The cost of doing nothing – how ignoring Intellectual Property protection can erase years of hard work
When you’ve helped a client build a thriving business, the last thing you want to see is their success unravel, not because of poor financial management, but because their most valuable assets weren’t properly protected.
Yet this is exactly what happens when Intellectual Property (IP) is left vulnerable. Trade marks, copyright, design rights and patents aren’t ‘niceties’, they are the armour that shields a business’s identity, reputation and competitive advantage. Without them, years of investment in building a brand or creating a unique product can vanish overnight.
A harsh lesson: when the name no longer belongs to you
Consider the SME that had been trading under the same name for over a decade. Their brand was locally recognised, their customer base loyal. But they had never registered their trade mark.
When a larger competitor entered the market and registered a similar name, the SME was forced into an expensive rebrand. The costs didn’t stop at new signage and marketing materials, there was the loss of brand recognition, a dip in sales, and confusion among customers. All of it could have been avoided with a relatively low-cost trade mark registration years earlier.
The copycat problem
Design-driven businesses face a different but equally costly risk. A client launches a distinctive product, investing in tooling, marketing, and distribution, only to find a competitor producing a near-identical version within months.
Without registered design protection, there’s little they can do beyond a lengthy and uncertain legal battle. The cheaper alternative? Protecting the design before launch, making it far easier to stop copycats and preserve market share.
Reactive action is expensive and risky
Trying to secure IP rights after a problem has arisen is like buying insurance after your premises have burned down. By that stage, the damage is done and the chances of a full recovery are slim.
Legal disputes over unregistered IP are often:
- Lengthy – taking months or years to resolve;
- Costly – with legal fees quickly running into tens of thousands of pounds;
- Uncertain – there’s no guarantee of success, especially when the other party has secured registration first.
Proactive protection costs far less and delivers certainty from day one.
Why advisors are key to prevention
As an accountant, business consultant, or adviser, you have a front-row seat to your clients’ growth plans. You are often the first to hear about a new product line, expansion into a new market, or a rebrand. These moments are prime opportunities to ask: “Have you protected this?”.
By spotting the risk early, you can save your clients from the far greater costs, whether these are financial, operational or emotional, of dealing with infringement.
The affordable alternative
There’s a persistent perception that IP protection is prohibitively expensive. In reality, registering a trade mark or design right is often comparable to the cost of producing a single marketing campaign and far less than the cost of a rebrand or legal dispute.
Like any sound investment, IP protection is about safeguarding future returns. For a modest upfront cost, it buys peace of mind, strengthens the business, and avoids the far more painful expense of putting things right later.
The takeaway for advisors
By spotting the risk early, you an save your clients from the far greater costs (whether financial, operational or emotional) of dealing with infringement.
If your clients are planning something new or simply want to protect what they’ve already built, now is the time to put them in touch with Barker Brettell. Please contact one of the authors, Rosalyn Newsome or Oliver Pooley, to continue the conversation.
