Intellectual Property Law: Financing Mechanism for Start-Ups

Within the Information Society, the value of a start-up does not depend on its physical assets. On the contrary, intangible assets, such as intellectual property (IP) are crucial elements for start-ups when they wish to establish a competitive market position. In the start-up stage, the value of IP potentially higher than any other business asset. Moreover, IP creates opportunities, both from a marketing and financing perspective. IP can generate income through licensing, the sale or commercialization of IP-protected products. Additionally, the smart and efficient use of IP can enable a start-up to increase its market share or to raise profit. Furthermore, investors are on the look-out for valuable intellectual assets. If intellectual assets enjoy legal protection, their quality is secured, which in turn minimizes the investor’s risk. This legal protection is granted by Intellectual Property Rights (IPR): they provide their owner the exclusive right over the use of his creation during a limited period of time.

Intellectual Property – A Financing Mechanism for Start-Ups

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