EUIPO works to facilitate intellectual property-backed financing

European companies whose value increasingly depends on intellectual property and other intangible assets could benefit from improved access to finance. This follows work by the European Union Intellectual Property Office (EUIPO) on intellectual property-backed financing. The EUIPO is responsible for managing EU trademarks, registered EU designs and models, and EU geographical indications for craft and industrial products.

During a joint meeting of the steering group and the technical working group on intellectual property-backed financing, held in Brussels on June 10, participants approved the European IP-backed finance roadmap. This marks the transition from analysis and research to the practical implementation phase.

João Negrão: "what we need is a financial system that better recognises the value of innovation and intellectual property"

The approval is based on the findings of the EUIPO report "IP-backed finance in Europe: state of play and future perspectives". The report identified the main obstacles preventing innovative companies from using their intellectual property more effectively when seeking finance.

Organised by the European Union Intellectual Property Office (EUIPO) and the European Commission, the meetings brought together representatives from EU institutions, national intellectual property offices, financial institutions, industry organisations and experts.

Opening the event, Nathalie Berger, director for competitiveness coordination at the European Commission's DG Grow, and João Negrão, executive director of the EUIPO, stressed the importance of adapting the European financial system to an economy increasingly driven by innovation, knowledge and intangible assets.

"Europe has the talent, the research and the capital. What we need is a financial system that better recognises the value of innovation and intellectual property, helping innovative companies to grow, expand and compete globally," stated Negrão.

Although intellectual property and other intangible assets are often among a company's most valuable resources, they remain difficult to assess and use in financing decisions for many financial institutions. Consequently, innovative companies, particularly start-ups, scale-ups and SMEs, may face difficulties in accessing the finance they need to grow.

The intellectual property-backed finance roadmap sets out a practical path to address this challenge. Its goal is to help companies present information about their intellectual property and other intangible assets more clearly and consistently. It also aims to support banks, investors and public financial institutions in better understanding and using this information.

The work focuses on several areas identified as essential for a functioning ecosystem of intellectual property-backed financing. These include: improving how intangible assets are communicated and valued; strengthening valuation practices; building a more robust evidence base through real data and financial transactions; and exploring how guarantee schemes and other risk-sharing mechanisms can support the financing of innovative companies.

By the end of 2027, the fundamental components needed to support the wider European intellectual property-backed financing ecosystem are expected to be ready for operational deployment. This will create new opportunities to connect innovation, investment and growth.

This article was translated to English using an AI tool.

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