Why should a company go for Patent Protection?
Most of the startup companies often think whether it is worthwhile or not to go for patent protection for their innovations. Below are some of the advantages or benefits of patent protection which will help them figure out the importance of patent protection.
Prevent Illegal Use
Patent protection prevents others from making, using or selling an idea or invention without the consent of the patent owner. The patent owner has a legal right to protect his invention from being used by others. The patent owner has an exclusive right to sue a third party and get rewarded with monetary value in case of the invention of the patent owner being stolen. Patent protection deters others from utilizing the benefits of the invention of the original patent owner for their own purpose.
Increases Value of Business
A patent increases the value of the business of an organization. The value of a patent is mainly based on four aspects namely defensive value, offensive value, strategic or business value and technology leadership. The organizations have the power to establish a monopoly, protect their market share, improve a position of negotiation, enhance image and quality of their product and forestall third-party lawsuits. The monetary value of an organization increases with patent protection.
A patent can be sold to others for monetary remuneration. The inventor can set a monetary value for selling the patent according to his terms (subject to certain stipulations). A patent helps in generating income for the inventor by selling it to another party. The income may be used for other operations such as paying bills or financing new promising ideas. It also eliminates the huge financial outlay required to start up a business based on a new product.
Provides Exclusive Rights
The patent owner has exclusive rights to use the invention. The patent law provisions the patent owner to utilize the invention for his own benefit only. No other person can make use of the invention or the idea.
Patent protection provides protection of the idea or innovation for a significant amount of time. In India, an inventor is provided protection for the invention for 20 long years. In that time, the inventor can work on new ideas and further enhance or improve previous ideas. Therefore, it helps keep the competition at bay.
Licensing of Patents
A license is a legal contract authorizing one business to use the confidential business practices of another business. The patent owner can license the patent to others for generating revenue to businesses. Licensing helps in promotion of brand recognition.