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Why might startups pursue intellectual property litigation?

On Behalf of | Jul 28, 2023 | Intellectual Property

The launch of a new business is a consequential undertaking. Not only is the commencement of operations the official start of a new endeavor, the steps that startup founders and small business owners take during the lead-up to that launch and immediately in the wake of it generally determine whether that new enterprise will succeed or whether it will fail.

For example, a failure to safeguard a new company’s intellectual property can lead to infringement by others and/or accusations that the new company is infringing on others’ rights. Either of these scenarios – whether they unfold as a result of intentional or unintentional action – could lead stakeholders to pursue intellectual property litigation very shortly after a new company has begun establishing its foothold in the marketplace.   

The stakes of the situation can be a guide

When a new company first launches, it is almost certainly not a self-sustaining enterprise at the start. Most new companies take at least a year or two to reliably operate in the black to the extent that they’re not relying on various financing options to remain operational. As a result, efforts by another party to capitalize on a new company’s intellectual property could very well mean the difference between failure and sustainable success. 

Pursuing litigation in the event of another’s infringement can help to safeguard a new company’s brand, competitive edge and bottom line. Pursuing legal action against an individual or business right after getting a new enterprise off the ground can be intimidating. However, doing so is sometimes necessary to safeguard what startup founders and new small business owners have worked so hard to create.

If you have questions about intellectual property infringement and the possible necessity of pursuing legal action, know that you can seek legal guidance at any time. Being proactive now may make all the difference down the road.