Do you have an innovative activity, and are you wondering whether your invention should be protected by a patent? You’re not the first person to ask yourself this question. Often dismissed by the general public as a procedure for large corporations, small businesses (SMEs, VSEs, start-ups) are not left out. Even if the biggest applicants (in terms of number of patent applications filed) are indeed large firms, smaller companies have every interest in having an industrial property strategy too. Here are 4 reasons why it makes sense for you to file a patent application!
Define the scope of protection you need with an Industrial Property Attorney. Choose the right procedure, at the right time, for growth-generating protection.
1 – Patents as a means of attracting investors
Fund-raising, opening up capital, round-table financing – all terms familiar to start-ups, and a key stage in their growth.
Today, investors are seeking to secure their investments by betting on assets and looking for innovative companies that already have an industrial property strategy in place.
Having filed a patent application, or already owning industrial property titles, brings economic value to a company. Above all, for an investor, it is a guarantee of growth, since the monopoly afforded by a patent rules out competitors. A start-up with a solid strategy for protecting its innovation also protects its investors, by guaranteeing them legal means in the event of counterfeiting.
Lecho.be reported in 2018 the words of the CEO of biotech Aquilon, who states:
“After filing a patent and raising initial funds, we did the necessary work to show that we could go into the clinic, and this work led to the current fund-raising to clinically prove the efficacy of the complexes we make.” The Liège-based company had just raised 6.6 million euros to continue its development.
2 – Patents to create exclusivity
A patent grants a market monopoly for 20 years. This enables a company to develop by being the first to access the market, and to keep competitors at bay or risk infringement proceedings. Patents enable companies to protect their often heavy R&D investments and offer customers a unique product.
3 – Patents to generate revenue
A patent portfolio can be a tool for valorization and investment, for example by licensing your patent to another company, particularly for a territory or an application of the invention that you cannot exploit yourself. It’s a way of generating revenue to keep innovating, while enabling your product to be marketed.
In 2015, Nokia chose to enter into an agreement with LG for the Korean company to exploit patents related to 2G, 3G, and 4G technologies. This licensing agreement enables Nokia to generate additional revenues through the payment of royalties to the Finnish firm.
4 – Patents guarantee reputation
Having an industrial property title such as a patent lends weight when negotiating collaborations. A portfolio of patents demonstrates a company’s capacity for innovation, and can also increase the value of a company through the valorization of intangible assets.
So if you’re innovative, don’t hesitate: patents aren’t just for big companies!
