Getting Patent Exploitation Strategy
Patents are the core asset generator for various industries. Industries and companies earn a lot through licensing and assigning patents. The license and assignment of patents are common practices in the market which makes the licensor earn millions of royalties. With the rapid technology development and increasing users around the world, the trends of licensing and assignment will not be going down anytime soon. The companies not only use these assets for licensing but also use those assets for loan security and sanction. We can understand the huge rise of activities associated with the same with the increasing importance of financial evaluation.
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The patent provides a monopoly over an invention to the inventor. The filing of patents and its grant is a long tedious process that takes up to 2-3 years. Due to the nature of the invention and the cost that is involved with R&D, it is highly imperative to decide where to seek the patent rights and the expenses involved. An effective strategy of filing for patent protection will be to seek protection in the country of interest, where the protection is cost-effective. This approach can be taken by those corporations who instead of going for PCT, instead leverage direct filing in countries of interest. Well-established companies generally take this approach. For an uneven market or those markets where the market research has not been done effectively, it is difficult to know which market will have the proper patent protection. Or even when the mature company enters into an immature market, this entails, difficulty in ascertaining the protection.
To have a patent ensures that your invention cannot be stolen from others. The invention without any backed protection is difficult to check on the infringement. The inventions if patented can prove to form a strong regime where the inventor can sue others for infringement. This protection becomes very important because every inventor will put their invention on the market for getting various investors. Having a patent will make the condition favorable for the inventor and will also help in getting the idea of the market without any fear of infringement. This will provide protection when one discloses their invention publicly. Even if the inventor wants to go to a fair, exhibition, or an industry trade show and can display their invention without fear. In the above case, the inventor can put their invention without the need to have any such express approval having the full right to make, sell, use or distribute your new or improved product.
Needless to say, the patent is an asset for the company or business or an individual. The patent holds an economic value with itself which can be in thousands or millions. This attracts a lot of potential investors since having patents generally tends to create an entry-level barrier for the competitors. This will further help the company to recoup the cost of R&D over the inventions and also improve the return over the investment. This moreover helps in getting a license on the patents thereby increasing the return. Most venture capitalists, investment bankers, financial analysts, and other investors favorably recognize the value of a patent.
Also, various strategies such as getting into a partnership, mergers, and acquisitions can be very helpful and can increase the brand value if the inventor has the granted patent with them. Having a patent will increase the portfolio and provide substantial value to enter the market. strategic partnerships, or in mergers and acquisitions, and for getting a start‐up company listed on the stock exchange through a good initial public offering (IPO) or for getting a higher sale price of an established company.
Getting a patent for the invention is the best idea for the company or an individual. This patent will help the company to improve its ability to do business. It is highly recommended to every inventor to have a patent for their invention for better protection and a better business portfolio.
Author: Saransh Chaturvedi an associate at IP And Legal Filings, in case of any queries please contact/write back us at support@ipandlegalfilings.com.
