Startups in the drug discovery space often operate under intense financial constraints, particularly in the early stages. Among their most valuable assets are patents, which serve as critical tools for protecting innovation, attracting investment, and establishing competitive advantage. However, securing and maintaining robust patent protection is often viewed as expensive, time-consuming, and legally complex. For resource-limited companies, navigating this landscape requires careful planning and strategic decision-making.
What are the key challenges in patent protection for startups?
A major challenge for startups is the cost associated with securing and maintaining patent protection. Preparing high-quality patent applications and navigating the prosecution process across various patent offices requires specialist legal expertise and can be a considerable financial investment. Beyond the initial filing costs, startups must also budget for ongoing maintenance fees (also referred to as renewal fees or annuity fees), which are required to keep patent rights in force and tend to increase over time.
The complexity of developing a global patent strategy presents another challenge. Filing in multiple countries means navigating an array of legal systems, languages and procedural timelines.
Startups must also make tough decisions about how to allocate limited funds. Patent protection must compete with other critical priorities such as R&D, regulatory compliance, and operational costs.
What are 5 strategic solutions for drug discovery startups facing limited resources for patent protection?
There are practical strategies that can help startups manage their patent portfolios more effectively while staying within budget:
1) Start with filing an initial patent application (usually called a ‘priority application’). Filing an initial patent application (such as a UK priority application) is a cost-effective way to secure an early filing date. This approach provides a 12-month window to refine the invention, gather supporting data, and assess commercial potential before committing to a more expensive international filing(s)
2) Prioritise what and where to file. Not all inventions or markets offer equal value. Startups should focus on protecting core innovations (such as novel compounds, therapeutic applications, or platform technologies) that are central to their business. Similarly, targeting high-value jurisdictions (such as the United States, Europe and Japan) ensures that limited resources are directed where they will have the greatest impact.
3) Utilise the Patent Cooperation Treaty (PCT) system. The PCT system allows a single international application to be filed, deferring national/regional phase entry in over 150 contracting states for up to 30 or 31 months from the initial patent application filing. This extended timeline offers valuable breathing room for fundraising, market validation, and partnership development before incurring further costs.
4) Build a tiered IP portfolio. Not every innovation needs to be patented immediately (or indeed at all). A layered approach may include patenting core inventions, protecting manufacturing processes or proprietary know-how as trade secrets, and publishing non-core innovations to create prior art that prevents competitors from obtaining similar patents.
5) Explore licensing opportunities. Licensing non-core IP can generate revenue and reduce the financial burden of maintaining a broad portfolio. Strategic licensing can also open doors to new markets, collaborations, and commercial opportunities.
How can strategic IP planning drive startup success?
Patent protection plays a critical role in the growth and competitiveness of drug discovery startups. With limited resources, a smart, strategic approach to patent protection can make all the difference. By prioritising key filings, leveraging international frameworks like the PCT system, and adopting a layered protection strategy, startups can build a resilient and cost-effective patent portfolio. With the right planning, early-stage companies can safeguard their innovations and lay the foundation for long-term success.
