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Patent Support Fund for Small Medium Enterprises (SMEs)

The Patent Support Fund is a funding mechanism of the Innovation Fund's Intellectual Property Management Office (IPMO ). This mechanism aims to encourage and support Intellectual Property protection through the filing of patent applications and registrations of patents. This can also be done via the provision of financial support for patenting costs for those innovations emanating from South African SMEs with a particular focus on those with a Black Economic Empowerment (BEE) component.

Offerings

The fund will cover the costs associated with one or more of the following:

  • South African Provisional Invention Patent Applications.
  • South African Complete Invention Patent Applications
  • A Patent Cooperation Treaty (PCT) Application
  • Foreign national phase applications/patents, together with, where appropriate, reasonable development prototype costs of no more than R50 000

Up to a maximum of R250 000 will be paid for a patenting programme extending over a maximum period of three years, paid out in sections and subject to satisfactory progress. This Intellectual Property protection and support is provided in the form of an investment which can be one of or a combination of the following structures: a convertible loan, equity or royalty.

Requirements and Rules for Application

  • A South African Provisional Patent application should have, preferably, already been filed.
  • Audits to evaluate progress toward commercialisation will be conducted on an annual basis and the SME will be required to provide a progress report every six months for the duration of the agreement with the Innovation Fund. If the patent is not exploited within five years of funding, the Innovation Fund will be granted an exclusive and transferable royalty free license to the patent and may seek independent exploitation of the invention patent.
  • Strong preference will be given to applications having patents that offer clear national value and whose exploitation programme will promote SME development and BEE aspects.

To be Eligible for a Patent Registration Grant, the Applicant Must:

  1. Be an SME, (hereinafter referred to as “applicant”) as defined in the National Small Business Act 1996, as amended.
  2. The applicant must be an assignee or coassignee of the invention, and/or patent application/patent.
  3. The SME should preferably have a strong BEE component illustrated in the management and/or ownership structure. Alternatively there must be a BEE plan under implementation by the SME.
  4. The applicant must have filed at least a Provisional Invention Patent application, although in exceptional cases, and at the discretion of the Innovation Fund, support may be provided for the filing of a Provisional Invention Patent application.

Procedures for Application

The applicant must submit a completed application form detailing the proposed patenting programme, including the following:

  • A clear description of the invention (approximately one to two pages). Where a patent application has been filed, a copy of the full patent application must be provided.
  • Results and interpretation of any prior art searches which have been conducted.
  • Proposed budget, including quotes from Patent Attorneys that have been or will be used for the drafting of the patent specification(s) and filing of the application(s).
  •  A 'mini business plan' comprising a commercial viability assessment of the innovation, including details of "route to market", commercialisation costs, skills base within the management and technical team, and market analysis.

Download the Patent Support Fund for Small to Medium Enterprises application form.

Conditions

The Innovation Fund reserves the right to provide the support in the form of matching funds on a ratio to be decided upon by the IPMO after evaluating the application and supporting information.

The Innovation Fund’s support is not a grant but an investment on terms to be agreed to by the parties on a case-by-case basis.