A patent is an exclusive right granted by a country to an inventor, allowing the inventor to exclude others from making, using, or selling his or her invention in that country during the life of the patent. A patent is useful because it can help protect your creation. It can safeguard any product, design, or technique that meets certain criteria for originality, practicability, appropriateness, and utility. A patent can usually protect an invention for up to 20 years. This period begins as soon as you file your patent.
For many firms, patent protection may be a useful commercial tool as well as a significant investment in technology. Every firm may have a valuable technology or invention that should be protected because it could be a crucial and precious asset. Understanding what patent rights can give is important for business success. The various benefits patent protection provides are-
- Helps a Business to Grow
- Safeguards an Invention
- Defends the Market Share of a Business
- Increases the Valuation of a Business
- Patent Provides Competitive Advantage
Patent Portfolio
The value of a firm is heavily influenced by its intellectual property in the innovation-driven economy . Your ability as a business owner to capitalize on your intellectual assets will depend on a complex IP-Management concept called “IP Portfolio Management.”
IP Portfolio management is a process where a business can coordinate its strategic patent, trademark, copyright, and design filings with its product commercialization strategy.
If a company’s patenting operations are to be fully realized, they must relate to and be integrated into its overall business plan. A well-managed patent portfolio should create revenue for a company by safeguarding its investments, defending it against competitors, and balancing asset maintenance expenses. A patent portfolio encompasses all the issued patents, patent applications, and development ideas of a company . Many companies do not realize how vital the patent portfolio is for both protecting the intellectual property rights and monetizing their ideas.
Importance Of a Patent Portfolio
The advantages of having a high-quality patent portfolio are multifold. Below are some of the major advantages that would convince you why it is paramount to build a strong portfolio for your organization: –
- Technology negotiations
Patents have an expiration date, but corporations do not.
However, there are instances when a particular business is no longer viable, and the firm must either halt operations or sell off one of its divisions to maintain operations. In such circumstances, the value of intangible assets such as the patent is assessed in addition to the direct income from the product line to determine the negotiation price.
In such cases, having a robust patent portfolio means that even if a specific division is closed, the intellectual property behind the technology can still be exploited to maximize value. The point is no matter what the circumstances are — a strong patent portfolio would always be helpful during negotiations. It does not just protect the products but also increases the overall worth of the company.
- Return on investment
Everyone who wants to engage in technology must acquire licenses over the essential patents in the respective areas, a robust portfolio can boost the return on investment in patenting the idea and R&D activities by improving licensing opportunities. Creating a high-quality patent portfolio frequently entails including such star patents in one’s portfolio.
- Increases the value of an entity
A comprehensive IP portfolio increases the value of an entity by raising the value of its balance sheet. In some industries, like technology, a company’s value is derived exclusively from its IP portfolio, which can therefore be leveraged to attract investors.
Hence, a strong portfolio is built by comparing the competitor’s advancement/ research activities working in similar domains as yours and acting offensively or defensively through that. A strong patent portfolio helps in getting
- Better competitive revenue and value,
- Prevent competitors with a similar product line from entering the market,
- Can be used as a weapon against infringers,
- Valuation of a company is increased among shareholders/ investors and
- Create an opportunity for cross-licensing.
Building a smart patent portfolio
Patent portfolios, filled with high-value patents do not just open a new stream of revenue but also help organizations emerge as market leaders. Hence, building a strong patent portfolio involves the following: –
- Patent search
A patent search on patent portfolio analysis is conducted to identify the collection of patents and patent applications owned by a company. Particularly, a company or entity may request to compare its patent portfolio with another company/competitor’s patent portfolio. The comparison is to identify the strengths and weaknesses of their portfolio.
- Patent Application
You must understand patent application types and related intellectual property laws in order to develop a lucrative and strategic patent portfolio. There are three categories of patent applications: utility patents, which protect your innovations’ practical utility application, design patents, which protect your inventions’ ornamental features or appearance identify business goals
The following are some goals that are relevant to your IP:
- Increase your earnings via licensing
- Keep core technologies safe.
- Prevent new competitors from entering a market.
