Top 5 Merits of Patent Protection
Patent protection is critical if you have an innovative idea that is also practical. Though the intellectual property concept has been in existent for long, the introduction of IT has made it increasingly important in the past few years. You need to protect your invention due to the 5 reasons highlighted below.
Your idea can make you millions, particularly if it becomes a global sensation. Any person can, however, copy or steal the idea and market it as his. Many investors have no cash to turn the ideas into a products and services, meaning that they cannot move forward. Such individuals turn to investors and explain how their ideas work in the hope of convincing them to fund their ideas. If the investors are dishonest, they can simply dismiss the ideas as unworkable or state that they have no cash, and proceed to file their own patent application. Even if the real inventors come later on to file patents, it will be late in time.
You will get protection from competitors who use outdated technology for several years. Making super profits from your creative idea is a possibility. For example, the invention of a new drug by your firm means that you can generate an income from it for a considerable period before rivals start using the idea behind it.
The fact that a patent is an asset means that you can sell it for cash. What is most interesting is that it is an appreciating asset whose value increases over time. There is the option of selling it immediately or waiting for it to fetch a substantial amount later on. License holders can even collect royalties from the companies they have sold the licenses to and make huge sums, especially if the latter are numerous. For loan and other purposes like selling a business, patents are assets, meaning that they increase the value of a firm.
The absence of other products or services that are similar to what you have to offer means that you can charge higher than normal prices. Your firm’s profit margins have the capability to grow considerably due to such a scenario.
With patent protection measures in place, innovation is encouraged since people are not reluctant to put forward their creative ideas. In case such measure are not there, no one can risk their ideas getting stolen or copied. Without innovation, mankind cannot take any step further. For instance, it will be time to bid farewell to new drugs, meaning that we may never get the cure for certain terminal illnesses.
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