5 Benefits of Protecting Patents
Patent protection is critical if you have an innovative idea that is also practical. 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.
A new invention has the potential to generate endless amounts of cash, especially if its use goes global. That does not mean that someone else cannot steal or copy your idea for personal enrichment. A classic example is when an innovator has a great product or service idea, but you have no cash to make it work. Such individuals turn to investors and explain how their ideas work in the hope of convincing them to fund their ideas. 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. If the inventors later file patents; it will be futile since some other parties have already beaten them to the task.
You will get protection from competitors who use outdated technology for several years. As a result, your idea will get you super profits. An example is where your company introduces a pharmaceutical product that will be the main source of revenue before rivals are allowed to use the idea behind it to produce copycats.
The fact that a patent is an asset means that you can sell it for cash. It is interesting to note that patents are assets whose value appreciates with the passage of time. So, you can sell your patented idea for outright cash or wait some years to gather more from it. As a patent holder, you can also collect revenue in the form or royalties from companies that you have sold the license to. Patents also increase the value of a company, especially for loan purposes because banks will consider them to be assets just like others such as property and machinery.
Since there is no other product or service like yours, you can charge whatever price since users have no alternative to opt for. That can make your company grow tremendously because of the large cash inflows that will result.
Patent protection encourages innovation because many people will be confident in putting their ideas into action. Note that very few people if any can release their creative ideas if such protection measures are absent. 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.