Smart filing for
startups and scale-ups

For young companies, intellectual property is often one of their most valuable assets. It provides exclusive rights and strengthens their market position, but perhaps even more importantly, it creates room for negotiation with investors, partners, and in the event of an exit. At the same time, budgets are usually limited, especially in the earliest stages of a business. How can you use your available budget as effectively as possible to get the most out of your intellectual property?

Good preparation

When drafting and filing patent applications, the main costs are usually not the official filing or maintenance fees, but the drafting of the patent application itself. This is an intensive process that requires a lot of time and expertise. That is precisely why it is essential to organize this process as efficiently as possible. Good preparation can make all the difference.

What do you want to patent?

A common pitfall is that new ideas or variants emerge during the drafting of the application that also need to be included in the patent. Although this is sometimes necessary, it almost always leads to extra work. It is therefore wise to determine in advance exactly what needs to be patented. An effective tool for this is an Invention Disclosure Form (IDF). An IDF records, among other things, the technical aspects of the invention. Preparing and submitting the correct figures and experimental description in a timely manner can also significantly speed up the writing process.

“Dutch patent applications are relatively cost-efficient and provide a solid foundation.“

What is the commercial aspect of your invention?

It is important to consider the commercial aspects of the invention. Not only its current potential, but also its future potential. Where would investors see additional opportunities and risks in terms of the economic aspects of the invention? Investors may see additional applications for the invention beyond your original goal. It may then be useful to patent those applications as well. Another potentially relevant question is what the possible exit strategies are and how these translate into the desired patent protection. For example, are there potential acquisition partners who already market a particular product or process in which the invention could be applied? If so, it may be wise to explicitly include this in the patent application.

Who is the inventor and the applicant?

Determining who is the inventor and who acts as the applicant often requires more attention than initially expected. This is not only a legal requirement, but can also be a sensitive issue. This is certainly true in the case of collaborations, spin-offs, or external developers. Clear agreements in advance—preferably laid down in a contract—prevent discussions during and after the application process.

Start locally, think internationally

For Dutch and some Belgian companies with a limited budget, it is not unusual to start with an initial filing in the Netherlands, even if future activities outside the country are on the horizon. Dutch patent applications are relatively cost-efficient and provide a solid foundation.

For German and Belgian patent applications with foreign ambitions, the cost advantage is less significant due to language regimes. In Belgium and Germany, a European first filing is therefore common, unless there are no foreign plans. In those cases, a Belgian or German national patent application may be sufficient and sometimes even preferable due to tax advantages. In Germany, it is also possible to protect products very cost-effectively with a utility model (German: Gebrauchsmuster).

You can then submit one or more follow-up applications via the PCT route, which will lead to broader jurisdiction. This phased approach offers flexibility and defers the processing and maintenance costs by one or more years.

Want to know more?

Read the web article ‘Tech starters’