[Guest post]: COVID-19 accelerates the need for SMEs to leverage their IP assets

http://ipkitten.blogspot.com/2020/06/guest-post-covid-19-accelerates-need.html

The impact of COVID-19 on intellectual property has been discussed in Kat posts here. Another important perspective to consider is that of SMEs. Béatrix de Russé, Former Vice President Worldwide IP and Licensing at Thomson/Technicolor, Member of the IP Hall of Fame and Member of the 4iP Council Advisory Committee, provides the following thoughts on the impact of COVID-19 on SMEs need to leverage their IP, and what 4IP have been doing to try and assist with this challenge.

A joint EPO-EUIPO study released last year (High Growth Firms and Intellectual Property Rights) showed that SMEs that have filed at least one IP right are 21% more likely to experience a growth period afterwards and are 10% more likely to become a high growth firm (HFG) than firms without IP rights applications. SMEs that file for IP rights at European level have an even greater likelihood (17%) of becoming an HGF.

The same research also revealed that the chances of an SME becoming an HGF increase by 33% if they use “bundles” of trademarks, patents and designs instead of one single IP right category.

www.4ipcouncil.com

Yet the legalese and red tape that surrounds IP can be enough to put off even the most ardent entrepreneurs. Too many see the field narrowly as a painful hurdle to jump for asset protection. You need to be motivated and well informed to successfully navigate the IP maze and acquiring or hiring the knowledge to do so is a drain on scarce time. If SMEs understood more instantly and clearly how IP could help grow their businesses, they might take a more strategic approach to it.

This is the logic behind the not-for-profit, 4iP Council’s work developing free interactive guides on the reasons why SMEs should use patents, copyright, trademarks and, launched today, design rights. This material strives to answers the ‘why bother?’ question for SMEs by outlining four benefits for each IP right. Each benefit is broken down into simple sub-benefits such as those for ‘Revenue’ below on ‘4 Reasons 4 Trademarks’.

Source: 4 Reasons 4 Trademarks, 4iP Council

This material is fun, condensed and addresses the ‘Why?’ but two things makes this topic worthy of The IPKat reader’s attention now:

1/ 4iP Council’s material was developed collaboratively and that’s helpful to SMEs because it breaks silos and helps them cut corners. ASTP, Bournemouth University, EPO, EUIPO, European IP Helpdesk, France Brevets, GRUR, IPIL, INPI, IPAN, INTA have all consolidated advice and resources to build it. Scratch your paw over the surface of each reason and you’ll find a set of interactive hotspots answering the ‘how to?’ question through case study references, examples, tips, orientation links, case law summaries, or data points provided by these organisations.

Hotspot content on
 4 Reasons to Patent, 4iP Council

2/ Before Covid-19, SMEs represented 99% of all businesses in the European Union (EU), and they contributed 57% of the EU’s Gross Domestic Product (GDP), employing 67% of the working population (Annual Report on European SMEs 2018/2019, EASME, European Commission, Nov. 2019). Now, they are greatly exposed to the negative impact of the on-going epidemic outbreak. The European Investment Bank reports them to be more susceptible to disruption because of high labour-intensity and thinner liquidity reserves. “In the majority of cases they lack assets that can be disposed of, or that can be used as collateral for new credit lines,” says Allar Tankler, Corporate communication officer, European Investment Bank.

SME survival is vital to European stability and future growth so now more than ever, we should help them to understand the bottom-line value of managing their innovations and creations.

Poumba Bagheera by Axel Ferrazzini

“Chapeau” to all of those involved with this work but content creation is only half the saucer of milk. We all know of content created by marketing departments at B2B companies sitting unused. The message here is that this or any other material conveying the strategic value of IP now urgently needs to come to the attention of SMEs, innovators, in-house teams and students, for whom it is intended or of value. 


The social and economic return of existing and fresh innovation will be greater if we easily, quickly and comprehensively convince SMEs to think beyond protection and leverage their innovations to the full. So, my call to IP cats and kittens and to organisations addressing SMEs is, if you think this work hits the mark or if you have something good of your own buried away in a file or a website, reach for your mouse now and ensure such assets are put to work.

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