ConvertiP

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If your product has already achieved commercial success, you may need to rethink your intellectual property (IP) strategy to safeguard your innovation. Our ConvertiP service assesses whether it's worth converting your trade secrets to patents.

Patents v Trade Secrets: Why You Should Re-Evaluate

It can take years, even decades, to get the right legal framework in place to protect your innovations. But as your business evolves, so should your IP strategy.

In the early stages of developing an idea, businesses often build up valuable know-how under trade secret protection. But once a product relying on those secrets becomes public, it might be time to switch to a patent strategy. This offers a more formal type of protection.

What are the risks of trade secrets?

Information leaks. Staff turnover and scaling up can increase the likelihood of confidential information getting into the wrong hands.
Limited options for enforcement. If confidentiality is breached, it can be difficult to prove, particularly if the source is unclear.
Missed tax incentives. Lucrative products can't benefit from tax breaks unless they're protected by a patent.
Reduced investment opportunities. Potential investors may be put off funding your innovation without robust IP protection in place.

Fine-tuning your IP portfolio helps you build on your business's solid foundations for continued success. With ConvertiP to guide you, taking the next step up can be as straightforward as possible.

How Does ConvertiP Work?

Our clearly structured ConvertiP audit service helps you weigh up whether it would be cost-effective to convert your trade secrets into a patent.

It will examine the strategic reasons for switching, including:

Profitability risks. Your product is now earning so much revenue that the risk of potentially losing exclusivity from a breach of confidence is too great.
Support for R&D tax relief. Obtaining a patent might support an earlier R&D tax credits claim that had previously been challenged by HMRC.
Business model changes. The way your business uses the trade secret is changing. For example, you're scaling up production from in-house to overseas.
External funding opportunities. You're looking to raise capital, but potential investors or lenders are concerned there's no formal IP protection in place.
Increased threats to secrecy. Internal changes, such as adopting new processes or upscaling, could make it harder to keep activities secret.
Confidentiality breached. Someone has already leaked your trade secret (a disgruntled ex-employee, for instance). But there's still a brief window where it might be possible to obtain patent protection.

The Benefits of ConvertiP For Your Business

Patent Box tax relief

The government's Patent Box tax scheme could reduce your Corporation Tax bill on profits earned from your patented inventions to 10%. This can often outweigh the costs of obtaining and maintaining a patent in the first place.

Flexible living document

As part of the ConvertiP audit, you'll be provided with a living document that can develop alongside your product roadmap.

Patent attorney expertise

As you progress through the ConvertiP process, you'll have a dedicated contact within our expert team. Our conversion specialists take time to get to know your business and give you expert advice every step of the way.

FAQs About Patents v Trade Secrets

What’s the difference between a trade secret and a patent?

A trade secret can protect confidential information forever but only against misuse and theft. A patent will be in the public domain but stops others from making, selling, distributing or importing the invention. Patents are also a registered form of IP, whereas trade secrets aren’t.

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What’s the difference between a trade secret and a patent?

When is the right time to convert a trade secret into a patent?

A good time is when the competitive advantage gained from keeping a secret is outweighed by the potential benefits of patent protection. This decision will depend on things like the likelihood of reverse engineering, your budget and the potential value of public disclosure.

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When is the right time to convert a trade secret into a patent?

How can patents support R&D or Patent Box relief?

The government offers R&D incentives to support innovation. The Patent Box scheme allows companies to pay a reduced Corporation Tax rate of 10% on profits earned from patented inventions.

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How can patents support R&D or Patent Box relief?

What risks are there in keeping a product as a trade secret long-term?

Commercial trade secrets are only valuable for as long as they remain confidential. If the secret is disclosed, either intentionally or by accident, its protection is lost. Former employees are often the biggest threat to preserving trade secrets.

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