The Intellectual Property Institute of Canada (IPIC) proposes two complementary programs to help Canadian businesses innovate, commercialize, and leverage their intellectual property in order to remain competitive in a global innovation economy.
The two programs are a ‘First Patent’ rebate on services and an IP Box tax incentive. If introduced, these IP incentives would create a regulatory environment in Canada attractive to both domestic and foreign businesses to conduct research and commercialize intellectual property. The map below identifies provinces that have already set up or are looking into creating similar types of incentives.
1. Québec
The Québec government offers financial assistance of up to $500,000 to companies who develop new products and other key business assets. These funds can be applied towards the development of IP assets such as obtaining patents and developing IP strategies. It is not limited to a company's first IP filing. The financial assistance can be up to 50% of eligible expenses, to a maximum of $350,000 per project and up to $500,000 per enterprise for the duration of the Program (available until March 31, 2021). More information: bit.ly/QCInnovationIncentive.
The “Incentive Deduction for Commercialization and Innovation (IDCI)” allows for businesses located in Quebec, that commercializes their IP there, and has incurred some R&D expenses in the province, to receive a tax rate of 2% on income derived from leveraging their patents, copyrights, and plant breeders rights. https://bit.ly/2vXlpnz
2. Saskatchewan
The province of Saskatchewan supports the commercialization of new and transformative innovations, by reducing the provincial Corporate Income Tax rate for eligible corporations to six per cent for a period of 10 years—on taxable income earned from the commercialization of a broad range of qualifying types of intellectual property in Saskatchewan. More information: bit.ly/SKincentives.
3. Ontario
In its 2018 provincial budget the Ontario Liberal government indicated a commitment to improving competitiveness and maintaining a competitive tax system. They have shown an interest in tax incentives for income deriving from intellectual property. More information: bit.ly/ONincentives.
4. Alberta
The Alberta Innovation Voucher and Micro-Voucher programs have been designed to support innovation for Alberta SMEs. The program supports SMEs working to advance technologies and get closer to commercialization. Alberta’s investment is in the range of $10,000-$100,000 paid directly to the service providers named by the SME. This includes professional fees for patent development. More information: bit.ly/33F1Mw2 & bit.ly/33C17eN.
5. Manitoba
The government of Manitoba, under their Commercialization Support for Business Program (CSB), offers a rebate for IP services to small businesses of less than 50 employees and less than $15M per year in gross revenue. The rebate is part of a broader product development rebate, which has a maximum value of $50 000 per business. More information: bit.ly/MBincentives.
6. Prince Edward Island
The government of PEI created a Development and Commercialization Fund to assist businesses through the final stages of developing a new product or services. It offers funding to businesses to commercialize their highly innovative product, service or process by supporting various activities, including the development and protection of IP. More information: bit.ly/PEIincentives.