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:

“If you had come in here in
12 months time, and you had your patent, and you had everything
teed up…I think the offer of 100k at 3% would be right. But I do
think that you’re overvaluing at this moment what you’ve
got.”

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.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.