The rapid evolution of fintech has caught the attention of stakeholders ranging from startups to large banks. However, one of the crucial pillars that often go overlooked in this domain is research institutions. These institutions, renowned for their groundbreaking studies and innovations, are strategically positioned to spearhead revolutionary advancements in fintech. Building a strong fintech patent portfolio not only protects their innovations but also offers them an opportunity to collaborate with the industry, transfer technology, and even commercialize their research. Let’s delve deep into the process of curating a robust fintech patent portfolio for research institutions.

Understanding The Significance of Patents for Research Institutions

Before we jump into the mechanics, it’s essential to understand why patents are particularly crucial for research institutions in the fintech domain.

Bridging Academia and Industry

Patents serve as the bridge between academic research and industry application. They validate the commercial potential of research findings, making them attractive for industry collaborations.

Revenue Generation and Commercialization

By patenting their innovations, research institutions can license their technologies to fintech companies, generating significant revenue.

Attracting Talent and Funding

A robust patent portfolio showcases an institution’s commitment to innovation, helping attract top-tier research talent and essential funding for further research.

Starting With An Invention Disclosure Process

The bedrock of any patent portfolio is the inventions themselves. For research institutions, these inventions often stem from faculty research, student projects, or collaborations.

Encouraging Disclosure from Researchers

Researchers, engrossed in the world of academia, might not always recognize the commercial potential of their findings. Institutions should:

  • Educate Faculty: Regular workshops and seminars about the importance of patents can be beneficial.
  • Simplify Processes: Create an easy-to-use invention disclosure form, ensuring researchers can quickly submit their inventions.

Evaluating Commercial Potential

Every disclosed invention doesn’t necessarily translate to a valuable patent. Institutions need to set up committees to evaluate the commercial viability of every disclosed invention.

Patentability Analysis: The Crucial First Step

Before diving into the patenting process, it’s imperative to evaluate whether the invention is indeed patentable.

Checking for Novelty and Non-Obviousness

The core tenets of patentability—novelty, non-obviousness, and utility—are paramount. Institutions should:

  • Conduct Prior Art Searches: Ensure the invention hasn’t been patented or disclosed before.
  • Engage Patent Experts: Considering the intricacies of fintech, consulting with experts can provide clarity on the non-obviousness criterion.

Drafting and Filing the Patent Application

With a green light on patentability, the next step is the meticulous process of drafting and filing the patent application.

Collaborating with Patent Attorneys

Given the technicalities involved, it’s essential for research institutions to collaborate with patent attorneys experienced in fintech.

Prioritizing Jurisdictions

Fintech is a global phenomenon. Research institutions need to strategize where they want protection. This could be based on potential markets, existing collaborations, or future commercialization plans.

Continual Follow-up and Amendments

Post submission, patent offices might raise objections or seek clarifications. Institutions should be prepared for this iterative process, making necessary amendments to ensure the patent gets granted.

Creating A Patent Management System

For research institutions, it’s not just about obtaining patents, but effectively managing them. A robust patent management system can aid in organizing, tracking, and optimizing the portfolio.

Centralized Repository

A unified database where all patent information, from initial disclosure to granted status and renewals, is stored is indispensable. It should allow:

  • Easy Access: Faculty and patent management teams should quickly retrieve patent statuses or details.
  • Timely Alerts: Automated reminders for patent renewals, annuity payments, or any other deadlines.

Licensing Management

If the institution plans to license its patented technologies, the management system should also facilitate tracking licensees, terms, royalties, and other licensing nuances.

Licensing and Collaboration Opportunities

With a growing patent portfolio, research institutions can explore various avenues for collaboration and monetization.

Licensing to Startups and Established Firms

By licensing their innovations, institutions can see their research being transformed into real-world solutions. The licensing strategy might vary based on the licensee:

  • Startups: Might offer equity, deferred payments, or lower royalties given their limited capital.
  • Established Firms: Can enter into standard royalty-based agreements or even sponsor further research in the institution.

Collaborative Research Projects

Patented technologies can serve as the foundation for collaborative research projects with fintech firms, leading to further innovations and strengthening of the patent portfolio.

Expanding The Patent Portfolio: Beyond Initial Innovations

Building a dynamic patent portfolio is a continuous journey. Research institutions should be forward-looking, anticipating future fintech trends, and aligning their research accordingly.

By staying abreast of fintech trends—be it blockchain, quantum computing in finance, or new payment methodologies—institutions can direct their research efforts effectively.

Encouraging Inter-disciplinary Collaborations

Fintech isn’t just about finance and technology. It intersects with domains like psychology (for user experience), sociology (for financial inclusivity), and even law (for regulatory tech). Encouraging collaborations across faculties can lead to holistic innovations worthy of patenting.

