Top 5 Merits of Patent Protection
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. Here are 5 reasons to get patent protection if you have an innovative idea.
A new invention has the potential to generate endless amounts of cash, especially if its use goes global. Any person can, however, copy or steal the idea and market it as his. 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. If the inventors later file patents; it will be futile since some other parties have already beaten them to the task.
Patents protect you from competitors who use inferior technology for a period. That allows you to make super profits from your idea. 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.
Just like land and other tangible assets, a patent is now recognized as an asset that you can sell. In fact, it is an appreciating asset, meaning that its value increases over time, allowing you to get more if you sell it in the future. There is the option of selling it immediately or waiting for it to fetch a substantial amount later on. 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.
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. 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. Such a situation is dangerous because mankind will not experience innovation in any field. Such is a dangerous situation since drugs that are meant to cure terminal illnesses will never come to be.