Intellectual property is an important asset for all start-ups, but for those involved in health technology the need to protect that technology (IP protection), and/or processes, is a fundamental element of a company’s success. It is also one that often gets overlooked, or pushed down the list of priorities.
Concerns about cost, implementation, speed of execution and just having so many other aspects of the business to focus on will often lead to start-up founders failing to put in place a robust IP strategy.
With the speed at which technology is finally being adopted within healthcare, new ways of providing care, technology-led services and new connected medical devices are all on the rise. For the companies that have developed those technologies it is vitally important to have some level of protection that will provide the company with a defensible position within the marketplace.
At one end of the spectrum, businesses should at a minimum be acquiring trademarks and design rights, but ultimately what adds the most value is the development of a patent portfolio.
The existence of these elements are usually some of the first things that investors will look at, when considering financing a technology company.
Growth Strategy
Having IP protection within a strategic road map for growth is a key consideration for anyone involved in digital health. Spending time planning for how you will protect your IP alongside other key strategic elements like deliver exceptional UX/UI design experiences, producing scalable systems and managing data security should all be within that overall plan.
What is a protectable technology?
Knowing what can and can’t be protected using IP rights is often one of the biggest challenges for start-ups. With legal costs often seeming prohibitive the potential value of inherent technology IP can often be overlooked.
It is therefore important to enlist legal advice from an early stage. Not only will a good Intellectual Property lawyer be able to tell you how to approach protecting your technology, or developments, but they will also be able to advise on how to embed IP collation across your organisation as it grows. This in turn will quickly help build the value of your start-up and in turn increase its attractiveness to investors, or as a future acquisition target.
According to patent expert Amanda Stark, “Digital health products often encompass several distinct technologies – software, hardware (sensors), telemetry and diagnostic tools and can be used to assist in a method of treatment or diagnosis. Some of these technologies should be relatively easy to protect by a patent. However, in some jurisdictions (including Australia and Europe), protecting abstract ideas, software and computer-implemented technologies may be difficult – unless they provide real-life outcomes. Similarly protecting methods of treatment or diagnosis can be difficult in some jurisdictions, particularly the US.”
Technology product life cycles
The product life cycles of digital technologies are often much shorter than hardware innovations, because of the need to reiterate and adapt to changing technology trends. As such they need to be considered through a different lens when considering the cost effectiveness of IP protection.
What IP protection should health start-ups consider?
- Patents – In many jurisdictions the time taken to obtain patent protection often makes them unattractive to the digital health environment of rapid innovation and quick turnover. Despite this building patents into your IP strategy is an important element, particular for businesses that have a hardware or product element.
- Design rights – Although design rights protect a product’s shape or appearance (and not its function), aspects of a digital health device’s appearance are often a key factor in consumer uptake.
- Copyright – Collection of data or a database may be protected if it is sufficiently original. Copyright may also exist in algorithms and software code used by a digital health device.
- Trademarks – As we continue to witness the consumerisation of healthcare technology, more and more products are following a consumer targeted strategy for which having an identifiable (and protectable) brand is becoming increasingly important.
Finding the right IP protection
At a recent event for our HealthTech Networking Club leading experts came together to advise our digital health members on the types of IP protection they should be looking to access, alongside other strategic growth considerations, including digital product trends, insurance and product/data liability protection.
Owing to the many niche areas of specialist expertise that digital health can touch on, the best IP protection outcomes are achieved by multidisciplinary legal teams. Many law firms have recognised the growth potential of the healthcare technology market and are actively building specialist teams to represent businesses operating in the industry. Despite this the cost of such services can often be sometimes prohibitive, particularly at the early stages of a business.
To combat this a number of legal firms are now introducing innovative packages that are designed to grow alongside their digital health clients.
Work with experts
One of the most important things a start-up can do is to work with experts who understand the health technology market and can advise and assist in bringing a product to market and achieving success with customers.
In bene : studio’s non-equity, design, and technology-focused accelerator you can have your product set in line for strategic growth by experienced professionals.