Challenges In Fintech Patenting For Research Institutions

While the journey of fintech patenting is rewarding, it’s not devoid of challenges, especially for research institutions.

Striking The Balance: Publication Vs. Patenting

In academia, publishing research is of paramount importance. However, prior publication can jeopardize patentability. Institutions must establish clear guidelines, ensuring researchers first disclose potential inventions before rushing to publish.

Funding and Resource Constraints

Patenting, especially internationally, is resource-intensive. Institutions need to strategize their patent investments, prioritizing inventions with the highest commercial potential.

Educating and Training Researchers on Intellectual Property (IP)

To truly maximize the potential of their fintech patent portfolio, research institutions must ensure that their researchers are well-versed in the nuances of IP.

Workshops and Seminars

  • Introduction to IP: Basic workshops introducing the concept of intellectual property, its importance, and its relevance in the fintech sector.
  • Deep Dives: More detailed sessions discussing patent search techniques, drafting claims, and understanding patent landscapes in fintech.

Collaborations with IP Professionals

By bringing in patent attorneys, IP strategists, and professionals from the fintech industry, institutions can provide hands-on training and real-world insights to their researchers.

Monetizing the Fintech Patent Portfolio

With a growing patent portfolio, monetization becomes a key consideration for research institutions.

Licensing Agreements

Licensing can be a significant revenue stream for institutions. Apart from royalties, institutions can also negotiate milestone payments, especially for fintech solutions with long development timelines.

Spin-offs and Startups

Some fintech innovations might have the potential to become full-fledged companies. Institutions can support the creation of spin-offs or startups, taking equity stakes in return for granting exclusive rights to the patented technology.

Selling Patents

In certain scenarios, selling a patent outright might make sense, especially if the institution feels it cannot effectively monetize it through other means.

Metrics to Measure Portfolio Effectiveness

Metrics to Measure Portfolio Effectiveness

In order to truly understand the value and impact of a fintech patent portfolio, research institutions must employ a variety of metrics. These metrics not only help in gauging the current effectiveness but also aid in shaping future patenting strategies.

Commercialization Rate

  • Definition: This metric represents the percentage of patented technologies that have been commercialized either through licensing, the formation of spin-offs, or other methods.
  • Importance: A higher commercialization rate signifies that the institution’s inventions have strong market relevance. Conversely, a low rate might indicate a need to better align research with industry needs or improve marketing and outreach efforts.

Revenue from Patents

  • Definition: All financial inflows attributed to the patent portfolio, including royalties, licensing fees, equity from spin-offs, or proceeds from patent sales.
  • Importance: Beyond the direct financial benefits, consistent revenue generation can also be a testament to the commercial viability of the institution’s research.

Research Collaborations Stemming from Patents

  • Definition: The number of joint research projects or partnerships initiated due to interest in the institution’s patented technologies.
  • Importance: Such collaborations can lead to further innovation, patent generation, and even funding. A rise in these partnerships indicates industry recognition and trust.


  • Definition: The number of times a patent is referenced or cited by other patents, research papers, or industry articles.
  • Importance: High citation counts signify the foundational or groundbreaking nature of the patent. Such patents often become cornerstones in their respective domains and can drastically enhance an institution’s reputation.

Patent Maintenance and Renewal Rate

  • Definition: The percentage of patents that are actively maintained and renewed upon reaching their respective renewal milestones.
  • Importance: A high renewal rate indicates that the institution sees long-term value and potential in these patents. On the other hand, letting patents lapse might be a strategic decision to let go of non-performing or less relevant assets.

Licensing Duration and Longevity

  • Definition: Average duration for which licensees utilize and renew their licenses for the institution’s patents.
  • Importance: Longer licensing durations can point to the sustained relevance and value of the patented technology in the marketplace.

Feedback from Industry Partners

  • Definition: Qualitative feedback from licensees, collaborators, or potential partners regarding the patent portfolio’s relevance, applicability, and potential improvements.
  • Importance: Such feedback provides direct insights from the market, helping institutions tweak their research focus, patenting strategy, or collaboration terms.

Portfolio Diversity

  • Definition: A measure of the range of technologies, solutions, or domains covered within the patent portfolio.
  • Importance: A diverse portfolio indicates a multi-pronged research approach and reduces dependency on a single technology or domain. It also allows institutions to tap into multiple fintech trends and opportunities.

Conclusion: Charting the Path Forward

Building a fintech patent portfolio for research institutions is a multifaceted journey, blending the intricacies of academia with the commercial pragmatism of the financial technology sector. While challenging, the rewards, both in terms of financial gains and academic prestige, can be significant.

For research institutions, the key lies in continuous adaptation. As the fintech landscape evolves, so must the approach to patenting. Through proactive research alignment, robust IP management, and strategic collaborations, research institutions can not only protect their innovations but also play a pivotal role in shaping the future of financial technology.