Press Room

26 October, 2023

Startups and Intellectual Property: Europe Advances, Mexico Stagnates

Institutions with an important role in intellectual property, such as the National Institute of Entrepreneurs, were dismantled.

This article was published by El Universal.

In an innovation-driven world, emerging companies, better known as startups, are crucial engines of growth and development. Protecting intellectual property (IP) is fundamental to their success. A few days ago, European patent (EPO) and IP (EUIPO) offices released a study shedding light on the intersection between startups and IP in Europe, revealing striking data.

The study shows that startups that protect their IP rights are not only more likely to receive funding for initial phases but tend to receive higher amounts. If they have registered trademarks, they are 2.5 times more likely to obtain initial financing, and 2.9 times if they have applied for a patent. As a result, 29% of startups in Europe have sought to protect their IP rights in recent years.

The outlook is more promising in subsequent stages. The report highlights that, with registered trademarks, a startup is 4.3 times more likely to obtain funding and 6.4 times if it holds a patent. If it has both, the likelihood increases to 10.2.

Given the decrease in venture capital spending and weaker growth forecasts, IP is a key factor in attracting investments. The study emphasizes that investors see security in IP, as in case of failure, patents and trademarks endure.

Such is the importance of the topic that the EPO and EUIPO stress the need for the European system to become more accessible to catch up with the United States. Hence the push for the European unitary patent and the community trademark.

The contrast with Europe regarding the importance given to innovation and IP is clear. While Europe proactively focuses on this, Mexico lags in the global innovation index, where business policies and operational stability are highlighted as weaknesses. In these areas, we rank 120th and 116th out of 132, respectively.

In Mexico, the culture of IP is meager, and this is reflected across all sectors. Institutions that played a significant role in promoting IP, such as the National Institute of Entrepreneurs, were dismantled. The programs that supposedly replaced them do not give IP the necessary importance. Moreover, funding from authorities of all three government levels to protect IP rights is insufficient.

Against this bleak backdrop, Jalisco shines as an example for us to attain our rightful place as the fifteenth-largest global economy. With its innovation and IP program, which has already transcended multiple administrations from different parties, Jalisco shows with results that commitment to IP and innovation makes a difference and accelerates desired economic growth and well-being.

The fact that Europe, with its proactive focus on IP and startups, seeks to catch up with our neighbor makes Mexico’s sad position even more evident. Not just because of our proximity to the United States but as our main trading partner, we face a significant challenge in falling behind.

The gap between Mexico and its main trading partners concerning the importance given to innovation and IP should be a call to action. It’s imperative to recognize the need to strengthen the IP culture and its protection and promote a conducive environment for startups. We cannot and must not fall behind.

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Mike Margáin