Intellectual property in the age of AI

AI can copy what you built.
It cannot copy what you own.

Legal ownership of what you created but cannot hold. Your invention, your brand, your data, your process. The only part of an innovation business a competitor cannot rebuild with AI.

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Every number on this page comes from a named study you can open and check. The full list is at the bottom.

The four numbers that matter

If you own intellectual property, this is what it is actually worth.

Four findings from large studies of real companies. Each one is explained properly further down the page.

10.2xMore likely to raise Series A or Series B funding if you applied for both patents and trade marks. European Patent Office and EU Intellectual Property Office, 2023
3.2xMore likely to be acquired or float on a stock market if you hold both. Same study, 2023
92%Of the combined value of the 500 largest listed US companies now sits in things you cannot touch, against 17% in 1975. Ocean Tomo, 2025
+172%More likely to hit a period of high growth, for small companies in ordinary industries that applied for a European patent. EPO and EUIPO, 2019

Start here

The four things you can own, explained.

Four rights. That is the whole vocabulary. Most companies need two, chosen deliberately. Most have none, because nobody ever looked.

Filing means applying to a government office, which examines it and grants or refuses. A process, not a purchase.

  • A patent covers how something worksStop anyone else using your method for twenty years. It has to be genuinely new and not obvious to someone skilled in your field.
  • A trade mark covers your name and logoStops competitors trading under a name customers would confuse with yours. Cheapest right to obtain, and the one most companies leave too late.
  • A registered design covers how a product looksShape, pattern, the look of an interface. Overlooked, and the fastest right to obtain in consumer and hardware.
  • A trade secret covers what you keep confidentialA dataset, a recipe, a tolerance, a customer list. Nothing to file. Protected by contract and by controlling who sees it. Lasts as long as it stays secret.
  • And one thing that is not automatic: who owns the workEmployee work usually belongs to the company. Contractor work often does not, unless the contract says so in writing. The most common gap a buyer finds.

What changed

Building something first no longer protects you.

For thirty years the wall was that building it was hard. AI removed the wall. Features that took a quarter get copied over a weekend, and being first stopped being a business model.

Ownership did not change. AI can rebuild your product. It cannot give itself permission to use your patented method, take the dataset you spent four years collecting, or trade under your name.

The market already repriced around this. Ocean Tomo has tracked what makes up the value of the 500 largest listed US companies for fifty years:

83%1975 · physical
8%2025 · physical
92%2025 · intangible

Brands, software, data, patents, know how. Buyers are paying almost entirely for what nobody can touch.

  • Your code is not a barrierIt is the single most reproducible thing you own. Anything AI can rewrite cheaply does not stop anyone.
  • Your data might beRecords gathered, labels added, real customer failures learned from. Expensive to collect, impossible to copy, almost never protected.
  • Your method might beHow you made it work reliably at scale. New and not obvious means patentable. 19.7 million patents were in force worldwide at the end of 2024.
  • Your name certainly is27% of European startups applied for a trade mark, more than any other right. Cheapest protection there is.
  • None of it counts until it is written downContractor work never assigned, secrets never documented, inventions never filed. A buyer values all of it at zero.

The three measured effects

What owning intellectual property does to funding, to value, and to your exit.

All three measured across tens of thousands of real companies.

NoneNo IP
3.5xFirst round
10.2xRounds after

EFFECT ONE

You become far more likely to raise money.

European startups tracked through their rounds. For Series A or B: trade marks alone 4.3x, patents alone 6.4x, both together 10.2x. At the first round, 2.5x, 2.9x and 3.5x. European rights beat national ones again.

REVENUE PER EMPLOYEE +20% IF YOU HOLD PATENTS +36% SMALLER COMPANIES +68% SMALLER COMPANIES, ALL RIGHTS +98%

EFFECT TWO

Your company earns more, and valuation follows earnings.

Across 127,000+ European companies: 20% more revenue per employee, 19% higher wages, 36% for patent holders. Smaller companies gain far more, up to 98% with all three rights. Buyers apply a multiple to earnings, so this lands straight on the price.

WHAT YOU OWN $ WHO PAYS
3.2xMore likely to sell or float

EFFECT THREE

You become more likely to sell the company or float it.

Acquisition or listing: trade marks alone 2.1x, patents alone 2.4x, both 3.2x. Against a base rate near one in a thousand, tripling the odds is not a rounding error.

Sources: EPO and EUIPO, Patents, trade marks and startup finance, October 2023. EPO and EUIPO, Intellectual property rights and firm performance in the EU, February 2021.

A client we did this for

What happened when our client owned the patents: DGS.

