A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. To get a patent, technical information about the invention must be disclosed to the public in a patent application.
A patent may include many claims, each of which defines a specific property right. These claims must meet relevant patentability requirements, such as inventive step, novelty and non-obviousness.
Patents provide you with an exclusive right to prevent or stop others from commercially exploiting the invention for twenty years from the date of filing of the patent application.
Having invested a considerable amount of money and time in developing innovative products, through these exclusive rights, you may be able to establish yourself in the market as the pre-eminent player and to obtain higher returns on investments.
If you choose not to exploit the patent yourself, you may sell it or license the commercialization of the patented invention to another enterprise, which will be a source of income for your company.
If your company is in the process of acquiring the rights to use the patents of another enterprise through a licensing contract, your patent portfolio will enhance your bargaining power. That is to say, your patents may prove to be of considerable interest to the enterprise with whom you are negotiating, and you could enter into a cross-licensing arrangement where, simply put, your enterprise and the other agree to license respective patents to each other.
Business partners, investors and shareholders may perceive patent portfolios as a demonstration of the high level of expertise, specialization and technological capacity within your company. This may prove useful for raising funds, finding business partners and raising your company’s market value.