In this article, we’ll explore ten actionable ways patents can help your business thrive, even in challenging legal environments.
- 1. File a Transaction-Ready Provisional Patent Application
- 2. License Your Idea to Companies with Open Innovation Programs
- 3. Demonstrate Market Demand for Your Product
- 4. Understand Your Manufacturing Costs
- 5. Prioritize Patents for Long-Lifecycle Products
- 6. Build a “Wall” of Intellectual Property for Complex Products
- 7. Develop a Strong IP Strategy for Startups
- 8. Use Your Patent Portfolio to Increase Business Valuation
- 9. Combat Online Copycats with Patent Protection
- 10. Patents for International Licensing Agreements
- Conclusion
1. File a Transaction-Ready Provisional Patent Application
A provisional patent application (PPA) lets you claim “patent pending” status for up to 12 months, giving you time to test the market without fully committing to a non-provisional patent. This can be especially valuable for startups looking to secure interest from potential investors or licensees.
- Why It Works: A well-prepared PPA signals to investors and potential licensees that you’re serious about protecting your idea.
- How to Do It: Include a detailed description of your invention, possible workarounds, and various manufacturing methods. Clear line drawings can further protect your invention from circumvention.
“Filing a provisional patent application is affordable, demonstrates professionalism, and ultimately allows the company to determine how they want to move forward strategically,” says Courtney Laschkewitsch, host of The Serial Inventing Podcast.
2. License Your Idea to Companies with Open Innovation Programs
Some companies actively seek fresh ideas from external sources. When you own a patent, it can help you negotiate a higher royalty rate by demonstrating a clear commitment to intellectual property.
- Why It Works: Open innovation companies appreciate patented ideas as they reduce the risk associated with new product development.
- How to Do It: Research companies that welcome external innovation and submit your patented concept for licensing consideration.
3. Demonstrate Market Demand for Your Product
To increase the appeal of your patent, showcase a strong demand for your product. If you can demonstrate that there’s a real customer base, potential investors and licensees are more likely to invest.
- Why It Works: Evidence of demand mitigates perceived risks and can enhance licensing or funding opportunities.
- How to Do It: Identify potential customers or create pre-orders to show tangible interest.
4. Understand Your Manufacturing Costs
If you aim to bring your patented product to market, knowing your production costs is essential. This information can help you set realistic pricing and negotiate royalties more effectively.
- Why It Works: Licensing partners are more likely to commit when they see a cost-effective production plan.
- How to Do It: Assess production expenses and compare them to market prices for similar products.
5. Prioritize Patents for Long-Lifecycle Products
If your product has a short market lifespan, filing a provisional patent first can help you gauge interest before investing further.
- Why It Works: This approach prevents you from wasting resources on products with limited market potential.
- How to Do It: File a provisional patent, then reassess before deciding whether a non-provisional patent is worth the investment.
6. Build a “Wall” of Intellectual Property for Complex Products
If you’re developing a sophisticated product, consider establishing a portfolio of related patents to protect your concept comprehensively.
- Why It Works: A suite of patents makes it harder for competitors to replicate your invention, especially in fields requiring heavy investment and time.
- How to Do It: File multiple patents covering different aspects of your product, and work with experts to strengthen your IP strategy.
7. Develop a Strong IP Strategy for Startups
For startups, patents can boost credibility and attract investors. Early and consistent IP filings are particularly appealing to venture capitalists looking for secure investments.
- Why It Works: A well-defined IP strategy enhances your company’s value and can aid in fundraising.
- How to Do It: Create an IP roadmap that aligns with your business goals and prioritize high-impact patents that could drive future growth.
8. Use Your Patent Portfolio to Increase Business Valuation
Patents are not just about protection; they can also make your company more attractive during mergers or acquisitions. A solid patent portfolio can significantly increase your business valuation.
- Why It Works: Intellectual property is often seen as a valuable asset that adds intrinsic value to your business.
- How to Do It: Combine proven sales records with patents to create a strong case for your company’s worth.
9. Combat Online Copycats with Patent Protection
With a patent in hand, you have legal recourse against online imitators. AI tools like Red Points can help you quickly address and eliminate counterfeit listings.
- Why It Works: Issued patents empower you to enforce IP rights, especially valuable in protecting your market share.
- How to Do It: Use AI-driven tools to monitor and address any infringement of your patented products.
10. Patents for International Licensing Agreements
Issued patents can enhance your credibility in international markets, making it easier to negotiate licensing agreements abroad.
- Why It Works: Patents act as valuable assets in licensing discussions, especially in markets where intellectual property is highly respected.
- How to Do It: Highlight the market potential of your invention to international licensees, emphasizing the security provided by your patents.
Conclusion
While patent litigation can be costly and uncertain, these strategies offer effective alternatives for generating revenue and growing your business.
By thoughtfully integrating these patent strategies, you can pave the way for sustained business success and market leadership.
