Intellectual Property Celebrations

With World IP Day just around the corner on 26th April, and the chancellor's confirmation in the recent Budget that firms will benefit from a tax breaks on intellectual property, some would have thought that businesses and inventors would be welcoming the benefits that strong IP can bring.

The "patent box" introduced in the Budget aims to encourage innovation by levying a reduced 10 per cent rate of corporation tax on income received from patents.

Recent responses on the matter however have been very mixed with challenges relating to the cost effectiveness of the process for gaining patent protection and suggestions that intellectual property is an impediment to industrial growth and prosperity.

Whatever the opinion of individuals there is sound evidence that those companies with strong strategies and IP portfolios are outperfoming those without.

Recent research of early stage VC backed businesses shows that companies with high-quality IP ratings are over six times more likely to be winners than losers.

A good IP strategy and sound IP protection is therefore something to celebrate and not shy away from. The long-term benefits should far outweigh the costs.

April 2010