5 Advantages of Intellectual Property That Every Startup Should Leverage

Advantages of Intellectual Property

Intellectual property (IP) is one of the most valuable assets of any organization. In particular, startups must take appropriate measures to ensure their health.

There are three possible ways through which businesses can leverage the advantages of intellectual property.


Brand names, logos, slogans, etc., are covered under the trademark registration. They can contain everything a customer would try to distinguish between brands. Failure to register trademarks can prove a disaster for an enterprise. For example, companies such as Microsoft couldn’t have produced a billion-dollar business, if they had not applied for their famous four box logo for Windows. Trademarks differentiate themselves and make brand buildings and the production of assets for business highly significant.


They secure modern, innovative, and useful products/processes. For instance, a software company must file a patent if a unique and new computer program has been developed. If they do not, they will forfeit their exclusive right to sell/display advertising on the internet. In the event of non-protection rivals gaining access to the product, the profit margin & consumer penetration would be reduced.


For startups with companies related to creative/artistic works, copyrights are very relevant. An entertainment company must register its produced songs/films. An author or artist who holds his own company should secure his works with a copyright registration to make the most of his work monetarily and commercially.

Law protects intellectual property – various national regulations and international laws are regulating intellectual property rights. The security laws fall into the following categories:

The above will help you understand what IP is, but it might not clear why it is relevant for a startup (or any business).

The value of IP is given due consideration for a variety of reasons. In short, a company is made possible by the proper use of intellectual property. 

Here are the key advantages of IP registration for startups.

Enabling idea monetization

If it’s executed correctly, any little or big idea you have will prove invaluable. This means that your intellectual property will help you turn your inventions into commercially viable goods and services. You may use your intellectual property to create a business on your own, pitch it to investors, start or even license a business so that you can sell it to different companies in return for a steady stream of income. An IPR can be turned into an asset that will make the concept a big money-maker.

Differentiate yourself from the competitors 

Customers still search for something fun and new. Every company wants to be the first to give its customers an advanced product. If you’re going to build an identity for your business, IPs are essential. Recall that consumers equate their favorite brands with some interest. Factors such as goodwill, trademarks, designs, and logos are discussed here. Customers identify brands from these factors, and IPRs help businesses differentiate between their goods and services in a market and promote them for their target clients.

Enhancing Export-based business opportunities

IPRs provide you with the freedom to join even the export business. No law requires IPs to be protected and used within certain borders for profit. With the assistance of IPRs, you can market your products and services in foreign countries using your designs and trademarks, thus enhancing your prospects for exports. You will look for franchising deals and even sell proprietary goods with international companies.

Key IPR benefits

  • Understanding intellectual property rights better can ensure full security from criminals by providing legally protected assistance to the company. It prevents anyone from unethically using/using your job, innovation, or brand.
  • IP Registration maximizes startup protection by shielding it from theft. They often prevent counterfeit goods from entering the market.
  • Robust IP protection is very productive to attract inventors and consumers who may be willing to buy their brand or company in the future. Once you have labeled your brand, product, or artistic work, you can grant or license it to another person and receive payments from it.


Conclusion: Opt for IPR Valuation.

Intellectual property valuation is based on three methods: prices, market-based valuations, and revenue-driven valuations.

  • The cost-based assessment takes into account both the traditional cost of producing an asset and the cost of recreating it at current prices.
  • Market-based assessment tests equivalent selling or purchase market transactions with related properties to come to value conclusion.
  • Revenue-based evaluation measures the income flow of IP based on historical earnings and projected future profits.