Irrespective of size, every entrepreneur, inventor, or company is at risk of their intellectual property being copied by others. This is one primary reason inventors and entrepreneurs who create a new idea or product apply for a patent with the USPTO. There are several reasons why a patent is very valuable.
A patent application ensures that your invention is protected from being copied, sold, or made by others in the U.S. or worldwide. It provides you with the opportunity to stop others from making money in any form from your patented invention.
Read on to find out why filing for a patent application is necessary.
1. A patent removes competition
A patent prevents competitors from copying or selling your invention. It’s very helpful to small companies, since it allows them to play against big corporations. With this, small businesses can own a significant market share. Usually, top corporations have more advantages than small companies with an invention.
Let’s say you create a new idea or invention in Texas. A patent would ensure that larger corporations with greater manufacturing and marketing capacities are unable to use your invention. For legal aid, a Houston patent lawyer can ensure your competitors are kept in check.
2. Protects emerging concepts
You might have an invention in mind, but you may not be sure of its exact form. Sometimes, you might want to delay the filing process.
However, there’s the possibility of your competitor filing first, which could take away your chance of obtaining protection. Companies or inventors with enough money usually file for a broad patent application. Claims would focus on commercial ideals, as examination provides protection in the meantime.
3. Patents increase the valuation of a business
Intellectual property (IP) covers patents, trade secrets, copyrights, and trademarks. However, patents are essential, especially in consumer products and technology industries. Therefore, intellectual property is a significant and crucial part of every business’ assets.
In our current world, intangible assets occupy a majority of value for most top corporations. It’s a well-known fact that a strong intellectual property provides access to venture capital, increases a company’s valuation in terms of acquisitions and mergers, and gives leverage in regard to business transactions.
A lawyer specializing in intellectual property usually consistently advises their clients on the best monetization method. This is essential, since discovering a suitable patent monetization method needs a multifaceted approach and a holistic strategy.
Factors you must consider are the ability of the patent to be commercialized, market demand, and the patent application strength.
4. Patents make you the legally recognized owner
Every patent application (not withdrawn prior) is usually published 18 months from the filing date. After publication, USPTO staff will display the patent application data (the applicant’s name and address) in the patent database.
As long as an application has been published, anybody can check the patent owner on the database and access details about it. In the United States, patents belong to the individual who first applied.
The only exception is when a non-entitled person files it. This helps in proving that you are the owner of the patent.
5. Patents give the inventor exclusive rights
When a patent is issued, exclusive rights for designated services or products are given to the inventor. The inventor can stop anyone from using, making, or selling the invention. This means that the government grants the inventor an enforceable right. This right is very valuable. Sometimes a patent infringement could provide damages that exceed $100 million.
A patent prevents your competitor from using your invention in any way that would result in infringement. Therefore, your chances of succeeding and making greater profits in your industry increase even when you do not sue any person for infringement.
6. Patents increase profits
When used well, it’s possible to generate millions or billions from your patent, whether from market domination or licensing. When registering a patent, you have the exclusive right to sell, use, or produce your invention for royalties or a fee.
It usually works better when the inventor doesn’t have the needed production resources to distribute the invented products, or if they don’t even want to sell it themselves. In the United States, several companies make profits from licensing their products or technology, and they make huge profits from it.
A person who enters a new market first has a significant share. With a patent, your product will be the only one consumers can buy. This allows your company to dictate market prices, irrespective of what it is.
Usually, most companies who enter a market first are trusted by consumers. This helps them create brand loyalty and credibility, for which buyers must pay a premium.
Unlike other countries, the United States Patent Trade Organization has a system that prioritizes the first person that files for a patent.
Previously, the system used a first-invention basis. When you register your patent, your lawyer can prevent your patent from being infringed upon by others (companies or individuals).
Filing for a patent application can affect your company’s valuation, long-term success, and also profitability.
When you choose a patent lawyer, you must ensure that they specialize and are experienced with intellectual property law and litigation. This is essential to increase your company’s value and patent application success.
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