FEBRUARY 2018 • Vol. 24 No. 2
New York Society of Cosmetic Chemists
www.nyscc.org
IP Strategies in the Cosmetic Industry …by Peter D. Sleman
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sound intellectual property strategy can add value to any business, generate revenue streams, and act as an additional bargaining chip in negotiations. However, it is often difficult for businesses and inventors to figure out how to reduce their IP costs without sacrificing quality. Below are some practical pointers to consider when formulating your IP strategy. These will serve as a primer to help you ask the right questions.
Diversify An effective IP strategy is one that takes a long look at the business, considers all the tools, and chooses the right combination. You may think that all you need is a trademark for a product, when the real value is in your patentable process. Alternatively, a process or product may be old as the Sun, but your brand recognition and goodwill are the real valuable assets to be protected. Also consider trade dress and design patents for cosmetics and toiletries. Excellent communication with your IP counsel will provide the best results, and yield the greatest value ensuring that every dollar you invest gives you a handsome return.
Consider Trade Secrets You can maintain a competitive advantage through trade secrets. Examples of trade secrets can include engineering information; methods, processes, and know-how; tolerances and formulas; business and financial information; computer programs (particularly source code) and related information; pending, unpublished patent applications; business plans; budgets; methods of calculating costs and pricing; customer and supplier lists; internal marketing data; specifics concerning customers and suppliers; products and services in research and/or development; collections of data; and other information relating to a company’s business. Trade secrets require that you and your employees handle the information with care to maintain confidentiality. Additionally, understand that there is a possible tension between trade secret law and the FDA’s ingredient declaration.
Find the Synergy Compositions that provide a synergistic effect over the individual ingredients may be ripe for patenting. When you find such a synergy, test and document the effect and strongly consider filing for patent protection. If a composition, even if it is not available on the market, is merely a mixture of known ingredients and produces no special benefit, evaluate whether patent protection is possible or worthwhile. (Continued on page 2)
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