In their latest joint report, the European Intellectual property office and the European Patent Office, make the case for the importance and impact of IP rights on firm performance in the European Union.
The study examined the economic outcomes of companies that hold IP Rights (IPRs) in contrast to those that do not.
Drawing from a dataset spanning from 2013-2022, the study evaluated over 119,000 firms across all 27 EU member states. The IPRs under study were, registered patents, trademarks, and designs with the European Patent Office, the European Union Intellectual Property Office, as well as national and regional IP offices within the European Union.
The main finding is something that in today's day and age should be understood by every business owner. Companies that hold IPRs perform better than those that do not register such rights.
Other findings include the following:
- Companies with intellectual property rights (IPRs) generate 23.8% more revenue per employee compared to those without IPRs.
- When adjusting for factors like industry, company size, and location, this revenue advantage increases to 41%, with an even greater impact observed among small and medium-sized enterprises (SMEs).
- While only around 10% of small and medium-sized businesses register IPRs, those that do report 44% higher revenue per employee compared to their counterparts without IPRs.
These findings suggest that, businesses should always have the registration of their IPRs, and especially their Trademarks as a priority. Due to the importance of such action, business owners should take note and begin with a strategic evaluation of their intellectual property and take necessary steps for their registration!
The full report is available on the EUIPO website here. The Executive Summary can be read here.
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.
