A patent is a right to exclusivity for a product or invention. Depending on the nature of the patent and who issued it, this exclusivity right can apply on a local, national or global scale for a specific period of time (you cannot have a patent forever).
Having these exclusivity rights means no one else can manufacture, import, sell or use your invention for commercial gain until the patent runs out. This can last for many years (20 years in the United States). This comes with a number of benefits, and we have outlined a few of them below that can be a great service to your business.
Your Invention is Protected
When trying to attract investors to fund your business based on your invention, you will have to disclose all the details. This means you will have to show them your product design, prototype or anything relevant that can help them make a decision to back you up. Having a patent puts your mind at ease when disclosing these things because even if the investors reject your idea, they cannot steal your product design or prototype and patent it for themselves. You can even show off your product design and prototype to the world without worrying that others will patent it or copy it as well.
Competition is Reduced
Since you are the only one who is able to manufacture, sell or use your invention for profit, it puts you in a strong market position, depending on which markets you operate in. By reducing competition, you become a key player in any market you enter where the patent applies, whether local or global. You can rest assured knowing that no one will even try to infringe on your patent, as they know doing so will cost them more in litigation than any potential profits they may gain.
High Return on Investments
If there is a demand for your patented invention on markets where the patent applies, you will be able to position yourself as the top supplier since others are excluded from doing so. This gives you the opportunity to charge higher prices and see a high return on investment. The patent product is your intellectual property, and you are allowed charge as much as you want.
Gives You Bargaining Power
Sometimes you can enter into a patent war with another business. Instead of making patent infringement claims against one another, you can enter into a cross-licensing agreement to exchange rights that will benefit both of you. This can work in your favour if you have a strong patent portfolio.
You Can Make Money With the Patent
If you have no desire or are unable to move forward with the patented product, you can sell it to another company and make a profit from that. On the other hand, you can also license that patent to another company that is in a different market and receive royalty payments from the company that bought the license (licensor). This can be a great source of extra income for your company.
As you can see, having a patent comes with a number of advantages and does your business a great service. Patents are an excellent way to protect your invention from others, giving you the ability to milk it for all it is worth without worrying that others will try to compete with you.