Government Financing Options For Intellectual Property

The Importance of Intellectual Property

Intellectual property (IP) is the legal infrastructure that protects a company's innovation, expertise, and brand. It spans copyright, industrial designs, patents, trademarks, and trade secrets, and—when thoughtfully managed—can anchor market differentiation and long-term value creation. For early-stage companies in particular, securing rights before launch can be decisive. Early filings and clear ownership deter copycats, establish defensible market positions, and reduce the risk of costly disputes as the business scales.

An intentional IP strategy also strengthens a company's financing narrative. Investors and strategic partners look for credible barriers to entry and pathways to monetization. Well-structured portfolios can unlock licensing opportunities, support premium pricing, and create recurring revenue streams. In short, IP turns technical achievement and brand equity into protectable, tradable assets that compound returns over time. IP ownership also prevents competitors from replicating and profiting from a startup's ideas and mitigates the risk of costly litigation in the future.

It is increasingly becoming evident that a dedicated IP strategy enhances a company's potential for financing. Established IP portfolios not only attract investors but also create opportunities for licensing and partnerships. Obtaining exclusive IP rights to patented inventions, creations, designs, or branding can lead to increased profits and generate returns on investments.

How Grants Accelerate Startups and SMEs

Non-dilutive funding aimed at IP planning and protection is often the difference between an idea that stalls and a product that reaches the market with defensible moats. These grants lower the cost of core activities—prior art searches, drafting and filing, portfolio mapping, freedom-to-operate reviews, and international protection—so founders can act early and decisively. By underwriting strategy as well as execution, the programs help teams prioritize the filings that matter, sequence protection in key jurisdictions, and avoid wasteful spend. They also signal discipline to investors and preserve equity that would otherwise be exchanged for capital to cover legal costs, thereby reducing dilution while accelerating commercialization.

Public Funding Pathways

Recognizing the important role IP plays in the growth of new businesses, the federal, provincial, and territorial governments have introduced numerous grants and funding options to help startups finance their IP and legal costs.

Federal Programs

Canada's Budget 2025, delivered on November 4, 2025, includes significant funding commitments to strengthen the national IP ecosystem and support innovation. Key measures focus on providing funding and expertise to small and medium-sized enterprises ("SMEs") to help them protect and commercialize their innovations. The new budget includes an extension of some of the important funding programs, aimed at bolstering innovation and the IP landscape in Canada. The details of the Budget 2025 can be found here and here.

