IP Policy vs. IP Strategy – Synergistic Approaches
“Never put off until tomorrow what you can do the day after just as well” Mark Twain, American writer and humourist
The phrases “IP Strategy” and “IP Policy” can often be used indiscriminately and interchangeably. Yet, these two fundamental tools of successful businesses have quite different roles, but ones which if aligned can scale a business sustainably.
Too often a business will focus solely upon IP strategy which frankly is a sexier beast than IP Policy – being more action-oriented and often focussed on generating and optimising revenue streams.
IP Policy is a gentler creature, more passively focussed on creating the conditions under which innovation can flourish while reducing the risk of intellectual property being lost and third party rights being infringed. Policy includes institutional rules or national frameworks that clarify ownership, ensure freedom to operate, outline disclosure obligations, or incentivise creative outputs.
In essence, policy lays the foundations, upon which an IP strategy can flourish.
This article focusses on the role of IP Policies and particularly how they are appropriate for handling the issues arising in more mature organisations. It also looks at how they can dovetail synergistically with IP strategies.
Differences between Policy and Strategy
It helps to appreciate the differences between policy and strategy from an IP perspective.
For example, the purpose of IP Strategy is to drive competitive advantage and business outcomes, whereas IP Policy provides a framework and guidelines for IP behaviour.
The focus of IP strategy is on execution: namely the acquisition, protection, use, and enforcement of IP whereas IP policy is more concerned with direction: what is allowed, encouraged, or required regarding IP.
The ownership of IP in IP strategy is typically developed at a more granular organisational or project level, whereas the principles behind it are set at a macro level - whether organisational, institutional, or national level.
The Scope of an IP strategy is generally tactical and often proprietary
Broader and more general; can be internal or public
Time horizon
Dynamic, adjusted based on business needs or market changes
More stable, but reviewed periodically
Examples
How to use IP to block competitors or license tech
Guidelines on IP ownership, inventor rewards, publication vs. patenting
Understanding these differences enables a synergistic approach to be developed for the successful working of intangible assets within an organisation.
IP Policy Overview
A well-crafted IP policy helps businesses strengthen their competitive edge, maximise return on innovation, and ensure IP is properly managed across teams, departments, and geographies.
It is surprising therefore that many established businesses still lack a formal IP policy. Why? Often because they have grown without needing one—or believe that legal protections are already in place. However, without a structured approach to identifying, managing, and protecting IP, businesses risk inefficiencies, missed commercial opportunities, technology and confidential information leaching from the business, and costly disputes.
Ideally, such a policy should be seen as integral to a business as its Health & Safety policy, have items arising from it on the Board reviewed Risk Register, and treated with the same respect as other matters critical to a business, such as supply constraints.
When to Formalise an IP Policy
Ideally an IP policy is established during start-up phase, but realistically it is not until a business becomes more established or looks for investment, that the need for an IP Policy becomes more obvious. The following are motivators for mature businesses to establish a formal IP policy.
Valuable IP is being Created
Established businesses produce IP constantly—through product development, branding, software, content creation, process innovation, and more. An IP policy ensures those assets are identified, controlled, protected, and aligned with business goals.
Growth Brings Complexity
With scale comes complexity: new markets, more employees, external partners, and evolving business models. An IP policy sets clear rules on ownership, usage, control and protection—especially as more people interact with intangible assets.
IP is Key to Risk Management
Without proper oversight, a business might unknowingly infringe third party IP, develop products for which it does not have freedom to operate or lose control and rights to its own IP. A policy embeds best practices into everyday workflows—reducing exposure to legal risk.
It Supports Commercialisation
Whether licensing technology, expanding internationally, or raising capital, investors and partners will expect to see robust IP governance. A policy gives confidence that a business knows the value of its IP—and how to manage it.
It Protects Institutional Knowledge
People move on. If a business relies on the knowledge or creations of key individuals, an IP policy ensures those contributions are retained and legally owned by the company.
Engagement, Integration and Sustainability
Few people get excited about creating further bureaucracy within a business, and it can be easy for a new policy to be buried – even if created for important reasons.