In today's rapidly evolving business landscape, entrepreneurs and business owners face a myriad of challenges when it comes to building a scalable and sustainable enterprise. One of the most critical aspects of creating a business that can outlive its founders is developing a robust business operating system that empowers employees to carry out the company's mission effectively. However, the question remains: what elements of this system can be considered intellectual property, and how can they be legally protected?
To shed light on this topic, we have a special guest on our podcast today - Christopher Bennett, the founder of Til Technology Innovation Law, LLC. Chris has pioneered a social impact law venture that revolutionizes access to intellectual property rights (IPR) for the underrepresented, delivering IPR as a digital service and software product to enhance accessibility and affordability.
Structural Barriers to Innovation in America
During our conversation, Chris highlighted a critical issue that often hinders innovation in organizations:
"What you described is one of the models that creates some of the structural barriers that exist in America. Okay? And that's the perspective of those that have. Those that own are the arbiters of innovation."
This top-down approach, where only those in positions of power are seen as the driving force behind innovation, can be detrimental to a company's growth and success. Instead, Chris suggests a more inclusive model:
"In reality, the best model is to turn that on its head so that you look at every person you have in your organization as a potential innovation factor. Someone with unique life experiences that aren't replicated everywhere else. Someone with a unique life journey, someone who understands your business from their perspective and positions them to contribute their ideas from a unique perspective."
By embracing a bottom-up approach, where all employees, from 1 to 500, are encouraged to contribute ideas, management can identify and implement those that best move the company forward in creating value.
The Impact of Underrepresentation
Chris's work focuses on supporting underrepresented entrepreneurs, which he defines as a diverse group that includes people of color, women, small business startups, creatives, and those working in social impact. The age range of these entrepreneurs spans from as young as 7 to as mature as 67, with varying economic backgrounds.
The underrepresentation of these groups has significant implications for both the individuals and the economy as a whole. According to Chris, supporting this audience could grow the United States gross domestic product by about a trillion dollars a year – a staggering 5% increase on an economy that's roughly $20 trillion.
On an individual level, the lack of understanding and access to intellectual property rights can lead to missed opportunities for wealth creation and generational wealth transfer. Chris shared a poignant example:
"I have an uncle in my family who's reported to have written a hit song in the sixties, should have been worth a million dollars to him. Wow. He did not understand intellectual property rights. He was a child of two farmers in South Carolina. The result was he. No royalties for my uncle, no generational wealth to pass down. So that's a negative multiplier effect."
The Four A's of Support
To address these issues, Chris and his team have developed a model called the "Four A's" to support underrepresented entrepreneurs:
Awareness: Making entrepreneurs aware of intellectual property and how it relates to their unique life experiences and journey.
Access: Providing access to options that meet people where they are, whether they prefer to do things themselves, pay for partial assistance, or fully outsource the process.
Affordability: Offering services and products at price points that are accessible to various budgets.
Availability of Return on Investment: Helping entrepreneurs understand and realize the potential return on investment in their own terms, whether it's through donating their work or monetizing it for financial gain.
By focusing on these four key areas, Chris and his team aim to empower underrepresented entrepreneurs to protect and benefit from their intellectual property.
Protecting Your Business Operating System
For business owners looking to scale their operations beyond themselves, developing a business operating system that allows them to step away from day-to-day hands-on involvement is crucial. This system, which I refer to as an "executable business philosophy," encompasses the company's processes, values, vision, and mission.
When it comes to protecting this system as intellectual property, Chris outlines several options:
Business Method Patent: A unique business method that is novel, non-obvious, and useful can potentially be patented, providing a 20-year monopoly.
Trade Secret: Overlaying a patent with trade secrets can provide additional protection, as trade secrets can last indefinitely if reasonably kept secret (e.g., Coca-Cola and KFC's recipes).
Copyright: Computer software code and other creative expressions can be protected by copyright.
Trademark: Wrapping the above protections in a recognizable brand or trademark can further enhance the value and recognition of the business operating system.
Chris emphasizes the importance of a layered approach, as exemplified by companies like Apple, which effectively combines various forms of intellectual property protection to safeguard their unique business methods and innovations.
The Value of Protecting Your Intellectual Property
Protecting your business operating system and other intellectual property can provide significant value to your organization, both internally and externally. Chris breaks this down into what he calls the "Texas Three-Step":
Founder's Values, Mission, and Strategy: Just as a computer's operating system sends instructions to its components, a founder's values, mission, and strategy can be communicated and protected through intellectual property, ensuring that the organization moves in the desired direction.
Multiplying Your Value: By transmitting knowledge and values to employees through protected intellectual property, founders can multiply their value without having to clone themselves, trusting that others will absorb and execute the mission effectively.
Increasing Enterprise Value: Well-protected intellectual property can significantly increase the value of an organization in the eyes of potential investors, partners, and acquirers, as it demonstrates ownership and unique value propositions.
Getting Started with Intellectual Property Protection
For entrepreneurs and business owners looking to begin the process of protecting their intellectual property, Chris recommends the following steps:
Begin with the End in Mind: Clearly define your goals for the organization, whether it's going public, being acquired, or achieving a specific mission.
Inventory Your Innovation: Look at innovation broadly, considering all the resources that contribute to and create innovation within your organization, not just patentable ideas.
Document Early and Often: As soon as you identify elements of your business that could be protected as intellectual property, start documenting them in detail.
Foster an Innovation Culture: When bringing new employees on board, emphasize that yours is an innovation organization and make them aware of the importance of intellectual property from the start, encouraging them to contribute their unique perspectives and ideas.
By taking these steps and incorporating intellectual property protection into the core of your business operating system, you can create a more inclusive, innovative, and valuable organization that is well-positioned for long-term success.
The Future of Intellectual Property and AI
As we look to the future, the rapid advancement of artificial intelligence (AI) and other emerging technologies presents both opportunities and challenges for intellectual property protection. While AI can help create and scale value in unprecedented ways, it's essential to remember that, at least for the foreseeable future, human experience and perspective will remain irreplaceable.
As Chris points out, current intellectual property laws in the United States do not recognize AI as an author or inventor in its own right. Whether it's patents, copyrights, or trademarks, there must be a requisite amount of human contribution for intellectual property protection to apply.
This highlights the ongoing importance of fostering a culture of innovation within organizations, one that values and leverages the unique experiences and perspectives of every individual. By doing so, we can harness the power of AI and other technologies to enhance human potential rather than replace it, creating a future that is both innovative and equitable.
Conclusion
In a world where change is the only constant, protecting your business operating system and other intellectual property is more important than ever. By understanding the various forms of protection available and taking a proactive approach to documenting and safeguarding your unique innovations, you can create a more resilient, valuable, and impactful organization.
As we've learned from Christopher Bennett's insights, this process is not just about legal technicalities – it's about fostering a culture of innovation that empowers every individual to contribute their best ideas and perspectives. By turning that intellectual property into an executable business philosophy, you can build a company that not only survives but thrives in the face of any challenge.
So, whether you're a solo entrepreneur just starting out or the leader of a 500-person organization, take the time to assess your intellectual property, put the right protections in place, and create an environment where innovation can flourish. Your future self – and the generations that follow – will thank you.
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