We were so surprised by the low figure for spend on research and development (R&D) and intellectual property (IP) (1.1% and 0.3% of turnover respectively) in the recent MyCake Benchmark Bulletin (no4), that we had a chat with ACID (Anti-Copying in Design) to find out whether MyCake users spend on these areas was lower than ACID members. As it turns out the figure of about 1% to 1.4% of turnover seems to hold true for their membership as well. We’re wondering whether this low investment is because the perception of cost of protecting IP is that it is too high and not worth it.
Dids McDonald, CEO of ACID, recommends “IP registration is desirable but if you can’t afford to register your IP, create an IP audit trail and shout about it! And if you don’t want to be copied, say so! There’s no better place than on the front page of your website and your marketing material, creating a 24 hours burglar alarm.”
When looking at setting aside budget for R&D, don’t forget to put an amount in to protect your designs. Dids points out “IP should sit in the same fund pot as R&D. After all, if you research, develop and bring new products or services its folly to ignore any IP you have created.”
To read more about budgetting for research and development, along with how best to fund it and track spending, download the fourth MyCake Benchmark Bulletin here.