- Conduct a SWOT analysis of your intellectual property and that of your competitors
Take the time to conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis with your staff. Because technology and intellectual property can evolve quickly, it is critical to understand not only your own IP portfolio but also the IP portfolios of your competitors. In addition to patents, trademarks, trade secrets, copyrights, designs, and even domain names and social media presence should be considered.
This will assist your team in identifying the intellectual property assets that are critical to your company’s success. These recognized intellectual property assets must be protected as soon as possible! As your firm grows, it is equally critical to identify and preserve the IP assets that supplement your core assets. Perform this analysis on a regular basis, at the very least.
- Make a budget
The budget for intellectual property is frequently included in the budget for research and development. This budget is determined by the company’s goals and overall size. Set aside the same amount for each additional country where you want to seek patent protection. The cost of other IPs varies based on the type of IP and the country of interest.
- Monetize your IP portfolio
This is the best part. You want to know the worth of your IP portfolio , . You will be in a better position to utilize your IP portfolio for commercial success once it has been established and integrated with your business plan, whether that is through using it as a legal stick and/or for marketing objectives.
- Keep your ownership secure
The laws governing intellectual property ownership are never simple. Businesses frequently fail to recognise that just because they paid for development does not mean they own the product. You must have an IP ownership agreement in place from the outset, especially if you are working with third parties, subcontractors, or consultants. If you wait too long, obtaining an agreement can be difficult. And the more successful the collaboration, the tougher it becomes.
- Location
Intellectual property rights are territorial. If you wish to protect your IP assets in a larger number of jurisdictions, you must apply for protection in different jurisdictions. One must examine which markets are most likely to provide revenue growth for himself and possible investors. Businesses commonly protect their assets in large or strategically important markets, as well as nations where key competitors operate, where these markets are properly defined.
What is a portfolio review?
A patent portfolio review includes analysing a company’s notice protocols and making necessary recommendations to ensure the maximum protection of your patent portfolio.
In order to secure optimum intellectual property protection, a patent portfolio review may also entail an examination of your company’s internal business processes, from product creation to sales. Employee handbooks, internal operating policies, yearly reports, and even ordinary e-mails from the organisation might all have an impact on the capacity to enforce a patent. To preserve patents and related intellectual property, internal controls and sufficient employee training may need to be created and implemented. A patent attorney’s review one patent portfolio could also result in identifying additional potential patents for which you haven’t yet applied. Often patents are written quite broadly, and while doing business, additional features are discovered. A patent attorney can ask key questions about the company’s processes and products to determine if more narrowly drafted patents could benefit your company’s overall portfolio. The review may also reveal innovative products or processes that the company has that are eligible for patent protection but have not yet been identified.
The bottom line is that a patent portfolio evaluation could help your company grow by finding crucial areas that allow you to fully capitalise on the time and effort you have invested in developing goods and patents. At the very least, it will assist prevent undesirable outcomes such as expired patents, and ideally, it may result in financial rewards for your organisation.
Patent Renewal & Maintenance
A patent life is ideally set within 20 years from the date of filing the patent application, and the renewals of it should be done by payment of its maintenance charges regularly on a particular date set by the patent office that depends on the filing and grant of a patent. The amount varies from country to country and when one has numerous patents, maintaining it becomes a hectic task, for executing its patent portfolio.
When a patent for an invention is issued in India, the next critical step is to renew it on a regular and continuous basis as per Section 53, rule 80 of the Indian Patent Act Indian Patents Act, Section 53, Rule 80). This can be accomplished by paying Patent Renewal Fees on time for the whole length of the patent, which is 20 years. For the first two years, there is no renewal fee. The renewal fee is payable from the third year onwards. In case the renewal fee is not paid the patent will be ceased. The patentee has a choice to pay the renewal fees every year or he can pay in lump sum as well. A request for restoration of the patent can be filed within 18 months from the date of cessation of the patent along with the prescribed fee. After receipt of the request, the matter is notified in the official journal for further processing of the request.
If the renewal fee is not paid within the extension period, the patent ceases to exist and passes on to the public domain
Patent Monetization and Licensing
Patent monetization is when an inventor or a company sells or licenses patents to generate income. Patent monetization has developed as a valuable revenue source for many businesses, having the potential to generate substantial sums of money in the short or long term. Patent monetization is a routine activity for organisations with a large portfolio.
