As your company grows, protecting your innovations, brand, and business becomes essential. How can you ensure that your inventions, goodwill and brand remains under your control, and that your contracts support your business?
Here’s a concise checklist covering patents, trademarks, and essential contracts – including costs, timing, and why they matter.
Patents – Protect your innovations
A patent grants you an exclusive right to prevent others from using your invention within the region where your patent is in force. Securing control over technical solutions and results of product development is important irrespective of your field of business.
When to consider a patent?
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You have a technical invention that provides a competitive advantage.
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Your innovation may be at risk of being copied.
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You want to secure investment or licensing opportunities.
How much does patenting cost?
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Drafting a patent application costs between €3,000 - €10,000 depending on the scope of protection – a narrow scope may protect a specific feature, whereas a broad scope may protect a product and method of obtaining a technical result.
- Official fees add to the costs in every region a patent is applied in – a patent in force in many regions can cost up to a few €100,000 over its lifetime.
💡 A patent is an asset which can increase your company’s value and attract investors, but it also requires continuous management and strategic planning. Not everything should or can be patented – sometimes keeping an invention as a trade secret is a better option.
Trademarks – Secure your brand identity
A trademark is a product name, logo or other brand element that identifies commercial source. You will need it to ensure that the demand and goodwill resulting from your efforts remains yours to use. The trademark enables you to prohibit counterfeits and use of similar brands that cause likelihood of confusion on the market place. Time is of essence in branding, as the one who has earlier rights will be stronger if any conflicts arise.
When to register a trademark?
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You intend to put a product or a service on the market.
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You intend to invest in marketing and do not want competitors to sell their products with confusingly simlar names.
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If you want an efficient tool for taking down conterifeit products from various platforms.
How much does it cost?
The price of trademark application includes official fees and attorney fees and the amount depends on geographical and substantial scope. A narrow right is often inexpensive, but adding goods and services to the scope will lead to increased expenses. A very narrow Finnish trademark application can fit into a budget of €600, but most applicants reserve a budget of at least €1,000 for the application. In EU, a budget of €1,600 is the minimum, but it is recommendable to budget at least €2,000 to ensure sufficient coverage.
Internationally, the prices can easily exceed €10,000 in the Middle East, but in most countries a budget of €1,500 is in the right ballpark. Use of international trademark system to manage appllications can reduce costs of international filing. The fees for using the system are around €800 + country specific designation fees.
Trademarks are examined, and they must meet certain criteria, the list of goods and services must be correctly classified and sufficiently specific, and it is possible that prior trademarks exist. In international filings, it is recommendable to make an availability search before choosing the mark.
💡 A trademark strategy helps you secure your brand identity, increase your company’s value, and avoid legal conflicts down the line.
Contracts – Build a strong legal foundation
Clear and well-drafted contracts protect your company, reduce risks, and provide clarity in business relationships. Poorly defined agreements can lead to conflicts with co-founders, employees, or customers.
Essential contracts for early-stage companies:
- Shareholders’ Agreement – to avoid misunderstanings in subscribing of shares, decision making, working, payment of dividents, intellectual property ownership etc.
- Non-Disclosure Agreement (NDA) – to secure business secrets and confidentiality do not foget to classify documents.
- Employee invention guidelines, employment contracts and assignments – Ensures company ownership of employee-created innovations.
- Licensing, co-operation, agency, sales representation, franchising, manufacturing – to ensure you have sufficient rights for your operation and do not grant more rights or build mechanisms that endanger your IPR.
- Other commercial contracts – balances and risk mitigations.
How much do contracts cost?
Simple standard terms and conditions start at €1,000. More complex contracts vary based on scope and customization. The contract is an expression of parties intent and in demanding cases, it is recommendable to request assistance for negotiation.
Legal work is typically billed on hourly basis, and investing early can prevent costly disputes.
💡 Investors pay close attention to contracts. Weak agreements can be a deal-breaker in funding rounds, while strong contracts help secure your company’s future.
How to proceed?
Protecting your business early on can save you from costly legal issues later. Consider these steps:
- Evaluate whether a patent strengthens your competitive edge.
- Register a trademark if your brand is a key part of your business.
- Ensure your contracts are clear and protect your rights.
If you're unsure about the best approach, our experts are here to help. Get in touch, and let’s discuss how to secure your company’s future!
Elisa Huusko
Lawyer, European Trademark Attorney
elisa.huusko@berggren.fi
+358 10 227 2329
Jaakko Mastomäki
Patent Agent
jaakko.mastomaki@berggren.fi
+358 10 227 2279