As Episode 6 of Dragons’ Den swept onto our screen, I was eager to see how Intellectual Property (IP) would sizzle into the episode. This week saw bedding plants delivered to your doorstep, a mum making travel easier for busy parents and crisps with a sustainable twist, but it was an umbrella claiming to be the best on the market that caught my IP eye…
Rainy Days and Mondays
As I live in often-rainy South Wales and regularly commute on public transport, owning a good umbrella is a must, and the issues that the entrepreneurs identified were certainly relatable. How many umbrellas have been lost to the wind? Or left out to dry and forgotten in the corner of a restaurant? It’s certain that none of us enjoy putting a soggy brolly back into our bags, and Gilley promises a solution to these common issues with its wind-proof design that’s also less prone to loss thanks to its hard, moisture-wicking case.
Weathering the IP Storm
Co-founders Reid and Trib were seeking a £50,000 investment in return for a 3% stake in their company, and it was Deborah Meaden who first brought up the words I’m always eager to hear- intellectual property!
As the Dragon enquired about how weather-proof their protection was, the entrepreneurs shared that they had protected their product as a registered design (registration number 6302755). The specific part of the item that is protected is the cylindrical sheath of the umbrella that doubles as a handle, so while nobody can copy the exact shape, a square or hexagonal case is on the cards for recreation. This concerned Deborah who would have liked to have seen the more comprehensive protection that a patent brings, citing this as the reason that she won’t be investing.
The Million-Dollar Question
So, what’s the difference between a patent and a registered design, and why was Deborah Meaden so gloomy when she discovered the umbrella didn’t protect itself as well as it protects people from the elements?
Well, registering a design protects its shape, surface decoration, contours and colours but no aspects of a design that are dictated by technical function. On the other hand, a patent provides more comprehensive protection as it also covers the function, method and the workings of a thing.
It’s understandable, however, why the co-founders may have chosen this protection rather than a patent. Registering a design is a lower cost, quicker process with it taking months rather than years to obtain, and Peter Jones advised that the legal fees alone for a patent filing could be $1 Million. If you’re starting your IP protection journey you should carefully weigh up these options - our IP Health Check is a great place to start!
The Brand Behind the Brolly
When Steven Bartlett questioned Reid and Trib on where they saw the brand in five years, they confessed that they didn’t just perceive it as a fair-weather invention but rather a key part of a busy commuter’s everyday belongings. Comparisons are drawn in the Den between the booming water bottle market and the potential that Gilley could have to be the next Stanley cup or Yeti bottle. Steven made a valid point - the companies discussed wouldn’t have reached their levels of success had it not been for their successful branding. Trends and the weather may be unpredictable, but a strong and well protected brand stands you in good stead for success.
Gilley’s branding is certainly modern and fresh, but I was disappointed to see that while they have filed a trade mark for their name (UK00003777465), there doesn’t appear to be one for their logo. Trade marks grant you the exclusive right to use your logo in connection with your goods or services and enable you to take legal action against anyone infringing on your brand, so this is a crucial step in giving your product longevity.
The Final Forecast
While most of the Dragons announced that they were out, Peter Jones threw the Gilley team a lifeline. He offered all the money in exchange for a 20% stake of their company - a staggering 17% more than Reid and Trib had wanted to part with. Although they tried a counteroffer, Jones wouldn’t budge, and so the entrepreneurs were left high and dry as they declined and walked out of the Den.
It was certainly a turbulent day in the Den full of exciting innovation, and this episode particularly showed the value of having comprehensive IP protection!
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Disclaimer:
The purpose of the IPO's Dragons' Den IP blog is to help identify the IP in entrepreneurs’ pitches and highlight how IP works, or could work, in the real-life examples featured. IPO’s authorship of this blog does not constitute its endorsement or sponsorship of any products, individuals or businesses referenced within it.
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