The benefits derived from a patent may include:
1) Higher Profit Margins: A U.S. Patent permits its owner to exclude (i.e., stop) others from making, using, selling, offering for sale and importing the invention into the United States as claimed in the patent. Presuming that there is a market demand for the patented product, the ability to exclude others reduces the supply of the product or process in the marketplace. As a result, patent owners may charge higher prices for the patented product or process.
2) Reduce Competition: Patents may also serve as a barrier to entry for competitors who are contemplating entering the market for the patented widget or service. Competitors may consider the risks of patent infringement greater than the rewards of potential profits. Also, patentees may assert their patent(s) against competitors to enjoin them from offering a competitive product.
3) Encourage Settlement: During litigation, both parties will assert various claims against each other including patent infringement. In certain instances, two patent owners may agree to cross license the respective patented technologies to each other instead of litigating the issues.
4) Expand Market Share: Patented technology may be licensed to others in a different geographical market or in a different market. For example, a patent owner doing business solely in Orange County, California could license patent rights to a company with a market presence in a different county or state. The patent may provide the patentee, now licensor with regular royalty payments for sales of the patented product or process outside of the patentee’s normal geographical market. Additionally, patented technology may be licensed to others in a different technical field. For example, a manufacturer may license a patent to a retailer while retaining patent rights for the manufacturing market.
For more information, I invite you to Contact me.
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