Elute was formed from an existing UK business, CFL Software Limited, and complementary intellectual property developed by Frontier IP.
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The company said it would earn its equity by providing commercialisation services, including hands-on support and technical development, and that no cash had been paid for its stake in Elute.
Elute will build on document analysis software developed by CFL, which looks for similarities between texts by mimicking the way people read, and expand its uses into different markets.
The technology has already been used by CFL’s current customers including the Universities and Colleges Admissions Service (UCAS), which uses it to detect plagiarism in students’ personal statements, as well as academic institutions, commercial researchers and lawyers.
CFL’s business development director, Peter Fischer, will join the board of Elute alongside Frontier IP’s chief commercialisation officer Matthew White.
"CFL Software's technology has many exciting possibilities and applications… Elute is another example of how our direct, hands-on can help our partners realise the potential of their technology", White said.