Page 4: Why do entrepreneurs protect their ideas?
It is important for anyone to protect his or her ideas. This allows them to benefit from their creativity without their ideas being directly copied and exploited by others.
For entrepreneurs, the idea is often the entire basis for the new business. Without the idea, the business would not exist. Entrepreneurs invest money to develop business ideas. It is therefore essential that entrepreneurs safeguard this investment.
Intellectual property (IP) rights provide entrepreneurs with many benefits:
- IP rights provide protection against a competitor directly copying the idea. This helps the entrepreneur to recover their costs in developing the idea.
- IP rights help businesses maintain their long-term competitive edge. Registered IP ensures that entrepreneurs get all the financial benefits from their ideas. Continued revenue will keep the business afloat.
- Registered IP is an asset. It helps convince financial institutions to invest in a business, enabling more money to be raised for development.
- Registered IP gives consumers confidence that products meet appropriate standards and quality.
- By being able to profit from their IP, entrepreneurs are rewarded for taking risks and developing new innovations. They can invest profits in work on new ideas.
- Ownership of the IP enables entrepreneurs to license or franchise ideas to others without risk. This means entrepreneurs are able to expand the market for their products and services more easily, and can increase revenue for the business.