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A small business blog featuring tips to help entrepreneurs succeed in the small business world. Topics include family business, human resources, marketing, money, networking, operations, ownership, startup, taxes and technology.
Expanding Your Business Overseas: Protecting Your Product

When starting a business in America, one of the most crucial elements is to get your product or business practices patented or copyrighted. Unfortunately, when it comes to expanding your business to the global market, a U.S. patent won’t protect your money-maker, as they are not enforceable overseas. There are some things you can do, however, to guard yourself from idea theft.

What you should probably do first is file with the Patent Cooperation Treaty under the United Nations World Intellectual Property Organization (WIPO). According to John Lanza, a Boston attorney, at a cost of $3,000 to $6,000, a PCT filing can preserve your right to patent your product in most major nations for up to 30 months. That way you can test the waters in a number of markets in order to find your niche.

Once you’ve determined where your product will be most successful, you should file a patent in that particular country. If you don’t, them moment you begin to offer your product copy-cats will begin producing competition with their knockoffs. Obviously the process for filing a patent differs with each location. For more assistance, The U.S. government provides a “tool kit” on international patents at

International patents have classifications, in order to streamline the application process. After all, there has to be a way to determine if someone already has a patent for a particular product in a particular country. For more information of this classification process, visit the WIPO’s International Classifications page.

Danger – be aware of the fact that China is one of the leading countries when it comes to intellectual property theft. Ted C. Fishman, author of China, Inc. recommends that, in order to help protect yourself you should establish a licensing agreement with a Chinese business partner that requires him to provide a substantial upfront contribution to your business expansion. Such an investment will keep him from revealing product specifications to another manufacturer or trying it on their own and will also help to keep other Chinese businessmen from trying to tap in to your market.

Bottom line, protect your most important asset, the product you provide, whatever it may take. Though there may be some cost to it, in the end it would be more than worth it. The alternative, a cheaper knockoff of your product stealing your customers, would be detrimental.

Tomorrow I will cover the monetary and taxation aspects of owning a business overseas.

Pt. 1: Why and Why Not Expand Overseas?
Pt. 2: Labor Laws
Pt. 4: Money and Taxes

• How to Get Started

U.S. Patent and Trademark Office
European Patent Office
Patent Pending in 24 Hours by Richard Stim and David Pressman

Related Small Business Buzz Posts:
Revisions to the U.S. Patent Law Under Consideration
Should You File a Patent on that Great Idea?
Expanding Your Business Overseas: Labor Laws
Expanding Your Business Overseas: Money and Taxes
Global Markets and Business Etiquette

By Michelle Cramer
Sunday, April 22nd, 2018 @ 12:00 AM CDT

Business Law, Operations |