Experience, research help in safe trading overseas

TWO WISE MEN

Q: I have a world-first product that only has a limited market in New Zealand. I want to start exporting or get into licence agreements overseas and I'm worried about protecting my IP yet it's really expensive to get patents in lots of countries. What should I do?

A: I admire you for your drive to export your product, but too many startup businesses try going overseas too soon. Whilst you have recognised that the local market for your product is limited, going to market in New Zealand has its advantages.

But before going to market (selling your product) you will want to assess and consider protecting your IP. This may be your most valuable asset. Assess what IP you do have, and ensure that you get a plan in place to protect it in line with your commercialisation plan.

This can be an expensive exercise but it needn't be. Check out the Intellectual Property Office of New Zealand (IPONZ) website and use some of their tools for searching, and potentially applying.

Get a sense of what you can work on yourself. Finally, talk to a local patent attorney about your business plans and how they can best help you put in place appropriate IP protection aligned with your business plans.

Alongside capturing quick knowledge, going to market locally can provide your business with the cashflow to support wider IP protection. Sales to real customers demonstrate tangible demand for your product, helping you identify then negotiate better licensing deals overseas when the time comes.

Finally, with local customer feedback on your product you can better research where you should go overseas so you are clear on your target markets. This will further refine your IP activities from an international perspective.

Steve O'Connor, GM of Creative HQ business incubator.

A: First learn to talk about your product without giving away the secret sauce. This is best done by describing the impact the product will have on the users' business. Too many New Zealand inventors fall into two camps; either they say nothing - it's a big secret - or are so excited about their product they always tell their audiences about the technology and give away too much information.

Explore other avenues to protect your product trade secret. Make sure you get good advice from commercially oriented IP specialists and commercial lawyers.

Do not get sucked into the "patent everything, everywhere, one-size-fits-all" syndrome. At the very least invest in a "freedom to operate" search to make sure you are not infringing someone else's patent. But be careful.

Many businesses fail because they have invested all their start- up capital with professional service providers and do not have enough money to get their product to market.

The NZTE website has some great templates for agent and distributor agreements. Seek professional advice from someone who has experience in offshore agreements.

Mark Robotham - GM Escalator Investment Ready Service - building investment-ready businesses. Blog: succinct. co.nz.

If you want to contact either of our two wise men, please email Business Day@dompost.co.nz.

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