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From Trend to Target: Protecting Start-ups from Copycats

By Sam Collins | Updated June 4, 2025 (Published 4/6/2025)

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 For many businesses, the prospect of overnight virality is a powerful dream. The right advert, post, or partnership – and boom, suddenly, a product is trending, with demand, sales, and followers rapidly spiking. Yet this rapid rise in visibility can also invite challenges. And for emerging brands, the same platforms that fuel success can also make them vulnerable to bad actors looking to develop cheaper replicates – often before businesses have had time to build a solid foundation.

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This is why securing intellectual property (IP) rights is essential for businesses still in their infancy. In the age of overnight fame and viral growth, timing is everything – and when products go viral, the speed of exposure is often matched by the speed of imitation. It isn’t just about legal protection; it’s about maintaining control over your brand, your ideas, and your market position.

A Growing Threat

The scale of the problem is only growing. Companies that deal in physical goods are especially vulnerable, with the apparel industry losing nearly €12 billion, the cosmetics industry €3 billion, and the toy industry €1 billion annually, according to figures from the European Union Intellectual Property Office.

The solution is early protection. It can be easy for start-ups not to prioritise IP in favour of research, product development, and other, more tangible activity early in. However, once a product has gone viral, the window to act can close quickly. For all businesses, regardless of virality, overlooking IP can become a significant hurdle when looking to grow, raise funds or consider acquisition. A lack of legal protection means that a company’s value hinges largely on unsecured elements such as unregistered trade marks and design rights, know-how, trade secrets, key personnel, and contractual relationships; none of which offer the same leverage as registered IP.

Case in point: Scrub Daddy, the friendly-faced cleaning utensil that shot into the public eye via Shark Tank. The distinctive product soon evolved into a $200 million brand, a meteoric growth made possible by early moves to safeguard the eye-catching design and identity. Prior to launch in a friend’s chain of grocery stores, inventor Aaron Krause invested $150,000 to patent Scrub Daddy, and has since made strategic trade mark applications, including for sub-brands like SCRUB MOMMY and DADDY CADDY, proprietary technology names like FLEXTEXTURE, various logos, and even the shape of the product and its packaging. Such comprehensive IP protections has ensured the company has successfully fended off imitators and has helped build a colossal market presence.

Laying the Foundations

IP protectionis a vital step for businesses to protect themselves from opportunistic bad actors – but that’s not their only value. Secured IP holds an implicit legitimacy and foresight that proves a powerful chip when engaging with investors and strategic partners. Indeed, European start-ups are up to 10.2 times more likely to secure funding if they have filed for patents or trademarks during their seed or early growth phases. Not only does IP indicate that a business has defensible assets, but it also confirms founders are serious about their long-term strategy.

Ultimately, what attracts investors and acquirers to a start-up is its ability to innovate – whether this is through existing products or the clear potential to create new ones. A well-established and protected brand only strengthens that appeal. Trade mark protection for key brand names and visuals in core markets ensures a distinctive presence in a competitive market, while protecting product technicalities ensures the potential for further innovation and competitive advantage. In the end, it’s the distinctiveness of the offering and the visibility of the brand that drive long-term value and future profitability.

While viral success can be the making of a business – it can also come with significant risk.  In a digital-first economy, IP protection is no longer only for established corporations or for consideration later in a start-up’s lifecycle but a core aspect of building a sustainable, scalable business. Thinking about your critical IP assets from day one is the best way to protect what you’ve built, entice investors, and set the stage for long-term success.

By Sam Collins, Partner at Marks & Clerk

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