Not So Obvious Uses of Patents

It really is commonly known that how to prototype an invention and firms protect their innovative products, if they are devices, manufacturing techniques, business methods, or software, from being copied. Patents allow owners to exclude others from making, selling, or importing towards the US the patented product. In the event the patented products are infringed, owners may send cease and desist letters to the infringers, of course, if the infringers continue their infringing activities, the patent owners can visit court and enforce their rights through injunctions or seeking both compensatory and punitive or treble damages. Patents have plenty more uses besides these, including:



1. Patents bring collaterals to acquire loans. In the event you check out the assignment database of the usa Patent and Trademark Office (USPTO), you will notice that many patents are assigned to various banks. This is because patents are treated as tangible assets. They have their very own values, plus they can freely be transferred in one owner to a new, as with every other tangible properties. Banks may use patents as collaterals around the loans they lend to ensure that in case a default occurs, they are able to seize the patents in order to remedy the default.

2. Patents enables you to increase a company's net worth. A company's patent portfolio may be appraised, and it is value can added to their total asset value. Once the company is offered for sale, value of its patents might help drive its sales price. The stock values of public companies can also increase after they acquire patents either by pursuing their very own innovations, licensing, or purchasing them.

3. Patents enables you to settle disputes or lawsuits. Small companies may think they don't have to obtain patents once they don't plan to be plaintiffs in infringement lawsuits. However, they don't know that patents can help buy them off infringement disputes or litigation. This is especially common in industries where the major players own various patents. When two companies inside the same industry fight in the courtroom over ip 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 another product from Company A.

4. Patents have defensive uses. By having these, competitors could be discouraged from obtaining rights to similar ideas, which consequently reduces the likelihood of competitors enforcing an infringement action with regards to your company. Additionally, with patents, competitors could be deterred from developing, selling or making similar items.

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