Intellectual property problems can happen more easily than many business owners expect. A company may choose a name that another business already uses, download an image for an advertisement, or add third-party software to its product without checking the licence. Knowing how to avoid intellectual property infringement can help a business stay away from these problems before they become legal disputes.
IP covers many parts of a business, including trademarks, patents, copyrights, designs, software, and trade secrets. The number of registered rights is also growing, the World Intellectual Property Organization recorded around 3.7 million patent applications worldwide in 2024. Trademark filings have also remained high across major markets.
For a business, an IP dispute can be costly and distracting. A company might have to change its name, remove an advertisement, stop selling a product, redesign packaging, or pay for a licence. In some cases, a dispute can also affect the company’s reputation.
Here are four practical ways to reduce the risk:
- Search Before Choosing a Name or Launching a Product
A new business name may seem unique until a trademark search says otherwise. Consider a startup that spends months building its brand around a particular name; It buys the domain, creates a logo, prints marketing material, and starts promoting the business. Later, it finds out that another company already owns a trademark for a similar name.
At that point, changing the name can mean starting much of the branding work again. A trademark search should be done before the company invests heavily in a name, the search should cover similar names, not just exact matches, especially when the businesses operate in the same field.
Product developers should take the same approach; a manufacturer should look at existing patents before introducing a new product, a clothing company can search registered designs and trademarks before releasing a collection, a software business can investigate patents covering important technical features.
The long-running Apple-Samsung dispute is a good example. Apple accused Samsung of infringing patents and design rights relating to smartphones and tablets. The dispute went through several legal proceedings and lasted for years.
Most small businesses will never face anything similar, but the basic lesson applies to everyone: check what already exists before putting money into a new idea.
A basic search can cover:
- Business and product names
- Logos and slogans
- Patents
- Registered designs
- Product packaging
- Software
- Domain names
If the business plans to sell abroad, it should also check the relevant countries. A name that is available at home may already be protected elsewhere.
- Check Images, Software and Other Third-Party Material
The internet is full of useful material. It is also full of material that businesses cannot simply take and use.
An employee might find a photograph online and put it in a company advertisement, a designer might download a font for a brochure, a developer might add an open-source library to an application; none of these actions should happen without checking the rights involved.
For example, an online retailer may find a photograph of one of its products on another website. The retailer might assume that because the photograph shows its own product, it is free to use. But the photographer or website owner may hold the copyright.
The same applies to music, videos, illustrations, articles, and other creative work. Software also needs attention, open-source software can be used in commercial products, but the licence must be followed. Some licences require attribution or impose other conditions.
Businesses should keep track of the material they obtain from outside sources. A simple record can include the owner, source, licence, permitted use, and expiry date where applicable.
Contracts matter as well. When a freelancer designs a logo or develops software, the agreement should make ownership clear. It is much easier to settle this before the work starts than after a disagreement develops.
- Look at What Happened to Other Companies
Real disputes offer useful warnings for businesses.
- Nike and StockX
Nike sued StockX over NFTs that featured images of Nike shoes. Nike argued that customers could believe the NFTs were officially connected with the brand.
The case shows that trademark issues can appear in new types of businesses too. A company using another brand in a digital product cannot assume that the new format makes the trademark irrelevant.
- Getty Images and Stability AI
Getty Images took legal action against Stability AI over the alleged use of copyrighted images in the development of an AI system.
The dispute has drawn attention to the source of data used to build technology. Businesses working with large collections of images, text, or other content need to know whether they have the right to use that material.
- Oracle and Google
Oracle sued Google over Google’s use of parts of Java in Android. The case eventually reached the U.S. Supreme Court, which ruled in Google’s favor in 2021 and found the use to be fair use.
The case shows how complicated software copyright disputes can become. A company may believe that its use of another company’s technology is permitted, while the rights holder may see things differently.
For smaller companies, these cases offer a simple lesson: check the rights attached to anything that becomes part of your product or marketing.
- Protect and Track Your IP Assets
Businesses also need to protect their own work. A software company may have spent years developing its code, a manufacturer may have created a new product design, a food company may have a valuable brand and packaging, and a media company may own hundreds of original photographs and articles.
These assets can become important to the business. Depending on the type of IP, a company may consider:
- Registering trademarks for important brands
- Applying for patents for eligible inventions
- Registering eligible designs
- Protecting original creative work through copyright
- Using confidentiality agreements
- Including IP ownership terms in employment and contractor contracts
Confidential information deserves attention too. A company’s manufacturing method, customer information, pricing strategy, or technical process could be commercially valuable. Access to such information should be limited to people who need it.
Contracts with employees and contractors are worth reviewing as well. If an outside developer creates software for a company, for example, the agreement should clearly state who owns the resulting work.
A simple record can also save a lot of time later. Businesses should keep track of trademarks, patents, designs, software licences, domain names, and important agreements. Good intellectual property protection for businesses also means knowing when registrations and licences need to be renewed.
For example, a company can maintain a simple spreadsheet with the registration number, owner, renewal date, licence details, and other important information for each IP asset. This makes it easier to see what needs attention and prevents important dates from being missed.
What to Do If You Receive an IP Complaint?
Do not set the notice aside or respond in a hurry. Start by gathering everything connected to the issue, such as contracts, licences, emails, invoices, design files, and development records. These documents can help show where the disputed work came from and how it was used.
It is also worth having the complaint reviewed by an IP lawyer. A legal notice is an allegation, not proof that your business has actually infringed someone’s rights. The claim needs to be checked against the facts and the rights being asserted.
The matter may be resolved in different ways. You might need to remove the disputed material, change part of a product, obtain permission to continue using it, or reach an agreement with the other party. In some cases, the business may decide to challenge the claim.
The best response depends on the circumstances, so take time to understand the complaint before deciding what to do next.
Frequently Asked Questions
- What is intellectual property infringement?
It generally means using another person’s or company’s protected intellectual property without the required permission or legal right.
- Can a small business face an IP lawsuit?
Yes. A business of any size can face an IP complaint involving a trademark, patent, copyright, design, software, or other protected material.
- Can I use an image I find on Google?
Not automatically. Check who owns the image and whether it has a licence that allows commercial use.
- Can businesses use open-source software?
Yes, but they must follow the licence attached to the software. The conditions can vary between different open-source projects.
- Should a startup trademark its name?
If the name is important to the business, trademark protection may be useful. A trademark search should be carried out first.
- What should I do after receiving an IP complaint?
Keep all relevant records and have the complaint reviewed by a qualified IP lawyer. Do not ignore the notice.
- How can a business protect its own IP?
Depending on the asset, a business can use trademarks, patents, copyright, design registration, confidentiality measures, and contracts that clearly establish ownership.
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