Protecting Your Innovation and Your Core Competitive Advantages in the New Economy
Sbaiti & Company’s Patent, Trade Secret, Copyright and Trademark/Trade Dress practices are second to none. Businesses rely more than ever on innovation and intellectual property protection to drive growth and increase revenues. While it has fast become a common refrain that the American economy is an “idea-based” economy, that is far from a mere bromide. Here are some of the facts:
- The average business’s assets are 70% comprised of non-physical assets, much of which are the intellectual capital of the company (i).
- The typical business’s principal means of survival and expansion is constantly innovating products and services. (ii)
- There are 75 “IP” intensive industries include retail, manufacturing, energy, and shipping industries which account for over $5 trillion in wealth in the U.S. (iii)
- IP intensive industries account for 60% of U.S. merchandise exports, 20% of gross national product; and employ 55 million Americans. (iv)
- In Dallas/Ft. Worth, there are approximately 900 businesses that fall into these intellectual property intensive industries. (v)
- They employ over 45% of the local job market, and account for more local growth than any other segment. (vi)
What Does Intellectual Property Theft Cost?
According to the U.S. Chamber of Commerce, Intellectual Property Theft comes at a significant cost to the American economy:
- The value of intellectual property theft is estimated to exceed $500 billion annually.(vii)
- Intellectual property theft robs the average inventor of 6% return on investment (OECD).
- Over 80% of a business’s Intellectual Property is not formally protected.
- Only around 2% of Intellectual Property theft is ever prosecuted
What is your intellectual property worth to you?
We represent businesses in protecting their intellectual property, including assisting them in designing strategic mechanisms to optimize not just the protection, but streamline enforcement through various options before the USPTO and in court.
Defending the Assault On America’s Medium-Sized Businesses
America’s medium-sized businesses are the largest drivers of innovation in IP intensive industries, according to a recent BDO study. They account for more patent and copyright filings than any other sector. It is their principal means of competing.
- Medium-sized businesses are the most likely target for patent, copyright and trade secret lawsuits.
- A medium-sized business in the software/information technology, manufacturing or oil & gas industries is five-times more likely to be sued by a larger competitor or a “patent troll.”
- Medium-sized businesses are also more likely to sue to protect their innovation, especially when patented.
That is why we make our mission to defend and protect medium-sized businesses when they find their intellectual property being undermined or attacked, or when they have been sued for intellectual property violations.
Formal Intellectual Property Protections Can Ward Off Litigation and Drive New Profits
Perhaps the most overlooked feature of having a robust intellectual property portfolio is that:
- Businesses who have stronger, formalized intellectual property protections are less likely to be sued by competitors in their industry.
- They have a better chance of success even when they are sued. Yet…
- Only 15% of businesses license their intellectual property to others.
Licensing one’s intellectual property is a powerful, passive revenue streams that allows businesses to turn their competitors into their customers. This is especially powerful if a business forces a competitor into a license as part of a settlement for violating the formal protections they have.