As explored in previous articles, patenting holds invaluable strategic value for companies. Patents protect technical inventions, playing a fundamental role in safeguarding often substantial investments in Research and Development. But what are the scenarios once a patent is filed, and more importantly, how risky is it in terms of lost opportunities and protection not to invest in this area? Let’s find out together.
What Happens After Filing a Patent?
Once a patent application is filed, it is examined by the competent patent office for novelty, non-obviousness, and industrial applicability to assess its grantability. If the invention passes the examination and is deemed patentable, the patent will be granted, giving the applicant the exclusive right to use and exploit the invention for a defined period. Once the patent is obtained, the applicant may consider licensing it (exclusively or non-exclusively) to other interested parties.
How Much Does It Cost to Maintain a Patent and How Much Can Be Earned?
The cost of maintaining a patent can vary significantly depending on the country in which it was granted. Generally, maintenance fees must be paid periodically to keep the patent in force until its natural expiration, which is usually 20 years from the filing date. These fees increase progressively over time, meaning that the total costs for maintaining the patent can become significant over the years. However, these costs should be seen as a necessary investment to protect innovation and maintain a competitive market advantage. The potential earnings, as well as the value of a patent, depend on various factors such as originality, actual market need, market size, and the company’s ability to commercialize it. In some cases, a patent can lead to significant profits through licensing to other companies, for example, within the framework of technology transfer agreements. Moreover, a patent can give the company a competitive advantage in the market, allowing it to increase market share and profits from the sales of innovative products or the use of innovative processes. Although variable, the economic (and not exclusively economic) gain is certain and tangible for any enterprise.
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Not Protecting Inventive Activities: Possible Scenarios
On the contrary, not investing in patents can expose the company to various risks. Firstly, without adequate protection, the company’s innovation could be easily copied by competitors, significantly reducing the company’s competitive edge in the market. Additionally, without patents, the company might lose the opportunity to fully exploit the economic value of its inventions, missing out on opportunities to generate revenue through licensing or the sale of the patent itself. Finally, the lack of patent protection could discourage potential investors interested in the company, as they might be reluctant to fund projects lacking solid intellectual property protection and thus are at higher risk. In conclusion, a patent represents a strategic tool for companies, ensuring exclusivity, protection of their technical innovations and related investments, and a competitive market advantage. The gain from a patent depends on the originality of the patented technical solution, its utility, and the company’s ability to commercialize it. Not protecting inventive activity potentially exposes the company to significant risks, including the inability to prevent third parties from exploiting the invention and the loss of profit opportunities.
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