10 Takeaways from IPFest on Your Startup’s DNA: Intellectual Property

Intellectual property (IP) is often seen as a complex field, reserved for lawyers or large companies. Yet it can make the difference between a startup that survives and one that collapses in the face of competition.

At IPFest, held as part of Startupfest and moderated by Susan Tees (New Ventures BC) and Alexis Conrad (Communitech), entrepreneurs, investors, and experts shed light on the real challenges of intellectual property. No jargon, no theory—just real-life stories, sometimes harsh, but always full of valuable lessons.

Ready to avoid the most costly mistakes? Here’s what we took away from this half-day of content on intellectual property, as well as from our conversation with Frank Baylis.

Find out how IP can help you build a strong, high-value business!

A good IP strategy isn't just a single, framed patent hanging on a wall—it's a family of patents and other forms of protection that serve as a bulwark against competitors.

A striking example: the sale of Baylis Medical to Boston Scientific for US$1.75 billion. It all hinged on a single strategic patent that enabled the company to acquire a competitor that was infringing it, and then take control of all of that competitor’s IP.

Without strong intellectual property (IP), an innovative startup remains vulnerable: an idea can be copied and brought to market faster or on a larger scale by a wealthier competitor. IP transforms a fragile innovation into a marketable asset.

Errors in IP are common and can sometimes be very costly for the founding team and the company's finances.

Here are a few pitfalls we identified during our various discussions:

1. Believing that registering your company protects your trademark.
2. Getting attached too quickly to a name that turns out to be impossible to defend (hello, six-figure rebranding).
3. Discussing an invention publicly before patenting it, which can invalidate any protection, especially in academic collaborations.
4. Revealing what we're working on too soon, especially for very early-stage startups.

" [It felt like] fixing something that should have been done right from the start. "

After six years of building her business around “Hôtel UNIQ,” she discovered that neither “Hôtel” (generic and descriptive) nor “Unique” (a common variation already in use in the hotel industry) could be easily protected as trademarks. This lack of protection had significant consequences for her company’s growth and long-term value.

Protect your business worldwide? That’s unnecessary and a significant expense when you’re just starting out. Targeting strategic markets (the United States, Japan, China, and major European countries) may prove more effective.

It is also essential to distinguish between the inventor and the owner: only those who have contributed to a patent’s claims should be named as inventors; the company holds the rights if this is clearly stipulated in the contracts.

IP does not replace a solid business model based on sales and alignment with customer needs, but it does enhance credibility and valuation during fundraising or acquisitions.

Key tip: Consult an IP professional early on to develop a tailored strategy. Services like momentumPI, funded by the ÉleverlaPI program, make this step accessible even for startups.

Innovating in established industries, such as real estate, can attract attention… and lawsuits. The key in this situation is to delegate the task of defending the case in court to experts, so that entrepreneurs can focus on the product and customers.

Resilience—and a realistic budget for litigation, thanks to informed and engaged investors—is a critical factor for survival.

And very often, in order to compete with the big players, proving that you’re serious comes down to the investment you make in intangible assets, such as trademarks or patents.

"If you have to spend all your time defending yourself in court, how much time can you devote to developing your technology?"

The story of Ubee—which faced two preliminary injunction proceedings three days before its platform’s launch and appeared in court seven times in three months—demonstrates the importance of having a strong support network when building a company that disrupts a particular industry.

For an investor, intellectual property is an asset that creates value, acompetitive moat that blocks competition, and a risk management tool that must be clear and well-documented.

Keep in mind that it’s important to verify your rights (licenses, contracts) regarding any technology you developed as an employee or through a university. Investors want clear terms and a flexible strategy, not a dusty file.

During due diligence, investors ensure that the startup has secure access to the necessary intellectual property, that the documents are in order, and that there is no risk of infringement.

That said, intellectual property contributes to overall value, but the real value lies in the strength of the company itself—its ability to generate revenue and find its place in the market.

In emerging technologies (AR/VR, AI, deep tech), obtaining a patent can take years and involve several rejections.

Patents require perseverance and strategic decision-making (it’s impossible to patent everything), but they become a major asset when it comes to negotiating, raising funds, and getting acquired. Even though giants like Apple downplay their value in negotiations, the thousands of patent applications they file each year prove their strategic importance.

"A year means everything in the life of a startup. If you're thinking about getting a patent, be aware that the process can take a long time."

It took Bertrand Nepveu seven years to obtain his first patent with Vrvana. He learned that initial rejections are common, requiring perseverance and a strategic assessment of the invention’s novelty.

It’s impossible to talk about innovation and innovative companies without mentioning artificial intelligence (AI), the other buzzword these days (after IP, of course). In an in-depth discussion on the topic, Claire Mazzini and Paul Gagnon debunked three myths about AI-driven innovations:

1. IP systems are based on human contribution. Creations generated entirely by AI are not eligible for protection unless it can be demonstrated that humans made a significant contribution to the creative process. In any case, it is important to be familiar with the terms and conditions of AI tools.
2. Confidential data provided to AI providers is not necessarily used. This depends on whether you are using a free or paid plan. Proper training for employees on how to use AI tools will help minimize the risk of confidential information being disclosed.
3. Full automation via AI does not (yet) exist: even the best systems still require human oversight. To better build customer trust, companies must design workflows that incorporate human feedback loops.

The discussion on AI and IP must be a company-wide conversation involving all departments, not just the technical teams.

As Jean-Nicolas Delage aptly described during the panel discussion on the importance of IP for investors, the “IP matrix” is a key concept to understand in order to align one’s patents and trade secrets with one’s technology and market objectives.

Each patent, with its unique characteristics and interconnections, is designed to address, in detail, a key element or a specific component of your business strategy, both over time and across different contexts.

You may have that standout feature that will appeal to potential buyers (such as the button on the glasses developed by Vrvana that switches between virtual reality and augmented reality) or a “wall” of patents, as Frank Baylis put it.

It all depends on what you want to do and how it benefits your business.

"If you don't have enough IP protection, [someone with more money] will steal your idea and crush you."

This strategic lesson was shared by Frank Baylis, who reflected on the sale of his company to Boston Scientific and the stages of IP-driven growth during an intimate session attended by about 30 people at OFF-IPFest in Walter.

Canada is home to many major inventions (insulin, AI, alkaline batteries), but companies often have to seek validation and make their first sales abroad before selling domestically, due to a lack of government support and risk-taking in public procurement.

The ArriveCAN scandal can be seen as a factor that makes the Canadian government risk-averse. In particular, in the field of medicine, it is rare for new medical products to be launched first in Canada due to the sluggishness of the governments that manage hospitals. Quebec is often more open to new medical product launches, and Halifax is showing signs of openness. In the United States, California and Texas are often more willing to take risks.

Initiatives like momentumPI exist to help startups protect their innovations, but several panelists are calling for bolder support to keep innovation in the country.

• Protect Your IP Early: Don't Wait Until It's Too Late to Develop Your IP Strategy
• Think globally: even if international action isn't immediate, international protection may be necessary.
• Don't fall in love with your name too quickly: make sure it can be protected before you invest in it.
• Don't rely on just one opinion: consult several IP professionals.
• Surround yourself with a strong team of experts, including specialized attorneys.
• Focus on revenue generation and market fit: this is the most important factor for success, and intellectual property will be a key enabler.

In short, intellectual property is a strategic pillar for any startup.

Investing time and resources in an IP strategy from the very beginning, seeking guidance from experts, and remaining resilient in the face of challenges are essential steps for building a strong, valuable, and sustainable business. Services such as momentumPI in Quebec, and through the ÉleverlaPI across Canada, are there to support Canadian businesses.