Crowdsourcing and innovation: the role of patents in open collaboration

Crowdsourcing and innovation is a combination that is transforming the way companies approach their search and development (R&D) processes. Instead of relying solely on their internal teams, many companies are beginning to explore more collaborative and open approaches to generating new ideas and solutions. This has given rise to open innovation. In this context, patent rights and intellectual property play a fundamental role, as they offer protection and security in a model that differs significantly from traditional methods. In this post we will explain the relationship between crowdsourcing, innovation and the role that both patents and intellectual property rights play in open collaboration. The idea is to provide a clear vision of how companies can benefit from this approach.

Specifically, open innovation is an approach in which companies allow external agents, such as competitors, customers, suppliers or academic institutions, to participate in their R&D processes. This model breaks with the traditional practice of keeping the development of products and services secret, favouring, instead, collaboration and the exchange of knowledge. The objective is clear: to take advantage of the diversity of ideas and experiences to develop novel and effective solutions.

In this particular, intellectual property, especially patents, take on special relevance. Patents, apart from protecting innovative ideas and products, also give companies the confidence to share part of their processes and knowledge with other actors. By ensuring exclusivity and the possibility of capitalising economically on the knowledge generated, patents become a critical tool. Precisely because they balance the openness of collaboration with the need to protect a company’s intangible assets. By the way, we suggest you read our post ‘Steps to patent an invention in Spain’.

On the other hand, crowdsourcing is a concept that has evolved significantly in recent years. Originally, it was mainly used for the collection of data or ideas. But thanks to technological advances and the digitisation of markets, crowdsourcing and innovation are coming together to foster collaboration at a higher level. Companies can use online platforms to access a large group of people who collaboratively contribute ideas, knowledge and skills.

At the core of the crowdsourcing business model is the community of contributors, known as ‘the crowd’. These contributors can have very different profiles, from highly trained professionals to people with no formal professional experience but with a keen interest or skills in a specific subject. This heterogeneity is a valuable asset, as it allows companies to access a wide range of knowledge and approaches that would not otherwise be available internally.

The platforms that facilitate crowdsourcing are another essential component. Through web or mobile applications, these platforms act as intermediaries between companies and collaborators, offering a space where specific challenges or tasks can be proposed. For this purpose, these platforms are usually intuitive and accessible, allowing participants to interact and collaborate smoothly. The instructions and guidelines provided ensure that everyone involved clearly understands what is expected of them. In this way, they facilitate the delivery of high-quality results and make the symbiosis of crowdsourcing and innovation effective.

In addition, to motivate the crowd to participate actively, companies often offer rewards and incentives that can range from financial compensation to public recognition and status within the community.

But allowing companies access to a wide variety of talent is not the only benefit of the model in question. Crowdsourcing also offers other significant advantages. One of the most outstanding is the possibility of reducing costs. By outsourcing specific tasks to a global community, companies can save on the costs associated with hiring and training full-time employees. Likewise, the competition generated on these platforms tends to reduce costs, as collaborators compete to offer quality solutions at competitive prices.

On the other hand, the ability to overcome geographical barriers is a significant benefit of the model we are analysing. Companies can connect with people from different parts of the world, which enriches the creative process by integrating cultural perspectives and diverse approaches. This diversity of opinions and knowledge allows for the generation of more innovative ideas.

Intellectual property plays a key role in the relationship between crowdsourcing and innovation. In fact, it acts as a mechanism that allows companies to protect their ideas and creations, while ensuring that the value generated is properly capitalised. Specifically, patents, trademarks, design rights and copyrights are fundamental resources that allow organisations to maintain exclusivity over their innovations.

Backed by these registered rights, companies establish a barrier to competition and foster a safe environment for collaborative development. Even so, the management of these rights in a crowdsourcing context can be complex and requires careful planning to avoid legal conflicts.

When crowdsourcing is used to solve technical problems or develop innovative solutions, patent law becomes particularly relevant. Patents protect technical inventions, granting companies exclusive rights over their developments for a specific period of time. This is particularly important when organisations outsource the R&D process, as the ideas generated must be adequately protected to prevent third parties from using them or benefiting from them without authorisation.

Specifically, it is essential that companies that use crowdsourcing and innovation implement clear policies on the protection of inventions generated by the crowd. This may include specific agreements with participants, detailing how the intellectual property of the resulting inventions will be managed. It is even essential to maintain an adequate level of confidentiality before registering a patent to avoid the disclosure of information. Otherwise, the novelty of the invention, an essential requirement for the granting of patents, would be at risk.

On this, we invite you to read our post ‘Legal strategies to safeguard intellectual property’.

Crowdsourcing is not limited to technical innovation; it also applies to the creation of names, logos and visual designs. In these cases, companies must pay attention to trademark, design and copyright laws. For example, when an organisation asks the crowd for ideas for a new product name or logo design, trademark rights come into play. Trademarks protect the trademarks that distinguish products or services in the market. Therefore, it is essential that companies register these trademarks to guarantee their exclusivity.

Similarly, the right to industrial design and three-dimensional trademark is essential when seeking to create visually distinctive products through crowdsourcing. These rights protect the aesthetic appearance of a product, ensuring that the company maintains control over the design and can prevent others from copying or imitating it without authorisation.

Finally, copyright law is fundamental for protecting original artistic or literary works, such as texts, drawings or illustrations that may arise from a crowdsourcing process. Clearly establishing who owns the copyright and under what conditions it is assigned or licensed is essential to avoid legal problems.

One of the main considerations in the crowdsourcing of ideas is the management of the resulting intellectual property. Unlike traditional labour agreements, the ownership of rights obtained through crowdsourcing is not usually covered by the usual rules of employment contracts. Therefore, it is essential to define clear contractual terms to manage intellectual property.

Companies must establish terms and conditions that participants explicitly accept before contributing their ideas. These terms should address issues such as the transfer of intellectual property rights and licences to use the ideas or products generated. In many cases, financial compensation can be offered to contributors whose proposal is the winner, in exchange for the transfer of all rights related to the creation.

Considering all of the above, it is essential to have a trusted partner to protect your intellectual and business assets. At ISERN, we offer legal advice specialising in the register and protection of trademarks, patents and designs, both nationally and internationally.

With over a century of experience in the sector and a team of more than 150 specialised professionals, we are market leaders and have assisted more than 40,000 clients in protecting their intellectual assets.

If you are looking to protect your intellectual property in crowdsourcing and innovation projects, ISERN can provide you with effective support.

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