4 tips on how intellectual property can help fund innovations
For you as an innovative entrepreneur, funding is key to driving innovation and fostering growth. Did you know that you can significantly increase your chance of success by protecting your intellectual property (IP)? Apply the tips shared by the Netherlands Patent Office for your benefit, find out how to perform an effective patent search and learn from the experiences of other entrepreneurs.
Forms of financing
As an innovative entrepreneur, your goal is not only to develop your product or service but also to market it and grow your business. In addition to conventional bank loans, there are other financing alternatives to consider, including applying for subsidies and funding schemes, attracting investors or crowdfunding. The right option for you depends on your business, idea or product.
Thorough preparation and awareness of available funding options increase your likelihood of successfully securing capital. If you want to attract the attention of investors then ensuring your own intellectual property is registered as well as performing searches of existing patents are vitally important. Discover our four tips.
Tip 1: Explore all protection options
As an entrepreneur, you can register your invention by obtaining a patent, providing protection against imitation. There are also other ways to protect your ideas. The options for protecting your innovation include:
- Copyright and related rights: for texts and images
- Trademark law: for logos, words (names), colours, sounds and shapes, designs or forms of or associated with companies, products and services
- Trade name law: for the name of a company
Tip 2: Take timely measures to protect your intellectual property
It is usually wise to give thought to intellectual property early on in your innovation process. This is also shown in a study carried out by the European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO). Startups applying for a patent or other form of intellectual property right (IPR) at an early stage are up to ten times more likely to obtain funding than startups that do not.
Practical example
FemTech company YON E Global developed a new eHealth tool that gives women insight into their overall vaginal health within 3 seconds. The company made a European patent application for four parts of the invention and enlisted the help of the Netherlands Patent Office.
“It costs a fortune to get your business up and running. We can now say to investors that we have researched the different protection options. And as a result, we can block competitors and copycats. The free help given by the Netherlands Patent Office has helped us to make important strategic decisions.”
Tip 3: Be careful with crowdfunding: don’t disclose too much information
Crowdfunding is a method of raising money from a wide audience, through “the crowd”. This is often facilitated by online crowdfunding platforms, where people can invest in different projects or initiatives. This enables you to obtain funding directly from backers, without having to seek support from banks or apply for grants. Still, it is important to be careful when using crowdfunding. The experience of keyboard developer Wooting is a case in point.
“Our crowdfunding campaign was a huge success. However, we disclosed many of the functionalities of our keyboards. That made it difficult to protect our product with a patent. Crowdfunding provides capital investment for hardware development and helps establish a bond with our customers in terms of product development. But we’ve also learned to be mindful of what we reveal in advance!”
Tip 4: Investigate whether you are infringing other parties’ intellectual property
Freedom to Operate (FTO) is the ability to market your product or service without infringing other parties’ intellectual property. An FTO Analysis allows you to determine whether you may be infringing on someone else’s patent claims. This is also of interest to investors, as they want to minimise their risk as far as possible. To find out more, read patent advisor Yp Kroon’s blog.
Foto van octrooiadviseur Yp Kroon
“An FTO Analysis not only shows investors that you are seriously contemplating your IP rights, it also provides them with a risk analysis that makes them more likely to invest in your innovation. Read my blog for the full story.”
Join an intellectual property workshop
The Netherlands Enterprise Agency (RVO) frequently organises events, workshops and webinars across the country and in collaboration with various partners. Check out the agenda for an overview and sign up now.
Arrange to talk with a patent advisor
Want to know how to effectively utilise intellectual property for your innovation? Or which form of protection is best for your product or service? Do you have specific questions about applying for a patent? Make an appointment with one of our patent advisors. In a face-to-face meeting, they will answer your questions and give you tips on how to utilise intellectual property.
