There are myriad reasons for companies to implement an intellectual property incentive program ("IPIP"). More than a paycheck, an IPIP offers rewards and recognition for contributing to the company's intellectual property portfolio. The significant benefits of an IPIP include:

• Facilitating recruitment and retention of the best talent by fostering and promoting a culture of innovation and knowledge;
• Promoting the company's reputation, image, and vision as an innovative company;
• Aligning the speed of innovation with industry trends;
• Protecting investment  and  competitive edge by generating intellectual property rights such as patents, copyrights, and trade secrets; and
• Generating new revenue streams by monetizing IP rights through licensing or as add-on value.

Below, we highlight how to avoid 10 major pitfalls to make your IPIP successful.

Pitfall 1: Failure to Promote from the Top

Employees have to appreciate that innovation and the IPIP are critically important to the company's culture and success. The IPIP asks employees to spend time and effort documenting their ideas, which frequently involves interacting with lawyers to capture IP rights. The IPIP imposes on all levels of the company's management extra administrative requirements, such as reviewing employees' idea submissions and supervising the work of outside lawyers. Extra time and effort on the part of employees and management may not have an immediate impact on the company's bottom line, which might lead to a loss of interest. The loss of interest in the IPIP may be directly attributable to a failure to promote the IPIP from the very top. Employees may see participation in the IPIP as more of a nuisance and may forgo the monetary incentive and non-monetary recognition.