A patent portfolio refers to a group of patents derived from a common parent application, all connected by a claim of priority. This means the patents share the same core invention, but each covers different features or improvements for the same invention. In this scenario, the cost of building a patent portfolio is much lower than you might think.
Why Build a Patent Portfolio?
The key reason to build a patent portfolio is that it provides stronger protection than a single patent. A competitor may be able to design around one patent, but it becomes much more challenging when multiple patents cover different aspects of the invention. They have to independently analyze each of the independent claims of each of the patents for infringement. This costs a lot of money and time. In this regard, each patent in your patent portfolio strengthens your position by offering protection for different aspects of your technology, making it much harder for competitors to avoid infringement.
Another significant advantage is that maintaining a portfolio means you will always have patent pendency on your invention. If a competitor tries to design around your granted patent, you can adjust your pending claims to target their workaround. If you are successful, you can ensure that you maintain your market edge.
Addressing the Sticker Shock of Portfolio Building
Many clients initially experience “sticker shock” when they calculate the total cost of building a portfolio, as they are often focused on the cost of their first patent. However, the overall price is much lower than expected when building a portfolio over a long period of time. Once the first patent application is filed, the cost of subsequent filings decreases significantly because continuation applications are essentially a refiling of the original patent. You don’t have to pay for the preparation of the patent application again. Furthermore, the process is spread out over several years, allowing you to manage the costs over time rather than incurring them all at once.
Even in the broader sense of a patent portfolio, where patents may not be part of the same family linked by priority, you can still reduce costs by organizing related concepts as a family under a claim of priority. This strategy ensures that while your portfolio grows, your expenses remain under control, making the process much more affordable than most people realize.
How to Build a Patent Portfolio
Building a patent portfolio doesn’t happen all at once. You start by securing a single, foundational patent that protects the core innovation of your product or business. As your business grows and generates profits, you gradually reinvest in filing continuation applications. These continuation filings allow you to expand your protection by covering improvements, additional features, or more specific aspects of your original invention, giving you a more comprehensive defense against competitors.
However, a continuation application must be filed before the parent patent is either granted or abandoned, meaning you can’t wait indefinitely to decide. Often, at the time of filing a continuation, you may still be uncertain whether your business or product will be a success. This is when you need to assess your confidence in your invention. If you believe in the potential of your product, even without solid market data to prove its success yet, you must make the decision to invest in a continuation. While the financial commitment may feel risky, this proactive approach can safeguard your long-term position and potentially pay off as the product gains traction.
Sequential filing is an effective way to manage costs when building a patent portfolio. By spacing out your filings over time, you can spread the financial investment across several years, making it more manageable for your business. If you discover that someone has designed around your existing patent, you still have options. You can expedite the examination of a pending application with new claims that specifically target the design-around. The objective is to catch the competitor for patent infringement using these updated claims, allowing you to preserve strong protection for your invention.
When Should You Build a Patent Portfolio?
You should start to think about building a patent portfolio from the state. As they say, you have to start with the end in mind. You should only incur the additional costs of building a patent portfolio for those utilitarian features are key functional features that are critical to your product’s success. If you believe your product has strong market potential but needs more time to establish itself, you need to commit to building a portfolio helps secure your position in the future. The patent prevents competitors from easily entering the market.
Additionally, the cost of building and maintaining a patent portfolio should be weighed against the potential profits from your product. With the lower costs of continuation filings and the ability to spread expenses over several years, building a portfolio can be a smart investment that safeguards your business in the long run.
Call Me to Discuss Your Patent Portfolio
Building a patent portfolio is an important step in protecting your business, and it’s more affordable than you might think. If you’d like to explore how a portfolio could work for you and your invention, don’t hesitate to call me at (949) 433-0900. I’m here to help you navigate the process and create a strategy that fits your goals and budget.
This article is part of a series called Essential Patent Strategies. Here is a list of all of the articles:
- Start Here: Essential Patent Strategies
- What is a patent search and How to do it?
- How to conduct a DIY patent search
- How much does a patent search cost? (Patent Search Service)
- How to protect Inventions Involving Third Parties? (Nondisclosure Agreements and other basic agreements)
- Delaying patent costs to have more money for marketing with a provisional application
- How much does a patent cost?
- How to Get a Patent as Fast as Possible
- What is the average patent cost?
- How much does a quality patent cost?
- Patent Cost Framework and cash flow
- How much does a design patent cost?
- Is a design patent right for you? (Should you get a design patent or a utility patent for your invention?)
- How to Create a Strong Patent?
- How to build a patent portfolio?