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 Intellectual Property Strategy and Intellectual Property Policy can often be used indiscriminately and interchangeably. However 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. This is a perception based on strategy being more action-oriented and 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. It does this by helping reduce 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 other words, policy lays the foundations, upon which an Intellectual Property strategy can flourish.

Lets explore this further by examining the role of IP Policies and particularly how they are appropriate for handling the issues arising in more mature organisations. This article is about how they can dovetail synergistically with IP strategies.

Differences between Policy and Strategy

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 and its use,

• protection,

• and enforcement

IP policy is more concerned with direction:

• what is allowed,

• what is encouraged,

• what is 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

Some examples include:

How to use IP to block competitors or license tech

Guidelines on IP ownership, inventor rewards, publication vs. patenting

Why not invest in a copy of my book, The Hidden Mechanics of IP to further develop your own working knowledge of how this can apply to your company.  Clarity on IP Strategy vs IP Policy is likely to improve your company value and opportunities beyond your current position – I’d love to show you how.

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, the costs quickly outstrip any benefits of ignoring this.

Such risks include:

·       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.  It must 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 is Bringing new 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.

Commercialisation requires additional support

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.

Institutional knowledge needs better protection

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 are critically important

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.

Why not invest in a copy of my book, The Hidden Mechanics of IP to further develop your own working knowledge of how this can apply to your company.  If you require support and helpful input to develop your IP Policy – I’d love to explore working with you on this.