Let’s start with a story. We were approached by a Client – let’s call them Company X, to provide advice on a product they wanted to copy. The product was patented by Company Y.
We advised Company X that if they copied Company Y’s product (by making a product which included each of the claimed technical features) they would likely infringe Company Y’s Patent.
Company X then set about trying to work around Company Y’s patent and after much frustration (and multiple reviews by us) managed to come up with a workable but inferior product.
If a patent is poorly drafted it is easy to work around – you must have a patent drafted by an expert Patent Attorney to ensure your patent is of value
During this time Company Y would have had no idea that Company X was looking at their patent (patents become publically available). In fact, Company Y may be thinking their patent is not doing a whole lot – but really Company Y’s patent is working really hard behind the scenes to protect their business.
This is the value of patents – and in this case, the patent protected the patent holders (Company Y’s) business that was worth well over 1 million dollars.
Deter Copying (infringement) – without you needing to do anything
In view of the story above, it is clear that one of the key values of a patent is deterrent value. Most importantly, your patent deters others from copying your invention – without you needing to do anything.
Stop Copying (infringement)
If you do need to actively enforce your patent – you may send cease and desist letters (make sure you get advice on this) to alleged copiers and may seek to resolve the matter by settlement (such as by offering a license). Of course, you may also initiate infringement proceeding in the Federal Court.
Market Positioning & Product Price
The marketing value of patents also cannot be overlooked. Products or processes being labeled “Patented” have a propriety feel to them and customers know that they can only buy the “Patented” product from the patent holder (or license holder).
Because other competitors are “deterred” from copying your product or process there is less or no completion and this allows higher prices to be sustained and ultimately greater profits.
Adding Value to your Business
Because patents give you exclusive rights to an invention (and provide the “deterrent” value outlined above) investors or someone purchasing your invention or business place great weight on patents. Investors are also well aware of the market position and product pricing advantages of having patent.
In fact, we know of one start-up company that was able to obtain 11 million dollars of investment on the back of three provisional patent applications, a business plan and a basic prototype. Without the provisional patent applications – the investment would not have been made (we know because we were involved in the deal !).
How can Caska IP Help?
We are registered patent attorneys who specialise in drafting and filing patents that broadly and strategically protect inventions. Well-drafted patents make it hard to copy the invention and ensure the patent is of high value.
To obtain a high value patent, simply get in touch by calling us or sending an email to firstname.lastname@example.org.
The Take Home Message
- Patents create value
- Patents work behind the scenes to protect your invention
- Patents are attractive for investors or selling your business
- Patents allow higher prices and increase profitability
- Valuable patents are expertly drafted patents
- Contact Caska IP Patent Attorneys