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. You need to protect your invention due to the 5 reasons highlighted below.
Your idea can make you millions, particularly if it becomes a global sensation. 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. They then speak to investors and show them how their ideas work in the hope that they will get the requisite funding. In case such investors are deceitful, they can claim not to have funds or simply dismiss the creative ideas as unworkable then proceed to file their patent applications using the inventor’s ideas. Inventors who later proceed to file patents will be late in time, meaning that their ideas will be considered to belong to the parties who made the earliest applications.
Patents protect you from competitors who use inferior technology for a period. That allows you to make super profits from your idea. 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. What is most interesting is that it is an appreciating asset whose value increases over time. You, therefore, can opt to sell it now or wait a couple of years and reap handsomely. 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.
The presence of patent protection measures encourages innovation since people are now comfortable bringing out their creative ideas into the open. Without an effective system of protecting persons who have creative ideas, people will be reluctant to make their innovations public. The absence of innovation will create a state of stagnation for mankind. For instance, it will be time to bid farewell to new drugs, meaning that we may never get the cure for certain terminal illnesses.
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