Welcome to Boult’s miniseries discussing R&D funding and the patent box for green tech start-ups.
Obtaining patent protection for innovations can be very important for start-ups, particularly those in competitive and exciting fields such as green technology. As well as conferring a monopoly right, blocking others from working the claimed invention, patents can be attractive to investors as they indicate barriers to entry for potential competitors. Patents can also be assigned or licensed to other companies, resulting in a valuable revenue stream, particularly for smaller start-ups who may otherwise not be able to scale to operate in certain jurisdictions but can license out their patented technology there.
Although successfully registering patents can seem an expensive endeavour, fortunately, there are a number of ways to help reduce the initial cost burden associated with preparing, filing, and prosecuting patent applications. Subsequently, the Patent Box scheme can be used to reduce the tax burden on successfully exploited patents.
Here we discuss some of the funding and incentives available to start-ups at various stages of innovation. The funding and incentives below are not exclusive to the green technology sector, and are certainly worth considering if you are contemplating protecting and commercialising your innovations, regardless of sector. In this first part of the miniseries, we discuss those directly relevant to patents. In the second part [add link later], we will discuss the broad range of research and development funding schemes available. In the third part, we discuss the Patent Box scheme, and in the fourth we provide some handy start-up tips.
IP Audit Funding and IP Access Funding
Innovate UK (part of UK Research and Innovation), in conjunction with the UK Intellectual Property Office, provides a two-tiered ‘IP Advance’ funding programme available to UK SMEs, called ‘IP Audit Funding’ (tier 1) and ‘IP Access Funding’ (tier 2). SMEs can apply for one or both tiers, and success at tier 1 is not a prerequisite for tier 2. The funding is designed to provide a contribution towards the costs of intellectual property advice from IP professionals, such as Boult.
- IP Audit funding: Successful applicants are awarded £2250 towards a £3000 IP Audit. The audit is conducted by an IP professional to determine what IP assets the SME holds and to advise on any future registrations which may be beneficial, including patents, designs and trade marks. The subsequent report can form a basis for an application to IP Access funding. Undertaking an IP audit is a cost-effective first step in understanding what might be protectable in your innovations portfolio.
- IP Access funding: Applicants to this scheme can receive a 50% contribution towards certain costs related to the commercialisation and registration of IP, up to a maximum of £2250. This can include professional fees for drafting and filing applications, for example.
Although this funding is particularly designed to contribute to the implementation of recommendations resulting from an IP Audit, it is not necessary to have had an IP Audit performed before you can apply for IP Access funding. The IP Access funding can also be used towards professional tax relief advice, such as the UK Patent Box scheme.
To be eligible for IP Advance funding, the SME needs to be signed up with a business support service run by either the UK Government or a devolved administration (such as Innovate UK). Funding applications are made through these business support services. We have a more in-depth breakdown on the IP Audit and Access funding available here.
Fee reductions at the European Patent Office
When filing patent applications at the European Patent Office, fee reductions are available for individuals, micro-entities (defined as a company with fewer than 10 persons and less than an annual turnover and/or balance sheet of EUR 2 million), and non-profit organisations which meet certain conditions. The reduction is 30% of the official fees associated with filing a European patent application, as well as those for search and examination. To qualify, the applicant(s) must have filed fewer than five European patent applications within a period of five years preceding the new filing date. Find out more about the fee reductions in our article here.
Deep Tech Finder at the European Patent Office (EPO)
One tool which can be useful in obtaining investment once you have a patent application filed at the EPO is the Deep Tech Finder. The Deep Tech Finder is a searchable list of start-ups listed on Dealroom (an online start-up and founder discovery platform) that have applied for European patents at the EPO. The tool is searchable by categories of technology including a number of green technologies, such as those associated with clean energy and efficient water technology.
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. Stay tuned for part two of our miniseries coming soon.
