4 Reasons why you need to align your IP with your business strategy

July 27th, 2021

It should be no news that building a strong Intellectual Property (IP) portfolio puts you in a better position to secure business investment, as a company’s intangible assets contain essential information about the future strength of its business model. Hence, linking your IP strategy to your business goals and decision-making is crucial and here are the most important reasons why:

1. IP is limitless, which makes it to a company’s greatest legal and financial asset

In today’s market, intangible assets make up 84% of all enterprise value on the S&P 500, which shows us a lot. Unlike physical assets, there is no fixed value for IP, therefore, this type of intangible asset can increase in value indefinitely. Investors look at startups to invest in that already have its IP protected, because that means that as the company grows. A company’s IP can even contribute to its growth by getting ahead of the competition and ensuring the company’s spot in the marketplace.

2. IP gives you a competitive edge

How does it help get ahead of the competition you ask? Patents can be described as an exclusive right to protect a specific market share. Hence, patents can significantly reduce a business’s cost and increase its revenues. Therefore, your ideas and innovations should be protected, as they basically protect your income. A good IP portfolio can effectively warn off any competitors and protect your current as well as your future revenue streams. This gives your business a competitive edge.

IP gives you a competitive edge

3. It makes you a more trustworthy and serious partner to investors

Many people have great ideas, but if you cannot protect them, they are not worth anything and an investor is not likely to take you seriously. Building a strong IP portfolio puts you in a better position to secure business investments. By linking your IP strategy to your business goals, everything comes together effortlessly, and you can make important business decisions based on your IP that will advance your business. Investing time into the right protection and evaluation of your IP also means sending out a message to potential investors. You are serious about your business and innovations, and you are investing your own time and money — they should too.

4. A strong IP portfolio reduces operational risks

A company using its IP in different ways can not only improve its cashflow significantly, but also build the base for a strong global appearance. IP protection is a win-win situation: Keeping your IP to yourself gives you a unique offering that others cannot capitalize on. But just like any other assets, IP can also be sold on or licensed to others, which creates an additional income stream. If you have plans to launch your business globally, make sure that your innovations are protected globally as well. Clever startups know that protecting their IP in the most important countries early on ensures they have the rights covered for launch.

A strong IP portfolio reduces operational risks

To conclude, the value of IP like patents, copyright, trademarks and designs can be limitless and should be seen as an asset to the business. Therefore, building a strong IP strategy and matching it to your business goals and business strategy is vital. Need help with building the perfect IP strategy for your company?


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4 Reasons why you need to align your IP with your business strategy were written by Sebastian Hugl. For more visit Goodip.io