Who owns intellectual property created with Canadian grant funding?

By GrantHub Research Team · · Lire en français

Who owns intellectual property created with Canadian grant funding?

If your business receives a Canadian grant, you might wonder who owns the things you invent or create. In most cases, intellectual property (IP) created with grant funding is owned by your business, not the government—unless the program rules or your funding agreement say otherwise.

Knowing who owns intellectual property created with Canadian grant funding is important before you sign any agreement. It affects your ability to sell, license, or use what you build.


How intellectual property ownership works in Canadian grants

There is no single rule for IP that covers all Canadian grants. Ownership depends on the specific program, the funding agreement, and whether you have any partners.

Still, most Canadian business grants follow the same basic ideas.

The general rule: your business keeps the IP

For most federal and provincial programs:

  • Your business owns the intellectual property created with grant funds
  • The government does not take patents, copyrights, or trademarks
  • You are free to commercialize, license, or sell the IP
  • The funder may request reporting or usage rights, not ownership

This helps businesses grow and innovate, not give control to the government.

Example: NRC IRAP

The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) is one of the country’s largest innovation support programs.

  • NRC IRAP provides funding and advisory services to innovative SMEs
  • The program does not claim ownership of intellectual property developed by funded businesses
  • Companies keep full rights to commercialize their technology

Even when NRC IRAP offers technical help, the IP stays with the company—not the government.

GrantHub makes it easier to compare grant programs and see which ones include IP-related conditions.


When the government may have rights to your IP

While ownership usually stays with you, some grants include limited government rights. These are common and not the same as ownership.

You may see clauses such as:

  • Non-exclusive, royalty-free licence for government use
  • Rights to use results for policy, research, or internal purposes
  • Requirements to acknowledge government funding in publications

These clauses let the government use your results but do not stop you from commercializing your work.

Situations where IP ownership can change

Ownership rules can be different if:

  • The project involves a university or research institute
  • You are working with multiple project partners
  • The funding is a procurement contract, not a grant
  • The program focuses on defence, security, or sensitive data

In these cases, IP ownership is often shared or negotiated in advance through collaboration agreements—written agreements between partners about how IP will be shared.


What to check in your funding agreement

Never rely on assumptions. Always review the funding agreement, not just the program summary.

Pay close attention to sections labelled:

  • Intellectual Property
  • Foreground IP and Background IP
  • Commercialization
  • Data rights and publication
  • Confidentiality

If language is unclear, ask the program officer for written clarification before signing.


Common mistakes to avoid

Assuming all grants have the same IP rules

Each program sets its own terms. Even two federal grants can treat IP differently.

Confusing reporting rights with ownership

A requirement to share results or reports does not mean the government owns your IP.

Ignoring partner agreements

If you work with a university, incubator, or consortium, separate IP agreements may override grant terms.

Waiting too late to ask questions

Once the agreement is signed, changing IP terms is extremely difficult.


Frequently Asked Questions

Q: Does the Canadian government take ownership of patents created with grant money?
No. In most business-focused grant programs, your company owns the patents. The government may retain limited usage rights but not ownership.

Q: Can I commercialize IP developed with Canadian grant funding?
Yes. Commercialization is usually encouraged and often a core program objective. Some grants may require progress reporting on commercialization outcomes.

Q: What if I work with a university on a grant-funded project?
University partnerships often involve shared or negotiated IP. Ownership depends on the collaboration agreement—written agreements between partners about how IP will be shared—not just the grant rules.

Q: Do repayable contributions change IP ownership?
No. Repayable funding affects repayment terms, not IP ownership. IP rights are defined separately in the agreement.

Q: Can a funder stop me from selling my IP?
Rarely. Restrictions usually apply only to national security, confidentiality, or misuse of public branding.


  • What Business Expenses Are Eligible Across Canadian Grants and Loans
  • How Long Do Canadian Grant Programs Take to Pay Out Funds?
  • Indigenous Intellectual Property Support Through WIPO and Federal Programs

Next steps

IP ownership is usually in your favour, but only if you understand the fine print. Before applying, check how each program handles intellectual property created with Canadian grant funding.

GrantHub tracks hundreds of active grant programs across Canada and highlights key conditions like IP rights—so you can focus on funding that fits your business goals.

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