5 Advantages of Filing for a Patent
A patent is the foundation of what can be an enormously successful business. However, today, with many tech giants foregoing the public protection and communal sharing of information that patents provide, some people wonder if patents are still worthwhile in this age. After all, you can commercialize an invention without patenting it and even patent an invention without ever developing it. Ultimately, the decision to move forward in a patent application will depend on many factors.
Here are five advantages to filing for a patent.
1. Protect Your Intellectual Property
If your business creates a new invention that could help your entire industry, the owner should invest in the patent process. It will allow you to control your invention and protect against others from imitating your idea. The fact that your company will control part of the market and will provide a unique solution makes it a disruptive, innovative player in your industry.
2. License an Innovation to Other Companies
Perhaps your company isn’t ready to market your new solution, but you are able to work with partners who will market your product for you. Allowing other enterprises to license your patent can add to your profit margin without running up expenses. As a patent owner you can get paid by several companies at once to use your product. Licensing can be very profitable for patent owners and investors, and protects your rights to that intellectual property.
3. Gain a Competitive Edge
Patents can make a difference in a competitive marketing arena. Owning a certain product or process that other businesses need allows a company to revolutionize its industry. By showing your competitors that you can invent new products that become successful, it’s clear that you have established market leadership.
The more you can lead the market on new products and ideas, the more you can promote your brand as innovative. A patent will strengthen your market position and limit your competition.
4. Raise Capital
Startups that file early have the best chance to raise capital. By filing patents for your business, you will be able to point to original intellectual property, showing investors value. New patents can mean future revenue streams to a company, which attracts investors. The more patents a company owns that can be attributed to asset value, the more prestige it has with certain investors who are looking to capitalize on future trends.
5. Sell Your Patent
Some inventors have the ability to develop several new prototypes, but lack the resources to develop a supply chain or mass produce a product. Manufacturers purchase patents to improve their processes. So it’s possible to not invest in the big machinery needed to create a high volume of units and merely sell your patent to an organization that has the facilities to manufacture the product.
While there are thousands of patents that are granted each year, very few become profitable, which is why some specialty designers focus more on selling, rather than nurturing patents. It’s a quick payoff for months or years of development.
However you plan to use your patent, it can be an important key to building a financial empire. Contact Global Patent Solutions at 877.278.2011 and set up a time to talk. We can help you understand the possible validity of and challenges to a patent filling, estimate the value of a prospective patent, and help you understand how to wisely navigate this process.