EPO and EUIPO announcement: Owning Intellectual Property (IP) rights boosts startups’ ability to raise funds
The European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO) published on 17 October 2023 a joint study highlighting how much patents and trademarks can boost the success of European startups. The report shows that, on average, startups that possess these two types of intellectual property (IP) rights during their initial seed or early growth stages are up to 10.2 times more likely to successfully secure funding.
IP ownership among different countries
There is significant variation in the use of IP rights among European countries. Finland and France have the highest percentage of startups with patent or trademark filings at 42% each. Startups based in Germany (40%), Austria (40%), Italy (39%), Norway (37%), Sweden (34%), Denmark (34%), Switzerland (32%) and the Czech Republic (31%) apply for more IP rights on average (29%).
Owning IP rights boosts startups’ ability to raise funds, especially for deep-tech industries with higher capital needs. Biotechnology sector leads in the use of patents and trademarks, with nearly half of the sector’s startups seeking these essential rights.
Underpinning the modern economy
In the intricate landscape of startup enterprises, patents and trademarks emerge as vital instruments for competitiveness.
Patents bestow upon these emerging ventures a key right: the power to restrict others from appropriating their pioneering technologies. This not only safeguards their innovative edge but also propels them into a position of strategic advantage within the market.
Trademarks serve as a legal bastion, fortifying investments in intangible assets. These distinctive symbols or names, when legally protected, become an effective shield, protecting a startup's brand identity from infringement.