Patent – a must have business growth element

Irrespective of the industry in which you operate, intellectual property and in many cases a patent should be part of your business strategy. Intellectual property is an asset on the balance sheet and it can make your business eligible for number of government grants and Research and Development incentives.
A patent gives a company the right to stop others from copying, manufacturing, selling or importing their invention without their permission. In this article we will outline some of the reasons why a company should seek to acquire a patent.

Exclusive rights
A patent is a legally enforceable right for a device, substance, method or process. A patent gives the patent owner an exclusive right for an invention. To obtain a valid patent right, technical information about the invention must be carefully detailed in a patent application before it is disclosed to the public.
Some of the privileges of a patent, provided by way of the exclusive rights given upon grant, are as follows:

• a patent provides protection against copycats;
• a patent brings credibility to your products/services;
• a patent gives the owner a monopoly in the market which acts as a moat to curb competition;
• a patented invention can be sold, leased or licensed to earn income;
• it can increase the valuation of a company;
• a patent provides a unique selling point to products;
• it attracts investors and helps you secure funding;
• it creates a barrier to entry for others ;
• it increases the ability to export due to reduced competition; and
• it opens the gateway to further innovations.

The requirements for a valid patent are that an invention should be novel, innovative, and it should be capable of industrial use. Patents are territorial in nature, i.e., the rights obtained are limited to a jurisdiction in which the patent is filed. In order to increase ambit of protection, the patent should be filed in all the countries in which the goods are to be produced and sold. The maximum duration of a patent is typically 20 years from date of lodging the patent application.

Protection from copying

Obtaining a patent ensures exclusive rights to the patentee to manufacture the goods using the protected invention. The patent also gives the company a right to restrict others from manufacturing goods protected by a patent, without permission of the patentee. In cases where goods based on patented invention are manufactured without permission, the patentee has the right to file an infringement suit . In the event of a successful infringement suit, a patentee can demand damages or account of profits in addition to the seizure and destruction of the goods.

How can a company acquire exclusive right to manufacture?

A company can secure exclusive rights to manufacture an innovative product in a number of ways.

• Firstly, a company can invest in research and development (R&D) to develop a novel and innovative invention and get a portion of that investment back as Tax offset. The invention can be protected in jurisdictions in which the company is planning to manufacture and sell the product derived from the invention. Further, the company can exercise exclusive rights by licensing or selling their ownership to others. The patentee can, for a fee, also license the invention to others wanting to produce similar goods. In this way you can generate revenue from licensing the patent. The patentee can transfer the interest in a patent to another entity who can benefit from and enforce the intellectual property rights.

• Alternatively, a company can acquire a license for an already existent patent. Being a licensee, the company can have the right to use the licensed patent to manufacture and/or sell patented goods. The company may acquire a desired license for a patent in exchange of a lump sum amount or royalty on manufacturing or sale of the products.

Whether you are a manufacturer, a tourism company, a fintech, health tech, property tech or in another industry, intellectual property and patents can be filed and leveraged for tangible commercial benefits. If you want to secure the benefits provided by intellectual property reach out to our team at IP Guardian. Our expert patent and trade mark attorneys are adept and experienced at handling these matters and assisting you in protecting and monetising your Intellectual Property.

Book a Consultation With a Patent Attorney

Free Consultation

Barry Meskin

Registered Patent and Trade Mark Attorney with significant experience obtaining all forms of registered intellectual property. I hold a Bachelor of Science in Engineering, a Masters of Business Administration and a Masters of Intellectual Property. I’m passionate about showing my clients how they can protect their brands through trademark registrations.