No matter what industry you are in, you must protect your research and development investments. Patenting is one of the best and most effective ways to make sure you reap the benefits of your investment. Patenting is the best way to ensure that your ideas and inventions are protected. Next we will discuss how to register your inventions for patent protection.
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What is Registration of a Patent?
The registration of a Patent occurs when an inventor files a patent application with a national patent office. In the US, the filing is done with the US Patent and Trademark Office (USPTO).
A patent is a legal document that protects your idea from competitors and allows you to sell it. It can be anything man-made under the sun, and it must be new to the public. For example, a computer program or a process that is common in the world cannot be patented. In order to receive a patent, your idea must be new and innovative.
To register a patent, an individual or a firm can file an application with a national IP office. For example, in India, the application must be submitted to the Indian Intellectual Property Department. The patent office is run by the Controller General of Patents, Designs and Trademarks. In the US, you must apply with the US Patent and Trademark Office (USPTO). The applications are filed electronically with the government authority. The application includes the specification and illustration. If your invention is a manufacturing process, you should include flow charts illustrating the process.
When deciding whether you should register or file for a patent, you should weigh the costs and the benefits of patenting your ideas. Next we will explore the benefits of registering for patents.
What Are the Benefits of Registering a Patent?
There are numerous benefits of registering a patent. It provides legal protection against infringement. Once registered, your patent can be used for 20 years. It also helps you build your reputation in your market and protect your product or idea from competitors. Additionally, a patent can be used to increase company valuation. It is also possible to get a government grant to advance your invention. The process of registration is very simple when done with PowerPatent.
The benefits of patent registration are numerous. We will detail the benefits and disadvantages next.
Benefit #1: Exclusivity for Your Idea
The first benefit of registering a patent is its exclusivity. Patents have an exclusivity period of 20 years. This means that you can prevent competitors from using your invention and stealing your revenue. This means that your product or service will not be copied by another company. As long as the patent is registered, you can ensure your revenue will not be lost to unauthorized third parties. And besides this, a patent is an investment in your business that will help you attract investors and customers.
In addition to protecting your investment in R&D, a patent can prevent your competitors from copying your innovation. It can also help secure an exclusive market position for your product and protect your brand from competitors. And, it will protect your product from third-party exploitation and protect your brand name. In short, patents are an excellent investment.
Benefit #2: Make Money by Licensing the Idea
You can either license your patent to others or sell it. This can be a great source of revenue for your company. Some businesses are only in it to collect royalties from patents they license – sometimes in combination with registered designs and trademarks.
The main source of new revenue is from the licensing of a patient to other companies. Many businesses make much more from patent licensing than they do from their primary business activities. It makes perfect sense. You have put a lot of effort and money into your invention and now you can reap the rewards. Before you license your product to third parties, there are many things to consider. You should also review your business goals and negotiate the best deal.
You’ve probably heard about intellectual property exchanges, and you’ve probably also seen articles on how people are making money with it. These websites allow people to sell their intellectual property to other companies, so you should familiarize yourself with them. If you own a patent or a license, you can sell it for a profit. The key to making money with IP is to ensure that the deal is fair and realistic. While IP assets are considered valuable, they can be expensive. A reasonable IP Licensing Arrangement will net you a modest percentage of the final product or service. Whether you’re generating millions or making a couple of dollars is up to you. Some investors prefer to make a reasonable deal rather than waiting for a lucrative one.
You may be surprised to learn that IP is highly flexible. By leveraging your IP, you can make millions of dollars passively. You can license your IP to different entities in various forms. You can use your IP to create products or services, and then sell them to other companies. This strategy allows you to earn royalties every month. You don’t have to worry about finding an audience for your creations. You don’t have to work hard to sell your intellectual property, and you don’t need to have experience to be successful.
The more you can make from your intellectual property, the more you can profit. By licensing your IP, you can generate money by selling it to other businesses. If you have an established following, you can sell it yourself to earn a decent amount. You can also sell it to others for a royalty if it has a huge following. If you’re patient, this method can work for you. This way, you don’t need to worry about selling your IP to anyone else.
Benefit #3: Make Money by Selling the Idea
The most effective way to sell a patent is to use the right marketing approach. The purpose of a patent presentation is to explain why the idea you have is a valuable investment, and why the buyer should pay a premium for it. The right marketing strategy will help you make the most money from the sale of your IP.
