“Never put off until tomorrow what you can do the day after just as well”
(Mark Twain, American writer and humourist)
The phrases “IP Strategy” and “IP Policy” can often be used indiscriminately and interchangeably. Yet, these two fundamental tools of successful businesses have quite different roles, but ones which if aligned can scale a business sustainably.
Too often a business will focus solely upon IP strategy which frankly is a sexier beast than IP Policy – being more action-oriented and often focussed on generating and optimising revenue streams.
IP Policy is a gentler creature, more passively focussed on creating the conditions under which innovation can flourish while reducing the risk of intellectual property being lost and third party rights being infringed. Policy includes institutional rules or national frameworks that clarify ownership, ensure freedom to operate, outline disclosure obligations, or incentivise creative outputs.
In essence, policy lays the foundations, upon which an IP strategy can flourish.
This article focusses on the role of IP Policies and particularly how they are appropriate for handling the issues arising in more mature organisations. It also looks at how they can dovetail synergistically with IP strategies.
Differences between Policy and Strategy
It helps to appreciate the differences between policy and strategy from an IP perspective.
Understanding these differences enables a synergistic approach to be developed for the successful working of intangible assets within an organisation.
IP Policy Overview
A well-crafted IP policy helps businesses strengthen their competitive edge, maximise return on innovation, and ensure IP is properly managed across teams, departments, and geographies.
It is surprising therefore that many established businesses still lack a formal IP policy. Why? Often because they have grown without needing one—or believe that legal protections are already in place. However, without a structured approach to identifying, managing, and protecting IP, businesses risk inefficiencies, missed commercial opportunities, technology and confidential information leaching from the business, and costly disputes.
Ideally, such a policy should be seen as integral to a business as its Health & Safety policy, have items arising from it on the Board reviewed Risk Register, and treated with the same respect as other matters critical to a business, such as supply constraints.
When to Formalise an IP Policy
Ideally an IP policy is established during start-up phase, but realistically it is not until a business becomes more established or looks for investment, that the need for an IP Policy becomes more obvious. The following are motivators for mature businesses to establish a formal IP policy.
Valuable IP is being Created
Established businesses produce IP constantly—through product development, branding, software, content creation, process innovation, and more. An IP policy ensures those assets are identified, controlled, protected, and aligned with business goals.
Growth Brings Complexity
With scale comes complexity: new markets, more employees, external partners, and evolving business models. An IP policy sets clear rules on ownership, usage, control and protection—especially as more people interact with intangible assets.
IP is Key to Risk Management
Without proper oversight, a business might unknowingly infringe third party IP, develop products for which it does not have freedom to operate or lose control and rights to its own IP. A policy embeds best practices into everyday workflows—reducing exposure to legal risk.
It Supports Commercialisation
Whether licensing technology, expanding internationally, or raising capital, investors and partners will expect to see robust IP governance. A policy gives confidence that a business knows the value of its IP—and how to manage it.
It Protects Institutional Knowledge
People move on. If a business relies on the knowledge or creations of key individuals, an IP policy ensures those contributions are retained and legally owned by the company.
Engagement, Integration and Sustainability
Few people get excited about creating further bureaucracy within a business, and it can be easy for a new policy to be buried – even if created for important reasons.
Using the mechanism of an IP strategy to introduce policy into a business can highlight the relevance of the new policy and give it a greater chance of success.
An effective IP strategy considers the direction and the goals of an organisation and then provides a dynamic plan that uses intangible assets to drive competitive advantage and business outcomes. Consequently, the process of developing an IP strategy is an engaging one.
Yet, for the IP strategy to be truly effective, it needs the supporting framework of an IP policy within an organisation. The Policy not only facilitates a specific strategy but also provides an environment that embeds a culture of respect for IP, thus incentivising behaviours that can support the overall strategic direction of the organisation.
Sustainably integrating an IP Policy into an organisation requires staff awareness and education. This can be achieved in a combination of ways, such as
- Outlining the IP Policy, the obligations it imposes on staff and why the Policy exists in employment contracts;
- Championing innovation in an organisation;
- Staff training;
- Referencing the obligations imposed on staff upon exiting the organisation;
- Visible signage in the office/factory reminding staff of the importance of the organisations institutional knowledge, developments, processes etc and their confidentiality obligations;
- Ensuring transgressions of the IP Policy are taken seriously and acted upon.
Final Thoughts
There is no doubt that integrated IP strategies and IP Policies can add significant value and rigour to a business. But they need to be introduced in such a way they are readily and sustainably adopted.
