Monitor for potential IP infringements.

Actively monitor the market for potential infringement of your IP rights and take appropriate enforcement action when necessary.

It is important to note that IP protection granted in Australia does not automatically extend to other countries. If your startup has international ambitions, it needs to consider seeking IP protection in those relevant jurisdictions.

If you are ready to take the next step in protecting your IP, Harris Freidman Lawyers can guide you through the process, ensuring your valuable assets are safeguarded. Contact us for expert advice tailored to your business’ needs.