Your pump company is embarking on new marketing campaigns to boost sales in India, China, Russia or other newly booming marketplaces.
In addition, your manufacturing and purchasing teams are looking globally for low cost suppliers in many of these same regions. Are you concerned about the Intellectual Property (IP) rights you hold in your products? If not, you should be!
These common scenarios generate high enthusiasm, but if not properly planned and executed, they can result in knock-off pumps from low cost regions becoming instant competitors, typically offered at much cheaper prices to boot.
What can a traditional pump manufacturer do to protect its intellectual property rights and what recourse is available if it finds evidence of infringement? The answer requires following these specific actions:
Understand the Concepts of Intellectual Property
IP rights convey to the holder the right to exclude others from making an invention or using a trademark or copyrighted phrase without permission of the rights holder. Further, these rights are typically enforceable only in the country of registration. Thus, specific action should be taken to register the corresponding rights wherever possible in the countries in which the company seeks to expand.
Develop an IP strategy
Prior to initiating overseas ventures, a savvy pump company examines two factors - where would copycat manufacturers typically originate from and where would the original manufacturer be most injured by the introduction of infringing product in the marketplace.
The answers to these two inquiries would then determine which specific countries should become the focus of diligence, IP registrations and vigilant observance for future violators of IP rights. In short, this exercise will form the basis for IP strategy, as rolled into the marketing and manufacturing expansion plans.
Once the expansion strategy is enunciated, action should be taken to obtain registration of pertinent IP rights in each country where the company may be vulnerable for either of the two factors mentioned above.
Continuously Update Your IP Portfolio
All too often in the everyday hustle, we fail to recognize and obtain appropriate protection of inventions, and, more specifically, improvements to our products which are novel and patentable. Similarly, trade names, logos, and even catch phrases develop significant value as they become more closely associated with a company's goods or services.
Do not take this for granted.
An IP review should be an integral part of every new R&D effort and part of the marketing campaigns that companies utilize. Trademark and copyright registration is quite inexpensive, and may prove beneficial years later if an infringer surfaces.
Although patents are more expensive, smart businesses recognize the value to protecting important technology by patents. On that subject, do not ignore design patents, which protect non-functional aspects of a product, such as the well known shape. Extremely popular in consumer goods, design patenting is an easy means to preclude direct knock-off competitors in certain areas. Each time a patent, trademark or copyright application is filed, file corresponding applications in each of the countries identified as a potential "hot spot" based on the above factors.
Due Diligence
Many companies become enamored with the prospect of dramatic cost savings available through low cost outsourcing and fail to conduct even the most rudimentary investigation of their prospective business suitors.
Painful lessons can be avoided by visiting the future partners on multiple occasions, understanding their (business and traditional) culture and philosophy and, most importantly, tracking their past course of business dealing. Are they a marketing company as well as a contract manufacturer? Do they market goods which would be complementary to your line, thus fostering a desire to spin off your technology? How much information on your business and customers will they avail themselves?
Make certain you know this future partner as well as if they were located in your own city before jumping into the relationship.
Pumps and Systems, February 2007