In this guide, we explore the key steps you can take to protect your IP when working with collaborators.
Understanding Intellectual Property in Australia
Intellectual Property (IP) refers to creations of the mind that are legally protected. In Australia, the main categories include:
Copyright - Protects literary, artistic, and musical works.
Trade marks - Protects branding such as names, logos, and slogans.
Patents - Protects new inventions and processes.
Design rights - Protects the visual appearance of products.
Trade secrets and confidential information - Protects commercially sensitive knowledge.
Each type of IP has different registration and protection rules under Australian Intellectual Property Law, making it important to identify what applies to your work before starting a collaboration.
Revenue sharing - How profits from the IP will be distributed.
Future use - Whether either party can use the IP outside the collaboration.
These disputes can damage relationships, delay projects, and result in costly legal action. Preventing them starts with a clear legal framework.
Identify Your Existing IP
Before entering any collaboration, make a detailed list of the IP you already own. This includes registered IP (like trade marks and patents) and unregistered IP (such as trade secrets and confidential business methods).
Why this matters:
It clarifies what you are bringing to the table.
It avoids accidental loss of ownership rights over pre-existing IP.
It allows you to decide whether to share your IP or keep it restricted.
Use a Confidentiality Agreement (NDA)
Before sharing your ideas, ensure all parties sign a Non-Disclosure Agreement (NDA). An NDA legally obliges collaborators to keep information private and restricts its use outside the agreed scope.
Key elements of an NDA:
Definition of confidential information.
Restrictions on disclosure and use.
Duration of confidentiality obligations.
Remedies if confidentiality is breached.
Draft a Collaboration Agreement
A Collaboration Agreement (sometimes called a Co-operation or Joint Venture Agreement) sets out the rights and responsibilities of each party. It should clearly address:
IP Ownership - Whether new IP will be jointly owned or belong to one party.
Licensing - Who can use the IP and under what terms.
Revenue Sharing - How income from the IP will be divided.
Termination - What happens to the IP if the collaboration ends.
Under Intellectual Property Law, joint ownership can be complex. For example, in Australia, jointly owned copyright requires all owners to agree before it can be used commercially. This is why clear terms are essential.
Register Your IP Where Possible
While some IP rights (like copyright) are automatic in Australia, others require registration for full protection.
Consider:
Trade mark registration - Prevents others from using similar branding.
Patent applications - Protects inventions and processes for up to 20 years.
Once your collaboration begins, regularly check how your IP is being used. If you discover unauthorised use, address it quickly through legal channels.
Options for enforcement include:
Sending a cease-and-desist letter.
Seeking mediation or dispute resolution.
Taking court action for infringement.
Common Mistakes to Avoid
Assuming trust is enough - Even trusted collaborators should work under formal agreements.
Not defining ownership - Leaving IP ownership vague can cause disputes later.
Failing to update contracts - If the scope of collaboration changes, update the agreement.
Ignoring overseas IP rights - If your collaboration is international, check foreign IP laws.
Safeguard your ideas before you share them.
Our expert team in Intellectual Property Law will help you create strong agreements, protect your rights, and avoid disputes.
