Patents can add value to a business or may be valuable by themselves.
There are many reasons why patents can be valuable and we’ve outlined a few below.
Patents can be licensed so that the owner receives license fees from another business who may want to produce the invention.
A patent is an asset and can be sold or used in the same way as other assets.MarketingAdvertising that your product or service is covered by a patent can be an effective marketing tool. You can even advertise you have a patent pending before its granted.
A patent enables the owner to sue others who are infringing the patent and prevent them from continuing to use, make or sell the patented invention.
Patents can be used as a shield against others using a MAD (Mutually Assured Destruction) strategy with patents acting as deterrents to stop others suing, i.e. if you sue me, I sue you.
Marking your products with a patent number and advertising that you have patented the product can deter your competitors from trying to copy your product.
Investors looking at a business want to know that the business has protected its Intellectual property, particularly patents for any innovative products.
Government or other organisations offering funding for research and development may make the funding contingent on obtaining a patent for the end product.
Having patents conveys that you are inventive and improves your status in the minds of your customers and competitors.
Patents are assets that add value to your business and can help improve the sale price of your business should you want to exit.