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Thanks to this assistance, exporters can take calculated risks for often substantial returns. Some case
studies of where exporters have used the three pillars are outlined below.

Sydney based Open Telecommunications and its Peruvian partner Grana y Montero recently announced
a $1.75 million software and technical services project with Bell South of Peru. Austrade’s new office in
Lima assisted with the relationship and the signing of the deal. The project is an example of the
extension of Austrade’s services to Australian exporters in South America.

Yemen, Saudi Arabia. Keith Seeds has grown its overseas sales of seed products substantially since
1992. Its chief markets are Yemen and Saudi Arabia. ‘We wouldn’t have experienced the growth we’ve
had if we hadn’t used EFIC’s products and knowledge to export with confidence to risky markets,’ says
Tim Cadzow, Manager of Keith Seeds.

Indonesia. Austrade has assisted Sydney based Bluefire Gas Ltd to set up a US $10 million project in
liquified petroleum gas (LPG) distribution in Indonesia. Bluefire Gas’CEO Ken Matthews commented:
‘Austrade’s first-hand knowledge of the market and its ability to put us in touch with the right people
proved pivotal to our success’.

China. With EFIC credit insurance, Coopers Brewery was able to offer competitive terms on its brewing
kits to Chinese buyers, enabling the brewery to chase Chinese expansion plans.

So the Australian government can make a difference for Australian exporters. Of course, Austrade and
EFIC couldn’t and shouldn’t support every export deal that comes to them. Some are reckless gambles,
not calculated risks. But overall, with a little bit of help from their friends, exporters can succeed in a
dynamic and volatile global economy.

Step 2: Becoming export ready

The good news and the bad news about intellectual property
by Alicia Beverly

Almost every business owner in Australia has more intellectual property than they
currently realise.

The good news is that these hidden intellectual property assets can add tens of
thousands of dollars to your business’s overall value - immediately. It’s like winning the lotto if you
are considering a visit to your bank manager, courting investors, looking to franchise your product or
manufacturing process, or if you are keen to sell your business.

The bad news is that any unidentified intellectual property assets are potentially under-protected and
therefore vulnerable to your competitors. In fact much of the intellectual property of businesses in Australia
are not protected at all. Some under-protected assets can actually get you sued, while others can be
carted off by employees who go on to work for your competitors or become competitors themselves.

Stepping out of the closet

So how can you reveal these assets, protect them as cheaply as possible and keep them where they belong
in your business? Start by categorising all of your intellectual property assets into seven basic categories:

• Trademarks. This includes all business, company and trade names, along with trademarks (registered
or unregistered), colours, logos, and commonly used phrases associated with your business.

• Patents. Includes potential patents (and secret formulas), trade secrets and industry know-how.

• Designs. Anything that is a physical product, or patterns or ornamentation that might go on a

physical product (and is intended to be mass produced), can be a registered design.

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• Copyright. Drafts, renderings, animations, prototypes and promotional materials like brochures,
videos, fliers, and advertisements should all be included.

• Confidential Information. This includes customer lists, plans for new products or processes and
advertising and marketing campaigns.

• Circuit Layout Rights. This applies to the configuration of electronic circuits.

• Plant Breeder’s Rights. For the development of new plant and tree breeds.

An impressive portfolio
In my experience, most business owners assume they have little or no intellectual property at all. But by
just glancing at these categories you can probably see that there is a full spectrum of assets that you didn’t
even know that you owned.

When you compile a full listing of all of these assets, you will have conducted a simple IP audit. A listing
of your business’s most impressive and significant intellectual property assets is called an ‘Intellectual
Property Portfolio’ (IPP). It is an extremely compelling and appealing document when you are seeking
further finance, investment, franchisees or potential buyers. While it is possible to put a dollar figure next
to each line entry, it is a complex and expensive undertaking and there are few specialists in this field in
this country. Even without it, you will see that your own IPP is amazingly impressive and significantly adds
value to your business.

IP Australia
Of the seven intellectual property rights listed above, three - patents, trademarks and designs - are formally
granted in this country by IP Australia, the Federal Government body that incorporates the Patents, Trade
Marks and Designs Offices (plant breeder’s rights are administered by Plant Breeder’s Rights Australia).

