Having been an avid fan of BBC's Dragons' Den for many years, long before I knew a patent claim from a trade mark, I now also partake in the guilty pleasure of many IP professionals of 'fact-checking' the IP claims made by entrepreneurs seeking a slice of fortune in the Den.
In the latest edition of the excellent "Dragons' Den IP blog" from the UK Intellectual Property Office, which highlights every week how critical early stage IP protection is for founders entering the Den and provides some useful reminders for any business developing innovative products, the question of IP protection comes up in relation to two of the featured pitches.
In one pitch, a composting toilet business, "Compo Closet Ltd" pitched their product, a self-contained, portable composting toilet specifically designed for campervans, asking for £100k in return for a 3% stake in the business. When questioned about IP protection for their idea, they inform the Dragons that they have patent applications filed, but not yet granted, in several countries, including the UK. Later, at the sharp end of the pitch, Peter Jones makes his move:
He then goes on to offer the couple the £100k they asked for, but at a much steeper 20% stake in their business, effectively devaluing the company by almost £3m in the process. Although it must of course be remembered that Dragons' Den is primarily an entertainment show made for dramatic moments like this, and that not all of this deficit could reasonably be attributed to the lack of a granted patent, this example highlights the value and credibility which comes from early consideration of IP strategy when seeking investment in a business. This can be especially important when a product involves physical hardware or technical methods, each of which may be covered by patent protection.
In another pitch, a cat flap which used AI to determine whether your favourite fluffy friend was bringing you a 'present' from outside was pitched. The inventors again highlight their pending GB patent application, but a closer look at the prosecution of the patent so far appears to show they may have come up against some of the common problems found when trying to protect AI inventions. However, the tide may be changing on this front, as covered by my colleague Lara Sibley in her in-depth analysis of the recent UK Supreme Court ruling on patents and AI.
Whether you're pitching in a boardroom or a TV studio, your ability to articulate your IP protection, and how it underpins your competitive advantage, is often as important as the product itself. Dragons' Den continues to offer a valuable lens on the real‑world commercial impact of patents, trade marks and technical differentiation.
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