What does a company gain from acquiring patents?

29 Dec 2017

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Companies must be inventive and even be able to access and use other companies' inventions, in order to be competitive in domestic and foreign markets, and most importantly, to remain competitive. Otherwise, there is no chance to survive in the new commercial environment where the general character is to take risks and be dynamic and ambitious.

So why do companies get patents by making all the expense? What are the benefits to the companies of protecting their inventions with patent rights in different countries of the world?

MAKE YOUR POSITION IN THE MARKET STRONGER AND EXPERIENCE YOUR ADVANTAGE

The patent document gives the owner the right to prevent others from using the patented invention commercially, thereby reducing the uncertainty, risk and competition that imitators and free-riders will create. If you have a patented invention with high value in your company or if you have obtained permission to use such a patented invention, you have the opportunity to create a wall that prevents your competitors from having the same type of inventions in front of the market. This will give you the advantage of being an unrivaled player in these markets.

MAKE MORE EARNINGS OR RETURNS IN YOUR INVESTMENTS

If your company has invested a significant amount of time and money into R & D activities, patent protection of the resulting inventions will lead to recovery of costs and higher returns from investments.

YOU CAN MAKE ADDITIONAL REVENUES BY TRANSFERRING PATENT RIGHTS OR GIVING PATENT LICENSES

As a patent owner, you may license others for your rights on the invention. You get a total payment or periodic usage fees in exchange for a license. Thus, you earn additional income for your company. The sale (or transfer) of a patent means that the owner of the patent is altered, whereas licensing only allows the use of the licensed invention under the agreed terms.

GIVES ACCESS TO NEW TECHNOLOGIES WITH CROSS-LICENSING

If your company is interested in some technologies in the hands of other companies, you may try to obtain permission to use other party's patents by giving permission to use some of the patents you own.

GET INTRODUCTION TO NEW MARKETS

By granting licenses to others for your patents (or even patent applications) you can take the opportunity to enter new markets where it is not possible to enter otherwise. In order to be able to do this, your patents should be protected in these foreign markets.

REDUCE THE RIGHTS VIOLATIONS

With patent protection, you can prevent others from taking patents to the same invention and at the same time you reduce your chances of violating others' rights while commercializing your own products.

INCREASES YOUR COMPANY'S CAPABILITY OF ATTRACTING INVESTOR CAPITAL

The patents you own (or patents you're entitled to use) can increase your ability to find the capital you need when launching a new product. In fact, in some sectors (biotechnology, etc.), the prerequisite for attracting external entrepreneur capital is to have a strong patent portfolio.

A STRONG DEFENSE TOOL AGAINST IMITATORS AND FREE-RIDERS

The inventor may sometimes have to fight legally against copycats and imitators. In this case, the patent document will be the most important tool for the success of the inventor if he opens a case.

ENHANCE YOUR COMPANY IMAGE

Trading partners, investors, shareholders and customers will perceive the patent portfolio of a company as an indication of the company's technological capacity and expertise. This will help us to increase the capital, to find commercial partners and to increase the company's profile and market value. Some companies mention patents in their advertisements or list these patents, thus reflecting the image that they are an innovative company.