You should always apply for registered trademarks for all business, company, new product and new service
names. Once granted, your registration is a nationwide marketplace monopoly, and can last generations
so long as you pay your fees every ten years. But without it, you risk infringing another party who actually
has a registered trade mark in the area that you trade in, making you a target for legal action.

You can use IP Australia’s handy website at www.ipaustralia.gov.au to check if a chosen name is available
for application, or in fact already owned. You can even apply online, however self-filing can be risky
and there are several important advantages to using a registered trade mark attorney.

For instance, there are 45 product and service classes; a trade mark attorney can help you choose wisely
between them and then construct a strong ‘statement of claim’ to ensure your business is powerfully
protected against competitors. While professional fees can seem like a burden, consider them an
investment in smart protection for now and into the future.

Along with search functions, the IP Australia website has a huge range of information about intellectual
property rights, including case studies and intellectual property strategy. If you don’t have internet access,
contact IP Australia’s state offices on 1300 651 010 to get copies of their Patents, Trade Marks and
Designs information packs to learn more about these important rights.

Protected or downright dangerous?

After you have conducted your basic IP Audit, the next thing to do is to identify which IP assets are formally
protected, which are protected by default and which are completely unprotected and potentially dangerous.

If you are considering applying for a patent or registering a design, make sure you do this before
entering the marketplace in any way. Although there is now a 12 months grace period for filing an
patent application once you’ve announced your invention, a premature announcement could force
you to apply when more R&D or market research is needed. Absolutely do not go to the media before
applying for design protection as you immediately lose the right to protection.

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If you have already applied for a right, make sure maintenance fees are paid or your ownership could
lapse or be taken over by someone else. If you have used a patent or trademark attorney, they will contact
you when fees are due and you will also be charged for this service.

Patent and trademark attorneys are specialists in the area of intellectual property protection and are
absolutely essential to filing for formal rights, especially when attempting to secure rights overseas.

However, remember there are seven types of IP rights and they mainly deal in only three (patents,
designs and trade marks) so it’s vital to also consider the two most common rights in any business:
confidential information (including trade secrets and know-how) and copyright.

Making it stick
When it comes to enforcing the integrity of your trade secrets, know-how and confidential information,
you will need to rely on a combination of legal agreements, your employees’ fear of future legal action
and simple security measures.

All staff and subcontractors should sign employee/subcontractor agreements to make it clear that they
are not allowed to benefit, or help third parties to benefit, from proprietary information during their
employment or after they leave. When a staff member does move on, sit them down and remind them
of their obligations as laid out in their signed agreement. If you have any concerns, make it clear that
you will be monitoring the marketplace for potential leaks of confidential information or trade secrets.

Don’t forget how effective a deterrent simple security measures can be. Shred documents before
disposing of them, place filing cabinets appropriately, make sure they can be locked, use password
protection and limit access of staff to sensitive information.

Finally, many of your business’s assets will be automatically protected through copyright. The best way to
take advantage of this ‘free’ right is to ensure that you use the standard copyright line on all promotional
materials, storyboards, bids, correspondence and so on; ‘© Year of Creation Your Business Name.
All rights reserved.’ This line really should be added as a footer to all documents that leave your office.
Keep excellent documentation in case you need to prove creation and ownership of copyrighted materials.

However, whenever anything is created externally, such as software, a website, marketing materials,
corporate profile, logo and other trade marks, illustrations, packaging, ads and videos, insist that they
are fully and permanently ‘assigned’ to your business so that you secure ownership of these assets.

Unfortunately, simply paying the bill is no guarantee that you now own the copyright, unless expressed
in writing and understood by the service provider from the outset. To initiate this process, ask for your
service provider’s policy on copyright ownership and carefully read their terms and conditions.
Remember, everything is negotiable.

Not sexy, just valuable

Intellectual property might not be the sexiest term around, but it is clearly the centrepiece of any dynamic
Australian business. I guarantee that conducting an IP Audit and creating an IP Portfolio will help you
ensure your assets are well protected, as well as dramatically increasing the value of your business.

Copyright 1999 Alicia Beverley. All rights reserved.

Alicia Beverley is an intellectual property strategist, founder of the intellectual property management firm,
IP WealthTM, has trained nearly 400 Australian CEOs and other business leaders in intellectual property,
and the author of “Make it Big! How to Make Money From Your Million Dollar Idea” published by Allen
& Unwin. You can contact Alicia at aliciab@onthenet.com.au

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