Tuesday, July 1, 2025

Common IP Mistakes New Businesses Make




Starting a new business in India is super exciting, right? You’ve got your idea, your product, maybe even your first few customers. But in all that hustle, there’s one thing most startups ignore — Intellectual Property (IP). And trust us, that can cost you big time later.

Whether it's a name, logo, app, content, or product design, it all falls under IP. And yet, so many new businesses in India either skip it or do it all wrong. So, here’s a full guide on the most common IP mistakes startups make and how to avoid them, especially in the Indian business ecosystem.

1. Not Registering the Brand Name or Logo

This is hands down the most common mistake. Many founders think if they have a unique name and a domain, they’re safe. But unless your brand name and logo are officially registered under Trademark Law, anyone else can claim them. And it happens more often than you think.

๐Ÿ’ก According to the Controller General of Patents, Designs & Trademarks (CGPDTM), over 4.5 lakh trademark applications were filed in 2023-24 alone in India.

If you're just starting out, an intellectual property lawyer in India can help you file the trademark properly and guide you on what’s considered legally strong branding.

2. Assuming Domain Name = Trademark Ownership

This one’s a trap! Just because you’ve registered the domain www.mycoolbrand.in doesn’t mean you legally own the brand name. Domain and trademark are two totally separate things. You can lose your brand to someone who files for the trademark first — even if you’ve been using it longer!

๐Ÿ‘‰ Always cross-check trademark availability before finalising any name — domain or otherwise.

3. Delaying IP Registration

Let’s be honest — most Indian entrepreneurs think of IP as a “future problem.” But in reality, IP registration should start from day one. The earlier you register, the better.

๐Ÿงพ Did you know India follows a “first to file” rule, not “first to use”? That means whoever files the trademark/patent first gets the rights — even if you thought of it earlier!

4. Not Using NDAs While Pitching Ideas

Sharing your startup idea with investors or partners without a Non-Disclosure Agreement (NDA)? That’s a big risk. Your app idea or product design can easily be copied, and without legal paperwork, there's little you can do.

new business IP guide will always recommend drafting an NDA early on, especially before investor meetings, collaborations, or tech development.

5. Copying Existing Logos or Taglines

This usually happens when startups DIY their logo or ask a freelancer to “just copy something cool.” But if your logo or slogan looks like another brand’s, you’re risking trademark infringement, which can lead to legal trouble or being forced to rebrand.

๐ŸŽฏ A Bengaluru-based startup was fined ₹10 lakh in 2022 for using a logo similar to an existing clothing brand. Ouch!

Don’t take shortcuts — get original design work and cross-check it with a trademark lawyer.

6. Ignoring Copyright for Website Content, Images, or Software

A lot of small businesses simply copy text or download images from Google for their website. That’s a copyright violation, and yes, it is punishable under Indian law.

Also, if you’ve created original content, code, or design, registering a copyright gives you the legal shield to stop anyone from copying your work.

7. Failing to Patent a Product or Process

If you’ve invented something new — a product design, machinery, app algorithm, etc. — you need to file for a patent. This is a big one for tech startups especially.

๐Ÿง  India granted over 30,000 patents in 2023, and startups are increasingly becoming patent holders.

But many founders either don’t know this or think it’s too complicated. A good patent lawyer in India can make the process much simpler and help you decide if your invention is patentable or not.

8. Not Checking for Existing IP Before Launch

Imagine launching your brand and then getting a legal notice because someone already owns the trademark. Scary, right?

That’s why before finalising your startup name, app name, logo, tagline, or even packaging — always run an IP availability check. It can be done via India’s Trademark Search Tool or with help from a lawyer.

9. Not Updating or Renewing IP Assets

Trademark and patent registrations come with expiry dates. If you don’t renew them on time, you could lose your rights. And once they’re gone, someone else can claim them.

๐Ÿ›‘ Thousands of trademarks lapse in India every year just because owners forget to renew them.

Add renewal dates to your business calendar and stay in touch with your IP lawyer for alerts.

10. Assuming IP Protection is the Lawyer's Job Only

Many business owners assume that once they hire an IP lawyer, their job is done. But IP is a business strategy, not just a legal formality.

You, as the founder, need to understand the basics, keep your team informed, and actively monitor your brand’s presence — online and offline.

11. Not Having an IP Clause in Employee/Co-Founder Agreements

This one's important! If your co-founder, employee, or freelancer develops something for your business (like code or content), and there’s no clause saying it belongs to the company — you could lose control over it.

Always include IP ownership clauses in contracts and agreements to avoid future disputes.

12. Overlooking International IP Protection

If you’re planning to go global, your Indian IP rights won’t protect you abroad. You’ll need to file for international protection under Madrid Protocol for trademarks or PCT for patents.

Even if you're just exporting, it's wise to check how your brand and product are protected in those countries.

13. Failing to Enforce IP Rights

Lastly, registering IP is not enough. If someone misuses your trademark, design, or content — you must take action. This could be a cease and desist notice, legal complaint, or domain takedown.

A reliable intellectual property lawyer in India can help you act quickly and decisively when needed.

Conclusion

If you’re a startup or new business in India, ignoring IP is like building a house without locking the doors. It’s risky and can be expensive to fix later.

From filing trademarks and patents to using NDAs and enforcing rights — there’s a lot to manage. But the good news is, you don’t have to do it all alone. Having the right intellectual property lawyer in India can save you time, money, and headaches down the line.

๐Ÿ‘‰ Whether you're a bootstrapped startup or scaling fast, avoiding these IP mistakes for startups will give you the legal safety net you need. So start early, stay aware, and protect what you build.