Profitable companies may be considering how to invest their extra dollars.  “Investing in IP is a good choice,” says Squire Patton Boggs attorney Bryan Sims, who authored a blog titled “Ready For Investment? Three Reasons Why IP Matters.”

Money treeBryan gives three reasons why investing in IP makes sense.  First, the IP rights that are generated from innovation often create a market advantage for companies.  A company’s IP rights prevent competitors from copying a successful company’s performance (and worse yet, claiming they did it first), which could otherwise mislead customers.  Investing in IP also increases profitability, whether through licensing or just streamlining a company’s own processes.  Finally, investing in IP may also increase a company’s value to investors.

Companies should consider its IP investments carefully, including registration of its IP rights with the appropriate authority.