Why you should take care of your intellectual property early on
Creativity and inventiveness are the key to intellectual property. You develop a product or a technical solution, create a slogan, write a text, find a method to produce or sell something: These are all examples for intellectual property. But only around 10% of SMEs in the European Union have filed an application for or have had IP rights registered. Here are five good reasons why you should take care of your intellectual property early on.
Five good reasons for intellectual property: why you should protect your ideas
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Intellectual property is valuable: Small and medium-sized enterprises that own patents, designs or trade marks on average generate 68 % higher revenues per employee than enterprises without those rights. The staff benefits from this as well: Companies with registered intellectual property are able to pay higher salaries than their competitors. And if you want to sell your company or are planning your succession, your IP is an important factor of value. Further information: EPO/EUIPO: Intellectual property rights and firm performance in the European Union, Firm-level analysis report, 2021
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Intellectual property protects your innovations: Companies that have registered patents, designs or trade marks or own copyrights can prosecute infringements of their rights – such as copies, counterfeits or unauthorised use – more effectively and defend themselves more easily against product piracy and copycats. Further information: DPMA, Rechte an geistigem Eigentum durchsetzen, Mai 2024 [in German]
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IP gives you a competitive advantage: Intellectual property gives you a competitive advantage. Industrial property rights, trade secrets and copyrights ensure that you stay ahead of the competition. SMEs that apply for patents, trade marks or designs and invest in their protection are more likely to become high-growth firms than those that do not. Further information: EPO/EUIPO: High-growth firms and intellectual property rights: the IPR profile of high-potential SMEs in Europe, 2019
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Intellectual property creates strong partnerships: Your intellectual property not only enhances your security but also your attractiveness to capital providers and investors. This leads to an advantage if you want to grow and creates more opportunities for you. Registered intellectual property shows potential partners that your company has a good strategy regarding its intangible assets. This is why intellectual property counts as part of your company’s capital and makes it more valuable. Further information: EPO/EUIPO: Patents, trade marks and startup finance, 2023
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Intellectual property secures return on investment: The more a company invests in research and development (R&D), the more important it becomes to protect the results. Anyone who creates intellectual property should protect it in order to protect themselves and to gain the profits from it. Even if you cannot or do not want to promote the results yourself, you can still benefit from license fees, which in turn can be used for new R&D projects. Further information: EPO: Market success for inventions. Patent commercialisation scoreboard: European SMEs, 2019
DPMA IP Hub: Information on intellectual property rights
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