For any company or business, it’s important to recognize and protect intellectual property (IP). In the case of novel inventions, which can include machines, processes and even medicines, a patent offers IP protection and lets firms control how those inventions are used. Patents, which in most countries can be granted for up to 20 years, give the owner exclusive rights so that others can’t directly copy the creation. A patent essentially prevents others from making, using or selling your invention.
But there are more reasons for holding a patent than IP protection alone. In particular, patents go some way to protecting the investment that may have been necessary to generate the IP in the first place, such as the cost of R&D facilities, materials, labour and expertise. Those factors need to be considered when you’re deciding if patenting is the right approach or not.
Patents are tangible assets that can be sold to other businesses or licensed for royalties to provide your compay with regular income.
Patents are in effect a form of currency. Counting as tangible assets that add to the overall value of a company, they can be sold to other businesses or licensed for royalties to provide regular income. Some companies, in fact, build up or acquire significant patent portfolios, which can be used for bargaining with competitors, potentially leading to cross-licensing agreements where both parties agree to use each other’s technology.
Patents also say something about the competitive edge of a company, by demonstrating technical expertise and market position through the control of a specific technology. Essentially, patents give credibility to a company’s claims of its technical know-how: a patent shows investors that a firm has a unique, protected asset, making the business more appealing and attractive to further investment.
However, it’s not all one-way traffic and there are obligations on the part of the patentee. Firstly, a patent holder has to reveal to the world exactly how their invention works. Governments favour this kind of public disclosure as it encourages broader participation in innovation. The downside is that whilst your competitors cannot directly copy you, they can enhance and improve upon your invention, provided those changes aren’t covered by the original patent.
It’s also worth bearing in mind that a patent holder is responsible for patent enforcement and any ensuing litigation; a patent office will not do this for you. So you’ll have to monitor what your competitors are up to and decide on what course of action to take if you suspect your patent’s been infringed. Trouble is, it can sometimes be hard to prove or disprove an infringement – and getting the lawyers in can be expensive, even if you win.
Money talks
Probably the biggest consideration of all is the cost and time involved in making a patent application. Filing a patent requires a rigorous understanding of “prior art” – the existing body of relevant knowledge on which novelty is judged. You’ll therefore need to do a lot of work finding out about relevant established patents, any published research and journal articles, along with products or processes publicly disclosed before the patent’s filing date.
Before it can be filed with a patent office, a patent needs to be written as a legal description, which includes all the legwork like an abstract, background, detailed specifications, drawings and claims of the invention. Once filed, an expert in the relevant technical field will be assigned to assess the worth of the claim; this examiner must be satisfied that the application is both unique and “non-obvious” before it’s granted.
Even when the invention is judged to be technically novel, in order to be non-obvious, it must also involve an “inventive step” that would not be obvious to a person with “ordinary skill” in that technical field at the time of filing. The assessment phase can result in significant to-ing and fro-ing between the examiner and the applicant to determine exactly what is patentable. If insufficient evidence is found, the patent application will be refused.
Patents are only ever granted in a particular country or region, such as Europe, and the application process has to be repeated for each new place (although the information required is usually pretty similar). Translations may be required for some countries, there are fees for each application and, even if a patent is granted, you have to pay an additional annual bill to maintain the patent (which in the UK rises year on year).
Patents can take years to process, which is why many companies pay specialized firms to support their applications.
Patent applications, in other words, can be expensive and can take years to process. That’s why many companies pay specialized firms to support their patent applications. Those firms employ patent attorneys – legal experts with a technical background who help inventors and companies manage their IP rights by drafting patent applications, navigating patent office procedures and advising on IP strategy. Attorneys can also represent their clients in disputes or licensing deals, thereby acting as a crucial bridge between science/engineering and law.
Perspiration and aspiration
It’s impossible to write about patents without mentioning the impact that Thomas Edison had as an inventor. During the 20th century, he became the world’s most prolific inventor with a staggering 1093 US patents granted in his lifetime. This monumental achievement remained unsurpassed until 2003, when it was overtaken by the Japanese inventor Shunpei Yamazaki and, more recently, by the Australian “patent titan” Kia Silverbrook in 2008.
Edison clearly saw there was a lot of value in patents, but how did he achieve so much? His approach was grounded in systematic problem solving, which he accomplished through his Menlo Park lab in New Jersey. Dedicated to technological development and invention, it was effectively the world’s first corporate R&D lab. And whilst Edison’s name appeared on all the patents, they were often primarily the work of his staff; he was effectively being credited for inventions made by his employees.
I have a love-hate relationship with patents or at least the process of obtaining them.
I will be honest; I have a love-hate relationship with patents or at least the process of obtaining them. As a scientist or engineer, it’s easy to think all the hard work is getting an invention over the line, slogging your guts out in the lab. But applying for a patent can be just as expensive and time-consuming, which is why you need to be clear on what and when to patent. Even Edison grew tired of being hailed a genius, stating that his success was “1% inspiration and 99% perspiration”.
Still, without the sweat of patents, your success might be all but 99% aspiration.
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