Small and medium-sized enterprises (SMEs) represent 99.8% of all businesses in the European Union (EU) and intellectual property (IP) is central to their commercial success and also to the overall competitiveness of the EU. Whether you are launching a new product, opening a fashion boutique featuring local brands, or building a tech start-up, IP rights (IPRs) can make a difference as a strategic asset which can help you unlock new opportunities and safeguard the value of your ingenuity. Protecting intangible assets – including for example your name, logo, products, services, and creative outputs – is essential to positioning your business for long-term success.

Why we need to talk about the importance of IP for SMEs

The strategic importance of IP for the EU´s economy is undeniable. As it is outlined in a recent joint study of the European Intellectual Property Office (EUIPO) and the European Patent Office (EPO), companies that hold IP rights perform better than those that do not: they generate 23.8% more revenue per employee than companies without IPRs. When adjusting for factors like industry, company size, and location, this revenue advantage increases to 41%, with an even greater impact observed among SMEs. When a SME registers its IPRs, it achieves in general 44% higher revenue per employee compared to their counterparts without such protection.

When we speak about SMEs focused on innovation – including tech startups – another joint EUIPO/EPO study indicates that IPR‑intensive industries attract the overwhelming majority of private equity and venture capital investment in the EU. Over 88% of total funding, equivalent to €70.7 billion, was invested between 2021 and 2023 in startups operating in IPR‑intensive industries, underscoring the importance of IP in fostering innovation and growth. Furthermore, it is reported that IPR-intensive industries pay significantly higher wages than other industries, with a wage premium of 40.9%. These numbers are in line with those reported in the European Commission´s recently published 2025 Annual Single Market and Competitiveness Report. While also showcasing the critical role of IP to commercial success and as a signal of firms’ innovativeness, the report indicates that startups are ten times more likely to obtain early-stage venture capital if they have registered patents or trade marks. Also, IPRs are associated with a 200% higher likelihood of successful exit.

It is thus clear that IP plays a key role, and so is obtaining the relevant protections under IP law. But have you ever thought of what role different IPRs play in helping your SME or startup thrive?

Different IPRs to protect different intangible assets

Starting with your name and logo, these can be protected as trade marks. If you, for example, register a trade mark with the EUIPO, you will receive protection for the entire EU territory. A key requirement is that your name or logo is sufficiently distinctive, by that meaning that the sign in question will be perceived by consumers of the relevant goods and/or services as a badge of commercial origin. Furthermore, if you operate a website, the look-and-feel of your website and its domain name will be also protected by IP.

The appearance of your products may be safeguarded through design rights or copyright. Registered designs offer broader and longer-lasting protection than unregistered ones, which arise automatically. If, for example, you want to register your design and receive protection across the entire EU territory, once again you will need to apply to the EUIPO. Copyright also arises automatically and requires originality, that is: the result of free and creative choices. This means that, if your product’s appearance is dictated purely by technical considerations, copyright protection will not apply.

If your product or service includes an invention – for example, a novel technology in a hair dryer or an innovative fabric in your garments – you may seek patent protection. And do not forget that confidential business information – such as methods, recipes, or formulas – can be protected as trade secrets.

How the EU and the EUIPO support SMEs with their IP

Considering the numbers and the role that different IPRs play, it is clear that getting the IP ‘right’ should be a priority for any company, not only for SMEs. It is for all these reasons that the Ideas Powered for business SME Fund has been devised by the European Commission and implemented by the EUIPO. This is a grant scheme designed to help EU-based SMEs protect their IPRs. The new edition was launched on 2 February and will run until 4 December 2026. SMEs can also receive advice in their preferred language from experts across Europe on how to protect their IPRs, as well as what to do in case someone claims that their own rights are being infringed. Of course, all of this is also consistent with the broader long-term strategy and priorities of the EUIPO, including awareness raising, promotion, and enforcement of IPRs. If one for example reviews the EUIPO’s 2030 Strategic Plan, Goal 3 is all about improving access to the IP system and promote the use of IPRs in support of innovation-driven economic growth. This can be also achieved by helping the next generation of innovators to thrive, creating innovative products and services, promoting innovation, value creation and inclusion.

In sum: If you want your business or start-up to thrive tomorrow, start thinking about your IP strategy today!

Source: https://www.euipo.europa.eu/en/news/intellectual-property-for-all-the-critical-importance-of-ip-rights-to-smes