Introduction:

The start of a new year is more than just a time for resolutions — it’s an opportunity for businesses to reflect, recalibrate, and realign their strategies. For leaders in industries like heavy industrial, consumer packaged goods (CPG), and toys and crafts, intellectual property (IP) is a cornerstone of innovation and growth. Yet, many companies overlook the importance of regularly reassessing their IP portfolios, leaving themselves vulnerable to missed opportunities, legal risks, and competitive threats.
In 2026, the stakes are higher than ever. With rapid technological advancements, shifting consumer demands, and evolving regulatory landscapes, now is the time to ensure your IP strategy is working as hard as you are.

Why Reassessing Your IP Portfolio Matters in 2026

Evolving Market Trends:

• Heavy Industrial: The rise of Industry 4.0 technologies like IoT, AI, and robotics is transforming manufacturing and supply chains. Companies must ensure their patents cover these innovations to stay competitive.

• CPG: Sustainability is no longer optional. Brands are innovating with eco-friendly packaging and formulations, which require robust IP protection to prevent copycats.

• Toys and Crafts: Trends like STEM-focused toys and personalized crafting kits are driving innovation. Protecting these unique designs and concepts is critical to maintaining market share.

Regulatory Updates:

• New IP laws and trade agreements in 2026 could impact how businesses protect and enforce their rights. For example, changes in international patent and trademark laws may affect companies expanding into global markets. 

• Industries like CPG, apparel, and toys are particularly vulnerable to counterfeit goods, making it essential to stay ahead of regulatory changes that could impact enforcement.
• USPTO regulations and policies change and evolve over time. In 2026, the new director has indicated a new approach to patent-eligibility that means certain innovations, especially those involving AI and “business methods,” are more likely to be patented than before, opening up new opportunities. 

Competitive Pressures:

• With the rise of AI and supply chain challenges, competitors are innovating faster than ever. A strong IP portfolio not only protects your innovations but also prevents others from encroaching on your market share.

• In retail and e-commerce, especially consumer discretionary products such as apparel, beauty, toys and crafts, knockoff products can erode brand trust and revenue. In heavy industrial sectors, competitors may attempt to replicate proprietary manufacturing processes or energy-efficient equipment designs to avoid losing market share.

The Hidden Risks in Your IP Strategy – and How to Fix Them

IP strategies are only as strong as their weakest link, and many leaders are surprised by the risks found beneath the surface. Here’s where companies get caught off guard—and how to address these pitfalls:

Expired or Lapsing IP Rights:
Too often, patents or trademarks lapse due to overlooked deadlines, leaving innovations unprotected.

• How to Fix: Implement a system for regular portfolio reviews and renewal tracking. Assign ownership of IP renewals to accountable team members. Engage proactively with your IP counsel to review your IP at least annually, ideally every quarter, to stay ahead of deadlines.

Overlooked Trade Secrets:
In heavy industry, proprietary manufacturing processes and software may not be documented—or protected legally—leaving them vulnerable to departing employees or leaks.

• How to Fix: Conduct a trade secret audit. Require NDAs, restrict access on a need-to-know basis, and document internal processes. Ideally, document trade secrets on an IP Inventory so they stay top of mind and are not overlooked when third-parties (lenders, investors, acquirers) undertake due diligence to value the company.

Gaps in International Protection:
Many CPG, apparel, and toy companies focus only on domestic filings, making them targets in foreign markets where enforcement is more difficult.

• How to Fix: Evaluate your international footprint. File for IP protection in key overseas markets before launching new products globally. Focus on countries where your customers or potential licensees are. If you wish to leverage brands or innovative designs internationally and gain passive income from IP licensing, you need to secure the IP in the countries where your licensees plan to sell them.

Inadequate Monitoring for Infringement:
Without monitoring, counterfeits and unauthorized uses go unnoticed—especially online. Ongoing infringement emboldens copycats and erodes market share. Don’t wait until you feel the effects – proactively monitor to shut down infringers before your revenue shrinks.

• How to Fix: Invest in monitoring tools or services, set up alerts, and periodically audit online marketplaces for possible infringement.

Unclear Ownership or IP Assignment Issues:
Collaborations or outsourced R&D can leave ownership questions unresolved, undermining enforceability.

