ARTICLE SUMMARY:
Intellectual property rights underpin the value of most medtech start-up companies. This article explores how new medical device ventures can build and optimize a global IP strategy in a sustainable manner to generate future revenue and leverage investment. By Adam Hines, HGF Ltd.
New medtech businesses are typically protected by an assortment of intellectual property (IP) rights such as patents, design rights, trademarks, copyright, and trade secrets. Developing a robust IP portfolio based on these rights creates a high barrier to entry for competitors. For example, patent thickets may be generated to monopolize certain areas of technology and thereby provide a mechanism to exclude third parties from a particular sector of the market.
Building an extensive network of IP rights often comes with considerable cost. Medtech start-ups are frequently faced with a delicate balancing act between securing sufficient IP protection to safeguard their innovations and not extending beyond their cash runway. It’s crucial therefore to allocate resources appropriately and focus on developing IP in a sustainable manner aligned with the company’s relevant commercial objectives.
