Not So Obvious Purposes of Patents

It is commonly known that mom inventors and corporations protect their innovative products, whether they are devices, manufacturing techniques, business methods, or software, from being copied. Patents allow owners to exclude others from making, selling, or importing to the US the patented product. In the event the patented products are infringed, owners may send cease and desist letters for the infringers, and if the infringers continue their infringing activities, the patent owners can go to court and enforce their rights through injunctions or seeking both compensatory and punitive or treble damages. Patents have lots more uses besides these, including:



1. Patents can be used as collaterals to have loans. In the event you research the assignment database of the usa Patent and Trademark Office (USPTO), you will notice that many patents are allotted to various banks. This is because patents are treated as tangible assets. They have their particular values, plus they can freely be transferred in one owner to a different, just like any other tangible properties. Banks may use patents as collaterals on the loans they lend to ensure that in case a default occurs, they can seize the patents as a way to remedy the default.

2. Patents may be used to increase a company's net worth. A company's patent portfolio could be appraised, and its value can put into the company's total asset value. Once the business is offered on the market, value of its patents may help drive its sales price. The stock values of public companies may also increase when they acquire patents either by pursuing their very own innovations, licensing, or purchasing them.

3. Patents may be used to settle disputes or lawsuits. Small companies might think they don't must obtain patents once they don't want to be plaintiffs in infringement lawsuits. However, they do not know that patents can help have them off infringement disputes or litigation. This is particularly common in industries the location where the major players own various patents. When two companies inside the same industry fight in court over intellectual property infringement, the lawsuit oftentimes is resolved through cross-licensing. One cross-licensing scenario may involve Company A licensing a patented component from Company B, and Company B licensing a patented manufacturing way of an alternative product from Company A.

4. Patents have defensive uses. With these, competitors could be discouraged from obtaining rights to similar ideas, which consequently cuts down on the risk of competitors enforcing an infringement action against your company. Additionally, with patents, competitors could be deterred from developing, selling or making similar items.