Well, you seem confused about why patents are important? Let us help you find the answers.
It does not matter what industry your company is in; if you invest in research and development, you must protect your results. Patenting is one of the effective and practical strategies to ensure that you are the one who reaps the full advantages of your investments. Remember that innovation is not yours until it is patented, but once it is, you can be confident that no one will take a cut of your profits.
Patents Protect Invention
Patents are essential since they ensure that your product, design, or process is protected. In general, a patent protects your idea for up to 20 years and in as many countries as you wish if it meets specific criteria for originality and usability. In other words, you’ll have a monopoly, and no one else will be able to manufacture similar things within the same scope as you. Experts refer to this monopoly on your idea embodied in a specific product or service as the gold standard of IP protection.
See Also: How To Evaluate Your Startup?
Patent Helps Business Grow
Every company can benefit from a patent by increasing its market share and profit margins. Let’s look at an example commonly used to highlight the advantages of gaining patents. We all know that Apple’s iPhone isn’t the most popular product on the planet. In truth, it has a small market. However, we also recognize that it captures a significant share of market earnings simply because the brand’s creators were eager to patent everything they could.
Patent Defends Market Share
Do you know that Amazon patented the now-ubiquitous “one-click” purchase system? You most likely did. In any case, it is not an exaggeration to say that Amazon’s acquisition of Whole Foods was a watershed moment in the history of online shopping. Some companies attempted to imitate this procedure for their usage, but Amazon sued them, filing a patent infringement suit against it, thus the retailing titan still has a significant competitive advantage over all other competitors in the market.
Patent Provides New Sources Of Revenues
Patents can help your company acquire funding and lower its cost of capital dramatically, and if you didn’t know, patent-secured finance is already a growing trend around the world. Finding the necessary finances for future initiatives will be easier if you have a good patented invention. Why? Intellectual property ownership is more likely to attract lower interest rates from lenders to boost profitability.