IPO offers new funding scheme for SME IP audits

The UK Intellectual Property Office has been piloting a new audit scheme offering a tiered approach to funding for Small and Medium-Sized Enterprises towards IP audit and professional IP advisory fees.

The ‘IP Advance’ programme

The IP Advance programme enables businesses with fewer than 250 employees to apply for one or more of the following grants, provided that they have engaged the services of a recognised business growth partner, namely Innovate UK Business Growth, in the UK.

IP Audit grant

This is a grant of £2,250 (including vat) towards the cost of an IP audit to be conducted by a qualified IP professional. The recipient must contribute £750 (including vat) itself towards the audit cost. The audit must also include a follow-up meeting with the IP professional of up to one hour, to discuss the contents of the report and how to implement its recommendations.

IP Access grant

This is a further grant of up to £2,250 (including vat) for further professional advice to implement any recommendations following an IP audit, including recommended registrations, although the grant must only be used towards the IP professional’s fees and not the Registry fees or other disbursements. The recipient must part-fund at least 50% of the full cost of the IP professional’s fees overall. So, if they are receiving the full £2,250, the total legal fees must amount to at least £4,500 (incl vat).

Why have an IP audit?

In simple terms, an IP audit is a thorough review of a business’s intellectual property assets with a view to enabling the business to recognise, protect and exploit those. Normally an audit will include a review of the business’s existing IP assets, registrations and registration applications as well as a review of its goods, services, documentation, agreements and contracts, marketing materials, business practices, regulatory requirements and practices and security measures.

The IPO has a stated mission to ‘boost investment and innovation in technologies and sectors in line with the government’s ambition’ and, in support of this, comments that 'Recent evidence has shown that firms that register Intellectual Property Rights (IPRs) achieve 20% higher revenue per employee, and up to 10 times higher likelihood of access to early-stage growth finance, than their counterparts without IPR portfolios.'

In particular, the IPO states that it intends to place a ‘specific focus on enabling innovative SMEs to use IP to prosper and grow [to] boost innovation across the UK economy.'

An IP audit is a vital step for SME’s to ensure that they get the most out of their IP assets and can protect and exploit these in a way that is the most beneficial for each particular business. For example, it may not be practical or cost-effective for a start-up company to register every trade mark that it may potentially use in every possible territory, right at the start but they could instead develop a strategic approach to filing that could be expanded upon in the future as the business grows. Or, a more-developed business may own several trade mark registrations in different countries, some of which it no longer uses. An IP audit may reveal which of these could safely be disposed of or consolidated, to save the business ongoing renewal and administrative costs.  

The audit structure enables a business to have a holistic review of their entire IP portfolio, both actual and anticipated, including assets which they may not even be aware of. This includes a review of business practices and documentation that are not always seen as directly connected to IP, such as employment contracts, IT security measures and confidentiality agreements.

Harper James has conducted many IP audits for clients, including those receiving government-backed audit grants, including eWATERservices, a start-up company specialising in sustainable water solutions for Africa.

How to apply for funding

Applications are sent first to Innovate UK Business Growth via their National Enquiry Gateway at contact@innovateukedge.ukri.org. The relevant regional business partner will then contact the applicant to discuss their circumstances and prepare the application, to be forwarded and assessed by the IPO. Once the application has been accepted, the applicant will then need to appoint a firm of legal advisors who will actually conduct the IP audit and/or offer the relevant professional advice.  

Our Partner and Head of Intellectual Property, Jill Bainbridge comments:

This is a great initiative aimed at businesses looking to grow and ensure they have all the right intellectual property protections in place. This can help identify the key assets of a business and ultimately capitalise on and realise their value. We are well placed to assist clients in applying for funding as well as conducting audits and addressing any follow up actions.