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Haste: Lack of protection can be costly

09. februar 2018

The wish to get fast on the market – and myths that it is both expensive and time-consuming to get a grip on IPR – can be a costly cocktail. However, if you get a grip on your rights, you can secure yourself a place on the market and avoid expensive lawsuits.

Constant demands for innovation from customers, new technologies that might be outranked tomorrow and the wish to shorten the time from idea to invoice are some of the considerations that keep companies on their toes constantly, but jumping the gun can be costly.

"Increasingly, we hear about entrepreneurs, inventors or companies who forget about protecting their product, brand or design in their eagerness to get first on the market – and that may turn out to be a very bad idea," states Partner and Head of Trademark Professional Development at Chas. Hude Thorbjørn Swanstrøm.

If you hit the market without proper protection of your rights, you open the door to other players who will happily copy your product, design or brand.

"If a company is copied on one or more elements of its core business, it affects earnings of the company – and valuable investments in the development of product, brand and design can be lost," warns Thorbjørn Swanstrøm.

The risk of being copied is only part of the equation. If a company fails to undertake a search of the market for relevant IPR within its field, the risk of violating the rights of others is imminent.

"It can also be a very costly affair – not only does copying the products of others hurt the company image, it is also expensive to develop something that cannot be sold and you run the risk of an expensive lawsuit for damages. A lawsuit that may well cost an amount in the double-digit or triple-digit million range plus legal costs," says Thorbjørn Swanstrøm.

While technological developments, market developments and global developments are putting pressure on corporate decision-making, it is just as important to focus on IPR as on a range of other critical business decisions.

"Just as you do not forget the accountant or the control of your supply chain, or consulting the bank before hitting the market, you should not forget to make an overall check of the company IPR situation. Further, it is a myth that this is something that takes ages and has disproportionate costs. Trying to cut the costs on the IPR budget can quickly turn out to be very expensive," explains Thorbjørn Swanstrøm.

Contact us to learn more about how to make your company IPR ready, how long it takes and how much it costs.

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