Interview

How to Protect the Intellectual Property Rights of the Project?

– Dmytro, please tell us how to protect your idea in IT.

First and foremost, it's essential to understand that ideas typically have no legal protection in most countries worldwide. But their material embodiment (application code, interface design, data compilation, documentation, descriptions of know-how, and so on) has legal protection. Intellectual property rights arise from realizing ideas as creative work in text, graphics, audio, visual elements, or their combination, meeting specific criteria of creativity and novelty. Ideas like taxi hailing or online food delivery have been introduced previously. Still, applications from well-known brands provide a new user experience by responding to user needs and trying to address them as simply as possible. However, the law protects only rights related to material embodiments of the graphical interface, source code, trademarks, etc. Not ideas.

Interview with Dmytro Soloviov, IT Lawyer at ALLSTARSIT

When creating a new project, we sometimes pay more attention to the legal aspects of protecting it. To avoid negative scenarios in the future, read our interview with Dmytro Soloviov, an IT lawyer at ALLSTARSIT, about how to protect your idea or project in IT.

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– How can I determine if my idea is valuable and worth implementing?

It is not a good idea if anyone can easily replicate this idea. It is best to consider whether it is a valuable asset worth investing your time and money. The value of an idea can be assessed through various tests with end users or consumers. The key is for your project to have the potential for scalability and be appealing to the end user, who would be willing to pay for it, as its high-quality implementation adds value to your idea.

How to Protect the Intellectual Property Rights of the Project?

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How to Protect the Intellectual Property Rights of the Project?

Interview with Dmytro Soloviov, IT Lawyer at ALLSTARSIT

When creating a new project, we sometimes pay more attention to the legal aspects of protecting it. To avoid negative scenarios in the future, read our interview with Dmytro Soloviov, an IT lawyer at ALLSTARSIT, about how to protect your idea or project in IT.

– Dmytro, please tell us how to protect your idea in IT.

First and foremost, it's essential to understand that ideas typically have no legal protection in most countries worldwide. But their material embodiment (application code, interface design, data compilation, documentation, descriptions of know-how, and so on) has legal protection. Intellectual property rights arise from realizing ideas as creative work in text, graphics, audio, visual elements, or their combination, meeting specific criteria of creativity and novelty. Ideas like taxi hailing or online food delivery have been introduced previously. Still, applications from well-known brands provide a new user experience by responding to user needs and trying to address them as simply as possible. However, the law protects only rights related to material embodiments of the graphical interface, source code, trademarks, etc. Not ideas.

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– How can I determine if my idea is valuable and worth implementing?

It is not a good idea if anyone can easily replicate this idea. It is best to consider whether it is a valuable asset worth investing your time and money. The value of an idea can be assessed through various tests with end users or consumers. The key is for your project to have the potential for scalability and be appealing to the end user, who would be willing to pay for it, as its high-quality implementation adds value to your idea.

– Are there ways to protect an idea or project?

The best way to protect your idea or project is not to disclose it to anyone. But on a more serious note, the essence of preserving any property is creating barriers to access for others. Such barriers to using your intellectual work come in the intellectual property rights (IPR), manifesting in these primary forms:
Patent
is a formalization of invention, including processes and software, with certain exceptions. Patents protect your inventions for 20 years, but you need to disclose your invention to the general public fully.
Trademarks
materialize brand in graphical, visual, textual, and audio representations. Trademarks protect your brand as words, phrases, symbols, and logos related to your product or services for 10 years and are renewed indefinitely.
Copyright
is a set of management rights related to creative works, including computer code, documentation, texts, interface design, images, fonts, etc. Literally, it is the right to make copies of your work. Copyright protects your works in tangible forms. You can register a copyright, but this is optional. Your rights to the works arise when the work is captured in tangible forms.
Related (neighboring) rights
are those related to copyrighted works related to their production, performing, recording, publishing, or accessibility to the public, including music records or performances, broadcasts, etc. In some countries, these rights are not separated and are considered part of copyright.
Trade Secrets
are a special legal regime related to any documented practice or process of a startup/company that is generally not known to a third party and is commercially valuable.
If you own IPR, you may restrict third parties from using your intellectual property, as a rule, commercially. Realizing these rights may require specific actions on your part. For example, patents and trademarks must be registered with government authorities (usually differently in each country), which involves time and financial resources. You can also transfer some or all of your IPR to others through licensing agreements.
Generally, more than IPR registrations are required to protect your rights to a product or service, as this is a rather complex and complicated process.
To protect your IPR, you should take the following steps:
  1. Document the creation and transfer of intellectual property objects, including patentable inventions, research, results of unsuccessful research, development branches, algorithms, models, or datasets, as negative results may also be valuable.
  2. Implement an intellectual property management system, which continues the previous step. It includes tracking the IP object from its creation, transfer, and registration and keeping patents, trademarks, copyrights, licensing, etc., up to date.
  3. Sign confidentiality and IPR transfer agreements with all staff and contractors. This is a crucial point, as contracts often do not contain such provisions or are general. The generality and vagueness of the wording in contracts can significantly complicate the proof of ownership of rights to a particular work or the proof of disclosure of confidential information and compensation for damages. A continuous focus on these matters and implementing a corporate culture of information security and confidential information protection are necessary.
  4. Implement and comply with information security and data protection standards. Without further ado, an adequate level of information security is the key to the success of a modern company and startup. After all, banal negligence (using qwerty123 passwords by key developers or system administrators) can level the entire complex mechanism of multi-layered intellectual property protection. Information leaks also negatively affect reputation, leading to an outflow of users and customers.
  5. Include terms and conditions for licensing your intellectual property in your contracts, terms and conditions (or end users license agreement) with customers, clients, and users. Identify that you are the owner of the works provided for use. Set up prohibited activities and other limitations for customers, clients, and users. Always indicate your work's copyright and date of publication if you make public your works (product or services).

– What else is advisable to pay attention to?

If you are serious about developing your project, consider its legal aspects and seek mentorship from experienced entrepreneurs. At the initial stage, assess the viability of your business model, scalability potential, and market interest in your project, and conduct a legal audit to identify legal restrictions or blockers. There might be cases where existing patents limit the development of your project, or you are using software (including open-source) that is difficult to replace. Often, open-source licenses restrict further development of your project or are unavailable for commercial use. Regulatory limitations or requirements could also affect your project, such as data collection and processing limitations or prohibitions, obtaining a license for activities, etc. If everything is fine, or the level of legal risks is acceptable to you. In that case, you can continue working on your project, creating added value for your developments in the form of patents, trademarks, copyrights, and trade secrets.

Intellectual property rights to your project are a key asset of it. The protection of intellectual property rights is a complex, multi-layered process. With limited resources, you should pay attention to both the project's development and its legal side. It would be best if you balanced between the development of your project and its legal side. Legal support will require significant financial resources, but you will need proper legal documents for your project to exit or receive investment. Therefore, I wish you to keep a balance and join the list of unicorns.

How to Protect the Intellectual Property Rights of the Project?

Interview with Dmytro Soloviov, IT Lawyer at ALLSTARSIT

When creating a new project, we sometimes pay more attention to the legal aspects of protecting it. To avoid negative scenarios in the future, read our interview with Dmytro Soloviov, an IT lawyer at ALLSTARSIT, about how to protect your idea or project in IT.