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Reducing Costs for IP Enforcement Programs

Infringement of Intellectual Property Rights Reducing Costs Through Automated IP Enforcement Program

A recent study suggests that global infringement of intellectual property rights (excluding patent infringement) totaled over $2.2 trillion annually.  Trademark and copyright counterfeiting alone are estimated to be over $500 billion annually in the U.S.  These losses highlight the need for effective IP enforcement programs to protect U.S. businesses and their valuable brands.  

This wide-spread infringement can be daunting to tackle.  But automating an IP enforcement program through software tools can significantly decrease the cost while improving the overall effectiveness.  Moreover, a well-designed program could be self-funding such that it is revenue neutral for a legal department and possibly a revenue generator.

Designing an IP Enforcement Program 

As we explain in 8 Steps to Structure Effective and Efficient IP Enforcement Programs, the following are key elements of an effective enforcement program:

1.     Determine the harm being suffered. The harm suffered as a result of infringement or counterfeiting is likely a mix of financial damages and intangible harm.  In this step, you want to “dollarize” or at least quantify the extent of the financial harm to establish a baseline for the enforcement program and its goals.  Without an understanding of the harm, it is difficult to calculate a meaningful cost benefit analysis.

2.     Set goals for the program.  Define the “Win” from the beginning.  Enforcement programs tend to be more successful when objectively measured goals are established on the front end and are measured and monitored throughout the program.  Think of this as the “dashboard” for the program where progress can be determined in a quick review.

3.     Determine benefits and costs.  Once the harm has been quantified and program goals are set, analyze the cost of the program versus the harm as well as the value realized if the performance goals are met.  This analysis largely drives program success over the long term.

4.     Identify and register the IP.  Before beginning an IP enforcement program, conduct an audit of the IP (usually trademarks, copyrights, or patents) to include in the program.  Ensure the IP is registered and assigned to the proper entity for the program.  You should also consider any additional IP that may need to be obtained in the future to make the program more robust.

5.     Ensure the program is staffed correctly.  To keep costs down, the program should be staffed with professionals based on roles with differing levels of cost.  This is where software automation tools can significantly reduce the overall program cost.  Tools include a database to manage enforcement matters and derive statistics about the program as a whole.  Tools can also automate certain steps in the process like identifying infringement, locating infringers and related information, and filings with administrative agencies.

6.     Monitor, analyze, and improve the program. Using the database and third-party software tools, the program can be analyzed and reports quickly derived as to a specific matter, a campaign, or the overall program.  “After action reviews” are effective tools to highlight improvements to be incorporated into the process.  In some cases, a need arises to register new IP to deter counterfeiters.

7.     Look for new forms of infringement. As technology progresses, so do infringers. This is sometimes referred to as the “whack-a-mole problem.” It seems like you have stopped one form of infringement when another emerges.  Part of Step 6, should include monitoring new forms of infringement.

8.     Leverage successes.  Publishing enforcement successes through social media, public relations, trade organizations, and other means can reduce overall program costs by providing education and deterrence to future infringers.  Put another way, infringers will likely pursue easier targets when they become aware of counterfeiting risks associated with a particular company or brand.

Automating the IP Enforcement Program

The following are third-party software tools that may be used to automate certain aspects of the program:

Corsearch:

https://corsearch.com/our-products/trademark-solutions/

https://corsearch.com/our-products/online-brand-protection/

https://corsearch.com/our-products/anti-piracy-solutions/

https://corsearch.com/our-products/domain-name-services/

 Clarivate:

CompuMark

https://clarivate.com/compumark/

MarkMonitor

https://markmonitor.com

 OpSec Security:

https://www.opsecsecurity.com/fully-integrated-brand-protection

 PRISYNC:

https://prisync.com/#features

Price2Spy:

https://www.price2spy.com/en/

 These services are mentioned for informational purposes only.  We do not endorse their services and are not affiliated with any of these companies.

Any Questions for Setting Up an IP Enforcement Program?

Please contact us if you have any questions regarding the mechanics of setting up a program or the software tools discussed above. For companies enforcing IP portfolios, we offer a complimentary audit of the program and a discussion of where we think results may be improved.

See our post Importance of Intellectual Property Rights: Increasing Market Share Through Stopping Knockoffs and Infringements for a comprehensive discussion of implementing effective IP-enforcement programs.

For more information on IP enforcement programs, see our Anti-Counterfeiting & Enforcement and Industry Focused Legal Solutions pages.