Intellectual Property Protection in the BPO Industry

As working with business outsourcing solutions has become more widespread, there is also an increased concern for intellectual property protection in BPO. As companies work closely with BPO providers, they provide access to sensitive information, which could leave them vulnerable to theft. 

In this article, we’ll discuss what you need to know about intellectual property in BPO, why it’s important to protect your intellectual property, IP risks when working with a BPO, and how you can protect your company’s IP. 

What is Intellectual Property in BPO?

Intellectual Property refers to the intangible assets that are the output of a person’s mind. This property is protected by law against unauthorized use or copying, preventing others from benefiting from someone’s ideas or creations. 

Intellectual property rights ensure that the creator or inventor of non-physical works (e.g., novels, paintings, computer programs, operating systems, etc.) is credited and rewarded. 

There are different types of intellectual property: 

• Copyright – secures creative content and other valuable materials, such as website images, texts, videos, sales materials, client databases, manuals, and so on from unauthorized copying and distribution. 
• Patent – protects novel inventions and enhancements to pre-existing creations. A patent grants the owner sole authority to use, market, or license their products. 
• Trademarks – protects a business’s brand, logo, business name, slogan, as well as domain name from unauthorized use or copying.
• Trade Secrets – safeguards a company’s valuable technical data and internal processes from competitors to help secure its competitive advantage.

Intellectual property rights help protect the creations and inventions of individuals and companies and, in doing so, encourage the continuous development of new ideas, systems, and works for the benefit of society. 

Potential Intellectual Property Risks in BPO

Companies with intellectual property face a variety of risks. Parties with the intention of conducting IP theft use different approaches to steal valuable information from companies. There are hackers and corporate or industrial spies who find novel ways to infiltrate a company and obtain valuable IP, including posing as a BPO provider.

Companies looking to outsource a back-office service provider or any other BPO must be aware of these Intellectual Property risks associated with outsourcing so they can protect their assets. 

Patent Infringement

Business Process Outsourcing involves giving your provider access to confidential information, such as design processes or an invention. This poses a patent infringement risk, which could be intentional or unintentional. 

A BPO company may commit patent infringement by using or selling your creations for their benefit without your knowledge. Alternatively, they may use or sell you another company’s patent without proper license, which could incriminate your company in indirect infringement. 

Copyright Infringement

Copyright protects creative works, as well as software, computer programs, and architectural works. A technical support outsourcing company may have access to technological developments in your organization, which means they could replicate your work and sell it to other clients. 

Copyright infringement risk could rob you of the opportunity to use the innovation as a competitive advantage and maximize profit. 

Brand Impersonation

Trademarks protect your brand’s identity by protecting logos, websites, signs, and so on. If not protected, brand impersonators and counterfeiters may use elements associated with your brand for phishing or selling counterfeit products. These could damage your reputation and make it difficult to distinguish your products or services from counterfeit ones.  

Data Breach

Sharing information with any party poses a risk of data breach. Cyberattackers could take advantage of your BPO provider’s vulnerabilities to access your intellectual property. 

For healthcare providers and finance service companies, part of their intangible assets is their client list. Data breaches of their healthcare BPO services or outsourced investment management provider also puts their clients’ sensitive information at risk.  

Cyberattackers could make your IP available to the public and/or competitors. Your know-how and other work could be misappropriated and negatively affect your reputation and business continuity.

Why is Intellectual Property Protection Important in BPO?

Intellectual property is invaluable for companies. These are the innovations that a company developed for years and which have given competitive advantage. IP is at the core of a company’s revenue streams, which is why it’s important to protect it along with all other data they own.

It’s important to work with a BPO provider that complies with intellectual property protection regulations to ensure that all your sensitive data are kept safe. Data security doesn’t only protect your clients but also your business from counterfeiting.