You can find companies that manufacture and distribute similar products with the help of databases such as the Thomas Register. If you do not have the contacts, you can try looking for manufacturers by reading magazines or visiting trade shows. However, it is important to write to companies directly if you are trying to sell your patent. Once you have a list of potential buyers, contact them directly and explain the details of your patent. When you have a successful sale, you will get the money you are seeking.
Once you’ve identified potential buyers, the next step is to market your patent. Once you’ve identified the right buyer, you can contact him or her and negotiate a deal. Don’t forget to provide as many details about your invention as possible to a prospective buyer. After all, it is much easier to sell a patent than a product, so it pays to take the time to market it. It can be a tricky task, but it’s better than being in a perpetual state of paralysis. You can do this by getting in touch with the right people and presenting it as a business opportunity.
Before selling your patent, you should first market your product. You can use social media, blogs, websites, and advertising. A successful campaign will attract a lot of attention. If you have an outstanding product, you may even be able to get $5k or more. But remember that a patent can only be worth $3500 if it’s valuable. So, it’s best to explore other options first. Using social media and marketing your invention to potential buyers is also an effective way to sell your patent.
The next step in selling a patent is to research the market for your patent. You should know how to sell a patent in the market and how to make sure you get the best price. Using a traditional method requires a team of experts who will determine the value and quality of your patent. You can also consult a non-practicing entity or ask a friend to appraise it. This method is the most efficient and effective way to sell your patent.
The biggest benefit of selling your IP to a company is that you can leverage the halo effect it brings to your brand. For example, a large company can buy your patents, which are then used to develop innovative products. In other cases, you can sell your IP to a foreign company that wants to use it. But before you sell your IP to a third party, make sure you research the market for potential partners.
But remember that you don’t need to make any money to make a profit with your intellectual property. You can just increase company valuation as detailed below.
Benefit #4: Increase company valuation through patents and IPs
Inventors and manufacturers are increasingly placing a premium on their intellectual property, including patents, designs, and trademarks. Using such assets to their full potential can boost company valuation. Not only will these assets ensure that their creations are protected from imitation, but they also help build a company’s brand reputation. Moreover, a patent can also give your organisation an edge over competitors, enhancing its image and reputation as a forward-thinking company.
To determine the impact of VC funding on additional trademark and patent applications, we use data from three types of start-ups: semiconductors, Computer software and services, and Communications and media. We use industry-specific dummies to calculate the impact of the first round on the number of additional applications. For each round of VC funding, we estimate the number of new trademark and patent applications filed. Similarly, we calculate the number of trademark applications filed after the first round.
A good IP Asset should provide exclusionary rights for existing and future product iterations. Additionally, it should grant exclusivity for current products. Moreover, IP assets give companies the flexibility to pivot into other markets, thereby enhancing their valuation. Further, patents and IPs are the best investments for a startup and a venture capitalist. However, they can only be acquired through acquisition. The best time to acquire these assets is when your business has already been operating for a few years.
While IP assets can be sold individually, they can also provide value to a company. For example, patents are a valuable asset because they can provide a platform for future products. This allows IP owners to maximize their value. But how do they get their IPs valued? The answer is in a strategic way: they must be valuable. Having a strong IP strategy is essential to success. And, if it’s not, it is not worth investing in it.
While patents and IPs are a valuable asset, they are not always easy to measure. The valuation of IP assets is not always easy to predict. Therefore, the right approach to use is critical. While the right strategy for IP assets can be beneficial for a company, the key is to protect it. Insuring your intellectual property is vital for the long term. But you need to take a long-term view of your IP portfolio.
In the long term, IP assets will help your business. In the case of a startup, the value of IP assets is crucial for survival. Having a patent is an investment in the future. It is an essential tool for a growing company. It is crucial to maximize the value of your IPs. It can also serve as collateral for a loan. When you use a patent as a collateral, you will be able to maximize your profits.
Using patents is a great way to bolster the corporate financing efforts of a company. They also act as valuable sources of competitive intelligence. In addition to providing valuable information, patents can also protect a company’s intellectual property. When used correctly, they can also aid in M&A and steering of R&D programs. In addition, they can also aid in the negotiation of deals, thanks to the knowledge gained from patents.
