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How an M.L.S. Degree Can Help Tech Startups Protect Intellectual Property

The nuances of protecting IP while navigating laws can be incredibly complex, creating the potential for compliance issues and even IP theft.
How an M.L.S. Degree Can Help Tech Startups Protect Intellectual Property

By Miami Law Staff Report

Today's tech startups are constantly looking for ways to innovate and set themselves apart from their competitors — and intellectual property (IP) can be a great way to do just that.

Fortunately, you do not need a full-fledged Juris Doctor to understand how to safeguard your startup's IP while maintaining regulatory compliance. A Master of Legal Studies (MLS) degree can give you the information you need to protect your company's most valuable assets. In this blog, we’ll take a closer look at the rules surrounding intellectual property for startups, as well as the link between IP laws and M.L.S. degrees.

Discussing Intellectual Property (IP) in the Startup Ecosystem

Before delving deeper into the strategic measures that tech startups can take to protect their intellectual property, it is important to define what IP is in the first place. A thorough understanding of the different types of intellectual property could help your team conduct its own IP inventory with confidence.

Defining Intellectual Property and Its Importance

According to the World Intellectual Property Organization (WIPO), "Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; design; and symbols, names, and images used in commerce."

In the world of tech startups, IP often refers more specifically to:

  • Inventions
  • Brand names (and their logos)
  • Software and proprietary code
  • Other confidential information (such as algorithms)

Protecting intellectual property is important industry-wide, but especially for tech startups. Creating and protecting tech startup intellectual property offers the following benefits:

  • Helps brands differentiate themselves from their competition
  • Empowers startups to build stronger brands, which can attract customers and build long-term loyalty
  • Protects IP from being stolen, copied, or exploited by other brands
  • Increases company valuation and may make it easier for startups to secure funding from investors
  • Gives employees an incentive to work together and brainstorm new ideas
  • Protects startups from potentially costly legal disputes, including lawsuits for unauthorized use and regulatory compliance issues

Types of Intellectual Property Relevant to Startups

Tech startups may work with several intellectual property types, each of which has its own laws, regulations, and recommended protection strategies. Some of the most common types of IP in the tech startup space include:

  • Patents - These protect inventions (products or processes) by granting the patent holder the exclusive right to make, use, sell, and import the invention for a limited time.
  • Trademarks - Some tech startups may have their company names, logos, product names, and slogans trademarked so they cannot be used by other businesses or entities.
  • Copyrights – Copyrights protect the expression of an idea (not the idea itself). A tech company, for instance, may choose to copyright its software code or even its website design so that it cannot be replicated by another entity.
  • Trade secrets – Trade secrets refer to a company's unique strategies and techniques that set them apart from competitors. They may include unique algorithms, formulas, or specific processes used internally.

Some tech startups may have assets in every single IP category outlined above, while others may dabble in just a couple. Regardless, protecting your startup's IP rights can be critical to your long-term success and sustainability.

Strategic Approaches to Protecting Your Startup's IP

Now that you have a better understanding of why safeguarding intellectual property for startups is important, you might be wondering where to begin. Here's a brief, step-by-step guide to strategizing your IP protection approach.

Identifying Your Startup's IP Assets

Begin by taking inventory of the IP assets relevant to your startup. To do this, sit down with your team and thoroughly document all IP, taking time to categorize each type (patent, trademark, copyright, trade secret, etc.). By having detailed documentation of your IP assets, you can better determine the right strategies for protecting them.

In addition to identifying assets, be sure to revisit your IP inventory regularly to keep it updated.

Steps to Secure Your Intellectual Property

Next, it is time to come up with a proactive game plan to protect any tech startup intellectual property from theft, infringement, and unauthorized use. There are several different strategies you might consider here, depending on the specific type(s) of IP your team is dealing with. Common examples include:

  • Confidentiality policies – Setting up non-disclosure (NDA) agreements with employees, contractors, and third parties can help protect trade secrets.
  • Proper training – Make sure all employees are properly trained on their responsibilities as they relate to protecting IP. This may include holding dedicated confidentiality training sessions or providing a guide on reporting IP infringement.
  • Procedures for copyright infringement – Put procedures in place to monitor for potential copyright infringement, unauthorized use, or other instances of IP theft. Having a template "cease and desist" letter that you can send out to entities you suspect are infringing on your IP rights may come in handy.

