If you take two manufacturing companies that make the exact same items and look at their processes, you’ll find that both are most likely very different. Most manufacturing businesses have their own internal processes and systems that are proprietary and secret. Not only do these secrets keep competitors in the dark, but they also allow the businesses to compete fairly against one another. The only downside to this is the fact that intellectual property can be stolen.
So, what happens when one company steals valuable intellectual property to use for their own gain? And how can you protect your intellectual property? Let’s explore your options.
Understanding Intellectual Property
The first step towards protecting your intellectual property, or IP, as it’s sometimes called, is by understanding exactly what your business’ IP consists of. Until you see it broken down, IP can be a nebulous and abstract concept. Here are a few of the items that can fall under the IP umbrella:
Trademarks – A trademark is a part of your company’s branding and logo. It makes the products made by your business instantly recognizable. If your logo has a blue square, and your direct competitor rebrands to a logo that also has one, you could possibly sue them because they’re infringing on your trademark. Using your company’s logo on goods without your permission also applies here.
Manufacturing Processes and Trade Secrets – How are your machines set up? Are there specific processes that are conducted as your products are made? Do you use specialized machinery created specifically for your company? Any competitor that “borrows” them without permission runs afoul of intellectual property laws and could have an effect on your business’ bottom line.
Patents – Does your business hold any patents? If so, you’ll need to keep an eye out for similar processes or designs that could infringe on your patent. Your competitor may try to copy something that you’ve made in order to capitalize on your company’s good business luck.
Copyrights – Did your business develop specialized marketing materials? Do you have training videos or commercials that your competition may have copied for their own personal uses? Anything that could be and is copyrighted by your company falls under the protection of intellectual property insurance.
Using Insurance to Protect Your Intellectual Property
Your manufacturing company’s intellectual property is its livelihood. Without those proprietary processes, copyrights, trademarks, and more, your company cannot be competitive. In order to avoid the negative impact that a stolen patent or specialized trade secret has on your business’ bottom line, you need to have intellectual property insurance.
These insurance policies cover the legal costs needed to protect your intellectual processes should they be stolen or used without your business’ permission, as well as the money lost due to the entire situation. Without a good intellectual property insurance policy, your business could be out of luck when a breach occurs.
Have Questions? Contact Charlotte Insurance
Want to learn more about intellectual property insurance for your manufacturing company? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.