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3.3.2 From a Business Standpoint, What Should Be Patented

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There are many reasons that go into deciding whether a patent should be obtained for a particular invention. The first criterion, of course, is whether or not the invention is patentable, based on the previously mentioned criteria. Another consideration is the importance the invention has to the profitability of the company for whom the inventor works. Also, an independent inventor can determine what importance the invention will have to that inventor’s future economic situation. A further consideration is whether or not there exists a market for the product or process which will include the invention, or whether a market could be created from scratch for the particular product or process where there is no other item on the market quite like the subject invention.

After an invention is made, consider the importance of protecting the invention against competition by others when you create your market introduction plans for the invention. Is there a large competitor that can copy your product and put you out of business if your product is not covered by a patent? Consideration must also be given to the potential for foreign markets for the product or process, and whether foreign patent protection should be sought for your invention. Also, consider whether a competitor would have the capability of manufacturing a product in a foreign country to compete with you on a global scale, and whether or not you should obtain patent protection in that foreign country to deny the competitor the ability to manufacture in that country, thereby choking off potential infringement at the source.

There are additional factors that impact the decision whether or not to spend resources to obtain a patent, and these additional factors pertain to the individual characteristics of the given company and the industry in which the company operates. When decisions of a business nature have to be made, it is important to seek the advice of a competent patent professional, so that all of the options regarding intellectual property protection for your intellectual assets may be provided to those responsible for making business decisions. Obtaining worldwide patent protection on an important invention is an expensive proposition, and careful consideration should be given to making such decisions.

Careful study should likewise be given to the required investment for creating a new product, and bringing that product to market. Consideration should be given to the possibility of making necessary changes in existing production facilities to produce and launch a new product. Consideration of the extensive advertising budget required to convince the public of the reasons they should buy a new product, and to change their buying habits to accept the new product, is important. The size of the market for the new product and profitability studies are also important factors.

While the commercial importance of an invention is probably the most important consideration as to whether to obtain a patent, the credibility granted to the inventor(s) associated with an invention is a primary factor in assisting the inventor to convince his/her employer to commercialize the invention. A successful inventor requires credibility in the same way that a successful artist or author does. If the inventor has no prior successes to advertise, the inventor must establish credibility by proving that the product embodying the invention is worthy of the investment of resources. A favorable sales history for a patented product also builds credibility. All of these factors make it easier for the inventor to span the gap between a conceived idea and actual commercialization of the embodiment of that idea.

The inventor must also determine whether the public is ready for the invention. For example, a variety of economic, production, and management factors may come into play to shift the period of patent protection away from the period when the invention is commercially important. Several of my clients have attempted to interest companies in licensing their inventions, and a frequent response was that the company had no further funds available that year to introduce new products. This can be disappointing to the inventor, and not because the invention did not have a high profitability forecast. An example is heavy industries, where actual production methods may lag behind current available technology by a period that is much longer than the life of a patent. Thus, the value of a patent can be greatly influenced by the patterns for change that exist for specific products in given industries. Anecdotal information reveals that many inventors often underestimate the cost and difficulty of commercializing their inventions, and overestimate the market size and expectations of purchaser acceptance. The inventor must be prepared to face and overcome numerous difficulties before an invention returns a monetary award, and the inventor must be willing to work hard and not be dissuaded in the face of negative responses to move the invention to market before he/she realizes any reward. In other words, keep pushing your idea, and—above all—be patient!

Intellectual Property Law for Engineers, Scientists, and Entrepreneurs

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