Creative Crowdfunding IP Strategies
Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people. Crowdfunding is a form of crowdsourcing and of alternative finance. In 2015, it was estimated that worldwide over US$34 billion was raised this way.
Many enterprises, mostly start-ups, face the problem of raising funds for their ideas. Crowdfunding has, nonetheless, proven to be very successful and has enabled many entrepreneurs to build up their businesses.
Although the concept can also be executed through mail-order subscriptions, benefit events, and other methods, it is now often performed via Internet-mediated registries. This modern crowdfunding model is generally based on three types of actors: the project initiator who proposes the idea and/or project to be funded, individuals or groups who support the idea, and a moderating organization (the “platform”) that brings the parties together to launch the idea.
The following YouTube.com video from CrowdFundingFocus addresses suggestions for protecting intellectual property in preparation for a successful crowdfunding campaign:
As the industry has expanded over the past few years, many portals have popped up to fill the demand. Crowdfunding can be challenging for those who haven’t protected their IP because once you reveal your company’s ideas to the public, it is often too late to protect yourself. Be smart and get funded without divulging your trade secrets.
Of critical importance is conducting a crowdfunding campaign without divulging too much information about your intellectual property. Without the right protection, crowdfunding exposure can work against the company by compromising the novelty of inventions, and putting other players on notice of innovative new brands or products. Many entrepreneurs forget to protect their creations when launching a crowdfunding campaign. This has led to severe consequences for some entrepreneurs.
Protecting the IP and showing how the IP will be managed is key for companies seeking investment. The importance of the IP is always considered as part of an investment analysis: the more important the IP is to the business, the more important the IP strategy becomes. Having even a rudimentary intellectual property (IP) strategy demonstrates that you recognize the value of your knowledge, and are taking steps to protect it.
In light of the above concerns, crowdfunding is a burgeoning area for development for fund raising and resource development. In reflecting on this new industry section, the following list provides links to recently issued IoT patents issued by the U.S. Patent & Trademark Office:
- 9,547,984—System for providing traffic data and driving efficiency data
- 9,536,517—System and method for crowd-sourced data labeling
- 9,521,647—Site location determination using crowd sourced propagation delay and location data
- 9,503,873—Real-time, crowd-sourced, geo-location based system for enhancing personal safety
- 9,488,901—Crowd-deployable objects to control a presentation
- 9,479,920—Power management in crowd-sourced lost-and-found service
- 9,477,667—Crowdsourced multi-media data relationships
- 9,464,903—Crowd sourcing based on dead reckoning
- 9,444,692—Systems, devices and methods of crowd-sourcing across multiple domains
- 9,438,619—Crowdsourcing of trustworthiness indicators
- 9,436,695—Dynamically expiring crowd-sourced content
- 9,424,533—Method and system for predicting an outcome of an event
- 9,424,354—Providing crowdsourced answers to information needs presented by search engine and social networking application users
- 9,418,355—Crowdsourced responses management to cases
- 9,390,620—System for providing traffic data and driving efficiency data
- 9,380,342—Systems and methods for control of media access based on crowd-sourced access control data and user-attributes
Numerous trademarks relating to crowdfunding have been registered, the pace of these filings is quickening.You can search for these and other trademarks by clicking this link for the USPTO TESS webpage.Here are some examples of recent filings, and their respective application serial numbers:
- 87301763–TRANSPAY
- 87089404–CASH FLOW CONNECTIONS
- 87149205–CROWDCOPIA
- 87021584–MAIN FUNDERS
- 87196399–PEER TRUST
- 87010364–WHERE CAPITAL GOES, PROGRESS FOLLOWS
- 87151872–FUNDTHIS
- 87152486–I AM FILM
- 87250815–START TECH
- 87148350–ARBORCROWD
- 87144202–THE WATER PROJECT
- 87078836–COINNX
- 87072417–CROWDFUNDING CHAMPIONS
- 87236905–FUND AN IDEA
- 87233956–WEALTHPHASE
- 87062140–CROWD SAFE
- 87042297–THE REVOLUTION WILL BE CROWDFUNDED
- 87189505–HYBRID CROWDFUNDING PROGRAM
- 87109235–FIRST CROWDFUND
- 87027211–THIS IS YOUR DREAM ON CROWDFUNDING
- 87025584–AFFINITY CROWDFUNDING
- 87095271–CROWDFUNDING USA
- 87074784–TUITION GIFT
- 87042292–CROWDFARMING
- 87051599–POWERING P2P AND CROWDFUNDING
- 87013121–ARTREPRENEUR
- 87003789–FUND AN IDEA
- 86924902–LUXURY CROWDFUNDING
- 86808745–SPARKTHIS CROWDFUNDING IN REVERSE
- 86698984–CROWDSEEKR
- 86873778–CROWDFRANCHISE
- 86856386–FUND A STAR
- 86745220–NEXTGEN CROWDFUNDING
- 86700538–KINK STARTER
- 86108285–CROWD-DOING
- 86856391–FUND AN IDEA
- 86906137–ONE DAY 1 CHARITY
- 86816006–PHOENIX-CROWDFUNDING
- 86683765–BEYOND CROWDFUNDING
- 86539153–REALINVEST
- 86677889–CHEERITY
- 86956511–YOUR CROWDFUNDING CPA
- 86961288–CROWDSEEKR
- 86810151–TAKEOFF POINT
For more reading on crowdfunding and intellectual property, see the following articles, papers, and blogs:
- How to Protect Your Intellectual Property When Crowdfunding: 5 Tips …
https://www.inc.com/christina-desmarais/how-to-protect-your-intellectual-property-when-crowdfunding-5-tips.html
- Crowdfunding And Intellectual Property: Tips From An Entrepreneurial …
https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/maryjuetten/2014/07/10/crowdfunding-and-intellectual-property-tips-from-an-entrepreneurial-attorney/&refURL=&referrer=
- Equity Crowdfunding and Intellectual Property – a Quick Guide …
https://www.lexology.com/library/detail.aspx?g=0353699b-b580-44b1-8ff5-b96878bbef25
- Crowdfunding? Take these 8 steps to protect your intellectual property …
https://www.ipnexus.com/blog/2015/08/31/crowdfunding-take-these-8-steps-to-protect-your-intellectual-property/
- What No one Tells You About Crowdfunding and Intellectual Property …
https://www.linkedin.com/pulse/what-one-tells-you-crowdfunding-intellectual-property-david-drake
- Protecting your Intellectual Property while Crowdfunding | Business …
https://business-law-review.law.miami.edu/protecting-intellectual-property-crowdfunding/
- Intellectual Property: Crowdfunding and … – Buchalter Nemer
https://www.buchalter.com/wp-content/uploads/2015/04/Intellectual-Property-Crowdfunding-and-Confidentiality-for-Tech-Start-Ups.Perleberg.pdf
- Intellectual Property and Crowdfunding: Practice Safe Crowdfunding …
https://www.startuplawblog.com/2014/09/18/intellectual-property-and-crowdfunding-practice-safe-crowdfunding/