How Intellectual Property Leaks Affect Business Innovation, Financial Stability, and Competitive Advantage

Intellectual Property Leakage

The long-term effects of leaks of private or IP information can negatively impact the innovation of businesses financial stability, competitive advantage. The ability to be able to identify and respond to these kinds of attacks is crucial for all businesses to stay ahead of competition, minimize the impact on their bottom line and regain their image after a damaging incident.

Intellectual property is a broad term referring to the creations of human minds, such as inventions and literary and artistic works. It also covers names, symbols or designs employed in commerce. On a more practical level, intellectual property includes private information that gives companies a competitive advantage like computer programs, business processes, manufacturing methodologies and client lists.

The value of these assets could be intangible and not always identified or quantified, however it is certainly an essential asset for a business that must be protected. In the past, would-be thieves needed to grab an item of physical value (say the blueprint or client list) to steal intellectual property, however with digitalization it is now simpler and less costly for cybercriminals to steal these valuable assets.

Human error is at the root of some of these thefts like sending confidential documents to the wrong person, or losing a device that had sensitive information. Others are deliberate, and the motive is often money-related. For example, semiconductor manufacturers are subject to significant fines for release of their IP outside of the country without an export license that is deemed in place. The presence of a complete IP lifecycle management system in place like Helix IPLM can help reduce these risks and avoid the leakage of this sensitive information.

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