Every day, I meet inventors, entrepreneurs, and people with brilliant ideas who come to me when it is too late. They didn’t protect their products and services and they were copied. In some cases, they lose entire businesses. Put simply, when you don’t protect your products or services you will be copied. And sadly, that unique idea will just become a drop in the ocean. It breaks my heart to have to tell bright entrepreneurs, inventors, and creators that there is not much that they can do.
So today, I want to share with you why it is so important to protect your products and services before it’s too late. I hope that by understanding the consequences, you will be motivated to take the necessary steps to safeguard your business.
The Consequences of Not Protecting Your Intellectual Property
When you don’t protect your products or services, you open yourself up to a world of risk. Here are just a few of the consequences you may face:
1. You Will Be Copied
This is the most obvious consequence of not protecting your intellectual property. If you don’t have a patent, copyright, or trademark on your product or service, anyone can copy it. As a result, you may lose market share to imitators who can undercut you because they don’t have the same overhead costs.
2. You Will Lose Customers
When customers know that they can get the same product or service from another company for cheaper, they will likely take their business elsewhere. Which costs you valuable customers and revenue.
3. You Will Have a Harder Time Attracting investors
If you’re trying to attract investors to grow your business, not having any intellectual property will make it harder to convince them to invest in your company. That’s because investors want to see that you have a moat around your business. They want to see something that will prevent others from easily copying what you’re doing and taking market share away from you.
4. You Will Miss Out on Potential Licensing Deals
Licensing deals are agreements between two companies that allow one company to manufacture and sell products or offer services under another company’s brand name. These deals can be extremely lucrative. However, only if you have patents or other intellectual property protections in place. If you don’t have intellectual property on your product or service, companies will be less likely to want to license from you. They won’t have any guarantee that they’ll be able to sell the product without competition from knockoffs.
As an entrepreneur, it’s important that you protect your products and services before it’s too late. By taking the time to obtain patents, copyrights, or trademarks, you’ll avoid being copied by imitators and maintain a competitive edge in your industry.