Intellectual Property and Seeking Investment: How Strong IP Protection Boosts Business Value

Investors and donors want to back businesses with secure, valuable ideas. This insight explores why your IP matters and what to do to maximise protection.

How do trade marks, designs, and copyright increase company valuation?

Trade marks will increase your company’s valuation in a number of ways. Firstly, a trade mark can help distinguish your company’s products or services from competitors. Having that strong brand recognition legitimises your business and helps to build a rapport with your customers, building a brand where customers can rely on the quality of your goods/services. Your customers will see your trade mark and think of your company – helping it stand out in the marketplace. This leads to customers seeing your business as trustworthy, which will aid in repeat business and is attractive to investors.

Trade marks also ringfence the exclusive rights which your company holds and reward you with a certificate to prove this. This acts as a deterrent from competitors/copycats copying or imitating your brand. The deterrent effect is important because it reduces the legal risks and costs associated with others trying to infringe on your rights. Investors value this protection because it safeguards their investment, ensuring money is not being used on defending any claims. Ultimately, enforcing a registered trade mark is far easier than relying on registered rights.

How will copyright increase your company's valuation?

Copyright can protect an original idea that is captured in a recorded form. This can come in different forms, such as when a design is drawn on paper, a photograph is taken, or a business plan is written up. The author of the works gains copyright protection automatically, unless there is a separate agreement about ownership. There is no need to register or pay a fee for copyright, which is different from the process for trade marks.

Ownership of copyright will increase your company's value because you can exploit the copyright by reproducing the work, and importantly, stop others from reproducing your work. You can grant copyright licenses to third parties, which will create a new source of revenue for your company. As the copyright owner, you can assign the copyright as part of the sale of a business and affix a price to that.

How will registered designs increase your company's valuation?

Registered designs protect the visual appearance of your products. Registered designs can increase your company's valuation because they give your products distinction. By protecting these unique aesthetic features of your products, you can take enforcement action if you find yourself in the unfortunate situation of competitors copying the visual appearance of your product.

Registering your designs means that they will remain unique to your business and ensure your product does not get diluted in the marketplace with numerous other listings, helping you maintain competitive prices. Designs can also be licensed to manufacturers or franchisees, which means you remain in control of who uses the designs, and registration is a prerequisite to convenient dealings.

Dragons’ Den success story – raising more capital with strong IP protection in place

Zak Marks, representing his business Kitt Medical, was able to successfully secure a £75,000 investment from two Dragons’ Den entrepreneurs for a stake in his emergency anaphylaxis kit business. The episode aired in February 2025, and brief searches of the Intellectual Property Office Trade Mark register show the registered marks owned by Kitt Medical Limited, which were registered in advance:

·   “THE KITT”, filed on 25 March 2022: https://trademarks.ipo.gov.uk/ipo-tmcase/page/Results/1/UK00003770156

·   “KITT MEDICAL”, filed on 28 September 2022: https://trademarks.ipo.gov.uk/ipo-tmcase/page/Results/1/UK00003833926

Without IP rights, the dragons may have been reluctant to offer him this investment. Why is this?

There is research to suggest that startups with trade marks are 10 times more successful in securing funding. Investors feel more comfortable when they see IP rights in place because it signifies brand strength, legal protection, and long-term value. Securing IP rights and registering those rights, where possible, shows potential investors that you have taken steps to protect your brand. Your actions give them confidence in the company’s governance and show you have a long-term strategy for the business. Investors will be wary of investing in a company without these rights because it presents a risk to their capital.

What are the risks of not protecting your IP?

Without IP protections in place, a company risks its brand being imitated, which can then lead to costly legal disputes and a loss of market identity. Copycat products or services, which are inferior to yours, can also damage your reputation.

Another common issue is failing to register IP rights and, when you come to register, experiencing issues with registration or enforcement because a third party has got there first. We regularly act for clients who try to register a trade mark but their application is met with an opposition. The next step does not have to be rebranding, but in certain circumstances, that may be the only option.

Investors want to avoid these risks, and IP rights act as a form of insurance against brand-related threats.

How can Tozers help you with securing your IP rights?

Registering IP can be vital for many businesses' success. We can advise about how to maximise the protection available to you. Even if trade mark/design registration has been overlooked, there are different ways we can provide specialist advice to get the application right and avoid conflicts, saving you time and money. Similarly, where you are experiencing difficulties with ascertaining the ownership of copyright, we can help.

As a top firm for client satisfaction, we have built a reputation as good listeners who can help break down complex legal jargon into words you can understand and are experts at advising on your specific situation.

You can arrange to speak with us in a preliminary, no-obligation call.

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