/ The importance of intellectual property for SMEs23 April, 2021
Small and medium-sized enterprises play a key role in the global economy. Protecting their intangible assets provides protection and value, which facilitates their development.
Laura Hernández Bethermyt
Alessandri Associate Attorney
Every company starts with an idea to provide a solution to a need. It then becomes a product or service and needs to be positioned in the market. The website of the World Intellectual Property Organization (WIPO) explains that when intellectual property rights are acquired and managed, positive results are obtained for SMEs. An initial idea becomes a profitable business opportunity, generates value and enriches the offer for consumers.
Pursuant to a report of the Ministry of Economy, approximately 60% of companies in Chile are classified as SMEs (sales between UF 2,400 and UF 100,000 per year, i.e. between USD 100,000 and USD 4MM per year). Up to 40% of the labor force employed in Chile is hired exclusively by these types of companies.
Technology, implementation of artificial intelligence and innovation have been crucial for the development of SMEs during the pandemic. Because of the changing environment, new business models and digital channels have been implemented. For this reason, protecting the intangible assets of SMEs is very important.
Managing intellectual property provides protection, contracts with third parties, commercial licenses, assignment of rights and positioning in scenarios that, without this guarantee, would be difficult to achieve successfully.
With the growth of technology and the media, the commercial sphere is one of the biggest beneficiaries. This is attributed to the fact that companies have gained new platforms to promote and sell their products or services associated with their brands and reach new and wider markets.
The success of SMEs lies in the management of their assets, with intangible assets being among the most important. If you want advice from Alessandri, contact our Intellectual Property area.