Protecting Business Ideas in Entreprenuership

Protecting business ideas

1. Generating and Protecting
Business Ideas
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2. Sources of Business ideas
•Spotting trends and anticipating their impact
•Identifying a market niche
•Copy ideas from other countries
•Taking a scientific approach

3. Franchising

4. Formation and operation of a
franchise
Most common type is a
‘business format franchise’.
The franchisor grants
licence to the franchisee to
use their business idea.
The franchisee sells the
franchisor’s products/services,
trades under the franchisor’s
trademark or name, and
benefits from the franchisor’s
help and support
In return, the franchisor usually pays an initial fee to the
franchisor and then a percentage royalty on sales. The
franchisee owns the outlet, but the franchisor maintains
control over how products and services are marketed and
sold and how their business is used

11. Protecting a business idea
•Copyright
•Patents
•Trademarks

12. Copyrights
If a business creates or
employs someone to create
an original piece of literary,
dramatic, musical or artistic
work, it automatically holds
the copyright on the work
The material cannot be copied
without permission from the
owner of the copyright. The law
allows the owners of the copyright
to decide whether it can be copied
and adapted, and allows them to
charge a royalty or licence fee.
In general, the copy right protection for literary, dramatic, musical and
artistic works last until 70 years after the death of the creator! Unlike
Patents there is no requirement to register an authors copyright. The
law on copyright is governed by the Copyright, Designs and Patents Act
1988. Copyright is indicated by ©

13. Patents
If an individual invents a new
process, piece of equipment,
component or product he or she
must apply for a patent in order
to prevent other people copying
the invention and then making,
selling, importing or using it
without permission
To register a patent the
inventor must provide full
drawings of the invention for
the UK Intellectual Property
Office (UK-IPO), demonstrate
that the ideas have original
features, and promise that
the ideas are his/her own
The Copyright, Designs and Patents Act 1988 gives the patent
holders the monopoly right to use, make, licence or sell the
invention for up to 20 years after it has been registered.

14. Trademark
Trademarks can be powerful
marketing tools, helping
customers to recognise the
products of a business and to
distinguish them from
competitors
The trademark must be
registered at the Intellectual
Property office. Once it has
been registered the
company has exclusive
rights to its use. They are
recognised by the symbol ®