Patents are assessed as part of the patent portfolio evaluation process to provide significant insight into the R&D scenario and commercialization prospects. It also assists your organisation in effectively utilising its patent assets by uncovering new licensing options and avoiding litigation risk.
The most effective strategy to monetize your patent is to license it. With patent licensing, companies temporarily assign the rights to use and manufacture their patent to the licensee, in return for a royalty. The patent ownership rights are retained by the licensor. Exclusive licensing, non-exclusive licensing, and cross-licensing are the types of licensing agreements that can be drawn up. Patents are valuable assets whose worth is determined by a variety of elements, including the quality and representation of the claims, whether the invention is currently being used or will be in the future, and the size of the impinged market and its associated income. From a financial, legal, and technological standpoint, a thorough study of numerous elements such as licensing, related prior art, or concerns with the prosecution history will ensure that we obtain the highest and most efficient value of your assets.
Managing international patents
Managing of international patents is simplified by the below process of obtaining patents in multiple countries
- Patent Cooperation Treaty (PCT)
The Patent Cooperation Treaty (PCT) assists applicants in seeking patent protection internationally for their inventions, helps patent offices with their patent-granting decisions and facilitates public access to a wealth of technical information relating to those inventions. By filing one international patent application under the PCT, applicants can simultaneously seek protection for an invention in a large number of countries.
The PCT is an international agreement that is administered by the World Intellectual Property Organization’s (WIPO). International Bureau (IB) covers the majority of the world’s major industrial countries. The IB receives all PCT applications, regardless of where they were submitted, ensures conformity with PCT rules, keeps an official record of all PCT applications, sends copies of relevant papers in PCT applications to regional and national patenting agencies, and publishes PCT applications.
One notable advantage of a PCT application is the deferment of the cost of national phase applications, giving applicants additional time to investigate the commercial viability of the innovation.
- Patent Prosecution Highway (PPH)
The Patent Prosecution Highway (PPH) is a mechanism that expedites patent examination for both applicants and patent offices. An applicant can use positive examination results from one patent office to expedite prosecution at a second patent office under this provision. PPH effectively allows patent offices to re-use or depend on the examination performed by other patent offices in order to process patent applications more efficiently. It decreases prosecution workload and deadlines. However, the decision to issue or deny a patent remains with the patent office where protection is sought.
Working With Patent Attorney
A patent attorney is a person who is qualified to represent someone in patent matters before the patent office. Patent attorneys are usually required to have a technical background in a particular field of technology, in addition to a law degree.
Benefits of working with a patent attorney
- Effective patent portfolio management can be critical in exploiting inventions to add value to a company. From the conception of an idea to the enforcement of patent rights, patent attorneys provide patent portfolio management advice.
- Patents are expensive. As a result, when creating a patent portfolio, you should seek counsel from experienced patent attorneys who understand your business strategy. Your decision to develop a patent portfolio should be obvious and consistent with your business goals and budget constraints. The patent attorneys provide advice on patent portfolio management techniques that are tailored to your company’s requirements.
- The attorney will work with the client and can advise on strategies based on the client’s demand and business plan. Through portfolio management, the patentee can be assured that no such procedural errors will be expected and maximum benefit can be aroused from strategizing patents in terms of the business plans.
- Advising clients on licensing and acquiring the patents
- Analysing the market and advising which patent can be competitive
Conclusion
Patent portfolio management is a technique that a corporation uses to stay ahead of the competition by keeping a frequent check on the patents it owns and maintaining coordination between its patenting strategy and its business plan, which increases the company’s commercial revenue. Patent portfolio management encompasses a variety of strategies for generating an effective and targeted portfolio, such as identifying patents that are less valuable and making decisions to prune or abandon those patents, making decisions on offensive or defensive strategies, licensing, mergers, and a variety of other patent portfolio transactions.
A strong patent portfolio does not mean a quantity of patents, it is related to the quality of patents which safeguards the entire product line by including all the new elements and improvements in form of stronger claim scope and focusing on divisional or continuation filing activities keeping in mind future scope too. A robust portfolio is developed by constantly monitoring your competitors’ advancement/research activities in related domains to yours and acting offensively or defensively through that.
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