Intellectual Property for Health Innovators: Protecting Your Innovation and Navigating NHS Procurement

For health innovators developing new medical devices, diagnostics, or digital health solutions, intellectual property (IP) protection is a crucial aspect of commercial success and securing NHS adoption. The NHS has stringent procurement processes, requiring both clinical validation and regulatory compliance, making a strong IP strategy essential. Additionally, with the NHS moving towards the Atamis Procurement System, ensuring your innovation is protected and commercially viable before entering NHS supply chains is more important than ever.

This article explores key IP considerations for health innovators, how to navigate NHS procurement, and how to afford IP protection.

Why Intellectual Property Matters in Healthcare

IP provides legal protection for your innovation, preventing competitors from copying or profiting from your ideas. In the healthcare sector, strong IP rights can:

• Provide a Competitive Advantage – A granted patent, trademark, or copyright prevents others from using your innovation without permission.
• Increase Investment Appeal – Investors and NHS innovation funding programmes often require evidence of a sound IP strategy.
• Enable Licensing and Collaboration – If your innovation gains traction, you can license your IP to NHS Trusts, manufacturers, or distributors.
• Prevent Copying and Market Erosion – Without IP protection, competitors (including larger medical companies) could replicate your product, making it harder to establish your presence.

Types of Intellectual Property for Health Innovators

1. Patents
2. Trademarks
3. Design Rights
4. Copyright
5. Trade Secrets

Intellectual Property and NHS Procurement: The Role of Atamis

The NHS is transitioning to the Atamis Procurement System, a new digital platform designed to streamline NHS purchasing decisions. For innovators, this means:

• NHS buyers will assess solutions based on compliance, cost-effectiveness, and procurement readiness.
• Innovators need to demonstrate market exclusivity or a unique value proposition, which strong IP protection can provide.
• Without clear IP ownership, NHS buyers may be hesitant to adopt a product due to legal uncertainties.

If you are aiming to secure NHS contracts, having a patent or trademark in place will strengthen your position when engaging with NHS procurement teams via Atamis.

Weighing Up the Costs of IP vs. Potential Revenue

For health innovators, deciding whether to invest in intellectual property (IP) protection is a strategic financial decision. The costs of securing patents, trademarks, or design rights can be significant, often amounting to tens of thousands of pounds, especially for international protection. This must be weighed against the potential financial return from selling or licensing the innovation within the NHS or globally.

Key factors to consider include:

• Market Size & NHS Procurement Potential – Is the NHS a major buyer for your innovation? If so, securing IP can strengthen your position in procurement negotiations and deter copycat products.
• Manufacturing & Scaling Costs – Will protecting your IP give you a commercial advantage by allowing you to scale before competitors enter the market?
• Licensing vs. Direct Sales Model – If you plan to license your innovation to larger companies or NHS suppliers, strong IP rights can increase the licensing value.
• Time to Market – If your innovation has a short market window before new technology surpasses it, IP protection may not be cost-effective.

A key risk of not securing IP is that your innovation may be easily copied by larger healthcare companies with greater resources, making it difficult to establish yourself in the market.

The Battle Against Big Healthcare Companies: Where Is the Protection for Health Innovators?

One of the biggest challenges for health innovators is competing with large medical corporations that have:

• Established NHS procurement relationships
• Extensive legal teams to challenge patents
• Large-scale manufacturing and distribution capabilities

If an innovation lacks patent protection, larger companies can reverse-engineer the product and bring it to market faster, leveraging their existing NHS contracts. This can leave small innovators struggling to compete, even if they were the first to introduce the idea.

Cost Implications of Intellectual Property Protection

Securing IP protection can be expensive, and early-stage health innovators must carefully budget for it. The costs include:

• Patent Applications – A UK patent can cost up to ￡7,000, with international patents significantly higher.
• Trademarks – UK trademark registration starts from ￡170 per class, but expanding to the EU or US increases costs.
• Legal Fees – IP attorneys charge additional fees for drafting and defending patents.
• Freedom to Operate (FTO) Analysis – Conducting an FTO check to avoid infringing existing patents can cost ￡3,000–￡10,000.

How Health Innovators Can Afford IP Protection

Despite the high costs, there are several ways to afford IP protection:

1. NHS and UK Government Funding Grants

• Innovate UK & SBRI Healthcare – Provide grants for healthcare innovators, often covering IP costs.
• Health Innovation Network (formerly AHSN) – Supports SMEs with commercialisation and may advise on IP strategy.
• UKIPO Grants – The UK Intellectual Property Office offers funding for start-ups to develop IP strategies.

2. University or NHS Partnership Agreements

• Many NHS Trusts and universities have IP-sharing agreements that can reduce costs for co-developed innovations.

3. Patent Box Tax Relief

• If you secure a patent, you can apply for Patent Box relief, reducing corporation tax to 10% on profits derived from patented products.

4. Staged Approach to IP Protection

• Initially file a UK patent application and delay international filings until your innovation gains traction.
• Consider provisional patents to secure an early filing date while refining the product.

Conclusion

While securing IP protection can be expensive, it provides a vital shield against market exploitation by larger companies. Without it, innovators risk losing control of their ideas to established players with more resources and procurement influence. The decision ultimately depends on whether the potential revenue from NHS adoption and licensing outweighs the cost of securing protection.

A well-defined IP strategy is essential for securing NHS adoption. Protecting your innovation through patents, trademarks, and trade secrets will strengthen your position when engaging with NHS procurement teams, particularly within the Atamis system. While IP protection can be costly, funding options such as Innovate UK, NHS grants, and Patent Box tax relief can make it more affordable for early-stage health innovators.

By combining strong IP protection with a procurement-ready strategy, health innovators can navigate NHS adoption more effectively and ensure long-term commercial success.

Here at the 3M Buckley Innovation Centre we provide a collaborative environment that supports businesses and entrepreneurs in developing innovative products and services. We house all the key player machines for Additive Manufacturing that are set to significantly grow in the health care market. We also offer access to advanced facilities, including prototyping labs and expertise in research and development. The centre has long standing links with academia and industry, facilitating knowledge exchange, and nurturing ideas from concept to commercialisation.

Learn more About The 3M BIC

At the Huddersfield Health Innovation Partnership we also emphasise collaboration among healthcare professionals, businesses, and researchers to drive innovation in health and wellbeing. We have many opportunities for networking, sharing knowledge, and accessing resources that can facilitate the development of new health technologies and solutions. The platform aims to build a strong community dedicated to enhancing healthcare delivery and improving patient outcomes through innovation.

Learn more About the Huddersfield Health Innovation Partnership.

If you're interested in sharing an idea or project aimed at advancing the health innovation sector, we would love to hear from you.