What Business Angels and VCs need to know about IP


This article introduces intellectual property to business angels, venture capitalists and other investors.

After some basic information on intellectual property law the article sets out the following simple 6-point strategy for determining whether intellectual property protection for a particular asset is required at all and, if so, the optimum protection:

1. Choose a business planning period.

2. Identify revenue streams for your business in that period.

3. Consider possible threats to those revenue streams.

4. Think about possible countermeasures to those threats, remembering that most of those countermeasures will be commercial and not legal.

5. If legal protection is needed, choose the optimal IP for the asset.

6. Ensure adequate funding for enforcement.

This strategy would have averted a catastrophic failure to protect a new technology despite the grant of 18 patents which a well-known American strategist discussed in her blog.

The article concludes that patenting and other intellectual property protection is too important to be left to patent agents and R & D staff. Businesses need to harness the talents, skills and experience of all their professionals: accountants, brand consultants, lawyers and others. As that may not necessarily be obvious to entrepreneurs it is up to angels, VCs and other inventors to encourage them.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jane Lambert, NIPC | Attorney Advertising

Written by:


NIPC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.