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7 November 2019PatentsRory O'Neill

SMEs making ‘good use’ of European patent system: EPO report

European SMEs are reliant on the European patent system and have used it to successfully commercialise two-thirds of their patented inventions, a new report has said.

The report, compiled by the European Patent Office (EPO), was presented to SMEs and tech company representatives at a conference held in Dublin on November 4 and 5.

The conference, organised in conjunction with the Licensing Executives Society International (LESI), focused on the value of IP to high-growth firms.

According to the EPO, it drew 300 “high-level” participants, mostly from tech companies, start-ups, and SMEs.

The new EPO report, titled ‘ Market success for inventions – Patent commercialisation scoreboard: European SMEs’, said that small businesses rely on European patents filed at the EPO to commercialise high-potential inventions.

Yann Ménière, the EPO’s chief economist, told delegates that “half these commercialised inventions are exploited in collaboration with an external partner via a licensing agreement, co-operation or technology spin-off”.

Ménière said this was evidence of SMEs “being increasingly innovative with their IP strategies”.

This point was echoed by LESI president Fiona Nicolson: “We know that small firms are increasingly innovative in their licensing strategies and collaborating with other companies in their technology space on the way to the marketplace.”

“This conference allows us to showcase and share these innovative practices,” she added.

European IP firm  Withers & Rogers said that while the news that SMEs were making “good use” of the European patent system was welcome, “further support is still needed”.

Karl Barnfather, chairman of Withers & Rogers, said the report provided “compelling evidence” that SMEs were using the patent system effectively to secure exclusive protection on their inventions and prevent copying.

Highlighting the finding that SMEs often work in collaboration with licensing partners to commercialise their inventions, Barnfather said this approach had “pros and cons”.

“Naturally, commercial returns will be diluted, but the reality is that many SMEs would be unable to bring their inventions to market without them,” he said.

According to Barnfather, SMEs should “be clear about ownership of IP rights from the start”.

He added: “Existing IP should be patent protected and shared under the terms of a non-disclosure agreement. The shared ownership of any future IP should be agreed at the outset too.”

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