Patents and startups: EP&C explains benefits and is transparent about costs

A patent application costs money. As a startup, you don't have an endless budget to protect your innovations. At EP&C we get this, which is why we look for smart ways to get you good protection with a limited budget. We are transparent about the costs so that there are never any surprises.

Intellectual property is a complex matter. That is why we clearly explain to you how it works and what you can expect. This knowledge is important for both now and the future. It ensures that you are properly equipped to make the right decisions about your intellectual property including after the startup phase. 

Benefits of patenting for startups 

Patenting has a number of major benefits. These apply to all companies, but especially if you are in the startup phase. 

Here is a list of the benefits for you:

1. Competitive advantage
   You get the exclusive right to make or use your innovation. This will give you a stronger market position than your competitors and increase the value of your business.
2. Attractive to investors
   Companies that apply for a patent during their startup phase are up to ten times more likely to get funding than those that don’t (EPA/EUIPO 2023). With proper protection in place investors are more likely to recoup their money.
3. Marketing tool
   By mentioning "patented" or "patent pending" in a marketing campaign, you show that it is an innovative product. As a result, consumers are more inclined to pay a higher price for the product.
4. Financial benefits
   You can issue licences or sell your intellectual property rights to another party. By doing so, you give that party permission to use your invention commercially in return for payment.

Why is a patent important for a startup? 

When we talk to startups we have noticed that convincing investors is an important reason for them to apply for a patent. Quite rightly so, as it significantly increases the chances of getting funding. On top of that, as a startup, you invest a great deal of time and money into developing your innovation. When your invention is finally ready to go to market, you want to be able to do so safely without competitors running off with your ideas.

By properly protecting your intellectual property you ensure that you reap the financial rewards of your innovation. A patent offers you the exclusive right to use a product or process commercially for a maximum period of twenty years. It creates a temporary monopoly.

Patent funding options for startups 

The costs of a patent application can form an obstacle for a startup. Fortunately, it is also possible to protect your innovation with a smaller investment. For example, by spreading the costs of your patent applications over a longer period of time.

There are several initiatives that can help startups finance a patent application. They are all subject to different conditions. If you would like to know what options are available to you, please let us know we would be happy to put you in touch with an initiative that suits you.

Read more about patents and startups 

If you want to know more about intellectual property protection for startups then you can take a look at these blogs or watch the webinar.