free money isn't free ip

“Free money” shouldn’t mean “Free IP” 

Collaborative R&D grants can expose your startup to serious IP risks. Learn the 3 biggest consortium agreement traps and how to protect your IP.

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Many companies jump into collaborative R&D grants (soft funding) for the cash injection, but they often overlook the “Consortium Agreement” sitting in their inbox.

When you innovate with three other companies and a university, the IP rules of the game change overnight. Here are the 3 biggest IP traps I see in multi-partner projects:

1. The “Background” vs. “Foreground” Blur 

  • Background: What you owned before the project.
  • Foreground: What is invented during the project.
  • The Risk: If you don’t clearly document your starting point, a partner might claim that your core technology was actually a “joint discovery” during the project. Suddenly, they have a free license to your life’s work.

2. The Joint Ownership Nightmare 

Many grants default to “Joint Ownership” for shared results. Sounds fair, right? Wrong.

In many jurisdictions, joint ownership means any partner can license the tech to a third party (even your competitor) without asking you or sharing the profits. Always define specific exploitation rights in your consortium agreement.

3. The “Access Rights” Obligation 

Most soft funding (like Horizon Europe) requires you to give partners “Access Rights” to your background IP if it’s necessary for them to complete their part of the project.

  • The Trap: If you aren’t careful, “Access Rights” can inadvertently extend to the commercialization phase, giving partners a cut-price entry into your market.
  • The Golden Rule: Never start the research until the Consortium Agreement (CA) is signed, sealed, and vetted by an IP specialist. Soft funding is a marathon, not a sprint—don’t trip at the starting line.

Have you ever been part of a research consortium? What was your biggest “lessons learned” regarding IP? 

To help your team visualize these distinctions, you can use a table like this during your strategy meetings:

IP Category Definition Ownership Usage Rights
Background Pre-existing assets (patents, code, data). Original Owner Limited to project needs only.
Foreground New results generated during the project. The Inventor(s) Negotiated (Joint or Exclusive).
Sideground IP created during the project timeframe but outside the project scope. Original Creator No rights for partners.
Postground Innovations built on top of project results after it ends. Original Creator Subject to previous agreements.

TL;DR

Why are collaborative R&D grants risky for IP?
Because shared projects change ownership, licensing, and access rights—often in ways that dilute or expose your core technology.

What is the biggest IP mistake in consortium agreements?
Failing to clearly define background IP, joint ownership rules, and commercialization rights before the project starts.

How can startups protect their IP in soft funding projects?
By documenting background IP upfront, limiting access rights to project needs only, and negotiating exploitation terms with IP counsel before signing.

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