Heading Overseas - Exporting
Entering a new market can be a daunting prospect. Whatever difficulties you faced in launching your product locally are often multiplied. Apart from regulatory differences, there are the more familiar problems of setting up distribution channels, creating market awareness for your product, and competing against other business. Accomplishing this in an unfamiliar environment is difficult for many New Zealand businesses.
Many businesses overlook the advantages that Intellectual Property protection can offer. For instance, patents and registered designs provide control over a market. This can be effectively used to actively prevent other competitors from operating in your ‘protected sphere’ of technology or products. Not only does this provide you with a valuable lead-in time for the market, that ‘lead-in’ time may last the entire typical 20 year life of the patent, or the life of other IP.
Trade Marks are very effective for protecting goodwill and any market recognition you accumulate. Registering your trade marks, to secure exclusive title and right to use, can provide significant advantages – particularly after any patents expire or more especially for facilitating the introduction of new products under your existing recognised brand. Building up trade mark recognition can take time, and is best accomplished with the absence of competition – such as may be achieved by having patent and other IP protection.
New Zealand business heading overseas face many daunting challenges. Effectively using resources such as Intellectual Property can provide significant benefits.
Many NZ businesses attempting to enter foreign export markets have often been surprised at the fact that their Intellectual Property portfolio can open doors. Potential competitors, unable to use the technology or products without infringement, may make approaches towards licensing the technology. This can be beneficial to the NZ Intellectual Property owner as they then have the resources of an existing organisation, familiar with that market, to sell their product. Even distributors may be more accommodating if they know that the IP is protected and an exclusive distribution agreement may be entered into.
Intellectual Property protection is attractive to exporters because:
Entering a new market can be a daunting prospect. Whatever difficulties you faced in launching your product locally are often multiplied. Apart from regulatory differences, there are the more familiar problems of setting up distribution channels, creating market awareness for your product, and competing against other business. Accomplishing this in an unfamiliar environment is difficult for many New Zealand businesses.
Many businesses overlook the advantages that Intellectual Property protection can offer. For instance, patents and registered designs provide control over a market. This can be effectively used to actively prevent other competitors from operating in your ‘protected sphere’ of technology or products. Not only does this provide you with a valuable lead-in time for the market, that ‘lead-in’ time may last the entire typical 20 year life of the patent, or the life of other IP.
Trade Marks are very effective for protecting goodwill and any market recognition you accumulate. Registering your trade marks, to secure exclusive title and right to use, can provide significant advantages – particularly after any patents expire or more especially for facilitating the introduction of new products under your existing recognised brand. Building up trade mark recognition can take time, and is best accomplished with the absence of competition – such as may be achieved by having patent and other IP protection.
New Zealand business heading overseas face many daunting challenges. Effectively using resources such as Intellectual Property can provide significant benefits.
Many NZ businesses attempting to enter foreign export markets have often been surprised at the fact that their Intellectual Property portfolio can open doors. Potential competitors, unable to use the technology or products without infringement, may make approaches towards licensing the technology. This can be beneficial to the NZ Intellectual Property owner as they then have the resources of an existing organisation, familiar with that market, to sell their product. Even distributors may be more accommodating if they know that the IP is protected and an exclusive distribution agreement may be entered into.
Intellectual Property protection is attractive to exporters because:
- local distributors may more willingly work with you if they feel the investment of their time in resources is protected - no distributor wants to create a market for their competitors
- you can influence a market
- you have a monopoly
- your monopoly can buy you a significant lead-in time
- it attracts and facilitates licensing and alliances
- it can disadvantage competitors
- it can capture the value of goodwill and reputation you establish in that market
- it can keep others at arm’s length while you establish your beach-head and become firmly entrenched
- it can open opportunities to have product produced in the export market
- it can offer protection against counterfeit goods entering your export market