STARTUPS & EVOLVING NATURE OF

INTELLECTUAL PROPERTY IN DIGITAL AGE

Shruti Channaveer Chitte

Student, Masters Of Business Administration,

Hirachand Nemchand College Of Commerce,
Solapur.

ABSTRACT
In the fast- paced world of 21st century startups intellectual property (IP) has
become
asset and a criticalminefield.
a potential assest and a This
potential minefield explores the dynamic landscape of IP in
abstract
startups, examining the challenges, opportunities and strategies for success. It delves into
importance of IP protection in fostering innovation, securing funding, and gaining
competitive advantages. Moreover it is discusses the evolving nature of IP in the digital age,
including issues such as open source software, block chain technology and artificial
intelligence. Additionally, the abstract highlights the significance of comprehensive IP
strategy, encompassing patents, trademarks, copyrights and trade secrets, tailored to the
unique needs and goals of each startup. Furthermore, it addresses the importance of IP due
diligence in investment and acquisition investors and maximizing exit opportunities.
Ultimately, this abstract aims to provide startups with valuable insights and practical
guidance for effectively managing and leveraging intellectual managing and leveraging
intellectual property.

Keywords: Startup, Intellectual property (IP), Healthcare, Manufacturing, Supply chain,

Retail, , Banking, Financial service &insurance (BFSI), ENU

I. INTRODUCTION

Intellectual property rights in today’s dynamic and competitive world can be the
unique selling point for one’s product or service. India’s Start-up story began in the
80s nearly four decades ago when companies such as Tata Consultancy Services,
 Wipro, and Infosys came into existence and placed Indian on the global economic
map. The 90s witnessed the launch of some of the largest banks such as ICICI, AXIS
and HDFC and one of the India’s largest telecommunications company, Airtel.
An entrepreneur can be defined as an individual who creates a new business, enjoying
most of the rewards and bearing most of the risks and entrepreneurship is the process
of setting up a business. A start-up is a company which is started with an unique idea
and often require investors and a large amount of capital to function and flourish in
the competitive market as a scalable start-up. There is no doubt that entrepreneurship
is deeply rooted in India’s culture and economy. It has blossomed in India for
centuries now. The current entrepreneurial ecosystem of India is a result of three
waves of entrepreneurial activity with three distinct focus areas, which are,
consumerism, information technology, and innovation.

II. CONCEPT

This paper presents an analysis of startups in the digital technology domain from the
perspective of “IP & SMEs: Taking your ideas to market”. As per World Intellectual
Property Organization (WIPO) this represents “Critical role of small and medium-sized
enterprises (SMEs) in the economy and how they can use intellectual property (IP) rights
to build stronger, more competitive and resilient businesses”. Our analysis takes into
consideration some of the key startups actively developing technologies and having
products / services related to digital technologies in selected industry sectors. It also tries
to highlight influence of Intellectual Property on performance and sustainability of
startups in the marketplace.

III. IMPORTANCE OF IP FOR SMES AND STARTUPS

European Union conducted a study recently on “Intellectual property rights and

firm performance in the EU” that confirms the strong, positive relationship between a
company's ownership of different types of IPRs and its economic performance. For
example, SMEs with patent ownership are found to have 36% higher revenue per
employees and 53% higher wages; SMEs with registered design are found to have 32%
higher revenue and 30% higher wages; and SMEs with registered trademarks appear to
have 21% higher revenue and 17% higher wages. Incidentally, it is found that revenue
per employee and wage level aretwo key factors indicating company’s performance.

IP protection enables startups to preserve and exercise unique and differentiated

product or service offerings in the competitive marketplace. One of the key success
factors for a startup is to keep up with innovative offerings backed by carefully crafted
Intellectual property rights such as Patents. Past studies have established that startups
or SMEs with registered intellectual property are more likely to receive funding for
product commercialization. Another study reveals that SMEs and startups that have at
least one registered IP are 21% more likely to experience a subsequent growth period,
and 10% more likely to become a high growth firm.

IV. OBJECTIVES OF STUDY

The study was planned with the following objectives;

 Analyzing the relationship between startups and intellectual property

 Assessing effectiveness of IP protection mechanisms in supporting startups.

 Exploring IP strategies.

V. RESEARCH METHEDOLOGY

The study is purely based on secondary data collected through internet, websites, papers ,
journals & published articles.
VI. DATA ANALYSIS & INTERPRETATION

In the process of discovery of top 200 startups from different publically available sources
for each digital technology, the applicable industry domain and relevant business
functions were identified from the list of startups.

