Claim your rights

Most IP disputes are settled out of court

After the shock of finding that someone is copying your ideas, your instinct will usually be to kick down their doors. Stop them doing it. Apply for an injunction. Sue for loss of income.

And if you pursue this option you may well win. But, you will probably have to risk the thick end of a six-figure legal fee. If the core of your business is being challenged, then it may be worth it.

But before giving full vent to your frustration, remember that 95 per cent of IP disputes are resolved before they reach court. For both sides, the costs and risks of the legal process are too great.

If you have a well-defined portfolio of IP rights, you can usually find a way of fending off any imitators - or of persuading them to start paying you a royalty on sales.

Warning shots

First, send any infringers a letter. You should be able to see off the get-rich-quick crowd. From more established operators, you can expect some bluster. Keep up the warnings.

At the point when they have to take legal advice, they will realise the extent of their potential liability. Most will then back off.

In making your case, it pays to have a tight definition of your IP. If your claim is too broad, then it is harder to make it stand up.

In registering any IP, always keep in mind how you are going to use it. Instead of just the idea itself, can you protect any particular selling points? You want to make life as awkward as you can for anyone trying to get into your market.

Pressure points

Even household names can be deaf to well-made appeals. If you feel you are being ignored by individuals within an organisation, then don’t hesitate to contact senior figures directly. They have a better grasp of the wider picture and can see how their reputations could be damaged by using someone else’s ideas without their agreement.

Or, you could work through the supply chain. Ultimately, anyone who makes improper use of IP is liable. So, have a chat with an infringer’s distributors in a major market like the US or Europe. Or, you are at an exhibition and spot someone copying your IP, talk to the organiser and have their goods taken off display.

You can certainly raise these points, but be careful in taking legal action. You are meant to take up the case with the originator of any copying.

Commercial resolution

Once you have an infringer’s attention, you can then push towards your preferred outcome. If your priority is to take their goods off the market, then you might let them off some damages in return for a promise to steer clear of your idea in future. But more than pride is at stake.

Copying is usually a signal that a market is starting to grow. If you have limited capacity to meet demand, then you might be better off to sell a licence to any imitators.

If they are reluctant to pay a proper price, you can throw in some extra know-how. How does the process work best? How is an idea best taken to market?

Pass on the legal risk

To see off any serious challengers to your IP, they have to believe that they could end up in court. Either build up a fund so you could go to court as a last resort to prove your point. Or, find other ways of offsetting your IP risks.

You could sell your idea to someone big enough to take legal action. Of course, you will have to clear all the rights first, but a corporation will not tolerate any frivolous disputes about who owns the IP. There is too much at stake and they will fight your corner for you.

Alternatively if you are expanding internationally, particularly in North America, you might consider finding lawyers to act for you on a no-win, no-fee basis. You may not win any substantial damages, but it shows that you are serious about maintaining a clear path to market.