Why is intellectual property important?

Intellectual property protection is critical to fostering innovation. Without protection of ideas, businesses would not reap the full benefits of their inventions and would focus less on research and development. Similarly, artists would not be fully compensated for their creations and cultural vitality would suffer as a result.

Why should I protect my intellectual property?

Piracy, counterfeiting and the theft of intellectual property assets pose a serious threat to all American businesses. Exporters face unfair competition abroad, non-exporters face counterfeit imports at home and all businesses face legal, health and safety risks from the threat of counterfeit goods entering their supply chains.

Why should I protect my intellectual property abroad?

Most U.S. small businesses are not aware that their patent or trademark does not protect them in other countries. If you are an exporter, or think you might want to export in the future, you will need to seriously consider securing protection for your intellectual property (IP) in those foreign markets of interest to you. It is a good idea to get the appropriate forms of IP protection before you start doing business in another country.

Some U.S companies have found that foreign manufacturers have copied their products, packaging and business plans, even though they had never done business abroad. Foreign counterfeiters can easily steal your product pictures, brochures and logos from your website and register the material as their own inventions in their country, if you have not registered it there already. For this reason, some U.S. small companies seek trademark and patent protection in large potential markets well in advance of actually exporting to those markets.

See this article on a U.S. adhesive manufacturer's problems with foreign counterfeiters. A modest amount of preventative action may allow many small companies to avoid expensive problems such as those encountered by this company.

How serious a problem is counterfeiting and piracy?

According to FBI, Interpol, World Customs Organization and International Chamber of Commerce estimates, roughly 7-8% of world trade every year is in counterfeit goods. That is the equivalent of as much as $512 billion in global lost sales. Of that amount, U.S. companies lose between $200 billion and $250 billion. IP theft has a major impact at home, too: according to the U.S. Chamber of Commerce, overall intellectual property theft costs 750,000 U.S. jobs a year.

Which sectors are most affected? IP theft poses a risk to all industry sectors; those most commonly affected by IP theft are manufacturing, consumer goods, technology, software, and biotechnology, including pharmaceuticals.

Why should small businesses protect their intellectual property?

While it is difficult to determine the exact scope and extent of the problem, every indication is that copyright piracy, trademark counterfeiting, and patent infringement have become significant problems in the business community in general, including small businesses. Certainly any small business that exports its IP protected products abroad or sources its products or parts overseas must take into account the potential for rampant IP theft in many countries.

U.S. small businesses are at a particular disadvantage, however, because they may lack the knowledge, expertise or resources necessary to prevent the theft of their ideas and products. In fact, research conducted by the USPTO this year found that only 15 percent of small businesses that conduct business overseas know that they need to file for IP protection abroad.

Many small businesses also may not have personnel and operations overseas, so they lack the "eyes and ears" needed to be vigilant globally and the theft of their IP can often go undetected. In addition, small businesses generally do not have the level of access or the resources, such as specialized legal counsel, that may be available to larger companies.