As a class of intellectual property, patents grant owners the right to use, sell and manufacture the invented article solely, which can reduce competition. This essentially allows the patent holder to block competitors from making, using, or selling a similar product without consent.
In other words, patents provide the legal grounds to prevent others from using the patented invention and to sue for infringement rights therein. Such exclusivity helps the inventor-patentee differentiate the offering better in the market. It surely helps in not only charging a premium for the claimed invention and generating revenues, but also gaining product recognition and building brand equity and corporate image.
It is apparent that patenting offers numerous advantages—exclusive rights over the commercial utilisation of an invention, which can create a competitive advantage, attract investors, and enhance business valuations.
However, the downside of patents includes the high cost and time required for the application process; the public disclosure of invention details; and, the limited 20-year duration of protection. Besides, there is no assurance of the patent being granted.
Further, after the expiry of the duration of the patent, the invention enters the public domain and anyone can make use of it. On top, there are expensive and laborious legal processes involved in enforcing the exclusive rights against infringers.
It must be remembered that a patent is a creation of statute; hence, it is territorial in scope and geographically limited in extent. In other words, patent protection does not extend globally. Thus, a patent granted in one jurisdiction can be enforced in another only if it is patented in the latter jurisdiction also.
Besides the enforceability issue, there are several other inherent drawbacks too. The grant of a patent does not guarantee that the invented article will be competitive in the market and commercially successful.
The mandatory disclosure of invention details gives competitors insights thereon and potential opportunity to design around the claims therein.
For startups and businesses, the legal monopoly not only helps differentiate products and strengthen market positions, but also boosts investor confidence and creates wealth for stakeholders. Investors tend to place greater trust in enterprises backed by strong intellectual property protection, as it signals both innovation and stability.
Patent application filing no doubt is an expensive process. Yet, granted patents enhance the credibility of inventors, who appear more insightful about market needs, technology trends and business opportunities. Therefore, patents make it easier for inventors to tap funding, partnerships, and licensing opportunities.
Thus, patents constitute an intangible asset class, which gives inventors significant opportunity for monetisation and enterprises competitive advantage. Hence, the cost of patenting must be viewed as a long-term investment. The decision to seek a patent for any invention must be grounded in guarded optimism and governed by wary pragmatism.
At BLAZE VENTURES, we have elaborate processes and qualified professionals for assisting innovators and enterprises take strategically sound decisions for patenting ideas, innovations and inventions.
