/ From Idea to Product: Intellectual Property and Sustainability in Startups
April 19, 2024We use this celebration to reflect on the intrinsic value of intellectual property protection for startups and society as a whole. For many startups around the world, history teaches us that it is not only a legal and commercial imperative, but also a driver of innovation, growth and sustainable development. By joining in the commemoration of this day, we renew our commitment to promote a future where creativity, innovation and respect for intellectual property are the pillars of a flourishing and sustainable society for all.
Paralegal
Alessandri Abogados
It is imperative to understand the legal and practical implications of safeguarding a company’s intangible assets, as well as the consequences of not doing so. Taking as a paradigmatic example a startup, we will highlight how the protection of intellectual property not only ensures the commercial viability of a startup, but also contributes to a sustainable development for the business.
Intellectual property encompasses a broad spectrum of assets, ranging from inventions and designs to trademarks and trade secrets. By securing these assets through mechanisms established by law, a startup strengthens its competitive position and its ability to attract investors, partners and customers. It provides legal certainty, prevents unauthorized appropriation of innovations and guarantees the return on investment in research and development. To apply for an invention patent, for example, Law 19,039 requires novelty, inventive level and industrial application. The National Institute of Industrial Property verifies compliance with these requirements and grants protection. This security is passed on to the investor, who must be certain about the novelty of the product or process on which it will spend its capital.
Today we have a significant number of emerging companies that base their business model on innovation and we know them under the name startup. Startups, in general, have demonstrated the importance of protecting their intellectual property to facilitate their growth and entry into different markets, as well as reaching the eyes of large investors eager to allocate their capital to eye-catching projects. Many of these companies, which often arise as a creative idea in groups of young professionals, have managed to penetrate various markets thanks to the registration of patents and trademarks. Alerting startups about the protection of their intellectual property through good legal advice has not only given them a competitive advantage in their respective industries, but has also allowed them to attract venture capital investments and establish strategic alliances with other companies. thus promoting its development and consolidation in the market.
World Intellectual Property Day 2024 – IP and the SDGs: our common future is forged with innovation and creativity
In the context of the Sustainable Development Goals (SDGs) proposed by the UN, it is essential to understand how the protection of intellectual property contributes to sustainable development. When intellectual property is properly protected, it becomes a driver for continued innovation and investment in research and development, which aligns with several UN Sustainable Development Goals (SDGs). On the other hand, and in relation to startups, intellectual property can be the main reason why an investor decides or not to make a capital outlay in their company, thus becoming the most valuable asset of a nascent company, without that its members, as often happens, do not even know it.
By providing security and recognition to creators and innovators, the generation of new ideas and solutions that address global challenges is encouraged, which is in line with SDG 9 of promoting innovation and sustainable infrastructure. Furthermore, intellectual property protection simplifies the transfer of technology and knowledge between countries and sectors, thereby promoting equitable and sustainable economic growth, in line with SDG 8 of fostering sustained, inclusive and sustainable economic growth.
This approach not only benefits companies and individual creators, but also contributes to long-term social and environmental well-being, by fostering a robust and collaborative innovation ecosystem, in line with SDG 17 of strengthening partnerships to achieve global goals. . In this way, it is evident that the protection of intellectual property is not only essential for economic growth, but also for social and environmental progress, in line with the UN Sustainable Development Goals.
Alarming situation regarding the protection of Intellectual Property in business development
A study carried out by Ignacio L. de León and José Fernández Donoso in 2016, set out in their article “The costs of using formal intellectual property rights: a survey on small innovative enterprises in Latin America”, revealed worrying findings, after consulting with 352 companies in six Latin American countries, including Chile. According to the results obtained, a significant 69% of the participants states that knowledge of the functioning of the IP system has no impact on the operational performance of their businesses. Having this belief leaves those groups of entrepreneurs and inventors in a very disadvantageous position, who not only ignore the existence of a system, but at the same time ignore its quality, being the target of insufficient legal advice or incompatible with their approach. It is urgent to educate and raise awareness about this crucial aspect of the modern business environment.