5 Benefits of Protecting Patents
Patent protection is critical if you have an innovative idea that is also practical. Though the intellectual property concept has been in existent for long, the introduction of IT has made it increasingly important in the past few years. Your invention, which is the product of your creative mind, needs patent protection due to the following 5 reasons.
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. As a result, they turn to investors for funds, and in the process, explain to them how their ideas work. If the investors are dishonest, they can simply dismiss the ideas as unworkable or state that they have no cash, and proceed to file their own patent application. 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.
Applying for a patent ensure that you get protected from competitors who use technology that is not as superior as that what you have invented. That allows you to make super profits from your idea. If your company is into pharmaceuticals, for instance, it will make huge profits from a drug invention before its rivals get to use the secret formula to make a similar product.
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. There is the option of selling it immediately or waiting for it to fetch a substantial amount later on. 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. For loan and other purposes like selling a business, patents are assets, meaning that they increase the value of a firm.
Being the originator of an idea that produces a unique service or product allows you to charge higher than normal prices. It is possible to turn the tides of your company in such instances because of the significant sales revenue that will ensue.
Patent protection encourages innovation because many people will be confident in putting their ideas into action. 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. Such is a dangerous situation since drugs that are meant to cure terminal illnesses will never come to be.
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