If you’re building a business, your intellectual property rights (IP) are incorporeal assets that can single-handedly help it grow into an empire; they safeguard your ideas and innovations. IP has several types, such as copyright, trademark, and rights registration. However, patents are the most important and profitable ways to declare autonomy over an invention. Let’s learn more about how it can help you grow your business.
1. Acquire Income Through Licensing
Earning income through your patent doesn’t just involve using the technology in a consumable solution within the scope of the industry pertaining to your business. Instead, you can license your patented technology to multiple other companies that can use the innovation in their solutions. As per the deal signed during the licensing process, you would gain a percentage of revenue they make. You can transfer your patent rights to a third-party business for them to design a product or service. This allows your IP to touch upon all sectors of the working industry.
If one is an incubator of ideas but not a business-oriented person, this is an especially great deal. They can go through the patenting process and transfer the rights to companies that can manufacture real-world solutions using their technology, helping them earn via royalty deals.
2. Securing Your R&D
You’ve invested time, energy, and sweat in inventing, developing, and testing this new invention that holds novelty over everything else used in the industry. Perhaps it simplifies a process, is a new piece of equipment altogether or is a new software that solves a real-world problem that’s never been done before. In any case, it is always ideal to patent your technology to avoid duplication.
Patenting your business’ technology or equipment prevents your competitors from copying your ideas and innovative solutions. It would not just box your competitors but also ensure that it never falls into the wrong hands.
3. More Opportunities For Investments
Patents not only safeguard your innovations but also bring benefits to your business. They are the shiny gold stars on your uniform. These patents symbolise the revolutionary ideology of your company, vouch for your active laboratory functioning with the help of the industry’s sharpest minds and pledge promising returns. All of this helps attract investors worldwide.
With patents comes the assurance of maximum returns and security through a novel solution to the consumers, making your business all the more incentivising for investors to invest in your future endeavours.
4. Increase Brand Value
Patents are assets to any company, regardless of the industry. They add tremendous value to your business and make it easier for you to get lines of credit, investors, loans, dealerships, and favours. They even help create a higher valuation of the company, if and when you try to sell it.
It gives you an edge over your competitors in the market. With your patented technology secure, you can play it right and devise strategies that can not only bring you a higher revenue but help you venture out into the untapped market where your innovation can prove to be fruitful.
Patents also help you get more collaborative opportunities with other industry giants as they are always looking for ways to inculcate innovation into their repository of solutions. The patent would give you the confidence to hold your ground in the boardroom meetings with these giants.
5. Make Business Expansion Easier
A big part of running a business is expansion, either collaborative or ascertaining new ones on your own. Since patents are location-based, you can patent your technology in multiple countries at once. Owing to the local patent, you can license rights to an overseas company to use your innovation as a collaborative effort or set up shop in a new country.
Ideally, you must do legal research beforehand to mitigate the risk of fraud. Using an overseas patent can cause you to get sued and banned in many countries. For instance, the punishment for patent infringement in Australia includes a financial penalty in the form of an account of profits and an additional fine.
Ultimately, you might find yourself in a position where you no longer want to sustain a particular business, want to merge with a larger organisation, or simply wish to retire. At times like these, cogent IP rights can help increase the value of your business and make it easier for you to get a great return.