Digital Global Systems builds AI that monitors the radio spectrum every wireless network runs on. Our operator held both Chief Financial Officer and Chief IP Officer, so the money and the patents were run by one person.

Fernando Murias, Chief Executive Officer of Digital Global Systems
Fernando Murias · CEO, Digital Global Systems

Read the full story ↗

  1. 01

    Patents valued at approximately $18 billion. Independent valuation as of 15 November 2025. The portfolio alone, separate from products, revenue and team.

  2. 02

    725 patent assets, deliberately built. 571 US issued or allowed, 144 pending, 10 foreign. Assembled around what competitors would have to do.

  3. 03

    $25 million raised at a $12 billion enterprise value. Investors priced the ownership, not the revenue.

  4. 04

    The value sits in the patents, not the revenue. $18 billion for the portfolio alone beats what most companies in the sector are worth in total.

  5. 05

    Licensed, not just held. DGS charges others to use its spectrum technology alongside its own deployments. The same asset earns twice.

Figures from the company's announcement of 26 February 2026, linked in the sources at the bottom of this page.

Competition

How owning it keeps competitors out, and how you win with it.

A patent is not a certificate for the wall. It is a right to stop somebody, and its value is entirely in what it lets you do that a competitor cannot.

Competitors have to build it a worse way

A granted patent removes one route to market. They ship a worse version, pay you, or spend a year engineering around you. All three are good, and the third buys back the time AI took away.

You stop competing on price alone

A copyable product competes on price and bleeds at renewal. A product built on what you own competes on access. Hence 20% more revenue per employee and 19% higher wages than the copy can pay.

You can charge other companies to use it

Licensing: keep ownership, charge a fee for permission. Sell into an industry you do not serve, a country you will never enter, or the incumbent who would rather pay than fight. Supply cost is near zero.

This matters most in ordinary industries, not just deep technology.

The assumption is that patents matter in science and not in normal businesses. Measured, it is close to the opposite. The effect is biggest precisely where nobody files.

  • Applied for at least one right21% more likely to grow, 10% more likely to become a high growth company
  • Applied for a European right rather than a national one26% more likely to grow, 17% more likely to become a high growth company
  • European patent, technology industries110% more likely to hit a period of high growth
  • European patent, ordinary industries172% more likely to hit a period of high growth
  • European trade mark, everyday consumer goods62% more likely to hit a period of high growth

The benefit most companies miss

Licensing: how what you own becomes a second revenue line.

Everything above is protection. This is income. Keep ownership, charge a fee for permission, repeat with the same asset.

Most companies treat patents as a cost. Fees go out every year, nothing comes back. That is a decision, not a fact. The same patent that stops a competitor can be rented to them.

No factory, no stock, no delivery. A licence in a market you do not serve is close to pure margin. The buyers are usually the incumbents who would rather pay than spend two years engineering around you.

Lawyers file. Finance counts the cost. Nobody is responsible for making the portfolio earn. That is the job we fill.

See how the Chief IP Officer position works ↗
  • Sell into industries you will never serveYour technology solves a problem in three sectors. You sell properly into one. Licensing covers the other two without a single hire.
  • Sell into countries you will never enterThe licensee has the customers, distribution and local relationships. You supply permission and take a share.
  • Charge the incumbent instead of fighting themOnce you own it, the incumbent using your approach has two options: pay, or stop. Most pay.
  • Turn the portfolio from a cost into incomeRenewal fees go out every year regardless. Licensing makes the portfolio pay for itself and then some.

Timing

Applying late is the same as not applying at all.

The patent goes to whoever applies first, not whoever invented first. Second trap: showing it publicly before you apply usually kills the right permanently. A conference talk, a demo, an open repository, a deck sent without an NDA all count.

3.7mPatent applications filed worldwide in 2024, a record, up 4.9% on 2023 and the fifth annual rise in a row. WIPO
19.7mPatents in force worldwide at the end of 2024, up 6% in a single year. WIPO
800%+Growth in generative AI patents since the technology behind today's AI models was published in 2017. WIPO, 2024
29%Of European startups have applied for any intellectual property right at all. The remaining 71% are leaving it on the table. EPO and EUIPO, 2023

Industry by industry

What you can own in your industry.

Middle column: how many companies in the sector actually apply, from EPO and EUIPO, 2023. Right column: what we most often find valuable and unprotected inside one.

