When most people think of intellectual property (IP) law, they picture it as a shield — a way to stop copycats, pirates, and competitors from stealing ideas. But in reality, IP law can do much more than just protect what a business has already created.
Handled strategically, IP can become one of the most powerful growth tools a company owns — shaping markets, attracting investment, and even creating new revenue streams. A company’s IP strategy is a comprehensive plan for managing and protecting its intangible assets throughout the entire commercialization process and across various technologies.
Let’s explore how forward-thinking businesses — and the IP firms that guide them — are using an intellectual property strategy to create new opportunities and maximize value, not just as a safeguard.
IP as a Business Asset, Not Just a Legal Shield
Think of your IP as a piece of real estate. Various forms of intellectual property assets, such as a patent, trademark, or copyright, aren’t just legal documents — they’re business assets that can be valued, licensed, and leveraged.
For startups, strong IP protection can make or break a funding round. Access to capital is often contingent on a well-structured IP portfolio, as investors want assurance that their investment is protected and scalable. Investors usually look for a well-documented IP portfolio before putting money on the table. For established companies, IP adds to market value and provides leverage in negotiations or partnerships.
In other words, IP isn’t only about defending against risk — it’s about increasing your worth and creating opportunities. However, it’s essential to consider the costs associated with developing, protecting, and acquiring IP, as these can significantly impact your overall IP strategy.
Strategic Uses of IP Beyond Protection
Smart companies use intellectual property to guide growth decisions. Effective IP strategies are essential for business success, helping companies protect their innovations and maintain a competitive edge. The management team plays a crucial role in developing and managing these strategies to ensure that IP assets are leveraged effectively. Here are a few key ways they do it:
Monetization & Licensing
A registered patent or trademark isn’t just a wall — it’s a source of revenue. Companies can license their IP to others for use in specific markets or industries, generating recurring income while maintaining ownership. IP commercialization is a critical stage in maximizing the value and market potential of intellectual property assets.
Example: A software developer might license their code to hardware manufacturers, or a designer might license their brand to retail partners. IP creates scalable income without the need to expand internally.
Market Positioning
A strong trademark communicates credibility, quality, and trust. Consumers recognize and remember brand marks, and that association drives loyalty. Understanding customers’ needs and preferences is essential for effective market positioning, as it allows businesses to tailor their branding strategies to better connect with their audience. For small businesses, owning trademarks means you can confidently scale your brand without fear of copycats or confusion.
Even the simple “®” symbol next to a business name signals legitimacy — a subtle but powerful marketing tool.
Competitive Barriers
Strategic IP filings can help businesses shape the competitive landscape. By patenting a technology early, companies can prevent competitors from easily entering the same market space. Securing and enforcing IP rights is crucial for maintaining these competitive barriers, as it helps address infringement, patent disputes, and the legal complexities of protecting innovations.
This tactic is prevalent in pharmaceuticals, engineering, and tech industries where R&D investments are high and timing matters.
Collaboration & Innovation Incentives
Sometimes, the best IP strategy involves sharing rather than protecting. Tesla famously opened its electric vehicle patents to the public, encouraging other automakers to build EVs and expand the market. Sharing IP across different technologies, such as software, battery systems, and AI, can accelerate industry-wide innovation by enabling companies to build on each other’s advancements. The result? Faster innovation and more demand for Tesla products.
That’s the power of strategic openness — using IP law as a framework for collaboration and growth rather than restriction.
How IP Firms Help Build Strategy, Not Just Defend It
Modern intellectual property firms do far more than file paperwork or send cease-and-desist letters. They act as strategic partners, helping clients align their IP portfolios with long-term business goals. IP firms also assist in developing a comprehensive intellectual property strategy to manage, protect, enforce, and commercialize intangible assets effectively.
Here’s how:
- Portfolio Management: IP attorneys analyze a company’s innovations, brands, and creative works to ensure each one is protected correctly and prioritized based on business value, while managing IP assets effectively.
- Due Diligence: During mergers or acquisitions, firms assess the strength and validity of IP assets — identifying opportunities and risks before deals close.
