Date: 15 February 2021
Recent evidence suggests that companies that own IP earn more money than those that do not. A report jointly published by the European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO) shows a strong correlation between IPR ownership and increased revenue.
The report finds that companies that own any IP rights earn 20% more than companies that do not. When split by type of IP right, this additional revenue increases to 21% for trade marks, 32% for designs and 36% for patents.
Read the full report here: Firm-level analysis report, EPO, EUIPO
The link between owning IP rights and higher revenues is in some ways unsurprising. In the case of patents, securing the right to produce a unique product gives companies exclusivity and effectively reduces competition for 20 years. Furthermore, strong brand protection through trade mark registrations creates tangible assets for investors to back and consumers to buy into.
The report concludes by identifying that the positive association between owning IP and increased revenue is particularly strong for SMEs, suggesting that they have the most to gain by pursuing IP protection.
It is certainly a leap to conclude that owning intellectual property rights guarantees increased revenue. However the report reinforces the positive effects of fully realising innovation and using IP rights to exploit innovation for financial success.
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