SectorHow many companies applyWhat is usually worth owning
Biotechnology and life sciences Highest in Europe. 48% patent, 47% trade mark, 31% both. Screening methods, compound libraries, formulations and dosing, manufacturing process, new uses for an existing drug, the clinical data.
Healthcare and medical devices 40% hold one. 20% patent, 40% trade mark. Device design, the measurement method, the regulatory approval file, reading-to-diagnosis software, long term outcome data.
Artificial intelligence and machine learning 36% trade marks. Patent use far below the value being created. Training and test datasets, collection and labelling method, fine tuning, cost reduction, model orchestration, safety filters, the trained weights kept confidential.
Science, engineering and industrial technology Second highest at 47%. 38% trade marks, 25% patents. Control systems, calibration, tolerances and materials, custom tooling, field service data.
Manufacturing and advanced materials 40% hold one. 20% patent, 36% trade mark. The production process, yield improvements, material composition, custom jigs, the registered look, supplier know how.
Energy, climate and sustainability Energy 19% / 36%. Sustainability 17% / 37%. Storage chemistry, power conversion, grid balancing and forecasting, monitoring hardware, carbon measurement method.
Information technology and business software 20% patent, although computer technology is the largest patenting field worldwide at 13.2% of filings. Architecture solving a real technical problem, search and retrieval, encryption implementation, interoperability, the registered look of the interface.
Media, entertainment and creative technology 21% patent, highest outside science and engineering. Compression and streaming, rendering and capture, rights management, the ownership chain behind your catalogue, marks on characters and formats.
Financial services, payments and insurance Low patent use for the value at stake. Heavy reliance on brand. Risk and pricing models, fraud detection, settlement and reconciliation architecture, underwriting data, and the brand, which here is close to a licence to operate.
Agriculture, food and natural resources Agriculture 36% trade marks. Natural resources 18% / 35%. Plant variety rights, formulation and preservation, yield prediction, protected regional names, packaging, recipes kept confidential.
Mobility, transport and logistics Steady patent use. Consistently weak protection of data. Routing and scheduling, self driving components, vehicle telemetry, charging and battery swap infrastructure, maintenance prediction.
Consumer goods and ordinary industries Very few apply, which is the point. A European patent made high growth 172% more likely here. Registered designs, look and feel, packaging, supply chain method, the brand. Combinations built around a trade mark beat everything else.

Where to start

What to do first, second and third.

Nobody needs a five year strategy. Four weeks of honest work, then a decision. Inside most innovation businesses the unprotected inventions outnumber the protected ones.

The failure is never a weak patent. It is a strong invention demonstrated publicly before anyone applied, or critical software written by a contractor whose contract never transferred ownership. Neither can be fixed later, and both surface in due diligence.

See how the Chief IP Officer position works ↗
  • 1. Stop the leakOwnership assigned in writing from every employee and contractor, NDAs before demonstrations, control over who sees what. Costs almost nothing, and the only step that cannot be done later.
  • 2. Find what you already haveSit with your engineers and list everything hard you solved. Most companies find four to nine things worth protecting.
  • 3. Rank by commercial use, not by how clever it isProtect what a competitor would have to do, not what was interesting to build. A patent nobody needs is a cost with no return.
  • 4. Build a small set, not a single trophyTrade mark first, then patent, then design. Combinations beat every single right in the growth data.
  • 5. Then charge other people to use itLicense into industries and countries you will never serve. This turns a dormant asset into a revenue line.

A client we did this for

What happened when our client licensed the patents: Position Imaging.

A New Hampshire company, two decades on one hard problem: knowing exactly where something is, using cameras and radio interpreted by machine learning. Our operator holds the Chief IP Officer position and runs the worldwide licensing programme.

Ned Hill, founder and Chief Executive Officer of Position Imaging
Ned Hill · Founder and CEO, Position Imaging

Read the full story ↗ More case studies ↗

  1. 01

    More than 50 active patents and over 30 pending. Covering precision tracking, computer vision and AI. Built over years rather than bought.

  2. 02

    Packaged so a buyer can say yes. A patent nobody can price is not a product. The estate was grouped into something a company can value and license without a six month legal argument.

  3. 03

    Licensed to companies around the world. The patents went to market as their own revenue line instead of sitting in a filing cabinet.

  4. 04

    $30 million raised against the patents themselves. October 2023, GT Investment Partners, IP as the security. The portfolio did not just protect the business, it funded it.

  5. 05

    Over $90 million raised, technology cited by more than 20 global technology leaders. Cited means their own patent applications point back at this work as prior art. The clearest signal a portfolio sits in the path of the market.

Patent counts, total funding and citation figures from Position Imaging's own company profile. The 2023 financing from regional business press. Both linked in the sources below.

FAQ

Common questions, answered plainly.

What is intellectual property, in plain terms?

It is the legal ownership of something you created rather than something you can physically hold. It comes in four main forms. A patent covers how something works and lets you stop others using that method for around twenty years. A trade mark covers your name and logo. A registered design covers how a product looks. A trade secret covers valuable information you keep confidential, such as a dataset, a recipe or a process.

