Why You Should Register Trademark in the EU: Key Findings
A recent collaborative study conducted by the European Union Intellectual Property Office (EUIPO) and the European Patent Office (EPO) reveals the pivotal role of intellectual property (IP) rights, including trademark registration and patent applications, in the success of European startups. This summary highlights the study’s key findings and emphasizes why registering trademarks in the EU is vital for burgeoning businesses.
1. IP Rights and Startup Success
The EUIPO-EPO study underscores that startups aiming to secure their financial footing should prioritize the registration of IP rights. Startups that apply for trademark and patent rights before their initial seed or early growth stages are up to 10.2 times more likely to secure funding successfully. This underscores the crucial role of IP rights in attracting investments.
2. IP Intensity Across Sectors
The study highlights variations in IP rights utilization among European countries and across industry sectors. Notably, biotechnology stands out as the most IP-intensive sector, with a remarkable 65% of startups employing patents or registered trademarks. Other IP-intensive sectors include science and engineering (25% patent users and 38% trademark users), healthcare (20% patent users and 40% trademark users), and manufacturing (20% patent users and 36% trademark users). This indicates the widespread need for IP protection in innovation-driven industries.
3. Leading Countries in IP Rights
Finnish and French startups lead the way in utilizing IP rights, with an impressive 42% of startups in both countries having filed for IP rights. Additionally, startups in Germany (40%), Austria (40%), Italy (39%), Norway (37%), Sweden (34%), Denmark (34%), Switzerland (32%), and the Czech Republic (31%) are more inclined to apply for IP rights. These countries are also more likely to combine both trademark and patent applications.
4. Advantages of Intangible Assets
Ownership of European patents and trademarks provides a substantial advantage, increasing the likelihood of securing early-stage funding by over five times compared to national IP rights (6.1 times for trademarks and 5.3 times for patents). This advantage is particularly beneficial for “deep tech” startups dealing with breakthrough technologies, as they require substantial investments and extended development timelines. Trademarks, in particular, play a vital role in attracting investors for these ventures.
5. The Role of Trademarks in Securing Financing
“Intangible assets represent the vast majority of the value of a business today, and formal intellectual property rights, such as trademarks, are not only legal safeguards for investments in intangibles but also the key to securing financing and collaborations,” emphasizes João Negrão, the Executive Director of the EUIPO. This is particularly crucial for innovative startups that often have limited assets at their initial stages, relying heavily on their intellectual capital.
6. Biotechnology: The IP-Intensive Leader
Biotechnology is the most IP-intensive sector, with nearly half of Europe’s biotech startups applying for patents and trademarks. This sector boasts a substantial 31% of startups that have applied for both patent and trademark protection. Science and engineering (16%), healthcare, and manufacturing also show a strong inclination towards IP rights, reinforcing the significance of trademark registration.
7. IP Utilization as Startups Grow
As startups progress, their use of IP rights intensifies. In seed-stage funding rounds, 10% of startups have filed for patents, which increases to 28% in early growth stages and further to 44% in late-stage rounds. The trajectory is similar for trademark usage, beginning at 28% in the seed stage and rising to 72% in late-stage rounds.
In conclusion, the EUIPO-EPO study emphasizes that trademark registration and IP rights are instrumental in the success of European startups. Registering trademarks in the EU not only safeguards intellectual property but also significantly enhances a startup’s ability to secure financing and thrive in the competitive business landscape. To explore the benefits of trademark registration and IP protection in the EU further, contact [Law Firm Name] for expert guidance and legal support.
Original source: https://www.euipo.europa.eu/sk/news/euipo-epo-study
