Asking your solicitor the right questions will help minimise risk and maximise returns on new product development activities, explains commercial lawyer Stuart Price.
The journey to turn a fantastic idea into a new product will need to include legal advice. From distribution to data, and structure to supply chains, seeking timely legal advice will optimise the chance of success.
Not only should you talk to a solicitor about Intellectual Property (IP), but also corporate structures, and taking the new product to market.
These questions will help to get the best and most advice from a legal advisor:
1. What is the best corporate structure?
Launching an innovative new product has inherent risk, and a lack of customer demand is not the only potential issue. What if the product doesn’t work as planned, or there are unforeseen issues? To protect the company from reputational damage or product liability claims, it might be sensible to launch the product through a new division or by forming a subsidiary company. Talk to your solicitors about the best company structure for your new product.
2. How can I protect the IP in my new product?
It’s important to think about intellectual property right at the start of any new product development, from how you will protect your (hopefully) valuable innovation and know-how, through to ensuring you are not infringing anyone else’s IP rights. Your solicitors can carry out searches for other similar IP rights as well as help you register your own rights.
3. How can I minimise the risks of any third-party collaborations?
To bring your new product to market, you may be thinking about collaborations with other companies or individuals. This will probably involve sharing know-how, trade secrets and confidential information – all of which need appropriate safeguards to stop them falling into the wrong hands. Ask your solicitors how to make sure your conversations with third parties are protected.
4. How can I manage my supply chain contracts?
Bringing a new product to market will involve contractual relationships with manufacturers, logistics, sales agents and distributors, retailers and so forth. Each of these relationships will have contractual implications and you want to make sure the terms work for you. Talk to your solicitors for advice on the best terms for your product.
5. What is my best route to market?
While you wouldn’t turn to your solicitors for a marketing and business development strategy, you should involve them in conversations about sales and distribution plans. Whether the focus is on online sales or to engage sales agents or distributors, you will need effective terms of engagement. Your solicitor can advise on areas such as exclusive versus non-exclusive distribution relationships and a host of tactical areas such as minimum sales levels, how to handle shipping costs and the management of returns/faulty products.
- How do I manage my customer data?
Last but not least, if the new product under developing is for the consumer market, data protection and UK GDPR rules must be in your sights. Ask your solicitor about how to manage and protect the personal data you will collect about and from customers, so you can provide them with the necessary confidence.
