Startups are surprisingly unconcerned about copying – use of intellectual property rights is still widespread

Startups are reasonably familiar with intellectual property rights (IPR) and fairly often protect their products, services or solutions with patents or trademarks. Companies seek protection from competition and copying in particular, even though over half of the respondents do not view copying as a threat.

According to a recent survey commissioned by the Finnish Patent and Registration Office (PRH) together with Startup Sauna and New Factory, most of the 92 customers of Startup Sauna and New Factory understood what was meant by the acronym IPR (Intellectual Property Rights). Patents, trademarks and copyright were the best known forms of protection and were equally well recognised.

Protection from competition is most beneficial

Protection from competition and delaying copying were viewed as the greatest benefits of IPR.  Remaining without protection was viewed as risky, because the return on one's own product development investments could then 'leak' to competitors.

In addition, a third of the respondents are of the opinion that venture capital is easier to attract when protection boosts a product's credibility.  Venture capitalists and public sector funding sources demand the use of various protection methods in order to secure the rights to a product.  The money and time required for protection were viewed as the greatest drawback.

Although delaying copying was regarded as beneficial, more than half of the respondents who have developed a new product, service or solution in recent years would not be concerned or would be only a little concerned if their product or technical solution was copied. The main reason for such a lack of concern is the fact that the products or solutions will be copied anyway. Copying is accepted owing to circumstances, or is even regarded as flattering because only good products and services are copied. Then again, some respondents felt that their own product development had already progressed to a stage where copying was no longer a problem, or that the technical solution did not form a fundamental part of the product as a product's success is dependent on a service and/or brand. 

Protection is commonly used

Intellectual property is quite often protected, despite the fact that copying is not viewed as a threat:  either consideration has been given to using IPR protection methods, or such methods have been used, in 76% of those startups that have developed a new product, service or solution in recent years.

Of the various protection methods, trademarks and patents are clearly used, or intended to be used, most often.  The companies have also used copyright.  At the same time, only a few have used or intend to use design right or utility models.  The most suitable protection method should be chosen based on the sector and the nature of the business in question.

It was noteworthy that of the respondents who had applied for intellectual property rights, 63% had applied for or registered them in both Finland and other countries.

Background of survey

Held in late October/early November, the survey was targeted at startup customers of Startup Sauna, which operates in connection with Aalto University, and New Factory, an innovation-oriented product development centre based in Tampere.  A total of 301 people were invited to respond to the online survey and almost a third, 92, responded.  The PRH commissioned Pohjoisranta Burson-Marsteller to carry out the survey.

Further information: Olli Ilmarinen, Development Specialist, Finnish Patent And Registration Office, tel. +358 (0)29 509 5236

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