Protecting IP Rights

Imagine this: You’ve spent months brainstorming a game-changing business idea and finally pitched it to a group of friends for feedback. However, months later, one of your friends copies it. This could be the case if you have failed to secure your intellectual property rights. 

Investors look for ideas that are both unique and protected. They need proof that their funds support unique and protected ideas. Many aspiring entrepreneurs don't know that they have to protect their intellectual property before making ideas public.

Intellectual property law protects the way ideas are expressed, not the ideas themselves. Copyright is for creative works such as books and music; trademark protects brand marks such as logos or slogans; and a patent allows inventors to exclusively use new creations for a specified period. Generally, business ideas fall under trade secret protection. A trade secret is private information that gives a business an edge — for example, the secret formula of Coca-Cola. Trade secrets do not need registration but must remain private or confidential. 

Trade secret protection lasts as long as the information remains secret, unlike patent registration, which has to be done formally and expires after a specified period. Generally, organisations keep their trade secrets protected by NDAs, limiting access and the use of cybersecurity measures. Many entrepreneurs think that once an idea has been presented, it protects that idea. Think about a participant in Shark Tank who has an idea for managing eco-friendly waste. Without the proper filing of their IP, another company can be legally authorised to create similar tech. 

Another example is that of a specialty cuisine restaurant; disclosing all the recipes might break a trade secret protection: once known, protection is lost. Entrepreneurs must carefully consider how much information they disclose to attract investors while safeguarding their business secrets. The risk of losing ownership rights always exists, making entrepreneurs think twice before sharing their ideas.

Nepal's trademark protection requires formal registration as per the Patent, Design and Trademark Act 1965. In contrast, countries like the U.S. allow trademark rights through commercial use following a ‘first-to-use’ system. However, official registration always provides better protection in legal disputes. In today's digital world, trade secrets and online assets like domain names provide competitive benefits to businesses. Without any legal protection, competitors may copy and register these assets themselves. Business owners must take legal precautions to guard their innovations and digital identities.

Nepal's intellectual property framework needs modernization. While WIPO has set international IP standards for member countries, Nepal still lacks a proper classification system and offers limited protection across different IP classifications, making its framework outdated. Moreover, Nepal doesn’t adhere to international treaties like PCT and the Madrid Protocol, which increases the complications in filing international patents and trademarks. 

Also, the Nepal Patent, Design and Trademark Act 1965 provides shorter protection terms, has much weaker enforcement mechanisms, and is limited in international compliance compared to global standards, which leaves entrepreneurs exposed to higher IP risks.

Thus, modernising IP law, strengthening enforcement, and educating businesses on proactive protection strategies are the primary steps toward developing innovation and investment.  For any start-ups, intellectual property rights are needed for its survival and growth. Before presenting ideas to anyone, entrepreneurs should secure necessary registrations and non-disclosure agreements to protect their ideas and innovations. Without a robust IP protection policy in Nepal, there is a possibility that innovation and investment will be limited in our economy.