We’re seeing an increase in businesses prioritising sustainability and promoting their ethical ethos. In turn, consumers are developing brand loyalty to businesses that share their values and promote their focus on people and planet.
When building strong brand reputations, it’s vital to ensure that the intellectual property within the brand is protected. Without properly protecting intellectual property, businesses are at risk of competitors taking advantage of their brand loyalty and competitive advantage in the market place.
In this article, we highlight the importance of brand protection and outline key focus areas for purposeful businesses.
Why is Brand Protection Important for Purposeful Businesses?
Brand protection is a key part of all business activity, however there are specific considerations for purposeful businesses. Purposeful businesses are built on core principles and values which resonate with their clients and customers, and differentiate the business from competitors.
As purposeful businesses are built on trust and authenticity, its brand carries even more weight. If a third party infringes its intellectual property rights, and it does not have a robust portfolio to defend the brand, there is a risk that the brand will become harder to distinguish, with weakened trust and customer loyalty. This is particularly concerning if the third party does not hold similar values and ethos, yet is benefiting from, and potentially weakening, the brand’s reputation.
Furthermore, if other businesses start using or associating with a brand, there is a risk that the brand’s core purpose expands or shifts through third party use. It is common for purposeful businesses to join forces and collaborate, but it is important that this is done carefully and clear agreements.
What Should Purposeful Businesses Focus on When it Comes to Brand Protection?
Developing a Strong Intellectual Property Rights Portfolio
A business should start by reviewing its current intellectual property rights portfolio. Most businesses use a trade name and logo to market their services to their customers and distinguish their brand from others in the market. It is important that these brand assets are protected, and registered trade mark protection is an effective way of doing this.
A trade mark acts as a badge of origin and can protect both word and figurative marks. Protecting a business’ brand name and logo by way of trade mark registration is important because it gives the owner the monopoly right to that mark. A trade mark enables a business to assert its right to that mark against third party infringement and it turns a brand asset into a tangible business asset.
The trade mark registration system works on a “first come, first served” basis, therefore it is important to register marks as soon as possible.
Collaborating Effectively with Third Parties
Businesses often overlook the value in their trade secrets, being information of commercial value regarding the business which is not publicly known or accessible (i.e., a secret).
Businesses can protect their trade secrets and confidential information through the use of Non-Disclosure and Confidentiality Agreements when working with third parties and including confidentiality provisions within their employment contracts.
Protecting confidential information is important to protect a business’ competitive advantage in the marketplace and avoid disclosure of information to competitors that will be detrimental to the business.
Ensuring Careful use of Third Party Intellectual Property
Whilst building its own intellectual property portfolio, a business should ensure that it is not infringing upon the rights of third parties. This may arise when working in collaboration with a third party, or by use of third party materials without the correct permissions.
Infringement can expose businesses to complex legal claims, which come at a cost to the business both financially and in respect of its reputation – the latter being of particular importance for purposeful businesses.
It is important to ensure that any use of third party intellectual property is in accordance with clear licensing requirements. A key example here is the use of trust marks. Brand guidelines should be followed to ensure that the use of any marks is correct.
Clear Terms of Business and Website Compliance
A strong brand needs to be reinforced by robust legal documentation, including clear, well-drafted terms of business. Terms of business should protect ownership of the businesses’ intellectual property whilst reflecting the ethos of the business.
Additionally, having a compliant website is important not only for brand protection, but also wider reputational position. Such compliance includes use of online content and third party materials, user-generated content and data protection.
Demonstrating compliant digital practice is important for purposeful businesses as it reinforces its commitment to ethical behaviour.
AI Use
Finally, the increasing prominence of AI use within business operation is a talking point for many businesses. Purpose driven businesses who are using or exploring the use of AI should focus its deployment around the principles of transparency, fairness and integrity. Businesses should look to implement an AI policy which reiterates ethical and safe use of AI across the business and reflects responsible environmental impact.
As purposeful businesses grow, so do the brand and brand reputation. This might also include becoming B Corp registered or considering Employee Ownership – all key elements of the wider brand identity. It is important to keep on top of your intellectual property portfolio and wider compliance as you grow.
Should you need advice on protecting your purposeful business, please get in touch with our Intellectual Property, Data Protection and Technology team by phone 0345 450 5558 or by email [email protected].