Common Pitfalls in IP Protection and How to Avoid Them

Even with these strategies in place, it is common to make mistakes when it comes to protecting intellectual property for startups. One of the biggest pitfalls is simply failing to secure IP rights, which means your ideas and inventions are not legally protected by trademarks, copyrights, and patents.

Tech startups are also responsible for doing their research before applying for a copyright or trademark. In some cases, failing to conduct a thorough IP search before submitting an application could result in wasted funds, time, and resources.

Navigating Intellectual Property Laws

Tech startups must also understand intellectual property laws and regulations as they apply to their operations. For companies conducting business or collecting data outside the United States, this may extend to an understanding of international IP rights as well.

Overview of U.S. Intellectual Property Laws for Startups

In the United States, trademark law can be enforced at both the state and federal levels, whereas patents and copyrights are governed exclusively by federal law. More specifically, the Office of Intellectual Property Enforcement (IPE) works at the federal level to enforce IP rights. Other entities that handle different types of IP at the federal level include:

Trade secrets and some trademarks, meanwhile, are protected at the state level or in a shared arrangement with the federal government.

International IP Laws and Their Impact on Your Startup

In addition to federal laws and regulations, IP may be protected at the global level. Some countries, for example, have entered into treaties or covenants to safeguard different types of intellectual property. Examples include:

Intellectual Property Management for Startups

When it comes to managing intellectual property for startups, it can be difficult to know where to begin — especially without a dedicated legal professional on your team. Fortunately, there are some basic tips and best practices you can follow to get started.

Best Practices for IP Management

Tech startups should have a system in place for identifying, taking inventory of, and documenting new IP as it is created. This, along with proper IP training for all employees, can help ensure that the correct protection measures will be taken when needed (such as filing for a patent or copyright).

Businesses should also enact both digital and physical security measures to safeguard any data related to IP (including trade secrets). By implementing access control, data encryption, and other security measures, startups can minimize their likelihood of falling victim to IP theft and/or mishandling.

Leveraging IP for Growth and Innovation

Tech startups should be prepared to use their IP to their advantage, particularly when it comes to scaling and innovating. Some tech startups, for example, may find success in licensing their IP to bring in additional revenue that can fuel future growth. Ultimately, IP is, by its very nature, an asset. It can (and should) be used to raise capital, encourage strategic partnerships, and work toward your company's long-term mission.

IP Audits: Why and How to Conduct Them

Last but not least, tech startups should conduct regular IP audits. Put simply, an IP audit is a formal review of the entire company's intellectual property assets, their inherent risks, and the measures needed to safeguard them. By conducting an IP audit at least once per year, tech startups can do the following tasks more easily:  

  • Identify IP that needs additional protection (such as a filed patent).
  • Assess infringement or misuse risks.
  • Ensure that your team is following all state, federal, and international laws.

No matter what your company's specific IP audit plan looks like, the key is consistency and ensuring you stick to a specific schedule.

Interested in a Master of Legal Studies?

There are a lot of factors that go into navigating the complexities of tech startup intellectual property and the related national/international laws. While most startups cannot justify the cost of retaining an on-staff lawyer, it definitely pays off to have a team member that is well-versed in IP laws and regulations. That’s where a Master of Legal Studies comes in.

An online Master of Legal Studies degree from the University of Miami School of Law gives professionals in law-adjacent roles the opportunity to learn about the legal topics most affecting their industry. For those focusing specifically on intellectual property for startups, this program can provide valuable insights into relevant topics as:

  • Law and technology
  • Risk and compliance
  • Intellectual property law (national and international)
  • Types of intellectual property (copyrights, trademarks, patents, etc.)
  • Confidentiality and non-disclosure agreements
  • IP strategy

For those looking to combine a focus on IP laws and M.L.S. degree foundations, our dedicated Cybersecurity, Information Privacy, and AI track could be an excellent choice. This flexible, part-time program is offered exclusively online — making it a convenient option for working professionals who want to pursue an MLS designation without putting other areas of their lives on hold.

Learn more about any of the University of Miami School of Law's online Master of Legal Studies tracks by getting in touch today, or take the next step by applying now. 

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