1. CanExport Canada's Trade Commissioner Service offers the CanExport program to encourage SMEs to expand into new international markets. Eligible SMEs can receive up to $50,000 to support qualified market development activities, including international IP protection costs. To qualify, SMEs must be established in Canada, be an incorporated legal entity, limited liability partnership, or cooperative, and earn between $100,000 and $100 million in annual revenue, among other criteria.
2. ElevateIP Innovation, Science and Economic Development Canada ("ISED") announced the launch of ElevateIP in Budget 2021 to help Canadian startups better navigate and leverage their IP. ElevateIP works with existing Business Accelerators and Incubators ("BAIs") to enhance IP awareness and education, develop IP strategies, and provide startups with the tools and support needed to manage and utilize their IP assets effectively. ElevateIP program is delivered through these regional BAIs to grant fundings and a list of ElevateIP's BAI partners is available here. The program is structured into three tiers, including Tier 1(IP Education & Awareness), Tier 2 (IP Strategy Development) covering services such as IP assessments, patent and trademark searches, and IP Strategy development; and Tier 3 (IP Strategy Implementation) providing subsidizes for executing the IP strategy, which can include patent drafting, filing, and prosecution, as well as creating licensing agreements. Businesses can access up to $100,000 for Tier 2 and Tier 3 services.
3. Indigenous Intellectual Property Program ISED also offers the Indigenous Intellectual Property Program ("IIPP"), which is aimed at supporting First Nations, Métis, and Inuit peoples in Canada. The IIPP provides funding opportunities to eligible Indigenous organizations to promote IP education and awareness, encourage advocacy, and contribute to creating a more inclusive IP system for Indigenous communities. For the 2024-2025 funding period, the IIPP offered a total of $150,000 in non-repayable grants. Eligible organizations included Tribal Councils, Indigenous Associations/Organizations, and Boards and Commissions.
4. Innovation Asset Collective The Innovation Asset Collective ("IAC") is a membership-based not-for-profit that helps SMEs in the cleantech sector better leverage their IP while they scale. The IAC offers two tiers of membership: the Associate Membership and the Full Membership. The Associate Membership is a complimentary tier designed for early-stage startups with less than 25 employees and less than $500,000 in annual revenue. Members at this level can receive grants of up to $10,000. The Full Membership, which costs $15,000, is intended for SMEs in the startup and scale-up phase with fewer than 500 employees. Members at this level can receive grants of up to $20,000.
5. IP Assist The Intellectual Property Institute of Canada ("IPIC"), in collaboration with the National Research Council (NRC)'s Industrial Research Assistance Program (IRAP), offers the IP Assist program for Canadian SMEs that can demonstrate innovation and wish to leverage their IP. The program is structured in three levels: Level 1 (Awareness), Level 2 (Strategy), and Level 3 (Action). Level 1 and Level 2 are designed to provide SMEs with a network of advisors to increase their knowledge of IP and to assist in developing IP strategies that support their business goals. Level 3 provides funding to help SMEs execute the IP strategies developed in Level 2.
6. Scientific Research and Experimental Development (SR&ED) Incentives

The SR&ED program is designed to encourage businesses to perform research and development in Canada by offering annual, complementary tax benefits for qualifying SR&ED activities carried out during innovation projects. There are two principal incentives: an income tax deduction for current SR&ED expenditures, which can include accelerated capital cost allowance on certain capital assets used in SR&ED; and a federal investment tax credit equal to 15% of the innovator's qualified SR&ED expenditure pool at year-end.

Provincial and Territorial Programs

1. Alberta Alberta Innovates supports research and innovation in Alberta by offering funding programs, business advice, and networking opportunities. Two of its funding programs support IP-related activities: the Micro Voucher Program and the Voucher Program. The Micro Voucher Program offers up to $10,000 in funding to Alberta-based technology SMEs to support the design and development of innovative technological solutions. Eligible activities include patent development (excluding patent maintenance fees) and certifications. To qualify, SME's must have fewer than 500 full-time employees and less than $50 million in annual gross revenue, among other criteria. The Voucher Program offers up to $100,000 in funding to Alberta-based technology SMEs to accelerate the commercialization of their new products. Patent development is a qualifying activity under this program. Eligibility requirements are similar to those for the Micro Voucher Program.
2. British Columbia, Northwest Territories, Nunavut, and Yukon The AccelerateIP program offers IP education and strategy support to startups across Canada. It is provided through three streams: IP Education and Awareness, IP Strategy, and IP Implementation. Funding is available for the last two streams, where eligible startups can apply for up to $25,000 towards select legal costs for the IP Strategy stream, and up to $60,000 for the IP Implementation stream. Each stream has eligibility requirements, although generally, qualifying startups must have fewer than 500 full-time employees and operate in the tech sector.
3. Manitoba The Innovation Growth Program ("IGP") provides financial support to SMEs to aid in the commercialization of innovative products. The IGP provides a non-repayable grant of up to $100,000 per project to cost-share eligible expenses on a 50/50 basis. To be eligible, SMEs must have funding from non-governmental sources, have an annual revenue of less than $15 million or have fewer than 100 full-time employees, and demonstrate owner investment in cash equity, among other criteria.
4. Ontario Intellectual Property Ontario ("IPON") supports SMEs with IP education, funding, and advisory services to help them develop and protect their IP and enhance their commercialization outcomes. In terms of funding, IPON offers up to $35,000 in initial funding for IP protection and commercialization, with the potential for additional funding up to $100,000 in the future. IPON also covers up to 80% of eligible legal costs when working with licensed Ontario IP lawyers or registered IP agents. To be eligible, SMEs must be based in Ontario, managed by a team of one or more Canadians, and have fewer than 500 full-time employees, among other criteria. NORCAT Innovation Acceleration Program (IAP): designed for early-stage SMEs in Greater Sudbury to advance product development and market position. Applicants must be NORCAT Innovation clients (or complete intake to become clients), be growth-oriented, for-profit entities (sole proprietorship, partnership, or corporation), and be located within NORCAT Innovation's Greater Sudbury service area. Projects must involve developing and commercializing an innovative tech-based product, service, or process at Technology Readiness Level (TRL) 7 or higher. Funding covers up to 50% of approved eligible project costs, capped at $20,000 per SME, on a reimbursement basis after the SME pays 100% of invoiced costs (including applicable taxes).
5. Québec

