Protecting Innovation Without Breaking the Budget
By Johannes Wohlmuth, Senior patent attorney at Calysta
Protecting innovation is essential for maintaining a competitive advantage—but for many companies and inventors, the cost of intellectual property (IP) protection can become a decisive barrier. Too often, the perceived choice is limited to either comprehensive international patent protection or no protection at all. In practice, however, there is a much broader range of strategic options. With a tailored approach, innovation can be protected effectively while keeping costs under control.
- The Classic Dilemma: Strong Protection or None
Before a new product enters the market, companies typically evaluate whether the underlying technology should be protected by a patent. If the decision is made in favor of protection, many organizations rely on a standardized filing strategy, often covering a fixed set of countries, such as Europe, the United States, and China.
While this approach offers broad territorial coverage, it also involves substantial costs—not only at the filing stage, but throughout the entire lifetime of the patent. As a result, companies frequently face a binary decision: invest in strong, global protection at a high price, or avoid protection altogether in order to reduce costs.
This “all or nothing” mindset can lead to missed opportunities. Many valuable innovations—particularly those with limited budgets or uncertain commercial prospects—remain unprotected, even though a more selective and cost-efficient strategy would have been possible.
- Tailored IP Protection Strategies for Products of Every Size
A more effective approach is to align the scope and strength of IP protection with the commercial relevance of the innovation, the target markets, and the available budget. Below are several strategies that allow companies and inventors to protect innovation in a smarter and more flexible way.
a) Smart Selection of Countries
One of the most effective ways to reduce costs is the strategic selection of jurisdictions. Not every innovation needs protection in every country.
For example, for products such as cars or industrial machinery that are sold across Europe in largely identical versions, patent protection in one major market—such as Germany or France—may already provide significant deterrence across the entire European market. Enforcement in a key jurisdiction can often have a broader commercial impact, while the costs are only a fraction of a full multi-country filing strategy.
In addition, different innovations—or different aspects of an innovation—can be protected in different countries. Instead of pursuing identical protection everywhere, companies may strategically allocate distinct patents or utility models to specific jurisdictions. This approach can be particularly effective for complex products with multiple technical features. By doing so, competitors are faced with an unattractive choice: either develop market-specific product versions for each country—significantly increasing development, production, and compliance costs—or refrain from using certain protected innovations altogether. In practice, this fragmented protection strategy can create a strong competitive barrier across markets, even though each individual filing remains limited in scope and cost.
For startups and SMEs, this approach can make the difference between having meaningful protection and having none at all.
b) Differentiating Between Core and Non-Core Innovations
Not all inventions are equally important from a strategic perspective. Core technologies that define a company’s competitive advantage may justify broader territorial protection, while secondary or incremental innovations may only require protection in the home market.
For example, a company may decide to protect its flagship technology internationally, while limiting protection for product variants or process improvements to one or two key jurisdictions. This prioritization can significantly reduce overall IP expenditure without compromising the company’s strategic position.
c) Using Non-Examined Patents and Utility Models
In many jurisdictions, non-examined patents or utility models offer a cost-effective alternative to fully examined patents. These rights are generally faster and less expensive to obtain and can provide valuable interim protection.
Although such rights may offer a lower level of legal certainty, they can still serve important strategic purposes:
- They establish a formal IP position.
- They deter competitors from copying.
- They allow the rights holder to defer significant enforcement costs until a real infringement arises.
This approach can also be combined across jurisdictions. For example, a company may choose an examined patent in the United States while relying on a non-examined patent or utility model in Belgium or another European country, thereby balancing strength and cost.
d) Considering Design Protection
In some cases, design protection can be a powerful and often underestimated tool. For products where visual appearance plays a key role—such as consumer goods, medical devices, or mechanical components—design rights can offer strong protection at significantly lower cost than patents.
Design protection can often be obtained quickly and can complement patent protection or, in some cases, serve as an effective standalone solution.
- Summary
The most effective IP strategies are not standardized—they are tailored. By carefully assessing each product innovation, its market relevance, and the available resources, companies and inventors can implement protection strategies that are both economically sustainable and legally effective.
Instead of choosing between expensive global protection and no protection at all, a flexible approach allows innovation to be protected at an appropriate level—supporting growth, investment, and long-term competitiveness.
At Calysta, we support clients of all sizes—from startups and individual inventors to multinational corporations—in developing IP strategies that protect what matters most, without unnecessary cost. A well-designed IP portfolio is not just a legal asset; it is a strategic investment in the future of innovation.