However, this exposure can come at a price. The same spotlight that drives success can also expose startups to serious risks, from cheap imitations to outright counterfeiting – all before they have had the chance to enjoy their success.

For early-stage businesses, this is where intellectual property is essential. Securing intellectual property (IP) rights early isn’t just about legal protection; it’s about maintaining control over your brand, your ideas, as well as your market position.

In the age of viral growth, timing is everything and the faster a product takes off, the faster opportunists look for ways to replicate or steal it.

The threat is rising

The threat of imitation is rising. According to the European Union Intellectual Property Office, counterfeiting costs the clothing industry alone nearly €12 billion each year, with the cosmetics sector losing around €3 billion and the toy industry €1 billion. Companies that primarily offer products rather than services are particularly at risk of being copied.

Waiting too long to file for protection can leave your startup exposed, and once something’s gone viral, the window to act can close quickly. Yet for many startups, critical IP assets are often overlooked in the fast-paced journey from foundation to exit. This oversight means that, when it comes time to raise funds or consider acquisition, the company’s value may hinge 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 legal protection or leverage as registered IP.

For example, Scrub Daddy, the cheerful-faced sponge that gained fame on Shark Tank, offers a compelling case study in the power of IP protection. Its transformation from an eye-catching product to a $200 million brand wasn’t driven by marketing alone, it was fuelled by early and strategic moves to safeguard its design and identity. Before the product went mainstream, inventor Aaron Krause spent $150,000 to patent his creation – this was before he had begun selling it through a friend’s chain of local grocery stores. The brand has also made strategic trade mark applications to secure protection not only for the SCRUB DADDY trade mark in key territories, but also 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. That investment in IP has allowed the company to fend off imitators and build a dominant market presence.

More than just a defence mechanism

But IP isn’t just a shield from dupe-makers – it’s also a powerful asset for growth. Investors and strategic partners increasingly view IP as a signal of legitimacy and foresight. In fact, European startups that file for patents or trademarks during their seed or early growth phases are up to 10.2 times more likely to attract investment from investors. For investors, IP offers reassurance, it demonstrates that the business has defensible assets, is serious about its long-term strategy, and has taken steps to protect what makes it unique.

Investors and buyers are drawn to a startup mainly because of its innovative products and services, either those that already exist or those it clearly has the potential to develop. Any reputation built around the company’s brands will further enhance its appeal. Ultimately, it is the uniqueness of its offering and the strength of its brand recognition that will add value and drive future profitability.

Going viral is every founder’s dream but it comes with real risks. IP protection is no longer just for established corporations but a foundational tool for modern startups looking to scale in a digital-first world. If you’re building a brand with the potential to go viral, whether it’s a clever product, a unique service or a compelling story, you need to think about IP from day one. By doing so, you’ll not only defend your business against bad actors, but you’ll also lay the groundwork for sustainable growth, investor interest and long-term brand equity.

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