How not to screw up: Screw Caddy proves the importance of strong IP when entering the Dragons' Den

This week’s Dragons' Den was another masterclass in why patent protection is vital, not only for the protection of your invention, but also in helping secure investment.

The O'Donnell family unveiled the Screw Caddy as their answer to the problem of unstable, wobbling screws. This innovative tool securely holds screws in position while they’re driven into a surface, reducing issues such as deflection that many DIYers face. 

In the initial pitch, John O'Donnell said that their invention was “patent pending." Since the filming of the show, they have been granted a UK patent (GB2621166B). 

During the initial questioning by the Dragons, it became apparent that the O'Donnell family needed help less with the innovation side of their business and more with marketing and sales. Their request for £50,000 in exchange for 40% of the business made this clear. While it’s not unusual to see large equity requests in the Den, these are typically supported by healthy sales figures or ambitious growth prospects. At the time of filming, Screw Caddy had achieved only £80 in turnover. It was clear that the O’Donnells were seeking a Dragon who could run the business, rather than a silent partner. Often, this sends the Dragons running, but the power of having a patent for your invention quickly became evident.

Steven Bartlett raised concerns about whether the product truly solved the problem of screw wobble and whether it could potentially injure DIYers. However, Deborah Meaden defended the product and hit the nail on the head with her question: “What's your patentable step?” 

Simply labelling a product as “Patented” or “Patent Pending” can attract investors or boost sales, but it's crucial to understand what the patent actually protects. Based on John O’Donnell’s explanation of the claim — the section defining the scope of protection — and a brief review of their recently granted patent, it appears that the coverage aligns well with the product itself. This is important because it strengthens the patent's ability to stop competitors from imitating not only the product, but also the underlying concepts.

Deborah Meaden clearly understood the importance of the patent and what it relates to. For her, the patent was not just a marketing line; it was a strategic asset that gave the Screw Caddy a defensible market position.

Peter Jones raised concerns over the Screw Caddy’s value. With a retail price of £4.99, it is relatively expensive compared to the screws it would be sold alongside. However, he then suggested licensing the invention to screw manufacturers. This highlighted another key advantage of having strong patent protection for your product. Patents can be licensed to other companies, allowing them to sell the invention or, as Peter Jones suggested, including it in a pack of screws as a freebie. There are multiple ways in which a patent may be licensed. An exclusive or sole licence could be used to allow a single company to manufacture and sell the Screw Caddy or non-exclusive licences could be used to allow multiple companies to manufacture and sell the Screw Caddy.  Either way, licensing offers a powerful route for inventors to profit from their invention without having to worry about the marketing and sales of their products.

Peter Jones then referenced one of Deborah Meaden’s success stories. In 2014, Gripit entered the Den with its plasterboard fixing designed for heavy items. Like Screw Caddy, they had strong patent protection but lacked business experience. Deborah Meaden took a chance on Gripit and invested. Following their appearance on Dragons' Den, Gripit saw huge growth, proving the value of patents as a business tool.

In the end, Deborah Meaden offered £50,000 for a 30% stake in the company, which the O’Donnells quickly accepted. Once again, Dragons' Den has shown that strong IP can be the deciding factor in securing investment.  

Not every entrepreneur will pitch in the Den, but the lessons learned about IP strategy and licensing apply universally.