The value of patents and IPs is important for a startup. Unlike real estate, patents and IPs can increase the company’s value dramatically. If the startup’s IP is valuable, it may be able to attract investors. If it has valuable patents and a high-quality team, its stock price will rise. The value of a business’s IPs can even make a company a desirable target for a strategic merger or acquisition.
While the value of patents and IPs can raise company valuations, it is important to be aware of their value. Not only can they be used to market products and services, but they can also be used to protect an important brand. Besides the benefits of a patent, IPs can also boost a company’s income. In addition, they can provide a major source of revenue for a design-only business. There’s more to it. Patents can help you secure financing for your business and reduce your capital cost. And, if you didn’t know it, patent-secured financing is a big trend in the world. Finding the funds you need for your future projects will be easier if you have a good patent portfolio. Why? Simply because lenders will gladly lower capital costs when loans are supported with the company’s most valuable assets. These assets are today nothing more than intellectual assets, and all you need to tap into these lenders is your brain!
Benefit #5: Patent Helps Your Business Grow
Every company can benefit from a patent. Apple is a popular example of how patents can be used to increase market share and margins. Apple does not have the largest factories in the world, and it does not have the lion’s share of the global smartphone market. Yet it makes a large portion of the market’s profits because the people behind it were quick to patent everything. Apple isn’t the only company to have benefited from patent legal guidance. There are many others, including family businesses and giants like Amazon that rely on patent protection to grow their business. You can make a lot of money if your invention is widely used.
There are several ways in which patents help your business grow. Having a patent can provide your business with legitimacy, as it establishes your expertise and uniqueness. Furthermore, having a patent can prevent your competitors from copying your innovations, thus increasing your brand recognition and increasing sales. And finally, it can also protect your investment in R&D and product development. These are just a few of the benefits of owning a high-tech patent.
First of all, patents help businesses grow because they increase the value of their products and services. The monopoly over innovation has the advantage of preventing businesses from competing with each other. Its monopoly position also allows companies to increase their market share. The patent system can help businesses grow and increase their profits because it helps them secure capital. And it also allows employers to see the impact of their employees’ creativity. The more innovative you are, the more likely you are to succeed. But if you are not an entrepreneur, you can benefit from a grant to start a company.
Patents help businesses grow in many ways. In the U.S. and Japan, 88% of businesses use information contained in patents. This makes patents an invaluable tool for knowledge transfer. It can also help your company license vital technologies. In addition, it can direct R&D efforts to areas where there is a greater need for innovation. The more innovative you are, the more likely your business will be able to compete successfully and earn higher profits.
Another way patents help businesses grow is through the development of new products. The growth of a company is directly related to the expansion of the company’s market. For example, a technology company can increase its profitability by leveraging a new patent. It can even acquire a new competitor without causing legal infringement. Aside from this, patents can also help a company identify the target markets of its competitors. These strategies can lead to increased profits.
Furthermore, patents can help businesses grow because they add value to a company. In addition to providing value, patents also allow entrepreneurs to earn a living through their work. Moreover, a patent provides a return on investment for their hard work. It is an important part of the strategy of a company and can increase the company’s net worth. It also adds to the company’s future. It can be sold to third-party firms or licensed for a flat fee.
The patent system has boosted innovation and helped create a stable technology market. The patents have helped in promoting technological change and promoting economic growth. Currently, it is estimated that the cost of a patent can be up to $500 million per year. In addition to being an important source of revenue, patents can also help a company to attract investors. So, a strong reputation and a patent portfolio can boost your business’s value.
However, there may be a few disadvantages associated with patenting all your ideas. We will discuss them next.
Disadvantages of Patents
While we have been touting the benefits of patents, there are costs associated with the patent system and disclosure of what is otherwise private information. We list the major disadvantages below:
- Patent applications require that certain technical details about your invention be made public. You might find that competitors may know more about how your business works through patents.
- It can take up to four years to get a granted patent. Markets may change, or new technology may be available by the time you receive your patent.
- Cost – It will cost money, regardless of whether you succeed or fail. The novelty searches for prior art and the fees of a patent attorney can all add up to a substantial outlay. Unless you can license the invention or use the invention actively, some patents may not be financially valuable.
