Answer first: Contrary to the myth that intellectual property (IP) protection is mainly for large corporations, small and medium-sized enterprises (SMEs) benefit significantly from securing patents, trademarks, and designs. Evidence shows SMEs with IP rights grow faster and attract venture capital, licensing revenue, and acquisitio…
Patents context for IP teams
Julian Crump, President of the International Federation of Intellectual Property Attorneys (FICPI), challenges the misconception that intellectual property (IP) protection is reserved for large firms and unsuitable for small and medium-sized enterprises (SMEs). While large companies invest heavily in IP to safeguard products, deter competition, and generate revenue, SMEs also stand to gain substantial benefits from IP rights.
Data underscores this advantage: a 2019 study by the European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO) found that SMEs holding at least one IP right are 21 percent more likely to experience growth periods. However, a 2021 update revealed that fewer than 9 percent of SMEs own patents, trademarks, or designs, compared to nearly 60 percent of larger firms, highlighting a significant disparity in IP utilization.
Key takeaways for intellectual property for SMEs
- Confirm how the development affects patents ownership, enforcement, licensing, or portfolio records.
- Separate confirmed facts from legal interpretation before advising business teams.
- Map deadlines, affected assets, contracts, and evidence files to the responsible internal owner.
- Use the issue as a prompt for monitoring, filing strategy, dispute preparation, or member education.
Practical analysis
As a Chartered UK and European Patent Attorney and partner at Abel + Imray, Crump and his colleagues reviewed their client base to identify SMEs leveraging IP for business success. Their findings illustrate diverse ways IP contributes to SME growth.
Acumen Design Associates, a leading aircraft seating design firm, transitioned from a consultancy model to creating patented designs. Licensing these designs, including a major 2016 agreement with United Airlines for business class seating, now constitutes a significant revenue stream.
XYZ Reality Ltd. developed an advanced augmented reality (AR) solution for precise building construction alignment. The complexity of their patent application, spanning engineering, AR, and physics, was supported by a positive European Patent Office opinion, which helped secure venture capital funding.
Siltbuster Limited, the UK’s top on-site water treatment provider and Queen’s Award winner, owes much of its success to patented environmental breakthroughs by founder Dr. Richard Coulton. This IP attracted acquisition interest from Workdry International in 2018, which purchased Siltbuster and its intellectual property.
University College London’s research on siRNA cell transfection led to the spin-out NanoGenics Limited. After several development cycles, NanoGenics created LipTide®, a targeted gene therapy for cancer, and sold the associated IP rights for approximately GBP 4.5 million (USD 6.2 million), facilitating commercialization.
Rheon Labs Ltd., a maker of protective sportswear, initially protected innovations through trade secrets to avoid early disclosure. As competitors entered the field, Rheon Labs shifted to patenting, gaining 20 years of exclusivity. Their Rheon Labs® trademark, registered early, supports brand recognition and commercial partnerships, including with American football helmet manufacturer Xenith LLC. Robust non-disclosure agreements and design registrations further strengthen their IP portfolio.
Ceres Power, a clean energy technology company with patented "deep technology," faced bankruptcy risks after initial field trial failures. IP Group Plc, specializing in commercializing university-originated IP, helped reposition Ceres as a technology licensor rather than a manufacturer. This strategy attracted partnerships with Bosch, Doosan, and Weichai Power, enabling revenue through licensing and royalties.
These examples collectively demonstrate that IP is not merely a protective tool but a valuable asset that can become a company’s most important resource. SMEs that strategically develop and manage IP rights can accelerate growth, attract investment, secure acquisitions, and establish strong market positions.
Crump concludes that countless SMEs worldwide benefit from IP protection, underscoring the need for greater awareness and utilization of IP rights among smaller businesses.
Related IIPLA reading
How Intellectual Property Drives Growth and Value in Small and Medium Enterprises Contrary to the myth that intellectual property (IP) protection is mainly for large corporations, small and medium-sized enterprises (SMEs) benefit significantly from securing patents, trademarks, and designs. Evidence... Read the full IIPLA blog post: https://iipla.org/blog/how-intellectual-property-drives-growth-and-value-in-small-and-medium-enterprises