Patent applications from start-ups soaring
The recession appears to be the mother of invention according to leading intellectual property (IP) legal specialist, Gill Jennings & Every LLP. The law firm reports that it has seen the number of patent application enquiries from private individuals and small- and medium-sized enterprises (SMEs) rise significantly over the past 12 months, resulting in the firm filing nearly twice as many applications to the UK Intellectual Property Office (IPO) in the first six months of 2009 compared to in the first six months of 2008.
By contrast, Gill Jennings says that many big corporations have significantly reduced the number of patents they are filing when compared to a year ago. It has also noticed a drop in the volume of new patent filings from overseas companies. This is reflected by the fact that the overall number of patent applications filed with the IPO fell by approximately five per cent in the first six months of 2009 compared to the same period in 2008.
The recession isn’t a bad time to start up
Peter Finnie, partner at Gill Jennings specialising in assisting UK start-up companies, comments: ‘Gill Jennings has seen a tremendous increase in business from non-corporates over the past few months. This is counterintuitive in some ways as the recession has obviously made funding for small businesses harder to come by. Yet, it seems reasonable to presume that much of this is down to budding entrepreneurs and SMEs deciding that while the employment market is so poor it is time for them to branch out and try to develop their own businesses.
‘It also reflects a growing recognition that securing a good patent can be invaluable in terms of making money in the long-term from an invention. Securing the appropriate patent is crucial for any business that revolves around a particular concept. The hidden risks of IP can also have an enormous commercial impact for both investors and companies alike. Developing an explicit IP strategy that deals with these risks in a cost-effective and responsible manner will repay itself in the longer term.’
Examples of patent enquiries that Gill Jennings says it has seen in recent months include a new cricket bat design, LED eco-lighting systems, ultra-sonic treatment patches, software for monitoring offshore drilling operations, a social network based search engine, a biodegradable irrigation system, and a system for meta-tagging video content for the media industry.
Getting the right backing
In particular Gill Jennings has been advising Michael Pritchard, inventor of the ANYWAY® Spray who successfully secured funding on the BBC 2 programme Dragons’ Den for his invention. The deal centres on a joint investment by the two Dragons, Peter Jones and Theo Paphitis, of £125,000 for a10% equity stake each in an IP holding company owned with Michael Pritchard that will license the IP behind the new spray system to manufacturers of spray products around the world.
Peter Finnie comments: ‘It is very unusual to see an investment on Dragons’ Den based entirely on an IP licensing opportunity, especially as the funds are only going to be spent on the costs of building and maintaining the IP that protects the ANYWAY® concept. If the Dragons can successfully broker some IP licences with the major manufacturers of spray products, the royalty incomes are potentially enormous given the size of the global market. This deal is all about the IP.’
Famous companies that have started up during or just post-recessions in the past, include Microsoft Corporation, Hewlett Packard, General Electric and Revlon Cosmetics.
This article was supplied by Gill Jennings & Every LLP. Photo credit: BL1961
September 09 2009
