Funding programs are available to assist businesses develop and commercialize their intellectual property (IP). The following programs provide funding and advisory services to enhance innovation and competitiveness. Each program has different eligibility requirements and are directed to specific types of organizations, stages of IP protection and levels of funding. This overview is intended to provide its readers with information about the programs to which they may be eligible.
1. Intellectual Property Ontario (IPON)
About the Program: IPON was established by the Government of Ontario for small medium enterprises (SMEs) to foster innovation and growth. It is intended to support the development and protection of IP through providing education, mentorship, and financial support.
Eligibility Requirements: Eligible SMEs must have fewer than 500 employees, be committed to long-term growth in Ontario, own IP (or be an exclusive licensee of IP) that the SME intends to commercialize/monetize in Ontario, demonstrate that the SME can bring social/economic benefits to Ontario, and have the financial ability to protect/commercialize IP with the help of IPON. In addition to these criteria, the SME must operate in one of the following fields: health technology, life sciences, artificial intelligence, vehicle technology, mining technology, agriculture and food technology, or clean economy technology.
Funding and Services Available: Funding is available up to $35,000 for initial funding and up to $100,000 for potential future calls; IPON covers up to 80% of approved eligible costs. IPON funded services must be provided by qualified Ontario lawyers or registered patent and/or trademark agents. IPON also provides the following services: IP benchmarking, foundational IP education, advanced IP education, consultations with specialized lawyers, IP intelligence, and networking events. IPON participants can work with their preferred IP practitioner or selected from a pre-screen roster of IP practitioners.
2. BDC Capital IP-Backed Financing
About the Program: BDC Capital is the Business Development Bank of Canada and is a financial institution for Canadian entrepreneurs. BDC Capital services include financing, capital and advisory services and are primarily targeted to SMEs. The IP-Backed Financing program was launched with a $160M fund to increase the competitiveness of Canadian businesses.
Eligibility Requirements: Companies with an IP portfolio in any sector that are commercial revenue generating and are profitable (or have a path to profitability).
Funding and Services Available: Successful businesses are supported with customized growth investments ranging from $2M to $10 through and IP development loan for scale-up, expansion, acquisition and IP development. These are Examples of eligible expenses include advisory, legal, insurance, accounting and tax, and other IP-related expenses.
3. ElevateIP
About the Program: ElevateIP was created by the Federal government to help Canadian startups learn about IP, to develop IP strategies and to implement their IP strategies. Different organizations administer this program, and in Ontario, Manitoba and Saskatchewan, the program is administered by Communitech Corporation. Qualification in the program does not guarantee acceptance and funding is allocated at the discretion of ElevateIP.
Eligibility Requirements: To be eligible to qualify for the ElevateIP program, a startup must be a Canadian-controlled private corporation with less than 500 employees, they must own (or will own) IP.
Funding and Services Available: Support is offered in 3 Tiers: Tier 1 is directed to education and awareness; Tier 2 is directed to developing strategies; and Tier 3 is directed to implementing strategies. There is no cost or funds provided for Tier 1 services. For Tier 2 and 3 services, successful applicants can access up to $100,000 worth of services to develop and/or implement and IP strategy. Tier 2 funding is capped at $25,000 and does not require a co-investment by the startup. Tier 3 funding is capped at $100,000 (less the amount provided for Tier 2 services, if any) and a co-investment of 10-35% is applicable based on a variety of factors regarding the startup. ElevateIP covers trademark and patent availability opinions, application drafting, filing and prosecution costs. ElevateIP participants can work with their preferred IP practitioner or selected from a pre-screen roster of IP practitioners.
4. IP Assist by IRAP
About the Program: IP Assist is administered through the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). Funding can be accessed directly through NRC IRAP or through IPIC IP Assist.
Eligibility Requirements: Eligible companies must be Canadian SMEs that demonstrate innovation and that aim to leverage their intellectual property. Such business must reach out to NRC IRAP for an initial intake call for a pre-clearance process before submitting a project proposal for assessment alongside a business assessment.
Funding and Services Available: Funding availability may vary and is divided into 3 states: Level 1 funding is for increasing IP awareness; Level 2 funding is for the development of an IP Strategy; and Level 3 funding is for development of the Level 2 IP Strategy. Eligible expenses of businesses awarded a grant include costs related to access to IP experts for strategy development, developing an IP strategy, and implementing the IP strategy. IRAP funding covers education and planning, but does not cover trademark and patent application drafting, filing or prosecution costs.
5. CanExport
About the Program: CanExport is a program of the Federal government that offers grants to Canadian SMEs expanding into international markets.
Eligibility Requirements: Eligible SMEs must be a for-profit incorporated legal entity, LLP or cooperative with an active Canada Revenue Agency business number. They must employ fewer that 500 full-time employees and have between $100,000 to $100 million in declared revenue in Canada during its past fiscal year (or 12 months for quarterly filers).
Funding and Services Available: The funding available under the CanExport program is up to $75,000. Funding may be used to apply for IP protection in international markets, along with other non-IP services such as applying for certification in international markets, seeking expert legal and business advice, etc. The program may also include funding for in-person participation at trade shows, networking functions, meetings or conferences, and participating in trade missions.
This program is currently not accepting applications (as of January 2025).
6. Innovation Asset Collective (IAC)
About the Program: IAC is the Innovation Asset Collective, a Canadian non-profit organization intended to support SMEs with leveraging their IP as an asset for growth and competitiveness exclusively in the cleantech sector.
Eligibility Requirements: SMEs must either be an Associate Member or Full Member of the IAC.
Funding and Services Available: Grants range from $5000 to $20,000 to build IP portfolios and enhance IP strategy development. IAC offers specialized support for women in IP with grants ranging from $5000 to $10,000. SMEs can become an Associate Member of the IAC at no cost and will have access to funding that is available annually in a grant pool for Associate Members which is distributed amongst successful applicants in at least one grant round. SMEs can also become a Full Member of the IAC at the cost of $15,000 which provides annual funding in a grant poll for Full Members which is distributed amongst successful applicants through multiple grant rounds. Canadian women in IP can access a grant pool which is distributed amongst successful applicants through a number of grant rounds.
Tips for Securing IP Funding
Businesses should adhere to best practices to successfully secure IP funding. Some best practices include:
- Determine the funding program(s) for which your business may be eligible.
- Engaging with qualified IP professionals to review applications.
- Submitting well-prepared applications within the specified deadlines.
Comprehensive IP funding resources are available to help businesses be educated about how IP can play a role in growing their business, and to help protect and commercialize their IP, fostering innovation and global competitiveness. Leveraging these programs can mitigate financial challenges and enable business growth.