Tread carefully in taking inspiration from overseas ventures
Some, such as Boost Juice founder Janine Allis, have tailored ideas originally aimed at overseas markets to launch thriving businesses here.
Allis was on a trip to the US with her husband in 1999 when she first saw the juice bar concept in action. When she got home Allis began working on plans for something similar on home turf. Today Boost has 250 stores across 14 countries and Allis is one of the nation's most recognisable businesswomen.
But localising businesses based elsewhere can be deceptively difficult. Business law experts warn those with plans to adapt overseas businesses to be wary of breaching intellectual property laws such as copyright, patents and trademarks.
Keith Hanslow, partner at Millens law practice and business advisory service, says copying a business idea could be a costly exercise.
"They might sue you if you are stealing their idea," he says. "You have to be careful not to tread on their intellectual property. People say intellectual property isn't like a patent, but it's wider than that."
Hanslow advises getting as much information as possible about the business while in its home town.
"You've got to do as much research as you can from over there," he says. "Try the product and experience what it's like, get information on its cost structure and ring the business and see if they have franchises."
With fewer venture-funding options, Australia cannot hope to match the e-commerce success stories of the US and Britain. Yet this hasn't stopped a stampede of Australian businesses customising US outfits. US company TaskRabbit, which outsources errands to vetted people looking for odd jobs, has attracted two Australian counterparts: Sidekicker and Airtasker.
Australian company Spreets jumped on the group-buying trend set by US daily deals giant Groupon.
Outside the e-commerce world, recent start-ups influenced by US business models include indoor trampoline park Bounce.
Frequently Asked Questions about this Article…
Localising an overseas business idea can be deceptively difficult. Business law experts warn of intellectual property risks (copyright, patents and trademarks) — the original owner might sue if you copy their concept. There are also operational differences, cost-structure issues and funding constraints that can make a direct copy risky.
The article highlights warnings from business law experts. Practical steps include researching the original business thoroughly, trying the product or service yourself, learning its cost structure and checking whether the business offers franchising or licensing. Be careful not to tread on copyrights, patents or trademarks and get clear information before you launch.
Yes. Boost Juice founder Janine Allis adapted the US juice-bar concept after a 1999 trip — Boost now has about 250 stores across 14 countries. Australian counterparts have also emulated US ideas in e-commerce and services: TaskRabbit inspired Sidekicker and Airtasker, Spreets followed the Groupon group-buying trend, and leisure concepts like the indoor trampoline park Bounce were influenced by US models.
The article suggests this as a sensible approach: Keith Hanslow advises contacting the original business to find out if they offer franchises or licensing. Franchising or licensing can reduce IP risk and give you a legitimate path to operate a proven concept in Australia.
Hanslow recommends doing as much research as possible in the business’s home market: try the product or service yourself, experience how it works, investigate its cost structure and speak directly with the business to learn about franchising or other arrangements.
No. The article notes Australia has fewer venture-funding options and therefore cannot hope to match the e-commerce success stories of the US and Britain. That funding gap can make scaling fast-growing e-commerce models more difficult for Australian businesses.
It can work — there are Australian firms that have successfully customised US models (for example, Sidekicker and Airtasker echo TaskRabbit). However, investors should weigh IP risks, local market fit, cost structure and the tougher funding environment in Australia before backing a localised venture.
Based on the article: do detailed research on the original business, try the product or service in its home market, understand the cost structure, contact the original company to ask about franchises or licensing, and be mindful of intellectual property laws (copyright, patents, trademarks) and local funding limitations.
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