Top Five Ways IP Assets can make a Startup Attractive to Investors

Startups proceed to the next level of growth only when they succeed in attracting potential investors. Investors carry out a precise valuation of intellectual property (IP) assets when the time to determine a startup’s total asset value. However, many startups ignore key procedures such as trademark registration in the UAE (or patent & copyright registration) as they are unaware of the importance of IP assets.

In fact, protecting IP assets through registration can make a startup appealing to potential investors. However, you need to have the best IP firms in Dubai by your side to protect your IP assets. If you are wondering why IP assets are key to making startups attractive to investors, read the following blog:

IP assets are more valuable than tangible assets

The World Intellectual Property Organisation (WIPO) estimates that intangible assets represent nearly 80% of an average firm’s value. Companies all around the world invest a substantial amount of money to protect their IP assets because they can be of more value than any other tangible assets. Protecting IP rights through relevant legal procedures (trademark registration in the UAE, patent registration, copyright registration etc.) offers a competitive advantage to generate higher profit margins than your competitors in the market. Startups can use this competitive edge to prevent their competitors from dominating the market.

The value of IP assets rises with time

A company’s IP value increases when it does well or becomes renowned in the market. This is because the value of intangible assets can increase over time and can contribute to the increase of a brand’s value. Companies conduct trademark registration in the UAE with an eye on enhancing brand value and brand visibility. ADNOC, ETISALAT, EMIRATES etc. are some of the top brands in the UAE whose brand value increases day by day as they have protected their trademarks through registration.

APPLE is another global company with a high brand value. APPLE has been ranked the world’s most valuable brand in 2022 as per the Brand Finance Global 500 ranking. The company topped the list with a valuation of USD 355.1 billion. Startups can take a leaf from such companies and protect their IP assets so that potential investors will become attracted to their brand value. IP firms in Dubai can assist you in your efforts to increase brand value by helping to protect your IP assets.

IP can be used in different ways to generate profits

A company that owns an IP asset can generate revenues by granting others the right to use it. In legal terms, the process of granting IP rights for a profit or fee is called IP licensing. The owner of the IP can make a licensing agreement and provide either limited or unlimited rights to the licensee. The scope of the license use can be limited to a particular period, to a particular industry or to specific geographic areas.

The IP owners can earn an income from the licensing process through a royalty in exchange for providing the rights. In most cases, a certain percentage of the sales will be determined as the royalty amount. Some IP owners even decide on a lump sum amount as royalty in exchange for the IP rights. It is advisable to consult with IP firms in Dubai before making any sort of IP licensing agreement.

Registered IP is a guarantee for investors

Investors are more likely to put their money in startups with a unique product or proposition. However, they will give the green signal only when the uniqueness is patented or registered legally. When a unique product is well-protected through patent registration in the UAE, the valuation of the startup can also increase. For example, a patented technology guarantees an investor that your competitor will not exploit the advantage of the particular technology. The guarantee of such a monopoly can motivate an investor to put his or her money into your startup. Startups can patent their products or processes with the help of IP firms in Dubai.

IP assets make acquisition opportunities lucrative

Many startups stay complacent after creating and registering their IP assets such as trademarks. However, this is not advisable because maintaining an IP is as important as registering it. For example, the validity of trademark registration in the UAE is 10 years. You need to apply for trademark renewal in the UAE before your registration expires. Similarly, you also need to police your IP assets to check if a competitor is infringing upon your IP rights.

Taking efficient steps to maintain an IP asset will help to increase its potential in the market as an attractive acquisition prospect. A corporate entity acquiring your IP assets will be interested in increasing its value after the acquisition. They will also try to make profits through acquired IP assets. In this way, a well-maintained IP asset will help a startup to grow and achieve its objectives and targets. IP companies in Dubai can help you to maintain your intangible assets through efficient renewal and monitoring services.

Seek the Help of the Best IP Firms in Dubai, UAE

Protection of IP rights through various processes such as trademark registration in the UAE, patent registration or copyright registration is essential for startups hunting for investors. The strength of your IP is one of the top factors that increase your startup’s valuation. This is the reason why startups are advised to work with IP firms in Dubai such as Jitendra Intellectual Property (JIP) to protect various forms of IP assets such as trademarks, patents and copyrights.

JIP is a leading IP company in Dubai providing bespoke trademark, patent and copyright services. We have a team of qualified IP agents who can assist you with trademark registration in the UAE, patent registration and copyright registration. Consult with JIP today to build the strength of your startup’s IP.

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