Patent Values – What You NEED To Know!
The number of patents issued in the United States increased to 187,000 in 2003, 22% more than in 1999. For the inventors who entered the system or were lucky, the rewards were numerous. The license of patented inventions now generates $ 150 billion worldwide each year, a figure that is expected to increase by almost 30% in the coming years.
At the same time, litigation for patent infringement has reached the headlines on a daily basis. The number of patent infringement claims filed each year in the United States. Increased by 64% during the period 1991-2000.
Also, during a 12-month period ending in September 2003, US patent holders filed 2,788 counterfeit shares, 13% more than in the same period (1991).
However, many inventors are yet to enforced their patents despite legitimate claims of counterfeiting. They have been overwhelmed and intimidated by the costs involved in most cases.
Most of the time, these disappointments could have been avoided if the inventors were armed with knowledge and understanding of patents (and what they are not) and how to determine their value. Such knowledge can make the difference between the success and failure of an aspiring inventor.
The biggest misconception is probably what a patent is and what rights it gives its owner. Many believe that a patent gives the inventor the right to produce or market the patented invention.
THE VALUE OF A PATENT
By law, a patent is the right to exclude others from the manufacture, use, sale, offer for sale or importation of the patented invention. In other words, a patent is a right of exclusion and does not offer any positive rights. Basically, a patent is more like a license to initiate an infringement action.
A patent is a monopoly sanctioned by the state, and it is limited in three ways. It is in force for twenty years after the filing date; it is valid only in the country that has granted it and is limited to what is specified in the patent claims.
Before applying for a patent, the inventor must ask about its potential value. Is it worthwhile to apply for a patent in the first place? Is it better to protect technology by patenting or keeping it as a trade secret? Do you still have to pay maintenance costs for a patent you do not use?
To respond intelligently to one of these questions, you must evaluate the value of the patent. The value should not be confused with the value of the product that is patented. Both are distinct and different.
Therefore, a product without a patent has value; The same goes for a patent without product.
Coca-Cola, for example, is an unpatented product. The formula of Coca-Cola is protected only by trade secret laws and is one of the most valuable trade secrets in the world. Another example is Bayer Aspirin. Once it was protected by a patent that expired a long time ago. The product continues to live without the patent protection it once had.
HOW TO USE A PATENT
A patent can be used in two ways. If you manufacture or sell a patented product, the main use of the patent is to safeguard market share by keeping competitors in check. If you are a researcher, your only option of generating income may be to obtain a license for the patent.
MAKING A PATENT EFFECTIVE
Every inventor who files a patent application must ponder and ask if they have the means to enforce the patent if it is infringed?
Many organizations, particularly academic and research institutions are reluctant to dispute litigation. This undermines the value of their patent portfolios. If the message appears that a particular organization is reluctant to enforce its patents, why would someone allow patents from that organization when the patented invention could be violated without a serious threat of legal consequences?
However, it is not enough to have an adequate attitude towards the application of patents. This attitude must be supported by a healthy bank account. With the average cost of patent infringement litigation in the US Exceeding $ 2 million, patent litigation is the sport of the rich. Unless you are employed by a well-funded organization willing to fund the dispute, you may not be able to execute your threat, either explicitly or implicitly.
Fortunately for small businesses and individual inventors, there are alternative methods to finance litigation for patent infringement. One is to get a law firm that represents you in case of an emergency.
This means that instead of charging you on time, the law firm will get a share in the monetary recovery, which can result in damages for the winner of a lawsuit or license fees negotiated in a court of law.
Another way is to work with a patent control organization. This organization, like Bold Patents, will exercise due diligence, prepare the case before hiring a lawyer specialized in patent litigation and will manage the execution, including legal fees and disbursements. An enforcement firm will also carry out all the work of the license.
Protecting your IP is a big problem. As a result, Bold Patents attorneys and agents will be in a better position to help you take advantage of your company’s intellectual property assets and turn them into net profits. You can change the world! Ahead! Go bold!