generating and protecting business ideas

generating and protecting business ideas

1. patent=an official document granting the holder to be the only user or producer of a newly invented product or service

   • must be
     • new
     • innovative
     • have industrial application
   • lasts up to 20 years
   • can license the right to use the patent

2. trademark= signs, logos, symbols or words displayed on a company's products or advertising, including sounds or music which distinguish it from competitors

   • something that identifies a product
   • must be distinctive
   • last 10 years after the business fails

3. copyright= legal protection against copying for authors, composers and artists

   • important protection for many industries
   • automatic
   • lasts 70 years after originators death
   • controlled with licenses and royalties

4. franchise= when a business (franchisor) gives another business (franchisee) the right to supply its products or service

   • benefits
     • easier to get a bank loan
     • help&support
     • established brand name
     • cheaper to expand
     • still your own business
     • lower risk&failure
     • no industry expertise required
   • drawbacks
     • ongoing royalty payments
     • less power
     • reputation issues
     • high initial fees
     • problems selling it on
     • franchise could fail

5. why protect a business idea?

   • keep control of intellectual property
   • maximise return on investment
   • reduce threat of competition
   • maintain USP

6. what are the sources of a business idea?

   • spotting trends&anticipating impact
   • identifying market niche
   • copying other countries
   • taking scientific approach