One of the biggest challenges faced by entrepreneurs, inventors, start-ups and business owners trying to bring novel intellectual property to market is transitioning from development to commercialisation.
This stage between lab and marketplace has been termed the ‘valley of death’, a barren wasteland traditionally characterised by a lack of funding and support. However, the introduction in November 2014 of the Federal Government’s ‘Accelerating Commercialisation’ program may go some way to alleviating this problem.
This program is the third installment of the government’s $484.2 million Entrepreneurs’ Infrastructure Programme and is aimed at bridging the gap between R&D and commercial viability.
What assistance is available?
The program provides assistance in two ways. First, financial assistance of up to $1 million dollars is provided for eligible expenses. Secondly, access to opportunities and advice is made available through a central database and network of business experts.
Financial assistance is available in the form of matching grant funding of up to $1 million for companies, or up to $250,000 for university technology transfer offices and other eligible research organisations.
Funding covers expenses relating to patenting, labour costs, training and travel expenses, in-licensing of necessary intellectual property, prototype and process development, regulatory and quality control and legal fees for collaboration, licensing, manufacturing or distribution agreements. Expenditure relating to labour, contracts, and prototypes could potentially also qualify. However, as this is a program aimed at introducing new products into the marketplace, funding is not available for basic R&D, projects where a first product has already been sold and projects enhancing existing products. Costs associated with defending IP are also excluded, however other IP-related expenditure, including other legal fees and costs related to the protection of project IP are covered.
But it’s not all about the money. Expert advice and access to networks are two other elements crucial to the success of a business and its products. The program provides these vital services by putting successful applicants in contact with ‘Commercialisation Advisors’ to guide them through the commercialisation process, offering formal and informal networking opportunities with an “Expert Network” and assisting successful applicants in gaining exposure to potential investors and new markets.
Who is eligible?
In order to be eligible for the program, applicants must demonstrate that they are a GST registered trading company with an annual turnover of less than $20 million for each of the three years preceding the lodgement of the application. They must also demonstrate that they have a novel product, process or service that has potential in a market wider than simply that of their home State or Territory and that they own or have the right to use the IP relating to that product, process or service.
In addition, priority will be given to projects falling within the following identified growth sectors: food and agribusiness; medical technologies and pharmaceuticals; advanced manufacturing; mining equipment, technology and services; oil, gas and energy resources. However, falling within one of these sectors is not a prerequisite for eligibility.
Funding is aimed at projects in which development of a novel product, process or service with commercial viability is in its final stages. As such, eligible projects should aim to complete development, prove commercial viability, make the first sale or drive the business towards commercialisation of a novel product, process or service.
How do I apply?
There are no deadlines for applying. Applications can be lodged at any time and are reviewed every six to eight weeks.
If applying for funding, the first criterion to be addressed in the application is the need for funding. Applicants must prove that they have exhausted all efforts to fund the project through their own means and that they have the means to fund half of the project. The five other criteria that must be addressed in the application are market opportunity, value proposition, execution plan, management capability and national benefit.
If appropriate we can assist with the filing of a program application.
More information
For more information, please contact Daniel Kovacs, Principal Lawyer on (03) 8600 8859 or dkovacs@kcllaw.com.au or Jeremy Goldman, Principal Lawyer on (03) 8600 8886 or jgoldman@kcllaw.com.au.
Note: This update is a guide only and is not intended to constitute legal advice.