One of the principal criticisms of the patent system is that it is often prohibitively expensive for "the little guy". Statistics reflect the fact that the large corporate tends to make better use of the patent system than does the individual inventor, who may struggle to attract funding. This article outlines a new initiative of the Australian Federal Government which may go some way to redressing this imbalance.

We've all heard the saying that a patent is not a license to print money – rather, it's but one piece in a jigsaw, a drummer in a band of an overall, integrated business strategy. Fit all the pieces together, throw in a slice of luck, and you may then be on your way to making a commercial success of your invention.

Patent attorneys deal primarily in procuring and enforcing intellectual property rights. Some practices offer commercialisation services – but these generally come at a cost. One of the most common questions we find ourselves asked by local inventors is "where can I obtain funding?" It's not that this question is unanswerable – it's just that it is exceedingly complex – perhaps until now, that is...

Commercialisation Australia ("CA") is a new Federal Government initiative dedicated to commercialising Australian R&D. CA's stated aim is to "build the capacity of Australia's talented researchers, entrepreneurs and innovative companies to convert ideas into successful commercial realities and create high-skill, high-wage jobs".

CA is the primary source of Federal Government assistance for commercialisation; it will receive $196.1m over the four years to 2013, and $82m per year thereafter. CA aims to deliver a "new integrated, hands-on approach to take ideas to market through offering a range of tailored assistance measures for specialist advice and services, proof of concept and early stage commercialisation activities".

The scheme is a merit-based, competitive assistance program that offers assistance over three categories:

  1. Skills and Knowledge Support to help build the skills, knowledge and connections necessary to commercialise new ideas. This includes up to $50,000 for "specialist advice and services". This branch of the scheme targets commercialisation "rookies" and seeks to help build the skills, knowledge and networks required to succeed in commercialisation. Relating this back to our core business, these funds could pay for IP management, strategy, licensing, etc. The second arm of Skills and Knowledge Support offers up to $200,000 over two years to assist with the recruitment of experienced executives such as a CEO/CFO; applicants will need to match the grant funding dollar-for-dollar.
  2. Proof of Concept Grants of $50,000 to $250,000 are available to test the commercial viability of a product, process or service. The basic criteria here are that this is again on a dollar-for-dollar basis – and that testing need be completed within 12 months.
  3. Early Stage Commercialisation Repayable Grants of $250,000 to $2m may be available to help develop a new product, process or service to the stage where it can be taken to market. Early Stage Commercialisation activities may include: product development, testing and documentation, tooling-up for full-scale production, establishment of quality controls, market validation, establishing management teams, initiation of sales/marketing, and the execution of IP strategy.

Each successful CA applicant will be assigned a Case Manager for the duration of their time with the organisation. The Case Manager will guide successful applicants through the commercialisation process and facilitate access to experienced Volunteer Business Mentors.

For more detailed information on the CA program, including eligibility criteria, please refer to: http://www.commercialisationaustralia.gov.au/Pages/Home.aspx. The application process requires input from patent attorneys and Shelston IP would be pleased to assist in this regard.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.