Five Benefits Of Patenting An Invention
Start-up entrepreneurs interested in launching a new business or a new idea, should get their invention patented. Getting a patent protects the invention being copied or stolen. There are many other benefits of patenting. Some of them are
Patents protect the invention from theft
Start-up firms or inventors need to discuss the invention with the potential investors and licensees in order to get funding for the business. If the invention is not patented, these investors and licensee can reject funding the inventor and steal the patent and idea by applying for patent first. The patent office grants patent to the party, who files the application first, hence it is prudent on the part of inventor to apply for a patent first, before disclosing any information to the third parties.
Higher profits
Patent grants exclusive legal rights to the inventor, to benefit from his invention. He has the sole right to manufacture, sell, export or license his invention. If the market demand for the invention is high, you can make higher profits by selling the product or service at higher price.
Reduce competition
Patenting a product or service helps the patentees to keep competition at bay. Patent acts as a barrier for entry of competitors into the market. This helps the patentee to enjoy full control of market supply of his invention and enjoy huge rewards. However, patentees must be ready to defend their patents, if any competitor tries to infringe on their rights.
Expand the market
Patents helps entrepreneurs to expand their markets. They can license their patents to a company operating in a different geographical market. The patentee will receive additional revenue in the form of royalties on the products sold in the different markets. Further, the patentee can also license his inventions to a different industry or technical field. This will help him to expand the scope of his invention and profit from it.
Benefit from sale
Once you patent an idea, you can sell the patent to other companies and make a profit from it. Some entrepreneurs rely on this mode of patent and idea, to generate revenues. However, the inventions should be unique and have huge marketability in order to make profit from selling the patent.
