In general terms, a Fintech company can help you in your venture if you want to: accelerate the payment and transaction processes of your customers; develop the infrastructure for the financial services of your company through data science, big data, or block chain; improve cybersecurity; and to manage your digital assets, cryptocurrencies, or alternative monetary policy, among many others. Likewise, if you are a natural person you can go to a Fintech to apply for a loan in case you do not want to do it through a bank, make any payment transaction or transfer through the internet, also explore the world of Block chain, and crypto or virtual currencies, among other activities.
It is an industry focused on improving and optimizing the time users spend acquiring a digital service or product. We see it every day when we prefer to pay for what we consume with QR or pay for streaming services through a mobile app with our credit card or through any other digital tool. All of which leads us to a win-win, companies on their side cover their needs corresponding to financial transactions, while enhancing customer satisfaction, being one of its main focuses the development of User Experience, or UX, considering the demands of users.
So great is the impact of these types of start-ups in Indian sub -continent that it is estimated that, major part of population made an online transaction for the first time, including e-commerce purchases, streaming services, and delivery apps, as well as a growing reliance on online financial services, such as bill payments.
The legal challenge faced these days with the emergence of these new companies is the protection of their intangible assets. Being the basis of their business, the diverse types of protection that our legal systems offer them must be considered.
Unfortunately, in the regulations of India and sub-continents countries these business methods (software, source codes, or similar) are considered in the legislation as exclusions from patentability. The same happens with the regulations of the European Patent Office, in which it is not possible to file patent procedures containing algorithms and formulas that measure the risk or financial profitability of a company or software in isolation, as is the case of Fintech companies.
Although software protection cases can be protected by “computer-implemented methods” with patents, it only applies if this method fits with the following features: first, at least one step must have a technical effect; second, the help of a computer program is needed and, lastly, it must meet the requirements of patentability. Hence, the possibility of patent protection for this type of business is very limited.
For this reason, we cannot fail to mention the alternative protection provided by intellectual property, such as copyrights. In these cases, it would be applicable for the protection of the software source code, being necessary to prove that it is an original work.
Another relevant option is to protect them as trade secrets. Unlike other IP Rights, secrecy does not involve a formal registration process at a government office. It requires each business to take the appropriate steps to have its secrets protected
Whichever form of protection you choose, we recommend adding the non-conventional trademark registration of the company name, as it does not usually generate major complexity and gives additional security to your business.
As with any new technology, product, or service in the market, many changes are coming in the next few years for the Fintech Ecosystem, and it is undoubtedly necessary to stay informed to understand how these new technologies work, as well as to study all the options they offer us.
For further legal advice,contact us.