Imagine launching a product that belly flops. Most folks would write it off as a total loss. I do not think so. I recall a quite interesting report from 2016 by the United States Patent and Trademark Office. It drove home the point that industries steeped in intellectual property are big engines of the American economy. That sparked an idea: Even a product that whiffs completely might accidentally generate valuable intellectual property. It is a crying shame when businesses chuck aside what could be a source of inspiration and fresh concepts. Companies need to realize that even a so called dud product can be an IP treasure trove. This is paramount if they want to drastically improve their odds of future wins.
I have seen that companies often treat a product launch that tanks as a complete catastrophe. The purse strings get tightened, teams are dissolved and the whole shebang is quickly forgotten. But reality is more complex. That apparent bomb might actually hide patentable inventions, trademarks of value or important trade secrets. The trick is knowing how to sniff them out.
Unearthing Hidden IP Treasures
Start with a full IP audit of the failed product. Pore over the whole development process from beginning to end, not just the final item. Mull over these points:
- Inventions and Patents: Did the team dream up any fresh technologies or processes during development? That tech might be patentable, regardless of the original product’s failure.
- Branding and Trademarks: What names, logos and taglines did you use for the product? Those trademarks might be used for future projects, even if the initial product is six feet under.
- Proprietary Information and Trade Secrets: Did the team concoct secret formulas, designs or manufacturing processes that give you an advantage over the competition? Those trade secrets can be guarded forever, provided confidentiality is carefully maintained.
I once partnered with a startup cooking up new battery technology for electric vehicles. Sky high manufacturing costs KO’d the product, but the underlying battery technology was revolutionary. I advised them to file a patent in India and other key markets. They took my advice. Later, the patent turned out to be very valuable when they licensed the technology to a larger company. The primary keyword of Failed Product Create Valuable IP Assets comes into play, proving how such assets can indeed spring up even from unlucky ventures.
Patent Strategies for Inventions That “Failed”
Just because a product did not become a sensation does not automatically make any inventions worthless. A failed product can be surprisingly useful when it comes to patent law. Here is the rationale:
- Prior Art: Publicly displaying a product, even if it flopped, generates prior art. This prevents others from patenting the exact same invention. See it as a defensive move to protect future innovations.
- Different Applications: An invention may not have been a fit for the original product, but it could be golden in a totally different space.
- Incremental Improvements: Even if the original invention was not patentable, any later tweaks absolutely could be.
I always urge my clients to brainstorm other uses for inventions that initially flopped. For example, a medical device that could not jump through regulatory hoops might still be useful in veterinary medicine.
Protecting the Brand: Trademarks and Goodwill
Trademarks pack a punch. They can easily outlive a single product for years. The brand name, logo and linked goodwill could be tapped later, even after a product’s earlier flop. Chew on these points:
- Maintain Trademark Registrations: Stay up to date with trademark registrations, even if the mark is not being actively used now. This blocks your rivals from using similar marks, which could water down your brand.
- Licensing Opportunities: Think about licensing the trademark to other businesses in similar fields. This can create income and help keep your brand in the game.
- Rebranding: If the product went south because of negative baggage tied to the brand, consider rebranding and roll out a fresh product under a completely different name. But keep protecting the existing trademarks, so others cannot cash in on your past efforts.
Trade Secrets: The Untapped Resource
Trade secrets are confidential information that gives you an advantage over the pack. Unlike patents, trade secrets can last forever, as long as you keep things under wraps. A failed product might hold valuable trade secrets such as:
- Manufacturing Processes: Specialized methods used to churn out the product.
- Formulas and Recipes: Secret ingredients or special recipes.
- Designs and Blueprints: Unique designs that are not out in the open.
To safeguard your trade secrets, put in place strong confidentiality agreements with all employees, contractors and partners. Set up solid security protocols to block unauthorized eyes from seeing sensitive information.
So what is the takeaway? A Failed Product Create Valuable IP Assets. Those IP assets can really help future success. By running a detailed IP audit, protecting inventions with patents like you would file a patent in India, keeping trademarks current and protecting trade secrets, a setback can be turned into a win. Do not let failed products just sit around and gather dust. Give them a good look and unlock their hidden potential. They may hold the key to your next big thing.
