The purpose of an FTO analysis is to identify any third-party intellectual property rights, specifically in-force patents, that could be infringed by the company's planned activities in a given country.

It is distinct from a patentability (novelty) search; an FTO analysis focuses on the claims of existing patents owned by others, not on the novelty of one's own invention.

Conducting a thorough FTO analysis mitigates the risk of infringement litigation, potential injunctions that could halt operations, and financial damages.

A clear FTO position provides confidence to management, investors, and partners that the business can proceed with commercialisation plans without immediate, identifiable IP barriers.

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