Don’t protect everything: how start-ups should think about IP

All start-ups have intellectual property: technology, data, designs, customer knowledge, contracts and brands. In her doctoral thesis, Sarah van Santen shows that the question is not only what to protect. Equally important is knowing what can be shared, with whom, when and how.

For all companies, and especially for start-ups, intellectual property (IP) is a strategic issue. In her research at Chalmers University of Technology, Sarah van Santen has investigated how start-ups in digital technology and sustainable fashion work with IP. A common perception is that IP is mainly about patents, confidentiality and keeping competitors out. She wants to change that image.

– The first is that all businesses have IP. Therefore, it is particularly important for start-ups to identify their intangible assets from the outset, and then continuously. From a governance perspective, they then need to decide what to protect and what to share with partners and others, says Sarah van Santen.

Be neither naive nor paranoid

A major challenge for start-ups is managing uncertainty, especially in the early stages. They often don’t know exactly which technology will work, which market will be most important or what the business model will look like.

– Therefore, it is important for entrepreneurs to retain the freedom of action. This can be done, among other things, by postponing irreversible decisions, building a technology architecture that allows for selective transparency, and using contracts to regulate others’ access to the company’s IP.

For founders, it’s a balancing act between control and transparency. They need to be able to collaborate, test and learn – without giving away what the company needs to survive.

– My simple advice is perhaps also the most difficult to follow: Don’t be naive. Don’t be paranoid.

– Being naive means sharing without thinking about the consequences. Being paranoid means being so protective that collaboration, learning and sharing become difficult. Both can be harmful.

Intangible assets are more than patents

Many people think of patents when intellectual property comes to mind. But patents are only one part of companies’ intangible assets.

– If we don’t have patents, we don’t have any intellectual properties, many entrepreneurs and others think. They miss the fact that intangible assets are much broader and that all businesses have them in some form. That’s why it’s important to ask not only what should be protected, but also how different assets should be managed, emphasizes Sarah van Santen.

In her thesis, she takes a broad view of IP. It includes patents, trademarks, copyrights and design rights, but also trade secrets, lead times in development processes, contracts, relationships and knowledge of business models.

– When I interviewed the founders of the start-ups included in the study, they talked about their technology, customers, data, design choices and much more. This revealed a lot more potential intangible assets. The lesson here is that too narrow a view of intangible assets can limit a company’s strategies.

Without resources, IP can be toothless

But mapping and protection do not solve everything. For smaller businesses, the difference between having a right and having the resources to enforce it can be huge.

– For example, even if you have patents in place, it doesn’t matter if a company with large financial resources infringes your patent if you cannot afford to act. Litigation can be far too expensive for the smaller company.

If policy makers and support systems want to promote sustainable entrepreneurship, it is not enough to encourage companies to protect their intellectual property.

– This is where I think policy and the support system have a role to play. If they want more sustainable entrepreneurship, it is not enough to encourage entrepreneurs to protect their intellectual property. Entrepreneurs also need access to advice and support.

Four questions every founder should ask

Based on her research, Sarah van Santen highlights some practical advice on IP strategy for entrepreneurs.

– Start right away by mapping out what knowledge, technology, data, relationships, brand and other assets the company actually has. Then decide what should be shared with others, what should be protected and what should remain flexible.

A useful IP strategy should answer at least four questions:

• What do we have that is valuable?

• Who needs access to it for the company to develop?

• What do we need to control to survive?

• What decisions risk locking us in too early?

Here, the answers may differ between industries. Software companies may be more dependent on lead times and continuous development. Hardware and pharmaceutical companies may need a combination of patents and confidentiality. Sustainable development companies may need to protect themselves sufficiently to negotiate with established players, but at the same time be open enough to allow their sustainability impact to spread.

– Unfortunately, there is no universal formula, but there is a general principle. It’s about being aware that you need to have an IP strategy that you think through. Don’t be naïve and don’t be paranoid either, concludes Sarah van Santen.

Contact sarahv.santen@gmail.com

More about the thesis
Sarah van Santen will defend her doctoral thesis on June 1, 2026. She is a PhD student at the Department of Technology Management and Economics, Chalmers University of Technology. The title of her thesis is Managing tension in open and open-ended innovation: The role of intellectual property in digital and sustainable entrepreneurship.