Using Your Intellectual Property to Escape the 9-to-5

By: Carel Smit

If you're reading this article, then I assume you're sick of the 9-to-5, you've read The 4-Hour Work Week, and you're planning your escape from the cubicle. You've gone to every startup seminar and information session, dreamed up a slick-sounding name, read The Secret (in case you need it) and stuck some of Richard Branson's inspirational quotes on the wall behind your computer.

Related: 3 Ways to Slay the Risk of Bringing a New Product to Market

But, you're still not sure about one thing: What is that crucial first step when starting up?

In my experience, the thing stopping you from launching your product is that you're most likely scared to tell someone about your idea, thinking that it's going to get stolen, corrupted or plagiarized by every Tom, Dick and Sally. Or, you're worried that you're re-inventing the wheel, which is not only mildly embarrassing, but costly.

I know the feeling; I've lived though it myself as an entrepreneur, and I've seen it play out in the excitement that I dealt with in a previous life as a patent lawyer working with startup clients. But, here's the deal -- your own paranoia could be keeping you in that cubicle. Fortunately, there's a way to get over this while also setting your new venture up for success.

The field of idea protection, loosely termed intellectual property (IP), isn't just for gadgets any longer -- it's now a mainstay of how business is done and the sooner you come to realize that, the sooner you can create your own enterprise that uses these IP rights optimally to protect, launch and profit from your ideas.

These IP rights are typically patents for technical inventions (called "utility patents" in the U.S.), trademarks for brands, copyright for artistic creations and design patents for new industrial designs.

Related: What Are They? Domain Names, Business Entity Names, Trademarks.

So, how do you manage these conflicting agendas -- keeping your concept secret while disclosing it to a select few who also have the power to steal your idea from you? Even if you get past that stage, how do you then attract funders, position yourself as a market leader, while throwing shade and making your competitors look as fresh as last Thursday's burrito?

It's seldom that you can find a magic bullet that can hit all of these at once. But, the good news is that, if used and communicated in the right way, IP is a massively powerful business tool that can help you set up your business to not only hit those buttons but also help you create generational wealth.

Sara Blakely famously did this with her Spanx shape-forming undergarments. She'd crafted a rough prototype by cutting the toes off her usual stockings, and realized she had a winning idea. To protect her idea and make her product look more "technical," she filed a patent application for her concept, before securing the help of a manufacturer. This catalyzed her launch into Nordstrom and became the first steps toward building her multibillion-dollar enterprise.

So, what are the easiest ways for you to use your early stage IP to overcome your paranoia, position yourself in the market and set yourself up for success?

1. Using IP-based agreements
In the early days, before you even know how viable or defensible your idea is, you can tie in developers and collaborators with a confidentiality agreement to at least bounce the idea off them and see whether it is actually technically feasible. These agreements are never watertight and can't be enforced against someone that's come up with the same thing independently (that's what a patent is for), but at least they show that the intention was to keep the idea secret to preserve your patent rights.

Read More >> https://www.entrepreneur.com/article/302701