In the US, patents play an important role in safeguarding innovation. They help businesses, regardless of size, protect their intellectual property (IP), allowing them to invest comfortably in research and development (R&D), as they know nobody can “Copy” their product/service.
However, patents in business do much more than protect companies. Your patent attorney can use patent strategies in business to your advantage. When a patent strategy aligns with a business’s objective, it can strategically be used to dominate a market.
As legal practitioners, we’ve witnessed firsthand the impact of well-crafted patent and business strategies when they work together. From experience, here’s how:
5 Ways Patent in Business Can Provide a Competitive Edge
1. Enhanced Market Value
Patent owners have market exclusivity, allowing them to control a specific market area. This, in turn, boosts their market value.
Ocean Tomo’s research perfectly demonstrates this, as they discovered that patents are an intangible asset that drove 90% of the S&P 500 mark value in 2020.
Source: Ocean Tomo
2. Increased Revenue and Profitability
Alongside the above, companies with good patent portfolios drive more revenue and profitability.
Research by the Intellectual Property Office of Singapore (IPOS) shows that companies with strong patent portfolios (or strong brands) are usually on the higher end of the profit and market capitalization spectrum.
3. Attracting Investment
Lastly, patents boost venture capital by 53%. With this extra capital, you can expand and improve your patents, impacting your market share and profitability even more.
It also attracts investment because investors know the fruits of their investments will be protected. R&D can be expensive and time-consuming when designing new products or services, so hiring a design patent attorney can help in protecting your inventions with patents to safeguard and attract investment.
Aligning Patent Strategies with Business Objectives
To maximize the impact of patents, you need to align your business objectives with your patent strategies. This involves:
- Identifying core patent areas (Products, services, processes, designs, etc).
- Prioritizing patent filing based on market and business impact.
- Regularly monitoring the market for potential infringement.
Identifying your business objectives will help drive your patent strategy. This guide will help you identify key patent areas, know how these patents will impact your business, and how you can enforce them long-term.
Conclusion
As you can see, protecting innovations with patents is remarkably important. Not only to protect them from being sold, created, or imported but also to boost a company’s market value, profits, and investment.
If you’re interested in receiving these benefits, then contact us at The Law Office of Mario T Milano. We have experience in patents in the US and are ready to help you protect your assets.
