ExecutiveChronicles|Benefits of Getting a Patent on a New Product |Are you interested in launching a new product? If so, you should seriously consider getting a patent. Why? The answer is simple – a patent will provide several benefits for your business. Keep reading to learn what those benefits are.
Barrier to Entry
With a patent, you have the exclusionary rights. With a patent, you are essentially erecting a barrier to entry. What this means is that no one else can compete against your product. No one can introduce their own version of the product that has been patented into the market. If a competitor does happen to enter the market, the inventor holding the patent has the right to sue them, making them “disgorge” or give back the profits and keep them from engaging in any future marketing or sales efforts. While a patent attorney may be needed for help with this, it’s invaluable protection to have in place.
Keep in mind, though, patents aren’t immediately granted once the application is filed. Instead, it will enter a “patent pending” status. You can only sue a competitor for infringement after the application has matured into a patent. Sometimes you will have to wait a while for this, with average wait times ranging from just nine months up to five years. While your patent is pending, the competition can appropriate your invention without any penalties.
Even though you can’t sue a competitor right after you file the application, this is not a good reason to avoid getting a patent altogether. Having a patent is an essential part of any long-term business strategy.
Increased Prices and More Profits
Another benefit offered when you get a patent is that you have the potential to charge higher prices and make more of a profit. With a patent, you can sell your product for more money if there is any type of demand in the market. It won’t help to increase the market demand, which means that you need to make sure that your product is something people want.
If there is enough of a demand for the product you have patented, you can leverage the patent to keep others from selling their version of the product. If someone else does introduce a patented version of the product, the cost would fall significantly. The good news is the patent will prevent anyone from creating a version of your product. If they do, they would be infringing on your rights and may be liable for damages.
In simpler terms, a patent lets you be the only one who can sell the product. If there isn’t a market demand, though, the patent would be completely useless.
Level the Playing Field with Larger Corporations
The patent will help to level the playing field against bigger corporations. In the market, a large corporation may have several advantages compared to a smaller company. They have access to distribution channels, funding, marketing relationships, and quite a bit of expertise compared to a solo inventor or small company. If the solo inventor or small company were to try to market the same product as a bigger corporation, the solo inventory or the small company would probably use and the bigger company would be able to capture more of the market for the product in question.
When a patent is involved, though, all this changes. It allows the smaller company or the solo inventor to sue a bigger company if they infringe on their patent. As a result, it is much easier to compete with these bigger businesses.
When it comes to filing for a patent, there is no question that it will take time and effort; however, in the long run, it is well worth it. Be sure to keep the benefits here in mind to ensure that a person knows why patents are such an important part of your business plan and why they are something you should not put off applying for when a product is created.