Five advantages of a patent

The concept ‘patent’ knows many misconceptions. Not everyone is aware of the many advantages a patent can provide to the running of a company. In a society that appears to change and develop increasingly fast, a patent is often regarded as a pricy restriction, instead of a means to spread and stimulate development and innovation. To get rid of misconceptions and highlight the unknown advantages of patents, we have listed five big advantages to owning a patent.

The advantages of patents go far beyond the direct protection of an invention. Depending on your background and ambitions these secondary advantages can be used in several ways and help build a strong and growing enterprise. DOGIO Patents not only provides the patent application itself, but additionally offers help and advice on the effective application of these advantages.

1. Product protection

With a patent you create a position wherein your invention is protected. Simply put, you prevent others from freely copying your ideas, which could potentially cost a lot of invested time and money. Patenting your invention immediately sets your position within your field. Without your permission nobody is allowed to copy or apply your invention.

2. Selling of license

A patent not only prevents third parties from using your invention, it also creates an additional source of income and the opportunity to spread innovation quickly over a large market.

With a patent you own the property rights. This provides the opportunity to sell the licensing rights of the invention to other parties. Through this they obtain permission to apply your invention. Especially to smaller start-ups, which are initially limited in production capacity, this can be an excellent way to rapidly spread an invention over a market. Without the disadvantage of losing money because others walk away with your invention for free. At the same time, the selling of licensing rights provides the possibility to effectively outsource certain aspects of your company. This way you can devote all your focus to further innovation of your enterprise.

To provide patent holders with an opportunity to extract more value from their patent, the database of patent licenses was recently opened in the Netherlands. It functions as a platform where entrepreneurs and patent holders can meet, to facilitate the exchange of innovation. Go here for information about this patent database.

3. Security for banks and investors

Start-ups are at first often dependent on investors, a bank or other forms of income supply. Larger companies, on the other hand, depend on the support of their shareholders. It is appealing to investors to invest in a company that has innovative products that are protected, whereby the rights of the product can be offered to third parties through licensing. It creates less uncertainty about the investment made by them. Therefore, they highly value a patent.

4. Stimulation of innovation

It is often thought that the patenting of an invention puts out a ban on third parties to apply this invention. This is explicitly not the purpose of a patent system. A patent indeed provides the patent holder with an exclusive right. However, the patent holder is explicitly expected, of course for a reasonable fee, to provide others access to the inventions. In the case a patent holder refuses to do so, the person wanting to apply the invention can even claim this right. In extreme cases this takes place in front of a judge, who determines the reasonable amount to be paid. The patent system would surpass its purpose if indeed an invention is made which would be used nowhere in the world because of its patent protection. This may sound as a restriction to a patent, but in fact it stimulates constant development within a field and, through licensing agreements, the opportunity to spread innovation rapidly and lucratively across the globe.

5. Advantages to patent holder and working field

A patent application appears as a publication within the patent literature. This means that this information becomes globally available. For example through the patent database mentioned above. The global disclosure of an invention without a patent application has the consequence that others are encouraged to copy your invention and become your competition. The alternative is keeping an invention secret. This has the limitation that the invention is not protected and that the selling of licensing rights is not possible. Especially the latter aspect restricts a company to the self-production and application of an invention.

The global disclosure of an invention in the form of a patent application has the effect that others become aware of your invention, and as such also become aware of the possibility of obtaining a licensing right. It is exactly to bring together patent holders and entrepreneurs why this aforementioned patent database was started. At the same time, experts in the field are encouraged to, on the basis of your invention, come up with further innovation, which would eventually also become part of the patent literature. Hence, the patent system provides a stimulus to the development of technology. DOGIO Patents assists you in entering this global system of technology by investigating the invention you hope to protect and to listen to the goals you aim to achieve through this.