- Your patent will expire if you don’t pay the annual fee.
- It is important to be ready to defend your patent. It can be costly to take action against infringers. A patent, on the other hand, can be used as a deterrent and make defense unnecessary.
What Are the 3 Types of Patents?
A patent is a property right that is granted by a sovereign authority. In the U.S., a patent can cover a design, an invention, or a process. Utility patents protect new types of plants, and they last for 15 years. They can also protect improvements to a previously patented plant. In general, utility-patents cover the most common types of inventions. The USPTO recorded about 650,000 patent filings in 2020, as charted by Statista:
A utility patent is a more general kind of patent that prevents other companies from making and selling the product. These are the most common type of patents, and they last for 20 years. A design patent protects the ornamental design of a machine or product. A utility-patent protects the functionality of the product or process. It can take up to 2 years for a USPTO plant patent to be approved due the lengthy examination required. A plant patent is similar to a utility patent and will last 20 years from the date of its first filing.
In general, utility patents address “any new and useful process, machine, manufacture, or composition of matter . . . ” (e.g., Edison’s bulbs or Wright Brothers’ planes) and design patents address “any new, original and ornamental design for an article of manufacture . . . ” (e.g., the design of iPhone shape), plant patents address “any distinct and new variety of plant, including cultivated sports, mutants, hybrids, and newly found seedlings, other than a tuber propagated plant or a plant found in an uncultivated state.”
Your invention could be eligible for both utility and design patent applications if it has unique functional or ornamental characteristics. A new vacuum cleaner could have different aspects that are eligible for a utility and design patent applications. For example, the operation of a unique brushhead may be covered by a utility patent, while its sleek handle design might fall under a design or utility patent.
If you intend to sell or manufacture your invention outside the United States, it is worth considering filing similar patent applications in foreign countries. Either you file a patent application in each country or you can submit an internationally filed patent application through the Patent Cooperation Treaty, or PCT. There are currently more than 100 members of the PCT. However, each country makes the final decision on whether to approve or deny the patent application. Keep in mind, however, that a foreign utility patent application (including a PCT) must be filed within 12 months of your earliest priority dates, e.g. your USPTO filing. A foreign design patent application must, however, be filed within 6 month of the earliest priority. Next we discuss the most powerful, and the most common patent application type, the utility patent.
Type #1: Utility Patents
A utility patent application is filed with the USPTO, which is the agency responsible for examining inventions in the US. The examiner will review the claims to determine whether the invention is new, useful, and not obvious. The application must meet the requirements of patentability. After a successful examination, a utility patent is issued to the inventor. However, if the applicant fails to pay the periodic maintenance fees, the patent will expire.
First, let’s discuss the interplay between provisional and utility applications. You can quickly get patent-pending status by registering or filing a provisional patent application. This type of application does not go through the entire process of applying for a patent, but it does give you protection for 12 months. You should register a corresponding utility application claiming priority to the provisional within the 12 month period. Otherwise, if another person files for the same device after your provisional patent has expired, you will lose all rights to the invention because you can’t claim the priority of the expired provisional application. A utility patent can be filed for a composition, production process, machine, tool, new plant species, or an upgrade to an existing invention. A great example is Edison’s utility patent on the light bulb. Scientists had been trying for years to create a long-lasting, practical electric light since 1878. Edison had dreams of lighting entire cities. He secured financial backing and assembled a team of brilliant scientists and technicians to help him tackle the task of creating an affordable and effective electric lamp. The resulting patented bulb is shown below:
The utility patent generally lasts 20 years from its earliest claimed priority. In some cases, an additional term may be granted. MPEP 2710 and 2733 are examples of additional patent terms. If you want to see if a patent has expired, you should consult a lawyer, as the expiration date may vary and the calculation is complicated. In short, a utility patent lasts for up to twenty years, and it can be worth millions of dollars. Even if a product is copied or modified from another, the patent holder can still demand royalty payments from infringers.
Type #2: Design Patents
A design patent is a type of patent that covers the appearance of a product. It is different from a utility patent, and can be granted to any company or individual. A design patent does not cover the functions of a product. It only protects the appearance of a tangible object.