Investissement Québec offers project financing to Québec SMEs, allowing them to apply for loans and loan guarantees to cover up to 100% of project costs, including the acquisition of IP assets. All Québec SMEs are eligible to apply, except for those in certain industries such as real estate and agriculture, among others.

The Québec government has also introduced "IP Box" tax incentives for businesses with commercially valuable IP, known as the Incentive Deduction for the Commercialization of Innovations. This allows qualifying businesses to reduce their Québec tax rate on eligible income associated with intellectual property assets. The tax rate can be reduced from 11.5% to 2%. To be eligible, the business must operate with an establishment in Québec, conduct research and development activities in Québec, and earn commercial income from their IP, among other requirements.

Other Financing Options

1. Alberta, Innovative Employment Grant: offers SMEs with a grant worth up to 20% of qualifying expenditures (up to $4 million annually) for research and development.
2. Business Development Bank of Canada, Inclusive entrepreneurship loan: offers businesses of underserved communities up to $350,000 in loans, with affordable financing options.
3. Dalhousie University, ideaBUILD program: offers Nova Scotia and Atlantic Canada startups $10,000 grants for prototype development.
4. Government of Canada, Innovative Solutions Canada: provides prototype development support for SMEs, including up to $2 million for those in the development and testing phase of the Challenge stream.
5. Government of Canada, Regional Innovative Ecosystems stream: can support up to 100% of eligible costs for SMEs with a maximum disbursement capped at $25,000.
6. Nova Scotia, Invest Nova Scotia, Accelerate program: offers up to $40,000 in non-dilutive and non-repayable funding to those in the tech industry, including agriculture, clean tech, health, ocean tech, and software.
7. Ontario, Ontario Centre of Innovation, the Collaborate 2 Commercialize program: offers up to 50% of total eligible project costs, from $20,000-$150,000, for SMEs developing innovative technologies (with financial contribution from the SME).
8. Ontario, Ontario Creates, the Intellectual Property Fund: provides funding of up to $400,000 to Canadian organizations developing feature films and digital series, and up to $500,000 for those developing interactive content (i.e., video games).
9. Government of Canada, AI Assist program: a $100 million program aiming to help Canadian SMEs build, deploy and integrate AI capabilities into their product or service offerings, administered by the NRC IRAP.

As innovators evaluate pathways to protect and commercialize their innovation, government funding and incentives can help accelerate timely IP protection. By mapping grants, vouchers, tax credits, and sector programs to various IP priorities—and synchronizing application windows with filing milestones—the innovators can reduce costs and preserve cash flow, while keeping their IP strategy on track. Because eligibility, timelines, and scope of the listed programs may evolve, we highly recommend consulting a qualified advisor to help with the application process. If you are considering these options, we welcome the opportunity to assess eligibility, align timelines, and design a tailored IP strategy that leverages available support while advancing your technical and commercial objectives.

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