Does owning intellectual property make it easier to raise money?

Yes, and the effect has been measured. The European Patent Office and the EU Intellectual Property Office studied European startups in a joint report published in October 2023. Companies that had applied for both patents and trade marks were 3.5 times more likely to raise seed funding, the first professional round, and 10.2 times more likely to raise Series A or Series B funding, the rounds that follow, than companies with no intellectual property at all.

How does intellectual property increase the value of a company?

It works through the numbers a buyer or an investor looks at. Ocean Tomo's 2025 study found that around 92% of the combined value of the 500 largest listed US companies now sits in things you cannot touch, such as brands, software, data and patents, compared with 17% in 1975. And a study of more than 127,000 European companies found those owning intellectual property earn 20% more revenue per employee than those that do not, rising to 68% more for small and medium sized companies and 98% for those holding patents, trade marks and registered designs together.

Does it make a sale or a flotation more likely?

The same 2023 European study found that companies which had applied for patents or trade marks were more than twice as likely to be acquired or to float on a stock market. Trade marks alone put companies at 2.1 times, patents alone at 2.4 times, and holding both at 3.2 times.

We are a software or AI company. Can we own anything?

Usually more than founders expect. Computer technology is now the largest single field of patenting in the world, at 13.2% of all filings, according to WIPO's World Intellectual Property Indicators 2025. Where a patent is not available, the thing worth owning is normally the training data, the test set, the way you process data, your method of adapting a model to a task, your customer usage data or your brand. Those are protected by keeping them confidential, by contract, and by trade marks rather than by a patent.

Is it too late if we have already launched?

It depends on what you showed publicly and when. In most countries a patent has to be applied for before the idea is made public. A public demonstration, a conference talk, a pitch deck sent without a confidentiality agreement or a published code repository can permanently remove your right to patent whatever was shown. Anything you never made public can still be protected, and in the United States there is a limited grace period after disclosure. The order of work is: stop the leak, then apply, then license.

Which industries benefit most?

Biotechnology applies the most in Europe, with 48% of startups applying for a patent and 47% for a trade mark. Science and engineering, healthcare and manufacturing all sit around 40%. But the largest measured benefit appears in ordinary, low technology industries, where small companies that applied for a European patent were 172% more likely to enter a period of high growth, against 110% in high technology industries. The benefit is bigger there because almost nobody in those industries files.

Are you a law firm?

No, and nothing on this page is legal advice. We do not file or prosecute applications. We place senior operators who decide what is worth owning and what it should earn, then bring specialist lawyers in to do the filing. If there is nothing worth doing, we tell you that on the first call.

Sources

Every number on this page, and where it came from.

Funding odds, exit odds, and how many companies apply by sector

European Patent Office and European Union Intellectual Property Office, Patents, trade marks and startup finance, October 2023. Funding figures from charts E3 and E4, exit figures from chart E5, sector filing rates from the accompanying press release of 17 October 2023.
Full report (PDF) · Press release (PDF)

Revenue per employee, wages, and results for smaller companies

European Union Intellectual Property Office and European Patent Office, Intellectual property rights and firm performance in the European Union, February 2021. Based on more than 127,000 companies, covering 2007 to 2019.
Study page

High growth odds by industry and by type of right

European Union Intellectual Property Office and European Patent Office, High-growth firms and intellectual property rights: the IPR profile of high-potential SMEs in Europe, 2019.
Full report (PDF)

The 92% figure for intangible value in the S&P 500

Ocean Tomo, Intangible Asset Market Value Study, 2025 release, covering fifty years of United States market data.
Study results

Global filings, patents in force, and the share held by computer technology

World Intellectual Property Organization, World Intellectual Property Indicators 2025, published 12 November 2025, covering calendar year 2024.
Patents highlights

Digital Global Systems figures

Patent portfolio independently valued at approximately $18 billion as of 15 November 2025; 725 patent assets made up of 571 US issued or allowed, 144 pending and 10 foreign; $25 million raised at a $12 billion enterprise value. Company announcement, 26 February 2026.
Company announcement

Position Imaging figures

More than 50 active patents and more than 30 pending applications, over $90 million raised, and technology cited by more than 20 global technology leaders, from Position Imaging's own company profile. The $30 million financing secured against the intellectual property, from GT Investment Partners in October 2023, was reported in Business NH Magazine.
Company profile · 2023 financing

Growth in generative AI patents

World Intellectual Property Organization, Patent Landscape Report: Generative Artificial Intelligence, July 2024. Generative AI patent families grew from 733 in 2014 to more than 14,000 in 2023, an increase of over 800% since the transformer architecture behind modern AI models was published in 2017.
Full report (PDF)

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