The intellectual property system has been designed to encourage the spread of new technologies by giving their owners exclusive rights. For example, a patentee in an export market has the exclusive right to sell and make the invention in the export market. An owner of a trade mark in relation to a good or service has exclusive rights to use that brand in relation to the good or service.
When developing export plans, companies routinely consider export market selection, demand, partners, price, packaging, advertising and marketing however many have undeveloped intellectual property plans. Intellectual property (for example, a patent for an invention or a trade mark for a brand) is important for exporting companies.
You don’t have to look far to find companies that paid dearly for not getting their patents and trademarks right. There may be imitators or counterfeiters when your product is successful, and patents and trademarks can strongly discourage them. Pharmaceutical company Pfizer sells its block-buster drug VIAGRA in China. At the start, however, Pfizer failed to capture ownership of a suitable registered Chinese trade mark, which resulted in a significant portion of the Chinese market for VIAGRA being lost to counterfeiters and competitors. The dollar cost of this error may be in the billions.
Research by IP Australia’s Chief Economist, for example, has shown that exporters with trademarks and patents perform better, especially when the Australian dollar goes up or tariffs drop.
Here are some things to consider when planning exports:
- Is it worth investing in an export market if it has weak intellectual property laws? China used to be singled out for this, but it is steadily strengthening intellectual property laws.
- Do I have my trademarks sorted out for the export market? Consumer demand will rise as your brand becomes more known and reputable. Registering trade marks is a good foundation for your marketing and protects your marketing and advertising investments.
- Do I have enough intellectual property to encourage partners, for example distributors, to take on the challenge? Distributors often ask about intellectual property.
- Can I get a better price for my products or services because I have valuable and well protected intellectual property? Can I put up more barriers for the competition which may otherwise drive prices down?
- Are my manuals and other information well protected to prevent competitors copying them and making it easier for them to compete?
- Is my packaging or presentation well protected so that the sales presentation is distinguished in the export market.
- Would I infringe someone else’s intellectual property by exporting?
Intellectual property becomes very important when a product or brand has been copied, but you must have your patents and trademarks in place before copying commences.
Exporters need to get their intellectual property in order well before they start exporting. Trademarks are best filed before any external parties learn of your brand and get a chance file their own trademark for your brand. The patent process needs to start before anyone else knows about your invention or you have sold a product with your inventions. Reach out to someone who can advise you on intellectual property ahead of exporting.