Introduction
Intellectual property (IP) is one of the most valuable – yet most overlooked – assets for SMEs. From logos and brand names to proprietary software, designs and confidential business methods, IP can create significant commercial value
Yet research shows that only around 10% of SMEs protect their IP through registration, compared with around 55% of large businesses
This article offers some practical tips to help UK SMEs identify, protect, manage and commercialise their intellectual property effectively
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Begin with an IP audit
Start by identifying what IP you own. The UK Intellectual Property Office (IPO) offers a free IP Health Check Tool to guide this process: https://www.gov.uk/government/publications/ip-health-check
Align domain registrations and company names (which are not automatically IP rights) to ensure consistency and legal protection
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Search before you invest
Always check existing trade marks, patents, and design rights before investing in product development or branding. See Laura’s article ‘What’s in a name’
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Prioritise key protections
Not all IP needs registering, but here’s where to focus:
- • Domain names are not hard IP but your window to the world
- • Trade marks protecting names, logos, and slogans
- • Design rights: protecting the visual appearance of your products
- • Patents protecting your technical inventions – lasting up to 20 years
In the UK, copyright arises automatically as soon as an original work is created and is fixed in a tangible form. So, while you don’t need to register or pay any fees for copyright to arise, keeping records (such as drafts, version control, or time-stamped files) can help prove authorship and date of creation in case of a dispute
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Integrate IP into business strategy
Make IP part of your business planning – from board meetings to pitch decks. A clear IP strategy can support defence, reduce costs, and boost profits
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Use confidentiality agreements (NDAs)
Before revealing new ideas or designs, use NDAs to protect them. This is critical before filing a patent or design application
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Register key rights strategically
Register rights in jurisdictions where you trade or plan to expand. The IPO offers international support and guidance: https://www.gov.uk/guidance/ip-protection-abroad
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Monitor and enforce your rights
Regularly monitor the market for potential infringements.
If necessary, use dispute procedures (e.g. Nominet’s DRS for .uk domains) to recover infringing domains.
Consider using IP enforcement tools like Red Points Trademark Now to spot unauthorised use
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Keep ownership clear
Ensure all IP created by contractors is contractually assigned to the business. For collaborations, clearly document ownership, cost sharing, and exploitation rights
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Commercialise your IP
IP can be licensed, sold, or used as security to raise finance. Proper registration and clear records make IP easier to value and leverage with banks or investors
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Understand How AI is reshaping IP management
AI is rapidly transforming IP processes. AI tools like PatSnap and TrademarkNow can automate clearance searches. Enforcement platforms like Red Points monitor for online infringements.
AI-created content raises complex authorship questions. Currently under UK law, only a human being can be recognised as the author of a literary, dramatic, musical or artistic work which is computer-generated. This means that when AI is used to generate content (such as text, images, or code), the person or legal entity that directed or configured the system — e.g. the programmer, developer, or user who made the creative decisions—will be considered the copyright owner
Some practical tips:
- • Keep records of who directed the AI and what prompts, parameters, or training data were used. This helps establish ownership
- • Check licensing terms of any AI tools used (e.g. ChatGPT)—some may retain rights over output or limit commercial use
- • If outsourcing AI-generated content, ensure contracts include IP assignment clauses covering AI-generated materials
- • Be cautious when using AI-generated designs or text—check licensing terms and document inputs and outputs
Conclusion
Most SMEs underestimate their IP – but managing it well can unlock growth, enhance resilience, and attract investors. A well-structured IP portfolio: (i) reduces infringement risk; (ii) increases licensing potential and (iii) supports funding applications. If you would like help on this topic, please feel free to get in touch.
Written Ian Lakin
Principal at My Inhouse Lawyer
One of our values (Growth) is, in many ways, all about cultivating a growth mindset. We are passionate about learning, improving and evolving. We learn from each other, use the best know-how tools in the market and constantly look for ways to simplify. Lawskool is our way of sharing with you. It isn’t intended to be legal advice, rather to enlighten you to make smart business decisions day to day with the benefit of some of our insight. We hope you enjoy the experience. There are some really good ideas and tips coming from some of the best inhouse lawyers. Easy to read and practical. If there’s something you’d like us to write about or some feedback you wish to share, feel free to drop us a note. Equally, if it’s legal advice you’re after, then just give us a call on 0207 939 3959.
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