In a move that responds directly to client feedback and the evolving IP needs of Ontario's innovation ecosystem, Intellectual Property Ontario (IPON) has announced two significant updates to its funding program for IP legal services. These changes, now in effect, aim to streamline access to support, better tailor services to organizational growth stages, and improve overall clarity and efficiency for eligible Ontario-based innovators, researchers, and small and medium-sized enterprises (SMEs).
Key changes include:
1. A new tiered funding model: Faster, tailored access to support
IPON has eliminated fixed funding calls and now offers continuous intake through a new tiered funding model. This approach ensures that innovators and businesses can access the right level of support, when they need it, based on their stage of growth and IP maturity. The result? Greater flexibility, faster decisions, and more relevant and timely legal guidance.
a. Tier 1 – Foundational IP support
Organizations classified as Tier 1 will benefit from:
- IP education;
- IP benchmarking;
- Client Q&A sessions;
- Exclusive events and workshops; and
- Coming soon:One-on-one IP coaching.
While Tier 1 clients do not receive direct funding for legal services, the resources available can help lay a solid foundation for IP strategy and future funding eligibility.
b. Tier 2 – Direct legal funding
Organizations in Tier 2:
- Are eligible for up to $100,000 in IP funding per fiscal year (April 1–March 31); and
- Have a lifetime cap of $300,000, inclusive of any previous IPON funding received.
Crucially, applications for funding can now be submitted year-round, subject to available funds. This flexible, just-in-time approach offers a clear advantage for growing companies with evolving legal needs.
Before applying, all organizations must complete an intake form. This form helps IPON determine the appropriate tier for your organization. Once your tier is confirmed, Tier 2 clients will receive a new Client Agreement and further instructions for applying for funding.
2. IPON eligibility
To be eligible for support from IPON, applicants must meet specific criteria outlined in IPON's Eligibility By-Law, including:
- Be an Ontario-based SME managed by a team that includes one or more Canadians, with fewer than 500 full-time equivalent employees or contractors globally, and having a physical address in Ontario for substantive operations;
- Own IP rights, or be the exclusive licensee of IP, for the purpose of commercializing or monetizing the IP in a manner that benefits Ontario;
- Operate in one of the following sectors:
- Artificial Intelligence (AI) & data driven technologies;
- Vehicle technology;
- Health technology
- Life sciences;
- Mining technology;
- Agriculture sector; or
- Clean economy;
- Intend to grow their business and maintain substantial operations in Ontario;
- Intend to ensure their IP and IP rights remain under Canadian ownership or control;
- Demonstrate the potential to realize societal or economic benefit to Ontario;
- Demonstrate their own financial capacity to advance the protection and commercialization of any IP and IP rights that may be supported by IPON services; and
- Have an immediate IP need suited for IPON services and IP funding.
Final thoughts
Ontario's innovators now have a more flexible, needs-based pathway to robust IP funding and support. By removing rigid timelines and aligning resources to client growth stages, IPON is empowering organizations to develop stronger IP strategies that scale with their ambitions.
As IP lawyers working closely with Ontario start-ups, scale-ups, and research organizations, we believe these updates mark a positive shift for the province's innovation landscape.
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.
