As global markets brace for the impact of rising tariffs and the looming threat of an economic downturn, companies are reassessing their strategies for growth, stability, and long-term value. While some may instinctively pull back on spending, history and experience show that this is precisely the time to lean into innovation—and that means investing in intellectual property (IP).
Intellectual property—including patents, trademarks, and copyrights—is more than just legal protection. It is an asset class in its own right, capable of generating revenue, creating market exclusivity, attracting investors, and boosting valuation. In times of economic turbulence, IP can become a cornerstone for resilience and recovery.
IP: A Durable Asset Class
IP rights are unique in that they typically endure well beyond short-term market cycles. For example, a U.S. utility patent provides 20 years of exclusivity from the date of filing. That’s two decades of potential competitive advantage, licensing revenue, or even royalty income from future commercialization. Trademarks and copyrights often last even longer—trademarks can potentially last indefinitely with proper maintenance, and copyrights endure for the life of the author plus 70 years (for individual creators).
Unlike physical assets that may depreciate or become obsolete, well-positioned IP assets can increase in value over time—especially if they cover core technologies, consumer-facing brands, or sought-after content.
How to Invest in Intellectual Property
Just like any other strategic investment, building an IP portfolio requires deliberate action. During economic downturns, here are several ways companies can invest in intellectual property:
File more patent applications to protect your R&D pipeline. If your team is innovating—whether in software, hardware, product design, or manufacturing processes—now is the time to secure exclusive rights through patent filings.
Register trademarks associated with new product names, logos, and services. Strong branding is critical when consumers are more cautious with spending. A registered trademark can set your offerings apart in crowded markets.
Register copyrights for software, designs, written content, videos, and other original works your company produces. Copyright protection is automatic upon creation, but federal registration enhances your rights and enforcement power.
Acquire patents and other IP assets from outside your organization. Companies facing financial pressure may be looking to divest assets, creating opportunities for others to purchase high-value patents or brands at favorable terms.
License complementary IP to expand offerings, enter new markets, or strengthen your competitive edge without having to build everything in-house.
Proactive IP investment is especially critical for startups and mid-sized businesses looking to attract funding or partnerships. Investors see a robust IP portfolio as a signal of serious innovation and long-term vision.
Lessons from History: Innovation During the Great Depression
Even during the darkest economic periods, innovation has not stopped. In fact, the Great Depression of the 1930s witnessed continued patent filings, which helped lay the groundwork for future industrial giants. One powerful example is Chester Carlson, whose patents for xerographic printing during that era became the foundation for what would eventually become Xerox Corporation.
Carlson’s decision to invest in intellectual property in the face of economic headwinds not only secured his innovations but also built a springboard for future technological and commercial success. Companies that follow a similar path today may find themselves better positioned once the economic climate improves.
IP in a High-Tariff, Downturn Economy
As tariffs increase the cost of imported goods and materials, many businesses are looking inward—seeking efficiencies, reducing dependency on foreign sources, and enhancing domestic competitiveness. This is where IP becomes essential. By investing in R&D and protecting the resulting innovations through patents, companies can create proprietary products and processes that allow them to reduce costs, differentiate from competitors, and even license technology to others.
Similarly, companies can use trademarks to build strong brand identities that cultivate customer loyalty in uncertain times. Copyrights remain critical for creative industries, including software, design, and content, which continue to thrive even in lean economic periods.
Supporting Strong IP Laws for Economic Growth
Now more than ever, it is vital to support legislation that strengthens intellectual property rights. Robust IP protections encourage investment in innovation, protect against unfair competition, and foster entrepreneurship. Policies that favor patent owners, copyright holders, and trademark registrants are not merely protective—they are pro-growth tools that ensure the rewards of innovation go to those who take the risk.
During downturns, policymakers often seek ways to stimulate job creation and economic activity. Strengthening IP rights is a proven strategy. A thriving IP ecosystem leads to job growth in high-value sectors such as tech, life sciences, media, and advanced manufacturing.
The Long View: A Twenty-Year Advantage
While economic downturns may last a few years, a well-timed investment in IP provides a long runway for return—at least twenty years in the case of patents. This makes IP one of the few asset classes that can weather economic storms while continuing to add value.
Savvy companies understand this. They know that innovation does not take a break during recessions. In fact, it is often during challenging times that the best ideas emerge, driven by necessity and sharpened by limited resources.
Final Thoughts
If your company is facing uncertainty, now is the time to invest in intellectual property. Don’t wait until the economy rebounds to secure the innovations, brands, and creative works that can carry your business forward. A proactive IP strategy today can deliver long-term value and protection, not just through the next quarter—but for the next two decades.
And if you're advocating for a healthier business environment, support legislation that reinforces IP rights. Innovation thrives when creators and inventors are empowered and protected.
At Ortiz & Lopez, PLLC, we help companies navigate these critical decisions—whether you’re filing your first patent or seeking to build a comprehensive IP portfolio. Reach out today to discuss how we can help you secure and grow your most valuable assets.