Design patents can be used to cover ornamental and non-functional aesthetic aspects of an invention or the appearance or shape of the invention. A design patent application could cover, for example, the nonfunctional shape of a computer mouse, provided that it is not obvious and new. An example of a design patent that went through extensive litigation is the Apple iPhone design patents. Specifically, Apple’s D593,087 patent covers the home button of the first three iPhone models, while the D604,305 patent covers the icon grid of iOS. The jury found in favor of Apple in these cases, and Samsung has settled the case.
While the design is one of the most important aspects of a product, the look and the underlying features are equally important. Therefore, the design patent holder should be compensated for full profits. A case in this case may be a stepping-stone for future decisions regarding the use of design patents in the industry. While the Supreme Court has yet to rule on the question of total profits, it will certainly impact the field of design patents. Although design patents are easier than utility patents, the application process can be just as complex and time-consuming. Although there is no standard form for design patent applications, applicants must submit clear, detailed drawings to USPTO. This includes showing the invention from multiple angles. Sometimes, black-and-white photographs can be used instead of drawings in certain cases. However, this is only when photographs are the only way to illustrate the invention. The term of design patents is 15 years, with no maintenance fees.
Type #3: Plant Patents
Patents for plant inventions are granted by the USPTO to inventors who have created and reproduced a new plant variety. The new variety must be “asexually reproduced”, which is not derived from a seed, but rather created by another process such as grafting, budding or rooting of cuttings. Also, the plant must be unique and cannot be found in nature.
Plant patents account for a very small percentage of all patents granted by the USPTO each year. It can take up to 2 years for a USPTO plant patent to be approved due the lengthy examination required. A plant patent is similar to a utility patent and will last 20 years from the date of its first filing. The plant application generally has descriptive text detailing the new variety, and images of the plant may be used to provide a visual understanding of the new variety. Next we will discuss the information needed to register a patent.
How Do You Register a Patent?
A patent is a special document that describes an invention and includes claims and specifications. Typically, you can search for prior art in your field including patents and publications. If there are no existing applicable patents, you can look for earlier developments in your field in publications or on the Internet. This exercise helps you ascertain your innovation relative to other works. When you file a utility patent application, you must disclose any prior art that relates to their invention using a form called Invention Disclosure Statement (IDS) form.
Once you identify potential novelty points, you should document the invention in an application that contains a detailed description and claims supported by the description. During examination, an applicant may revise the claim language to emphasize differences between his or her invention and the claimed technology. This process is known as patent prosecution and is vital to ensuring that the issued patent is valid. When granted, a utility patent provides the inventor(s) with the right to make and sell his or her invention.
The utility patent application process can take years. While a provisional patent application is considered temporary, it is not examined. The process starts the formal examination of the invention. After the patent has been issued, the applicant must file a nonprovisional version of their application.
A complete nonprovisional utility patent application should contain the elements listed below, arranged in the order shown. Description of these elements is provided in the following sections:
Transmittal Form or Transmittal Letter
Application Data Sheet (see 37 CFR § 1.76)
Specification (with at least one claim)
Drawings (when necessary)
Executed Oath or Declaration
Nucleotide and Amino Acid Sequence Listing or Large Tables or Computer Listings (when necessary)
Once the USPTO has received your application, they will search the database for prior inventions. In order to receive a patent, your invention must be novel, not obvious, and useful over the prior art.
In the United States, a utility patent covers methods of treating and protecting different kinds of materials and products. The term “utility patent” can cover a variety of subject matters. The earliest application must be filed with the USPTO, so it is best to file it as early as possible. A valid utility patent application is essential for any type of invention. The patent will protect your idea, and give you the exclusive rights to sell it.
One traditional approach to preparing a patent application is to buy books and learn how to do it yourself. This is the cheapest, but may take you a long time and the books don’t diagnose your writing.
Another solution is to hire a patent attorney. They are highly experience and will increase your odds of getting past objections and rejections from the patent office. However, at billing rates between $500-1500 per hour, they may not be able to spend as much time on your case as you like.