Intellectual property in BPO also affects your reputation. Data breaches exposing your IP may break clients’ trust in your commitment and ability to protect their information. Meanwhile, investors may lose confidence in the company following loss of public trust and lost intellectual property.

By placing intellectual property protection as a priority when selecting and partnering with a BPO company, you secure your company’s competitive advantage and future.

An IP prevents others from stealing your property and using it against you. Apart from competition, the company also protects itself from the risks caused by counterfeit products. 

Ways to Protect Intellectual Property in BPO

Sharing information and data is necessary when working with a BPO. However, given the potential Intellectual Property risks in BPO, it is highly advisable to put up safeguards to protect your company’s assets. 

Here are things you can do to protect your intellectual property before working with a BPO company:

Vet Your BPO Provider

Surely, you have done ample research about the BPO company of your choice. Before sealing the deal with a company that suits your needs, don’t neglect to vet the legitimacy of the company. 

Consider looking into companies they have worked with and client reviews as well. In particular, check if they have had intellectual property issues before.

Another thing to vet is the BPO company’s security. Choose a provider that takes cybersecurity and Intellectual Property protection seriously to ensure that your assets are protected.

Finally, verify that the company is real and that you are talking to an authorized representative to avoid being infiltrated by thieves.

Write It into the Contract

Intellectual property laws differ per country. When you outsource from another country, you may not be given the same IP protection as in your country. So, make sure to review the IP laws in the country where your BPO provider operates to see if they provide the same level of protection as in your country. 

More importantly, include an IP protection clause in your contract to clarify the limitations of the vendor in relation to your intangible assets. In case of an issue, you can easily enforce your contracts or agreements.

The agreements you can implement are:

• Non-disclosure agreement – binds the BPO provider to keep your information confidential throughout the duration of the contract or up to perpetuity, so it’s a great way to protect your Intellectual Property when hiring a BPO.
• Non-compete agreement – legally binds the BPO provider from sharing your company’s information with a competitor for a specific period.
• Master service agreement – is a higher level of contract that details contracting procedures, payment terms, project management, and all other factors that will govern your collaboration with your partner BPO.

Check their Data Security Practices

Data security is closely tied with intellectual property protection because attackers may gain access to IP through cyberattacks.

When you partner with a BPO company especially for omnichannel customer service solutions, you give them access to your servers, clients, and other sensitive information. So, the BPO company’s vulnerabilities become yours, too.

To protect your IP, it’s important to make sure that your BPO partner values IPP and data security as much as you do and implement adequate strategies to protect their (and their client’s) networks. At the very least, the BPO should have in place access controls, virus and malware protection, hardware access protection, email protection, network protection, and mobile device management solutions.

Review Data Security Compliance

The BPO’s compliance with data security standards is a good indicator of their commitment to protecting their clients’ intellectual property. Check your potential BPO partner’s certifications, especially to industry-specific standards, to gauge their data security.

It’s important to find a BPO provider that already has strong data security, so they contribute toward strengthening your cybersecurity rather than becoming a vulnerability. 

Limit Server and Data Access

When outsourcing any service, be sure to limit their server and data access, if it cannot be avoided, such as when outsourcing technical support. In any case, it is best practice to establish protocols for server and data access and monitor the technical support outsourcing company’s activities within your server.

Protect Your Intellectual Property with Infinit-O

Ensuring BPO Intellectual Property protection is naturally a priority for most companies looking to outsource. As a business process outsourcing company with ISO, GDPR, Sarbanes-Oxley, B Corp, and HIPAA certification and a Net Promoter Score of 71, Inifnit-O has established safeguards to secure our clients’ Intellectual Property and encourage them to take the necessary steps to protect themselves as well.

To learn more about our services, don’t hesitate to reach out to us.

Infinit-O is the trusted customer-centric and sustainable leader in Business Process Optimization to Small and Medium businesses in the Financial Services, Healthcare and Technology sectors by delivering continuous improvement through technology, data and people.

For more information, visit: www.infinit-o.com