EUIPO Study: IP Registration is a Game-Changer for SMEs (But Few Are Doing It)

Key Findings of the 2022 IP SME Scoreboard

A recent study by the European Union Intellectual Property Office (EUIPO) reveals that only 10% of small and medium-sized enterprises (SMEs) in the EU possess registered intellectual property (IP) rights, including trademarks, designs, and patents.

Benefits of IP Registration

The 2022 SME Scoreboard highlights that a significant 93% of SMEs with registered IP rights reported a positive impact on their businesses. These benefits include an enhanced reputation or company image (60%), improved IP protection (58%), and better long-term business prospects (48%).

Economic Advantages of IP Rights

Economic studies indicate a strong correlation between IP rights ownership and economic performance, especially for SMEs. SMEs that own IP rights generate 68% more revenue per employee than those without. Additionally, 36% of SMEs with IP rights have achieved financial gains from their registered IP.

Challenges and Reasons for Not Registering IP

Many SMEs do not register their IP due to a perceived lack of additional benefits (35%), the belief that their intellectual asset is not innovative enough (20%), insufficient knowledge (19%), or not meeting registration requirements (19%).

Reasons for Registering IP

SMEs that do register IP do so primarily to prevent copying (66%), increase company value and image (65%), and secure better legal certainty (63%). Effective enforcement is also a significant motivator for half of the SMEs.

IP Rights Infringement

Among SMEs with registered IP rights, 15% have experienced IP rights infringement, mainly concerning trademarks, leading to losses in turnover and reputation. Most of these SMEs (90%) take measures to enforce their IP rights, often through direct negotiations.

EUIPO Support for SMEs

The EUIPO, along with the European Commission and national/regional IP offices, has launched initiatives to support SMEs in intellectual property. The SME Fund, established post-pandemic, provides financial aid for trademark, design, and patent applications, and personalized IP support. Nearly 30,000 EU businesses have benefited from this fund since January 2021.

The official press release is available here.