At InnoPhyte Consulting our primary task is to secure your R&D grant funding. We often discuss grant funding processes and opportunities. But it is important for clients to understand some of the IP-specific challenges we typically encounter.
What is FTO?
Freedom to Operate (FTO) is often mentioned in IUK grants and EU R&D grants. FTO refers to the permissions your company has or needs to sell a product, process, or service. These permissions might include licences, patents, copyrights and trademarks.
During the application writing stage, you will need to demonstrate to the reviewer that the development of the new technology doesn’t violate any existing patents or other IPs. If there are no infringements, FTO is granted automatically. But how do you convince the R&D grant reviewers that you really do have FTO?
A practical example
For example, for applicants to the EIC Accelerator grant, providing a 2-page FTO analysis is a mandatory requirement. It’s advisable to have this analysis prepared by an IP advisory firm, such as a patent attorney. However, in most R&D grants, this level of detail is not required. In our experience, Innovate UK assessors typically require reference to an FTO analysis to fulfil the requirement, particularly if the proposed innovation is novel.
Caveat emptor!
FTO analysis is inherently an open-ended process, meaning complexity and costs can escalate rapidly if not managed properly. An experienced patent attorney can conduct a high-level, red-flag FTO analysis at a reasonable cost. The work will identify any potential third-party patents that could hinder your planned commercialization efforts and are challenging to work around. As your business expands and your commercial activities grow, a more-comprehensive FTO analysis will become necessary.
For further insights into IP-related matters, get in touch and we can discuss in detail your concerns and we can find the best approach for your goals.
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