Boult has a long history of working with start-ups in the green technology space and beyond, guiding them during the patent process from portfolio reviews to drafting, filing and ongoing protection. For younger companies and start-ups, intellectual property (IP) can play an important role in the growth of a start-up, its development and future investment opportunities. However, pursuing IP can also be a complex and potentially expensive process if not approached correctly.
The final part of our miniseries is five tips for start-ups when utilising IP to protect, develop and finance their innovations. This article has been produced by our green technology team, but it is as applicable to start-ups across a wide range of technologies.
Tip 1 – Consider your IP strategy
Protecting innovations can be integral to success. Failure to do so could derail an exciting start-up before it’s even had the chance to secure investment and bring its invention to market.
Taking the time to formalise an IP strategy plan early on is an important step that can help build a strong foundation for you and your innovations going forward. Ideally, the plan should be considered by all stakeholders and take into account the ownership of any IP and its place in the future business plan and branding. Being able and ready to explain the IP strategy to potential investors is also good practice.
Tip 2 – Managing risk and maintaining secrecy
Start-ups need to integrate IP risk management into their business model from an early stage to protect their IP. Maintaining confidentiality in the early stages of the IP process is absolutely critical. If your invention is publicly disclosed prior to filing a patent application, you risk losing any protection. We always recommend that you do not disclose your inventions to any third parties before first speaking to a patent attorney.
Tip 3 – Clarify ownership early and have the paperwork to support it
It’s always a good idea to establish ownership of IP. Establishing legally who is the owner can prove invaluable if any members of the team subsequently move on, for example. Equally, in an “open collaboration” environment where a smaller start-up is working alongside a larger firm to produce IP, the start-up should take care to establish who will own the resulting IP and what both parties’ rights in relation to licensing, commercialisation and assignment would be.
Keeping paperwork in good order is also important. In particular, maintaining signed copies of contracts concerning the invention, the inventors and any licences etc. is key if any conflicts arise later on.
Tip 4 – Keep the strategy cost-effective
It is worth considering how to make the most of your available budget when seeking IP protection. Applying for patents and trademarks can be costly, but often central to protecting the foundations of a start-up’s future success.
A successful, cost-efficient IP strategy will vary by a start-up’s unique scenario. It’s recommended to identify which projects and innovations have the most chance of coming to fruition and accordingly what (if any) IP to pursue. A patent attorney can work with you to identify promising innovations for IP protection and recommend how best to structure their portfolio. The UK Intellectual Property Office (UKIPO)’s IP Advance Scheme can provide funding towards work completed by a patent attorney. Further details can be found here on our website.
To lower the initial costs of filing a patent application, we often recommend filing in the UK first, since the UK intellectual property office has some of the cheapest filing fees.
Tip 5 – Using IP as a tool for attracting investment
A well-structured and well-documented patent portfolio is a valuable tool in attracting investment. Being able to demonstrate a well-protected product stream, including corresponding paperwork and contracts, can help draw and instil confidence in potential investors. Asking for investment after a patent application has been filed can often put a start-up in stronger position than with no structured IP in place.
There are various tools available to help inventors connect with potential investors, for example The Deep Tech Finder, a searchable database of inventors, start-ups and spinouts across Europe, to support innovators in drawing the attention of potential investors.
Conclusion
Protecting the innovations and the branding of an early-stage start-up is critical to its success and to its investment prospects. Taking the time to understand what might be patentable and pursuing the correct protection for them will form the basis for a start-up’s future growth.
At Boult, we work extensively with start-ups in a huge range of industries, from biotech to green technology and renewable energy. You can find out more about what we can do to support a client’s growth through protecting their IP assets here.
Interested in finding out more about intellectual property in the green technology section? Check out our Green Tech 101 guide, a primer on intellectual property for green tech innovators. You can also read more about the work of our green tech team here.
Read the full series here:
