HThe importance of a circular economy is becoming increasingly clear to more and more companies. Fortunately many innovative companies and inventors are now working on sustainable solutions together because they realise that real breakthroughs are achieved through collaboration. Irrespective of whether you are recycling solar panels or converting plastic waste into new materials, you will nearly always need partners with complementary knowledge. You should therefore always think carefully about how you can make strategic use of your intellectual property (IP). A smart IP strategy ensures that you can share your innovation without jeopardising your competitive position. You could, for example, consider a combination of patents, open source and confidentiality.Opt for a combination of different forms of protection
One of you may have in-depth technical knowledge of solar panels, for example, but no knowledge of material processing. And vice versa. So you need each other to innovate. This can feel like a vulnerable situation. What will the other party do with my knowledge? Will I retain control over what happens to it? A well thought-out IP strategy ensures that you can work together on the innovation without any worries.
The strategy you choose will depend on your core technology and the innovation that is making you money. That is the technology you will want to protect. At the same time you also want to work together with others without having to worry about counterfeiting or infringement. In this case a combination of different forms of protection generally tends to be a smart move. Don't think in terms of 'only patents' or 'completely open source', but rather in terms of an integrated approach:
- Patents: for visible, technical innovations. For example, new recycling technologies or modular product designs. This will prevent others from copying them.
- Confidentiality: for processes and algorithms that are not detectable. Chemical recycling processes or specific manufacturing processes are often better kept as trade secrets because competitors cannot easily copy them based on their appearance. Draw up clear Non-Disclosure Agreements for the parties involved.
- Open source: with possible agreements on licences for specific applications for the collaboration partners. This way you will have more control than in the case of completely open source.
TL;DR The Opportunities and Risks of Open Source Software
Open source software offers advantages such as faster development, improvements through external contributions, and transparency. At the same time, it carries risks, such as limited legal protection, loss of control over the code, and potential investor concerns regarding intellectual property.
A strategic approach combines open source with patents: patent valuable components and make the rest available as open source. Pay close attention to licensing terms and the revenue model. Open source and patents don’t have to be opposites – they can actually reinforce each other.
Make clear agreements with partners in advance
When you innovate together, new knowledge, products or processes will often emerge. It is important to agree in advance how you will deal with this so that you prevent unpleasant situations later on. Be sure to discuss the following:
1. Territorial boundaries
Where can which knowledge be used? A battery recycler may only want to operate in Europe while the other partner may have global ambitions. The agreements on the area of application determine where you can use each other's knowledge.
2. Sector boundaries
Prevent your partner from becoming your competitor because you are entering the same sector. Agree on the areas in which your (shared) knowledge may and may not be used.
3. Ownership of new knowledge and innovations
Who gets which rights to innovations resulting from the collaboration? Agree in advance who will own new knowledge and how any IP rights will be divided. Also agree whether you are exclusive partners or whether there are situations in which another collaboration partner could potentially become involved. This will prevent legal disputes later on.
4. Duration and scope of use
How long can shared knowledge be used? Is it limited to this project or can it also be used for future initiatives? You can choose to limit its use to the specific collaboration project and not allow it to be used for other projects with other companies.
Long-term collaboration
True sustainability also means long-term collaboration. By making clear agreements in advance about knowledge sharing and IP rights, you lay the foundation for a fruitful and future-oriented collaboration. This encourages innovation without giving away competitive advantage.
If you would like some advice on your IP strategy and how to shape it in a collaboration with other parties please feel free to contact me, I would be happy to help.