- Competitive Intelligence: By monitoring industry filings and trends, IP lawyers help clients anticipate competitors’ moves and identify white spaces for innovation, using market analysis to inform strategic decisions.
- Brand Protection Strategy: Not every infringement needs a lawsuit. A good IP firm knows when to enforce rights and when to leverage them to build brand equity instead.
- International Planning: IP laws vary across borders. Firms guide clients on where and how to file globally to avoid costly mistakes and maximize protection where it matters most, while optimizing processes for global IP protection.
Through these services, an IP firm becomes more than a legal partner — it becomes a growth strategist.
The Shift Toward Proactive IP Consulting
Traditionally, IP law was reactive: protect after a problem arises. But today, the most innovative companies treat IP as part of their business development plan from day one.
By involving an IP attorney early in the product or brand development process, companies can:
- Identify what’s truly protectable before investing heavily.
- Avoid accidental infringement.
- Build a portfolio that aligns with business strategy.
- Use IP filings to secure partnerships or funding faster.
- Engage employees in the IP planning process to ensure all innovations and service improvements are captured and protected.
Proactive IP planning saves money, avoids legal pitfalls, and builds a stronger competitive position. IP consulting services also provide companies with access to capital and resources needed for growth and expansion.
Implementing an IP Policy for Sustainable Growth
A well-crafted IP policy is more than a set of rules—it’s a roadmap for sustainable business growth. By treating intellectual property as a core part of your business plan, companies can unlock new opportunities, drive innovation, and secure a lasting competitive advantage in their target market.
Developing a robust IP strategy starts with identifying and protecting your most valuable IP assets, whether they’re patents, trademarks, copyrights, trade secrets, or proprietary software. This process should be closely aligned with your company’s growth stage and long-term business goals. Involving IP professionals—such as your chief technology officer and general counsel—ensures that your IP policy is both comprehensive and adaptable, supporting business development at every phase.
During the growth stage, expanding your IP portfolio through strategic IP creation, acquisition, and licensing agreements can help increase market share, diversify revenue streams, and grow your customer base. For mature businesses, ongoing investment in IP protection and commercialization is critical to maintaining your edge, especially when entering new markets or launching innovative products and services. Partnerships with potential partners can further amplify the value of your intellectual property assets.
Small businesses and startups also benefit from a clear IP policy. In the startup phase, focusing on the protection of key IP assets—like trade secrets and software—lays the foundation for future growth. As your company evolves, regularly reviewing and updating your IP policy ensures it continues to support your business goals and adapts to new challenges and opportunities.
A strategic approach to IP management empowers companies to make informed decisions, maximize the value of their IP assets, and support long-term success. By integrating IP considerations into every stage of the business life cycle, companies can drive innovation, expand into new markets, and grow faster than the competition.
Turning IP Into a Growth Strategy
When used strategically, intellectual property isn’t just about defense — it’s about direction.
It guides how companies innovate, expand, and communicate value to the world.
From Tesla’s open patents to startups licensing technology across industries, IP strategy has become a fundamental part of how modern companies grow.
Firms that understand this shift help their clients go beyond protection and turn their ideas into long-term competitive advantages.
The takeaway?
Don’t think of IP as insurance — think of it as an investment.
Your intellectual property could be your company’s most valuable untapped asset — not just to protect, but to build something bigger.
Looking to Protect Your Intellectual Property?
Please contact Arlen Olsen at Schmeiser, Olsen & Watts LLP at aolsen@iplawusa.com.
About the Author
Mr. Olsen, a former adjunct professor of intellectual property law, has over 30 years of experience in all aspects of intellectual property law. Mr. Olsen is a founding Partner of Schmeiser, Olsen & Watts LLP and a former United States Patent Examiner. Mr. Olsen has prosecuted numerous patents that have been litigated and received damages of over 60 million dollars. Additional activities include teaching seminars, appearing as a guest lecturer on intellectual property matters for corporations and educational institutions, and evaluating and consulting with clients regarding the scope, enforcement, and protection of intellectual property rights.
