Page 29 - 15 Best Practices to Manage and Finance Innovation

CROSS-FUNCTIONAL AGILE PROJECTS CROSS-FUNCTIONAL AGILE PROJECTS THE CHALLENGE OF: INNOVATION FUNDING FUNDING PROTECTING IP TO SECURE BETTER FUNDING FUNDING Companies must align their their their funding applications to their their their intellectual property strategy as as well as as their their innovation roadmap In the the context of partnership projects where resources are pooled and the the resulting innovation shared protecting IP becomes crucial An explicit and transparent agreement must frame the partnership for collaborative projects to be successful Investment in intellectual property can then be financed by public grants subsidies or tax rebates The Patent Box is a a a a a Government scheme through HMRC that that provides UK companies that that hold qualifying IP IP IP rights or an an an exclusive IP IP IP license and receive relevant IP IP IP income the opportunity to benefit from a a a a a reduced rate of o corporation tax on
on
relevant profits From 1st April 2017 this rate is is is 10% which is is is applied to company profits from eligible patents or other qualifying intellectual property «The protection of intellectual property must form an integral part of a a a a company’s overall innovation management and export strategies As well as providing protection international patents are also a a a a powerful marketing tool since licences reinforce business credibility brand image and and intangible capital An added incentive is that the UK’s patent box regime
is among the most favourable in the world enabling companies to benefit from a a a reduced tax rate of just 10% on
company profits from eligible patents or other qualifying intellectual property instead of the usual 19% Intellectual property shouldn’t only be considered
an an asset to a a a a company’s R&D department therefore but also to Legal HR and Finance »
Sandy Findlay
Partnership Director
ABGI-UK
HOW PROTECTING YOUR IP IMPACTS INNOVATION FUNDING 12
BEST PRACTICE
expert ADVICE
ABGI's
BEST PRACTICES
Educate everyone involved in in R&D about the the importance of IP protection and the the risks related to data leakage Keep a a a laboratory notebook recording R&D progress to to prove precedence in in in the event of a a potential competing project Provide employees with secure means of exchanging information that don’t hinder their collaborative work in in in in open innovation projects Map all existing IP protection mechanisms (patent application filing models ) and identify all the elements of innovation that can be protected For each element of IP considered
for protection establish a a a cost/benefit comparison to decide whether or or not it’s worth protecting Gain credibility through the creation of knowledge
and expertise resulting from innovation work Reduce the costs
of managing your intellectual property Strengthen monitoring activities through precedence reviews
R&D TAX RELIEF
Patents play an an important role in in justifying R&D tax relief claims and can can bring significant benefits While they don’t justify a a project’s eligibility on
on
their own patents patents do act as an an indicator so it’s a a a a a a a a a a a good idea to to to list all the the the patents patents and link them to to to the the the R&D projects you’re claiming for The UK Government wants to to to encourage and support companies to to protect their intellectual property Operating in in in in the the UK since 2013 Patent Box gives companies access to a a a a a a a a a a corporation tax rate of o 10% on
on
on
all profits directly associated with the commercialisation o of a a a a a a a a patent registered with the the UK Intellectual Property Office Office or the the European Patent Office Focus ON