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Study shows: start-ups with patents or brands are over 10 times more successful in securing financing

Note: This article has been machine translated and may therefore contain translation errors.

A contribution from

Dr. rer. nat. Olaf Isfort

Partner, Patent Attorney

Topics and keywords

The European Patent Office (EPO) and the European Intellectual Property Office (EUIPO) have jointly prepared a study entitled“Linking patents, trademarks and startup financing“. The aim was to gain an insight into the connections between the activities of start-ups in the field of intellectual property and their financing.

The result is that owning intellectual property rights (patents/trademarks) makes it much easier for start-ups to secure financing. According to the report, start-ups that have patents and brands in the founding or early growth phase are on average over 10.2 times more likely to secure funding.

For newly founded companies, patents and trademarks are crucial tools for their competitiveness. Patents give start-ups the elementary right to prevent others from appropriating their new technologies. This not only secures their innovative edge, but also gives them a strategic advantage on the market. Trademarks also serve as robust legal protection for investments. As distinctive symbols or names, if they are legally protected, they become an effective shield that protects a startup’s brand identity from infringement right from the start.

Read the whole study here

Read the EPO press release here

Conclusion

It can be crucial for emerging companies and founders to protect their innovative ideas and products through patents and trademarks. This not only provides protection for future investments in the field of intellectual property, but also minimizes the risk of legal disputes. Before launching a new product under a new name, it is also advisable to carry out a comprehensive search for the availability of property rights.

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