We will introduce you to a hybrid approach where you use AI to generate first drafts and then you send to professionals for review. PowerPatent which can generate a first utility draft in minutes. The system uses AI to generate text for you to review and enhance. After your review, we recommend you send it to a patent lawyer to finalize and file. Providing a great first draft to a lawyer will save you money, and having lawyer review and file will increase the odds of allowance greatly. An example of the steps in applying PowerPatent’s AI to create first draft in minutes is shown below:
The resulting utility application includes a description, abstract, or drawings. To illustrate how you can apply PowerPatent to create your utility application, we will go through an example using a made up situation where you invented the hamburger.
Step #1: Describe the Problem Being Solved
Many people work each day with problems at their core. You can solve a problem for an internal or external client, support those who solve problems, or discover new problems. The problems you face are large, small, complex, easy to fix, or both.
Once you define the problem being solved, this will help you identify the resources needed to solve the problem. A good strategy should be able to eliminate the root cause of a problem, but it must also include the severity of the issue. After defining the problem, the next step is describing the Solution to the Problem as a successful outcome. In the hamburger example, the problem may include the need to save time at a restaurant, and that restaurant food can be pricey. Moreover, different foods have different food quality and inconsistency.
Step #2: Describe a Brief Summary of Your Solution
Once you have identified the problem, you can describe your solution, including your preferred implementation and your evaluation and selection of alternatives. You should include a brief summary of how you implemented your solutions. You may want to add a paragraph explaining how your solution is advantageous over existing solutions. In the hamburger example, the high level description of the invention may be about a food item with a patty in between top and bottom buns with various ingredients thereon. For the advantages, you may want to discuss how the hamburger is quick to eat on-the-run, and low cost relative to other food, for example.
Step #3: Upload a series of Drawings Illustrating Your Solution
After your brief summary of how your invention works, you will need to develop drawings that illustrate the operation of your solution. These drawings should depict the various parts and functions of your invention. Inventors should submit these drawings to the PTO or the designer for further review. However, if your invention is complex, you may hire a designer to create professional-looking 2D or 3D drawings.
The drawings can provide a better understanding of your invention and can be useful when filing your patent application. You can even include pictures to illustrate the function of your invention. If you have a rough idea of your invention, you can create drawings illustrating its operation. The process of creating a drawing is relatively simple. All you need is a pen, an eraser, and some paper.
If your idea has not been implemented, you can start making a sketch of it. Once you have the basic idea of the structure, you can proceed to creating drawings to show the specific functions of your invention. Once you have a basic sketch, you can begin creating your patent application. You can use software that can create technical or functional diagrams.
Once you have a rough idea, you can go ahead and start creating a prototype. Make sure you include as many views as you can to make sure your invention will work. It is best to hire a professional or freelancer to produce a prototype. Once you have the sketches, you can begin developing your patent application. If you are comfortable with drawing, you can work with a designer.
While not required, you may want to hire a professional draftsman to create professional patent drawings for you. This will convince the PTO examiner (and eventually your investors/customers) that you are a professional, and that may give you a slight advantage needed to push the case to allowability. Once you have the drawings, you should annotate the major parts in the drawings. When you are done, you can let the AI generate draft text for your review in minutes with a long form description of your invention and its features.
Step #4: Let AI do the 1st Draft for you
AI and text generation guided by the background, summary of the invention, and drawing part list are important advancements in the field of artificial intelligence patent drafting. The AI used by PowerPatent incorporates several AI techniques such as deep learning and knowledge engineering. AI programs are able to make deductions about concepts through the use of knowledge representation. This process involves defining, representing, and implementing ontology systems. Using an ontology, AI programs can make inferences about the world. This process can help artificial intelligence develop better patent writing and translation systems.
How Much Does it Cost to Register a Patent?
Getting a patent can get expensive fast. As noted above, lawyer crafted patent applications can cost between $5,000 to $18,000, depending on the law firm. If you use PowerPatent to generate the first draft, even with lawyer review, the cost is $3,495. If you learn from books and do everything yourself, the preparation cost can be free. However, there is a hidden price of the value of your time. In addition to preparation cost, the patent office charges filing fees. More details on the costs are at https://powerpatent.com/blog/how-much-does-a-patent-cost
Now Over to You
No matter what industry you are in, you must protect your technology, paid for with research and development investments. Patenting is one of the best and most effective ways to make sure you reap the benefits of your investment. Get your patents now with PowerPatent and protect your unicorn ideas.