How to Handle Intellectual Property When Forming a Company

Protecting your intellectual property (IP) is one of the most important steps you can take when forming a new company. It shapes your brand identity, safeguards your competitive edge, and ensures you actually own the assets that will drive your business forward. Yet IP is often misunderstood or worse, dealt with too late, leaving gaps that can be costly to fix.

For UK founders, getting your IP strategy right from day one isn’t just good practice – it’s fundamental to building a business that can scale, attract investment, and operate with legal confidence. From trademarks and copyrights to patents, trade secrets, and ownership of work created by employees or contractors, each element needs deliberate attention.

This guide breaks down how to identify, secure, and manage your intellectual property as part of the company formation process, with practical steps aligned to UK law and guidance from trusted sources such as the UK Intellectual Property Office (IPO). Whether you’re launching a brand-new venture or incorporating an existing project, these insights will help ensure your most valuable assets are protected from day one.

What Counts as Intellectual Property?

Intellectual property (IP) refers to the intangible assets your business creates – the ideas, brand elements, creative work, and technical solutions that give your company its unique value. These assets often become some of the most commercially important parts of a startup, especially as the business grows, seeks investment, or enters new markets.

In the UK, the most common forms of IP include:

• Trademarks – Your business name, logo, product names, slogans, and other brand identifiers. Registering a trademark with the UK Intellectual Property Office (IPO) gives you exclusive rights and legal protection.
• Copyright – Automatically protects original content such as written materials, images, branding assets, website copy, software code, illustrations, and videos. Copyright does not require registration in the UK, but demonstrating ownership is key.
• Patents – Protect new inventions, technical solutions, products, or processes. Patent protection is granted only after a formal application and strict examination. Early advice is vital as public disclosure can jeopardise eligibility.
• Design rights – Cover the shape, appearance, or configuration of a physical or digital product. These may be automatic (unregistered) or formally registered for stronger, longer-lasting protection.
• Trade secrets – Confidential formulas, algorithms, client lists, pricing models, manufacturing methods, and internal processes. These rely on strong internal controls such as NDAs and access restrictions.

For many new companies, these intellectual assets can be worth far more than physical equipment or cash reserves. They underpin your brand reputation, competitive advantage, and long-term commercial potential – which is why identifying and protecting them at the earliest stage is essential.

Step 1: Secure Your Company Name – But Know Its Limits

Registering a limited company with Companies House gives you legal ownership of that specific company name for incorporation purposes. However, this protection is often misunderstood. A Companies House registration does not give you the exclusive right to use your trading name in the wider marketplace and it does not stop another business from trademarking a similar or identical name in your sector.

That’s because company names and trademarks operate under entirely separate legal systems in the UK.

What you should do

1. Check availability at Companies House to confirm your preferred company name meets legal requirements and is not too similar to an existing company. You can use the official search tool: Companies House Name Availability Checker.
2. Search the UK Intellectual Property Office (UKIPO) trademark register to ensure your chosen name or logo does not infringe an existing registered trademark. Search here: UK Trademark Search.
3. If brand protection matters (and it usually does), apply for a trademark covering your business name, logo, slogan, or key product names. A registered trademark gives stronger, enforceable rights. You can apply directly via the UKIPO: Register a Trademark.

A registered trademark gives you the exclusive right to use your name or logo in your chosen categories, making it far easier to prevent copycats, take action against infringement, and build a brand with long-term commercial value.

Step 2: Make Sure You Own Your IP – Not Your Freelancers or Employees

One of the most common mistakes early-stage founders make is assuming they automatically own the rights to everything created for their business. In reality, UK law treats employees and independent contractors very differently when it comes to intellectual property ownership.

For employees

• Anything created in the course of their employment is usually owned by the employer under UK copyright law.
• To avoid ambiguity, employment contracts should still include a clear IP ownership clause confirming that all work produced for the company belongs to the business.

For freelancers, contractors, and agencies

• You do not automatically own the work they produce – even if you paid for it.
• The creator retains copyright unless ownership is explicitly transferred.
• You must have a written IP assignment agreement or a contract containing an IP assignment clause.
• A licence to use the work is not the same as owning it.

This is essential for assets such as:

• Website design and development
• Brand identity, logos, and visual assets
• Software, apps, and technical builds
• Marketing content, copy, photography, and video
• Product designs, CAD files, prototypes, and packaging

Failing to secure a formal IP assignment can create significant roadblocks later – especially during fundraising, due diligence, or a potential acquisition. Investors and buyers will want proof that the company owns all core intellectual property. If the rights sit with a freelancer or agency, rectifying the issue can be difficult, expensive, or impossible.

Step 3: Protect Your Brand With a Trademark

A trademark is often the most valuable IP asset a new business owns. It protects the name, logo, or brand elements you use in trade and prevents competitors from imitating or confusing customers with similar branding. While registering a company name is helpful for incorporation, only a trademark gives you exclusive rights to use your brand in the marketplace.

A registered trademark can also become a powerful commercial asset – boosting investor confidence, supporting licensing deals, and strengthening your position during expansion into new markets.

How to register a trademark in the UK

1. Check for conflicts using the UKIPO search tool.
   Make sure no similar or identical marks already exist in your sector. Search here: UKIPO Trademark Search.
2. Choose the correct Nice classes.
   These classify the goods or services your trademark will cover. Selecting the wrong class is a common (and costly) mistake, so review the full list carefully: Nice Classification Guidance.
3. File your application online with the UKIPO.
   This is done through the official portal: Apply to Register a Trademark.
4. Wait for examination and publication.
   The UKIPO typically takes around 3–4 months, assuming no objections or oppositions are raised.

Once granted, your trademark lasts 10 years and can be renewed indefinitely, giving you long-term protection and a commercially valuable brand asset that grows with your business.