How do patents create value?

A patent provides certainty and certainty. Many people naturally think of enforcement and prohibition when they think of patents, but often patents create value in a number of other ways. Here are some of the most important - the list is not exhaustive:

Investors / capital

With a patent, you prevent others from exploiting your invention for 20 years. But it's not just in the long run that patents prove their value: with a patent in hand, it's typically easier to attract investors and capital. This was recently confirmed in a report by the European Patent Office, EPO, which shows that start-ups that actively use rights "are 20 percent more likely to grow in the following year, and 10 percent more likely to achieve high growth. "* One reason is that it's simpler for an investor or partner to use a patent as the basis for a contract, rather than having to define a field of collaboration from scratch (see, for example, our case on Cembrane).

'Freedom to operate' - and peace to work

By consulting a patent attorney, you can have your 'freedom to operate' examined. In other words, you avoid wasting time on something you can't bring to market anyway because someone else has the rights. Or you can find out who to approach to try to get a licence to go to market. A patent also gives you the peace of mind to work and develop your technology without worrying about being 'overtaken' by competitors.

Royalties and compensation

Patents can also create value when a company needs to defend its invention. It may seem surprising, but the strategy when a patent is infringed is often not to seek to prohibit competition - litigation can in many cases be expensive and seem inappropriate. Instead, the patent is often used as a 'deal maker', securing royalties or compensation from the competitor.

Security when you collaborate

Many technologies emerge from collaborations. A patent precisely describes the development of a technology. Along the way, it may be necessary to document the contribution of each party, and this is where the patent application provides a timeline of when and how a company developed a technology. This reduces the risk of costly litigation.

Marketing

Many companies use patents not only to market themselves to investors, but also to target customers and the general public. This is because of the value of being able to provide a patent as evidence of the innovative nature of the company and its unique new products. Having a patent on your idea helps to give credibility to the technology developed.