Should I Patent My Invention?

Read Why You Should Patent Your Invention and How to Capitalise on It

If you have developed a new product, process or technology, then one of the most important steps you can take is to legally protect it.

Patents are legal rights that enable you to control how your invention is used, by whom and to what extent.

Put simply, a patent can very often be the difference between commercial success and lost opportunity.

There are many reasons why you should consider filing a patent application to protect your invention.  The same reasons apply to start-ups, established businesses and conglomerates.

This guide will provide you with a basic understanding of what a patent is and why you should always consider it as a legal tool for your business.

A patent protects what you have built

A patent gives you the legal right to stop others from using, making or selling your invention without your permission.

The length of protection lasts for up to 20 years from the date of filing. Within this time, when the patent is granted, you have a window to commercialise the invention on your own terms.

If you do not have patent protection for your invention then there is very little you can do if someone else copies your product, “reverse-engineers” your technology or brings a similar solution to the market.

On the flip side, if your invention is protected, you can take steps to stop all of this.

A patent gives you a commercial edge

Patents don’t just stop infringement. They help you build stronger businesses.

A patent holder can:

• Keep competitors out of your market space
• Support higher pricing or premium positioning, because competitors cannot provide the same “like-for-like” product or service
• Enhance your credibility with customers, partners and potential investors

In many industries, a patent can be the key to getting “first-mover” advantage or maintaining your lead over competitors. When you have a patent, they will always being playing “catch-up” with you.

Patents increase your business value

A patent is an asset. Like other forms of property, it can be sold, licensed, used as collateral or form part of your company’s business valuation.

Investors often look closely at whether businesses have filed any patent applications (and especially whether they hold granted patents) when deciding where to invest and place their capital.

If you are seeking outside funding, then having protected patent assets can reassure investors that the technology they are backing cannot be freely copied. This will give them strong reassurance, which in turn means it is more likely they will place their trust (and financial backing) in your business.

If you are familiar with the BBC programme ‘Dragons’ Den’ you may have noticed the investors are often more enthusiastic when being pitched to by a business that has its intellectual property tightly secured.

Even a pending patent application can still be an attractive asset for investors because it means a right is established and there is potential it may be granted later.

Patents unlock licensing and revenue opportunities

Even if you don’t plan to manufacture or sell a product yourself, patent rights can be monetised through licensing, providing your business with a lucrative passive income stream for up to 20 years.

Many businesses generate revenue by allowing others to use their patented technology in exchange for fees or royalties.

For example, this is a very common practice in the motor industry, where car manufacturers habitually license third-party technologies in order to integrate and deploy them within the vehicles they produce.

You can also assign (sell) your patent to a third party, either in a standalone deal or as part of a broader commercial transaction.

Patents avoid legal and commercial risks

Filing a patent application early reduces the risk that someone else will file a patent for the same idea before you.

If someone else were to beat you to it, you could be blocked from using and commercialising your own invention.

A patent will also give you legal standing to challenge infringers, reduce uncertainty and strengthen your position in commercial negotiations, partnerships and in disputes.

Timing matters

To be valid, a patent must be filed before the invention is made “public”.

Making an invention public can be done by various means, such as pitching to investors, publishing your idea online or showcasing the idea at trade events.

Once disclosed, the invention may lose its eligibility for protection in the UK and most likely the initiative will be lost if you were hoping to patent the invention in other countries.

Working with a qualified patent attorney is, we say, critical, because it will help you assess the timing risk and identify when you should file.

If you have invented something which you believe may have potential, never disclose it publicly before you have taken advice from a patent attorney.

Where to file a patent depends on your business

For most UK-based businesses, the filing of a patent with the UK Intellectual Property Office (UKIPO) is the starting point because the UK is the “home” territory and market.

If your invention has commercial potential overseas, then a European or international (PCT) application may be advisable to secure protection in multiple markets.

Having a thoughtful filing strategy in tune with your business growth plans will ensure you are protected for what you need and when you need it.

Again, the services of a Chartered Patent Attorney are invaluable in helping you make the right decisions.

What is the patent process?

The process begins with preparing a patent specification. This is carried out by a Patent Attorney specialising in your technical field. They will draft a complete specification setting out precisely what your invention is and how it works.

Once filed, your application goes through a formal examination. This typically involves correspondence with the UKIPO and it may take several months or years before the patent gets over the line and is granted. The timeframe largely depends on whether the invention ultimately qualifies and on the general workload of the Office.

Throughout this period, your application is confidential, but after 18 months from the filing date it will be published and laid open. From that point, potential infringers can be put on notice of your pending rights.

It as that juncture where your work starts to pay you dividends.

Need patent help?

The advantages to having a patent are numerous. Broadly-speaking, a patent can:

• Protect your invention from being copied
• Strengthen your position in the market
• Add value to your business
• Create revenue through licensing or sale
• Reduce legal risk in commercialisation

Many businesses are reluctant to patent their inventions, citing the potential cost as the biggest factor.

It is true that the patent process is not cheap, but the cost can vary enormously depending on the technology involved, the complexity of the invention and the volume of prior art that exists in the same technological field.

Our advice is simple: if you have invented something that has the potential to be patented then there is no harm at all in talking to one of our specialist patent attorneys and finding out just how much potential it may have and how much it is likely to cost.

It could be one of the most important conversations you ever have in business.

Remember, the assets a patent can bring are likely to heavily outweigh the work and costs involved with getting your invention patented in the first place.

The pay-off can be huge.

A patent is an asset that could pay for itself handsomely, over and over again.

We regularly assist clients across all technology sectors with their patent strategy and patent filing. To discuss your invention that could have the potential to be patented then contact SH&P.