Continuing from our last post, here we discuss how exactly the rights granted by patents can be leveraged to the benefit of your business.
While it is a known fact that a patent grant takes 3-4 yrs on an average, several rights granted by the patent exist from the day of filing the patent application itself.
The most important and yet the most simple way in which intellectual property rights could be used, is through the exercise of the right of exclusion granted by the law.
Intellectual property rights grant you a monopoly over your idea:
Intellectual property rights grant a right to exclude others from utilizing that intellectual property to a certain degree (degree of exclusion being dependent on the type of intellectual property right). By excluding others from utilizing the intellectual property, a legal monopoly is created in that intellectual property, a monopoly which vests with the intellectual property rights holder.
Intellectual property rights grant you market lead time for years:
Since intellectual property rights grant intellectual property rights holder a right of exclusion for the duration of the right, the intellectual property rights holder can quickly capture the market and retain hold over the market for a considerable amount of time.
Intellectual property rights help you in in-licensing:
While intellectual property rights provide you with only a right to exclude, a right to practice intellectual property belonging to others can be acquired via cross-licensing of intellectual property rights. Cross licensing of intellectual property among upstream and downstream entities would aid in focused research. Usage of grant back clauses in licenses would help the intellectual property rights holder to practice improvements on the invention, improvements which actually belong to somebody else.
In our next article, we will see how IP assets raise your market value at the time of M&As, IPOs.