5 Benefits of Protecting Patents
If you have an innovative idea, it is appropriate to consider patent protection. The intellectual property concept has been around for ages, but its importance has increased tremendously recently due to the influx of IT. Your invention, which is the product of your creative mind, needs patent protection due to the following 5 reasons.
If your innovative idea is turned into a product or service that is used widely, it can make you millions in revenue. That does not mean that someone else cannot steal or copy your idea for personal enrichment. For instance, many inventors are usually short of cash to turn their genius ideas into products or services. Such individuals turn to investors and explain how their ideas work in the hope of convincing them to fund their ideas. The investors can proceed to file patent applications using the idea forwarded because they will simply tell the inventors that their ideas are not practical or claim that they have no funds. Even if the real inventors come later on to file patents, it will be late in time.
Patents protect you from competitors who use inferior technology for a period. As a result, your idea will get you super profits. For example, the invention of a new drug by your firm means that you can generate an income from it for a considerable period before rivals start using the idea behind it.
Just like land and other tangible assets, a patent is now recognized as an asset that you can sell. In fact, it is an appreciating asset, meaning that its value increases over time, allowing you to get more if you sell it in the future. So, you can sell your patented idea for outright cash or wait some years to gather more from it. License holders can even collect royalties from the companies they have sold the licenses to and make huge sums, especially if the latter are numerous. Also, a patent can enhance the value of your firm for the purposes of seeking funds because lenders will consider it when evaluating others such as machinery and land.
The absence of other products or services that are similar to what you have to offer means that you can charge higher than normal prices. Your firm’s profit margins have the capability to grow considerably due to such a scenario.
With patent protection measures in place, innovation is encouraged since people are not reluctant to put forward their creative ideas. Without an effective system of protecting persons who have creative ideas, people will be reluctant to make their innovations public. Without innovation, mankind cannot take any step further. That is a serious situation because we cannot even get drugs to treat illnesses that have threatened to wipe out the entire populace.