• How to Fix: Regularly review contracts and ensure all IP created by employees and vendors is properly assigned to your company. Use of an IP Inventory, along with quarterly reviews with counsel, ensures you catch and clarify ownership issues while parties are still present, friendly, and aligned.

Neglected Domestic Filings:

Often, businesses are so focused on a few key new projects that they overlook foundational IP or new material they are creating on a regular basis, such as product photographs and text. Usually they only become aware of the importance of this seemingly mundane IP when it has been copied or stolen by infringers. 

• How to Fix: Conduct IP reviews quarterly and assign responsibility for documenting all new IP assets (especially photographs, drawings, marketing collateral) created and published by date. Systematize IP protection for those assets, such as photographs, ensuring they are registered within 90 days of publication. Swift, consistent copyright registration ensures you can get statutory damages and can file suit against infringers right away, which greatly increases your chances of removing infringing content quickly and permanently.

Steps to Reassess Your IP Portfolio

Conduct an IP Audit:

• Review your patents, trademarks, copyrights, and trade secrets. Are they still aligned with your current business goals and product offerings?

• For heavy industrial companies, this might mean ensuring patents cover new manufacturing technologies. For CPG brands, it could involve auditing trademarks for new product lines or packaging designs. 

Identify Gaps:

• Are there innovations or brand elements you haven’t protected yet? For example:

• Heavy industrial: Proprietary software for equipment monitoring; Manufacturing innovations that increase efficiency or reduce waste.

• CPG: Unique packaging designs or sustainable materials.

• Toys and crafts: New toy designs or craft kits.
• Apparel: Product markings or design elements your customers recognize as being unique to your brand, meaning they function as trademarks.

• Consider filing for new patents or trademarks to close these gaps.

Evaluate Licensing Opportunities:

• Could you monetize unused IP assets through licensing agreements or partnerships? For example:

• Heavy industrial companies might license patented technologies to smaller manufacturers or manufacturers in other countries.

• CPG brands could explore co-branding opportunities with complementary products.

• Toys and crafts companies might license popular characters or designs to expand their reach into other industries, such as digital media, publishing, children’s apparel or textiles, even consumer packaged goods such as food, adhesive bandages, or diapers.

Assess Enforcement Strategies:

• Are you actively monitoring for infringement? If not, you could be losing revenue or brand equity.

• For example, counterfeit products sold online are a growing problem in retail and wholesale trade. Implementing a robust enforcement strategy can help protect your brand and retain your market share.

Case Study: A Success Story

Heavy Industrial: A mid-sized manufacturing company specializing in robotics reassessed its IP portfolio and discovered that several of its patents were about to expire. By filing for extensions and securing new patents for updated technologies, the company not only protected its innovations but also gained leverage in licensing negotiations with global partners.
CPG: A sustainable beauty brand identified a gap in its trademark strategy during an IP audit. By trademarking its eco-friendly packaging design, the company was able to prevent competitors from mimicking its unique look, solidifying its position as a market leader.
Toys and Crafts: A toy company specializing in STEM kits discovered that a competitor was infringing on its patented design. By taking swift legal action, the company not only stopped the infringement but also sent a strong message to the market about the value of its IP.

Key Takeaways

• IP is a Business Asset: Treat your IP portfolio as a living, breathing part of your business strategy. Regular reassessments ensure it evolves with your company.

• Industry-Specific Focus Matters: Tailor your IP strategy to the unique challenges and opportunities in your industry, whether it’s manufacturing, apparel, CPG, or toys and crafts.

• Proactive Protection Pays Off: Don’t wait for a competitor to infringe on your rights. Take proactive steps to protect and enforce your IP.

• Leverage IP for Growth: Beyond protection, your IP can be a powerful tool for driving revenue through licensing, partnerships, and market differentiation.

Call to Action

2026 is the year to take control of your intellectual property strategy. Whether you’re in industrial manufacturing, consumer packaged goods, apparel, or toys and crafts, a strong IP portfolio can be the difference between leading the market and falling behind.

Ready to get started? Contact our team of IP advisors today for a comprehensive IP audit and strategy session tailored to your industry. Let’s make 2026 your most innovative and protected year yet.