Advantages of Patents: Protecting Innovation, Firing Growth
Innovation is the lifeblood of progress. Without it, humankind would have remained stuck in a quagmire of stagnation. Patents are the bulwark that protects the fruits of that hard-won innovation. Having a patent can provide several benefits to businesses and inventors alike. This blog shall talk about the advantages accruable from patents, the different types of patents, and real-world examples/case studies that bring out their importance.
What is a Patent?
A patent is a legal right granted to an inventor or assignee by any governmental authority that allows him the exclusive right of making, using, selling, or distributing an invention for a specified period. In return, the inventor is obliged to disclose the details of the invention to the public.
Benefits of Patents
Exclusive Rights: A patent grants to the holder of the patent the right to the successful invention—a device, process, or method that nobody else can make, use, sell, or distribute without permission. This exclusivity aids an inventor in sustaining control over the use of his or her invention and holds immense profit potential.
Example: The pharmaceutical company Pfizer has patents on many of its drugs—including the famous Viagra—enabling it to exclusively make and sell the medication to maximize its profit.
Competitive Advantage: This can be an effective tool in gaining competitive advantage through protection of innovative products and technologies. Together with the leading status that will be established in the marketplace, this move has the added benefit of deterring many other businesses from competing in the same space.
Case Study: Apple’s various patents on things such as the iPhone’s multi-touch interface and design have been critical in helping the company stay ahead in the leading position within the smartphone market.
Revenue Generation: Licensing or selling patented inventions could further create additional revenue streams. The former will allow other companies the right to use patented technology for royalties, while selling the patents will provide upfront income.
Example: IBM has generated much revenue by licensing its vast portfolio of patents. It gains several billion dollars from licensing agreements every year.
Attracting Investment: Overall value of the company increases, and it attracts more and more investors. A well-managed patent portfolio speaks of innovation and long-term prospects, which helps in securing funding.
Case Study: Health technology company Theranos was able to raise large investments on the basis of its patent portfolio for blood-testing technology. This example shows how patents play a big role in raising funds.
Encouraging Innovation: Patents stimulate innovation through the certainty awarded to the inventor that his or her effort is going to be protected and rewarded. This generally encourages further investment in research and development.
Example: Thomas Edison’s hundreds of patents on items such as the electric light bulb and the phonograph prove the way in which patent protection can fuel ongoing innovation.
Types of Patents
Utility Patents : Utility patents are granted for new and useful inventions, including processes, machines, manufacture, or composition of matter, or any improvement thereof. They are the most common type of patent.
Example: A utility patent on the gene-editing technology CRISPR-Cas9 covers a method for making precise genetic modifications.
Design Patents: A design patent protects the ornamental design of a functional item; it shall cover the unique appearance, shape, or surface ornamentation of a product.
Example: A Coca-Cola bottle contour is protected by a design patent. This makes sure that the unique shape of this bottle is associated with this brand.
Plant Patents: Plant patents protect new and distinct varieties of plants which are asexually reproduced. They are not so common but very important in agriculture and horticulture.
Example: The variety of apple known as Honeycrisp is patented under a plant patent, providing the creators of the variety of apple with exclusive rights to propagate and sell the popular apples.
Conclusion
Patents are a very useful asset to protect innovation, providing competitive advantages and the potential for creating revenue streams. Knowing the advantages and types of patents is able to help businesses and inventors make decisions regarding intellectual property protection. If you are looking to patent your invention, let one of our professionals guide you through the steps so your discovery can be protected. Contact us today to learn about our services in the fields of patent, trademark, and copyright.
