Government Funding for Intellectual Property and Trademark Protection in Canada

Intellectual property and trademarks (“IP”) are imperative in distinguishing a company’s products and services from competitors. Protecting these intangibles is crucial for businesses to safeguard unique assets like logos, brands, inventions, and other creative works. IP protection also aids in preventing unauthorized use and counterfeiting, which has the potential to irreparably harm a business’s brand and growth.

There are a variety of programs and grants offered by the federal and provincial governments that provide funding to subsidize the costs of trademark searches, analysis and filings. We have included information on three such programs below.

What government funding is available for trademark and IP protection in Canada?

What is Intellectual Property Ontario (“IPON”)?

The IPON program offers IP support to enterprises at various stages of growth. They provide clients with access to expert IP advice, services, and resources to better understand how to:

• maximize the value of IP;
• strengthen business capacity to grow;
• compete in the global market; and
• enhance research and commercialization outcomes.

The IPON program provides a variety of services: IP funding, IP benchmarking, IP education, IP coaching, and IP insurance.

IP Funding

IPON clients are eligible for funding to support IP protection and commercialization, with IPON covering up to 80% of expenses based on an approved scope of work. Clients are required to contribute at least 20% of the service costs and provide a plan to ensure future IP sustainability. Funding may be applied to IP-related agreements (such as non-disclosure agreements, licences) or contracts with high IP impact (master service agreements or partnership agreements). Certain expenses, such as administrative costs, litigation costs, taxes and subscriptions are not eligible for funding. IPON also does not cover costs for past work. Additionally, all IPON-funded services must be delivered by licensed IP lawyers or registered IP agents in Ontario. Clients may use their own providers or choose from IPON’s approved list of IP service providers.

IPON Benchmark

IPON offers a benchmarking tool that provides a comprehensive assessment of clients’ IP awareness by conducting a review of their IP strategy, assets and processes. These results help to tailor IP strategies and actions.

IP Education

Clients are able to participate in online workshops where IP experts facilitate class discussion and provide practical guidance. Clients are also provided with module-based e-learning courses on topics tailored to advance clients’ IP knowledge. A micro-credential is awarded to clients to showcase their learning milestones.

IP Coaching

IPON clients will have access to one-on-one coaching from IP coaches at no additional cost. These sessions will be tailored to clients’ specific needs and assist clients in developing and strengthening their IP position.

IP Events

IPON clients will have access to exclusive events geared towards networking, education, and growth. Events include keynote speeches, panels, and workshops delivered in collaboration with IPON experts.

IP Insurance

IPON clients that are eligible for funding will also receive IP insurance with a base coverage of $1 million. This insurance applies collectively to defense costs and enforcement actions.

Who is eligible for IPIN funding?

IPON’s Eligibility Criteria consist of a number of requirements.  Specifically, applicants must:

1. Be an Ontario-based small or medium sized enterprise (i.e. with fewer than 500 employees);
2. Be managed by a team that includes one or more Canadians;
3. Have a physical address in Ontario for substantive operations;
4. Operate in Ontario and intend to grow their business in Ontario long term;
5. Own IP or IP rights that it intends to commercialize or monetize in Ontario;
6. Operate in one of the following sectors:
   • health technology;
   • life sciences;
   • artificial intelligence;
   • vehicle technology;
   • mining technology;
   • agriculture;
   • food technology;
   • cleantech; and
   • advanced manufacturing (if the technology relates to any of the aforementioned sectors);
7. Demonstrate potential to realize societal or economic benefit to Ontario;
8. Demonstrate financial capacity to advance the protection and commercialization of IP and IP rights that may be supported by IPON Client Services;
9. Have an immediate IP need suited for IPON services and IP funding; and
10. Be a Canadian-controlled entity:
    • Private for-profit entity whose majority of the direct and indirect beneficial ownership is under the control of individual(s) resident of Canada and incorporated under the laws of Canada or any of its provinces or territories with a head office located in Canada; or
    • Public for-profit entity where over 20% of the direct and indirect ownership is under the control of individual(s) who are residents of Canada.

What is ElevateIP at Communitech?

ElevateIP is a federally-funded project designed to provide assistance to Canadian startups with regard to the development and protection of their intellectual property. The program is delivered through Communitech and Invest Ottawa in Ontario.

Who qualifies for ElevateIP funding?

ElevateIP’s Eligibility Criteria consists of certain requirements. Applicants must:

1. Be a Canadian-Controlled Private Corporation (“CCPC”);
2. Have fewer than 500 full time employees, globally;
3. Have exclusive rights to the IP; and
4. Be headquartered in Ontario, Manitoba or Saskatchewan.

Applicants may be required to submit additional information and attend an assessment meeting with an IP advisor to finalize the application process.

What is CanExport SMEs?

The CanExport SMEs program aims to support Canadian companies that produce goods and services or play a key role in exporting Canadian products to other international markets. The program funds projects that have the potential to significantly boost Canada’s economic growth and offers up to $50,000 to Canadian small and medium sized enterprises (“SMEs”) for international business development activities including expenses related to the protection of IP in target markets.

Who qualifies for CanExport SMEs?

To be eligible, your company must satisfy the following criteria:

1. Be for-profit;
2. Be an incorporated legal entity, limited liability partnership or cooperative in Canada;
3. Have an active Canada Revenue Agency business number;
4. Have between 3 and 500 full-time equivalent employees; and
5. Have between $300,000 and $100 million in annual revenue declared in Canada during its last complete tax reporting year (or during the last 12 months for monthly and quarterly filers).

Funding is provided in the form of cost-sharing between the recipient and CanExport. The applicant may apply for funding with a minimum budget of $20,000 and up to $100,000 per project.

The program funds up to 50% of eligible costs from $10,000 to $50,000 in funding per project. The applicant is responsible for the remaining 50% (in-kind contributions are not permitted).

With regard to IP, eligible expenses include:

• Filing a patent or industrial design application;
• Filing an application for the registration of a trademark or copyright; and
• IP professional services from a consultant and/or legal firm, which can include: the development of an international IP strategy, database search, drafting of formal IP documentation, and filing of IP documentation.

Brand owners should consider whether (1) they are eligible for these (or other) programs, and (2) whether it would be advantageous to their business to participate therein.

Sotos LLP provides Canadian and international businesses with a full range of IP-related legal and business services including trademark registration, IP protection and commercialization across a range of industries including technology, health, manufacturing, food service and hospitality, retail, consumer products and food and beverage. We can help businesses assess their IP needs, develop an IP strategy, protect trademarks and other IP rights, and determine whether government funding may be available to offset eligible IP costs.

If your business is considering trademark registration or other IP protection in Canada or internationally, contact our Intellectual Property team to discuss your options.

About the Authors

Anna Thompson-Amadei is a senior associate at Sotos LLP whose practice includes advising clients on trademark registration and other intellectual property protection. She helps businesses develop practical brand protection strategies that align with their growth and day-to-day business needs. Contact Anna at 416.572.7322 or athompson-amadei@sotos.ca.

Nicole Perez is an associate at Sotos LLP who advises clients on franchise and commercial matters. Contact Nicole at 416.977.3674 or nperez@sotos.ca.