For many, if not most, businesses, intellectual property—such as inventions, trademarks, trade secrets, business strategies, or operational details—is the most valuable asset they have. It’s what allows a business to differentiate itself from competitors, whether it’s a more efficient process, more robust sales leads, or a unique product or formula. According to some recent estimates, it makes up 75% of companies’ values.
Protection Is Necessary
Despite the importance of intellectual property, few businesses take even the simplest steps to protect their intellectual property—perhaps because you can’t typically protect intellectual property like you do other property. It’s an intangible asset; it’s found in electronically stored data, in documents, or in the properties of physical things. It’s not in the warehouse behind locked doors, barbed-wire fences, and a security guard. Someone can steal it without ever setting foot on your property. They can hack your network, copy your logo, or reverse engineer your product. They can even acquire the right to use intellectual property if you’ve failed to take steps to prevent others from using it.
But once your intellectual property is stolen, it’s tough to stop the bleeding. Since intellectual property—unlike something tangible—can be used by multiple people simultaneously, a compromised business may have to pursue violators all over the country and even the world before its damages are fully contained. Even that may not be enough. Intellectual-property theft costs businesses not only real money—an estimated half a billion dollars annually—but also time and resources spent on damage control, public reputation or good will, market share, and growth opportunities. You may never completely undo the harm.