172

99

75
72 71
66
61
54

38

19 19
15
10 9
7
4 3 2 2

Healthcare Manufacturing Supply Chain Retail ENU BFSI

Figure 1. represents the count of startups in the cross section of digital technologies,
industry domain and functional areas. It is observed that Healthcare and BFSI industry
domain along with AI and Blockchain technology has maximum number of startups.
Among the industry domains, startup population was found to be significant in the
functional areas of Diagnosis & Treatment, Geriatric Care Management in Healthcare;
Inventory / Warehouse Management, Logistics Management in Supply chain; Customer
Experience Management in Retail; and Financial Risk Management, Cryptocurrency
Trading in BFSI.
 AI Robotics Blockchain AR -VR

USA 104 56 81 66

UK 19 5 23 20

China 5 46 3 2

Singapore 8 6 22 6

Canada 12 8 5 13

India 10 10 6 11

Germany 6 8 5 11

France 4 12 1 9

Israel 9 4 2 5

Switzerland 4 1 11 4

Australia 2 4 1 6

Figure 2: Geographic Spread of Startups

It is observed that startups headquartered in USA are prominent in AI technology in

the industry domain of Healthcare followed by BFSI. Startups headquartered in
China are prominent in Robotics in the industry domain of Manufacturing followed
by Supply chain. Startups headquartered in Singapore are prominent in Blockchain
technology in the industry domain of BFSI.

Startups headquartered in UK are prominent in Blockchain and AR-VR technology

and in the industrydomain of BFSI followed by Healthcare (See Figure 2)

 Analyzing the relationship between startups and intellectual

property

The relationship between startups and intellectual property (IP) in the digital age is
symbiotic and increasingly crucial for success. Here's how this relationship is
defined:
1. Protection of Innovations: Startups often thrive on their innovative ideas and
technologies. Intellectual property rights like patents, trademarks, and copyrights
enable startups to protect their innovations from being copied or exploited by
competitors. This protection fosters an environment conducive to innovation by
providing startups with the confidence to invest in research and development.

2. Market Differentiation: In today's competitive landscape, startups need to stand

out. IP allows startups to differentiate themselves by protecting their unique brand
identities, technologies, and creative works. Trademarks safeguard brand names and
logos, while patents protect novel inventions, helping startups carve out their niche in
the market.

3. Attracting Investment: Investors are more inclined to fund startups with a solid IP
strategy. Intellectual property assets enhance a startup's valuation and provide
investors with confidence in the company's ability to protect its innovations and
generate returns. A strong IP portfolio can be a compelling factor in attracting venture
capital and other forms of funding.

4. Monetization Opportunities: IP can serve as a valuable asset for startups to

monetize their innovations. Licensing agreements allow startups to generate revenue
by granting others the right to use their patented technologies or trademarks.
Additionally, startups can leverage their IP assets as collateral for loans or as
bargaining chips in negotiations with potential partners or acquirers.

5. Defensive Strategy: Startups must also consider the defensive aspects of IP. By
securing patents and trademarks, startups can deter competitors from entering their
market space or protect themselves from infringement claims. A proactive approach
to IP management can help startups avoid costly legal disputes and maintain their
competitive advantage.
  Assessing effectiveness of IP protection mechanisms in supporting
startups.

In the digital age, intellectual property (IP) plays a crucial role in supporting startups by
providing them with a competitive edge and protecting their innovations. Startups often
rely on their unique ideas, technology, and branding to differentiate themselves in the
market. IP rights such as patents, trademarks, copyrights, and trade secrets enable startups
to safeguard their inventions, brand identity, creative works, and confidential information
from being exploited by competitors. Additionally, IP can also be leveraged to attract
investors, secure partnerships, and establish credibility in the industry. As the digital
landscape continues to evolve, the importance of IP for startups is expected to grow,
driving innovation and fostering entrepreneurship.

 Exploring IP strategies.

In the digital age, startups face unique challenges and opportunities regarding
intellectual property (IP) protection. Traditional IP strategies like patents, copyrights,
and trademarks remain important, but new forms of IP are emerging, such as trade
secrets and open-source licensing. Startups need to adapt their IP strategies to
navigate this evolving landscape effectively. This might include prioritizing trade
secrets for software algorithms, leveraging open-source communities for
collaborative innovation, and utilizing defensive patenting to protect against litigation
threats. Additionally, staying informed about changes in IP law and industry best
practices is crucial for startups to remain competitive and safeguard their innovations.

VII. FINDINGS & CONCLUSION

In conclusion, the evolving nature of intellectual property (IP) in the digital age
presents both challenges and opportunities for startups. While navigating complex
legal landscapes and protecting their innovations is crucial, embracing open
 innovation models and leveraging IP strategically can fuel growth and foster
collaboration. As technology continues to advance, startups must remain agile and
adaptable, continuously innovating to stay ahead while also safeguarding their
intellectual assets.

VIII. REFERENCES

 https://www.wipro.com/content/dam/nexus/en/innovation/pdf/relevance-of-
intellectual-property-for-startups.pdf
Relevance of Intellectual Property for Startups
 https://www.wipo.int/ip-outreach/en/ipday/
The World Intellectual Property Organization (WIPO) is the global forum for
intellectual property policy, services, information and cooperation.
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