Hazlewoods Innovation Team
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What is it?
Late last summer, the Intellectual Property Office (IPO) introduced a new strategic two-tiered funding programme said to be designed to offer support at each stage of a business’s innovation journey.
The scheme aims to help UK-based small and medium sized businesses (SMEs) develop their IP strategies to maximise their full potential. Businesses can apply for one or both tiers and do not need to have applied and received tier 1 funding to be able to access tier 2. The funds are, however, awarded based on an assessment of each individual business’ needs and each applicant should be receiving intensive growth support from an innovation and growth specialist for the funding to be released.
The first tier is the IP Audit Funding. This covers up to £2,250 (including VAT) for an IP audit and the company must contribute a further £750 (including VAT). The purpose of an IP Audit is to identify IP related opportunities for exploitation and/or risks to be managed. IP audits must be undertaken by a qualified IP professional.
The second tier is the IP Access funding which is a contribution towards the professional fees incurred in advancing your IP strategy. The maximum contribution is £2,250 (including VAT) and the Company must contribute at least 50% of the cost of the work carried out. Advancing the IP strategy could include, managing and commercialising the IP, licensing or franchising agreements, IP valuation, IP insurance premiums, Tax relief advice and the professional fees incurred in the preparation of IP applications. It does not cover litigation, infringement or dispute costs, annual filing fees or other business as usual activities where the company cannot demonstrate how the funding will positively impact growth.
Why should you consider this fund?
Having an IP strategy should be an essential part of the overall strategy of a company. Managing your IP can protect your ideas and products from competitors. It provides opportunities for growth by identifying new markets or opportunities for exploiting the IP such as licensing or franchising. It can also be used to help raise finance. We previously mentioned that there are financing options available which can be secured against IP but it can also open the door for equity or grant funding.
Having a strong IP portfolio which include patents, can also pave the way for Patent Box opportunities, a tax relief, we at Hazlewoods, specialise in. If you haven’t come across Patent Box before, it is not surprising, as it is the younger sibling of the now well-established R&D tax relief and is relatively unknown in comparison. Patent Box rewards a later part of the development cycle by identifying the profits arising from the exploitation of your patents and these attract a lower rate of tax at 10% compared to the current 25%. Please do get in touch to find out more!
We can also put you in touch with trusted advisers that can assist you in developing your strategy.
How do I apply?
Although it is funded by the IPO, applications in England are made to Innovate UK Business Growth at contact@innovateukedge.ukri.org, or elsewhere around the UK, to the appropriate regional partner. The applicant will then be contacted to discuss the circumstances and prepare the application, to be then assessed by the IPO. Once awarded, the company can then appoint the advisers to carry out the funded activities.
For more information, please get in touch with a member of the Hazlewoods Innovation Team.
