To market, to market: tips and traps in commercialising an idea
It’s every entrepreneurs dream. A killer business idea, a new product or specialised service, hits the market and finds instant success.
But the road from creative concept to genuine money-earner can be a rocky one.
Intellectual property (IP) lawyer Geraldine Farrell specialises in the commercialisation of IP and technology. As Special Counsel at Griffith Hack Lawyers, Geraldine sees plenty of ideas in their embryonic stage, along with the best and worst attempts at taking an idea to market.
She spoke to First 5000 what to look out for on the pathway to commercialisation:
Are all ideas capable of protection?
You must know exactly what your idea is, and determine whether it is able to be protected as a form of intellectual property, or under the laws protecting trade secrets. If it’s just an idea, and can’t be protected as a proprietary right (for example, by way of a patent, copyright, design or trade mark) anyone else can simply copy it and they won’t be infringing your rights. Similarly, if it is an idea that you want to protect as a trade secret but it can be reverse-engineered easily, it won’t be a secret for long!
How can business owners manage confidentiality concerns?
Keep your idea to yourself! Don’t tell the world about it – you need to take steps to keep your information confidential, at least until it has been adequately protected. You may need confidentiality agreements in place with people to whom you disclose your idea. You must at least tell them, and record in writing that you have told them, that the idea is confidential.
Can I tackle commercialisation myself, or do I need to outsource expertise?
I would always suggest business owners get good expert advice early. This may include tax, accounting, corporate structuring, legal and patent attorney advice. As an example, there can be significant capital gains tax issues if you decide to move IP to other entities after the IP has been developed and obtained some value. Having a good patent attorney and IP lawyer in place early will also assist in making sure that you protect your idea, and you are able to document everything.
Don’t guess how much your IP is worth. You need to know this, so do your homework and use professional IP valuers if required.
Can you identify the main issues you see businesses overlook during the commercialisation process?
It’s important to have a business plan and continue to work through this. Stress test the business plan at various stages during the commercialisation process. Ask yourself what are the potential obstacles to success? Who will be your major competitors?
Also be sure to consider regulatory issues which may crop up during the commercialisation process. This will depend on the nature of the idea that you are trying to commercialise, but you need to be aware of these before you embark on the journey.
Don’t underestimate the funding you will need. Where are you going to source this? What government funding might be available?
Make sure you have an exit strategy. Know when it’s time to let go of your baby.
Geraldine Farrell’s top tips for taking an idea to market:
PUT YOUR HAND UP: Seek out successful entrepreneurs to help you – draw on the experience of those who have travelled this road before you.
WHAT’S THE POINT: Identify what you really want out of the commercialisation. Is it to make money? Is it to make sure that every child in Africa is able to access your product? Knowing what your motives are will help you to work out the best path for commercialisation.
KNOW YOURSELF: What do you want your personal role to be? What are your particular skills? If you are best doing the hard-core research, and not the ideal sales person, find someone who is, and preferably someone who can arrange manufacturing and distribution. Don’t operate outside your comfort zone or skills.
RECOMMENDED WEBSITES:
Australian Institute for Commercialisation www.ausicom.com
IP Australia www.ipaustralia.gov.au
