EIC allows grant funding for IP due diligence — what SMEs need to know
- ›EIC beneficiaries can now use their grants to pay for IP due diligence services following a collaboration with EUIPO.
- ›IP due diligence helps SMEs protect innovations, attract investment and prepare for market expansion but it has costs and limits.
- ›Practical support is available through EIC business coaches, EUIPO resources and the Ideas Powered for business Talks channel.
- ›SMEs should weigh benefits against risks such as cost, disclosure and variability in provider quality and confirm eligibility under their specific grant agreement.
EIC allows grant funding for IP due diligence and why that matters for SMEs
The European Innovation Council in cooperation with the European Union Intellectual Property Office has made IP due diligence services eligible expenses for EIC beneficiaries. The change formalises a route for start ups and scale ups funded through EIC programmes to budget for professional checks of their intellectual property. EIC and EISMEA representatives framed the step as a practical measure to help small and medium sized enterprises protect their innovations and become investment ready.
Policy announcements boiled down to three core messages. One, IP due diligence can reduce legal and commercial risk when seeking investors or entering new markets. Two, EIC grants can now be used to pay for those checks. Three, beneficiary companies are encouraged to take up the service and to consult available support channels for delivery and follow up.
What IP due diligence covers
What changed and who is involved
The European Union Intellectual Property Office worked with the European Innovation Council and the European Innovation Council and SMEs Executive Agency to allow EIC beneficiaries to allocate grant funds for IP due diligence services. The change was promoted through the Ideas Powered for business Talks channel and related communications aimed at EIC participants.
Adéla Dvořáková, Project Adviser at EIC and EISMEA described the service as helping SMEs safeguard intellectual property and strengthen business strategies. An EIC beneficiary, Dr. Alberto Figoli, reported that 'IP due diligence identified gaps in our patent, allowing us to refine our IP strategy.'
Why this matters for SMEs
For early stage companies intellectual property can be both a core asset and a liability. A robust due diligence process clarifies what the company owns, where it can operate safely and where it may face third party claims. That clarity improves investor confidence, strengthens bargaining positions in licensing and M&A, and reduces the chance that market entry plans are interrupted by infringement disputes.
At the same time due diligence costs money and time. For many SMEs paying external specialists can be prohibitive. Making these services eligible under EIC grants lowers a practical barrier while leaving companies responsible for choosing qualified providers and managing confidentiality and disclosure risks.
How to fund and access IP due diligence under EIC
Eligible EIC beneficiaries should first check the specific rules of their grant or investment agreement and any related EISMEA guidance. Where permitted, companies can include professional IP due diligence in their eligible costs. The EIC ecosystem offers complementary routes of support including business coaches under EIC business acceleration services, national IP offices, the EUIPO Ideas Powered for business network and the Enterprise Europe Network.
Practical channels mentioned by programme managers include: booking support through EIC business coaches to scope the due diligence, using EUIPO tools and information to prepare, and watching the Ideas Powered for business Talk that highlights the policy change and use cases. Companies that are not EIC beneficiaries were advised to explore EIC entry routes and other EU support instruments.
| Type of IP check | Primary purpose | Who normally performs it | Typical cost range (EUR) | Indicative timeline |
| Patentability / prior art search | Assess novelty and claim strength | Patent attorney or specialised search firm | 2,000 to 7,000 | 1 to 4 weeks |
| Freedom to operate analysis | Identify infringement risks in target markets | Patent counsel with jurisdictional expertise | 5,000 to 20,000 | 2 to 6 weeks |
| Portfolio due diligence | Comprehensive review of filings and ownership | IP law firm or specialist firm | 10,000 to 50,000+ | 4 to 12 weeks |
| Trademark clearance | Avoid brand conflicts | Trademark attorney or search provider | 500 to 3,000 | Few days to 2 weeks |
| Design and trade secret assessment | Assess protection for non patentable assets | IP advisors and in house counsel | 500 to 10,000 | 1 to 6 weeks |
Practical steps for SMEs to take now
1. Confirm eligibility. Review your grant agreement and EISMEA guidance to confirm you can budget IP due diligence as an eligible cost. 2. Scope the work. Use an EIC coach or an in house advisor to define the questions you need answered. 3. Choose qualified providers. Request credentials, references and a clear scope of work. 4. Protect confidentiality. Use NDAs and limit disclosure to material necessary for the review. 5. Integrate findings. Update patent filings, licence plans, business forecasts and investor materials based on the report. 6. Budget realistically. Expect variation in price by complexity and jurisdictions.
Limits, risks and open questions
The policy change is useful but not transformative by itself. IP due diligence identifies risks and helps manage them but cannot guarantee that patents will be granted or enforced. Costs can be material for complex technologies and multiple jurisdictions. Quality of advice varies so companies should vet providers carefully. There is also a trade off between sharing technical details with external reviewers and exposing commercially sensitive information, so good confidentiality arrangements are essential.
The change appears to be available to EIC beneficiaries only. SMEs outside EIC funding need to look to national programmes, EUIPO services, pro bono offerings from university tech transfer offices and the Enterprise Europe Network. Companies should also confirm procurement rules and reporting requirements that apply when grant money is used to pay external consultants.
Where to look for support
Useful entry points include your EIC programme manager or business coach, the EISMEA helpdesk, EUIPO resources and the Ideas Powered for business Talks channel which hosted the announcement. National IP offices, the Enterprise Europe Network and local tech transfer offices often provide lower cost or subsidised services. If your company is preparing for external investment, discuss IP due diligence early with prospective investors and with legal counsel so that work is aligned with investor expectations.
In short, allowing EIC grants to cover IP due diligence reduces a practical barrier for funded companies. It is a sensible step for investor readiness and cross border expansion. However companies should plan and manage the process carefully and avoid treating a single report as a panacea. Due diligence is a tool to inform decisions, not to eliminate legal and commercial risk.
Watch the Ideas Powered for business Talk for practical examples and follow up with your EIC contact if you are an EIC beneficiary. If you are not yet part of the EIC consider exploring entry routes and the broader EIC support ecosystem.