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Młyńska 27, 22-400 Zamość, Poland

Our company specializes in contract production of the highest quality electronic and photonic devices and the production of custom cable harnesses. We offer the highest production standards in Poland, from prototyping, production outsourcing, to professional machine and electronics assembly services.

Contract manufacturing
Intellectual property protection - how to safely outsource contract manufacturing and avoid falling into the trap

Intellectual property protection in outsource contract manufacturing

How to safely outsource contract manufacturing and avoid falling into the trap?

Are you wondering if the contract manufacturing order is safe for your company? Do you have “know how” and don’t want to lose it? The term of intellectual property protection is an issue that you must analyze in order to reduce the risk of a trap in the contract manufacturing model.

Intellectual property protection vs. outsourcing manufacturing

Copyright, intellectual capital, innovation and new technologies are slogans that make a huge career in today’s business world. Which idea would be profitable, how to put it into practice and finally where there is the best climate for its protection. The answer to these questions has always been the basis for development, because proper protection of intellectual property is a prerequisite for the profitability of any investment, especially in the research and development sector.

Europe, or the cradle of copyright protection

Intellectual Property – a term originated from Europe. It was in Great Britain, over three hundred years ago that the earthshaking Statute of Queen Anne was passed – the first legal act protecting creators in which the term “author” was used. At the end of the 19th century, the creators of the Paris Convention for the Protection of Industrial Property went a step further and attempted to define its scope in the world of trade. Finally, within the European Union, the idea of the Community Achievement was created, which unifies the legislation, making the regulations transparent and the same in all member countries. Poland also has a long tradition in the protection of intellectual property. The first legal actions – the ratification of the Berne Convention, were taken in the 1920s.

Creator protection your business in Poland

Currently, the main source of protection for authors are two laws. Copyright and Related Rights and Industrial Property Law. The first protects every work understood as a manifestation of creative individual activity, regardless of its value and purpose. For entrepreneurs, the latter is more important – it includes the protection of patents, inventions, trademarks and industrial marks, geographical indications as well as topography of integrated circuits. Most importantly, both laws are in total accordance with global standards of intellectual property protection that result from Polish international agreements.

What are the author’s claims?

If in the context of the Act on Copyright and Related Rights, the entitled party said that someone uses his work without permission, he may demand compensation, benefits and also to stop the violations and eliminate their consequences. If the demands are not met without coercion, there are legal proceedings to regulate them. In the case of industrial property rights infringement, the owner may assert his rights in an even wider field. In addition to the aforementioned, there is, for example, the possibility to demand payment of compensation in the amount corresponding to the license fee or more. The law provides procedural facilitation for the author to allow comprehensive enforcement of rights in the scope of securing evidence and obtaining information necessary to establish the claims amount. In this case, however, there is an obligation on the prosecutor’s side to justify and indicate the exact damage amount. This is often connected with the need to allocate significant resources – in this case, the Polish legislation also stands on the author’s side, providing the necessary financial assistance in securing his interests.

Contract production and Intellectual property protection - how to safely outsource contract manufacturing and avoid falling into the trap
Contract production and Intellectual property protection – how to safely outsource contract manufacturing and avoid falling into the trap

R&D, and the protection of intellectual property

In the most recent innovation European Innovation Scoreboard ranking, published by the European Commission, Poland is on the 25th position in the Union. However, for several years, the direction in which the country by Vistula river is heading can be clearly visible. The best proof is 18 billion PLN per year (7th position), which Polish companies allocate to the research and development industry. It is almost a quarter more than the average in the Old Continent. In addition to the tax reliefs that the Ministry of Development introduced last year, by 2020, Poland will receive 10 billion euros in EU funding for R&D.

All these numbers show that business owners are perfectly aware that the lack of innovation is the main obstacle in their development and ambitions fulfillment. However, for effective implementation of R & D achievements, the intellectual property protection of any investment is as important as co-financing and favorable tax climate. In Poland, it is primarily enabled by the patent institution. It deals with new solutions, with a special character of the invention, which can be successfully used in industry. In order for companies to distinguish themselves from other enterprises, it is also necessary to protect trademarks and services, and therefore all kinds of graphic symbols identified with a specific brand appear.

Respecting intellectual property, coherent and transparent legislation for all EU members which goes along with international standards. Many possibilities for claims and judicial assistance in the absence of funds to prove violations evidence. This is only part of many rights that the author and patents and inventions creator can enjoy in Poland. Everything makes a system that removes many important obstacles for innovations and competitiveness, not only in the research and development field, but in every sector of the company’s operations.

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Krzysztof Jakubczak

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