A new joint study by the European Union Intellectual Property Office (EUIPO) and the European Patent Office (EPO) finds that intellectual property (IP) rights are a significant factor in the success of European startups. The report shows that, on average, startups that apply for trademarks and patents rights prior to their initial seed or early growth stages are up to 10.2 times more likely to successfully secure.
On average, 29% of European starts-ups have led for an IP right. Biotechnology is by far the most IP-intensive sector, followed by science and engineering and finally health care and manufacturing.
There is significant variation in the use of IP rights among European countries. For instance, Finland and France have the highest percentage of startups with an IP filing at 42% each.
Moreover, the ownership of European patents and trademarks is associated with an even higher advantage, with a rate of securing early-stage funding exceeding five times that of national IP rights (6.1 times more likely for trademarks and 5.3 for patents).
Finally, the report also shows that, as startups grow, their usage of intellectual property (IP) rights, particularly European IP, intensifies. In seed-stage funding rounds, 10% of startups have led for patents, increasing to 28% in early growth and 44% in late-stage rounds. Trademark use follows a similar trajectory.
In conclusion, trademarks and patents acquire more and more value for companies, from their beginning, increasing throughout their development, which leads to greater economic benefits.
