The impact of patent on business
Innovative and creative ideas are at the heart of most successful businesses. Ideas by themselves, however, have little value. They need to be developed, turned into innovative products or services and commercialized successfully so as to enable enterprises, particularly small and medium-sized enterprises (SMEs), to reap the benefits of the innovation and creativity. Patents can be crucial for turning innovative ideas and inventionsinto competitive products that significantly increase profit margins.
Enterprises may also use patents to earn royalty revenue by licensing such patented
inventions to other firms that have the capacity to commercialize them. This may provide enterprises with a stream of income from the invention or the inventions of employees of the enterprises, without the need to invest in its commercialization.
If you don't patent, competitors will take advantage of your invention - If the product is successful, many other competitor firms will be tempted to make the same product by using your invention but without having to pay for such use. Larger
enterprises may take advantage of scale economies to produce the product more cheaply and compete at a more favorable market price. This may considerably reduce your
company’s market share for that product. Even small competing enterprises can produce the same product and often sell it at a lower price as they do not have to recoup research and development costs incurred by the rightholder.Read more...
Enterprises may also use patents to earn royalty revenue by licensing such patented
inventions to other firms that have the capacity to commercialize them. This may provide enterprises with a stream of income from the invention or the inventions of employees of the enterprises, without the need to invest in its commercialization.
If you don't patent, competitors will take advantage of your invention - If the product is successful, many other competitor firms will be tempted to make the same product by using your invention but without having to pay for such use. Larger
enterprises may take advantage of scale economies to produce the product more cheaply and compete at a more favorable market price. This may considerably reduce your
company’s market share for that product. Even small competing enterprises can produce the same product and often sell it at a lower price as they do not have to recoup research and development costs incurred by the rightholder.Read more...
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