Strategy
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Patents are widely regarded as providing the strongest
possible protection for innovations, as they are monopoly
rights which can be used to prevent others from exploiting
the patented innovation. Patents can be used in different
ways to create value, for example by preventing competitors
from entering the market with a competing product, by
generating revenue directly through licensing, or even
by encouraging adoption of an organisation’s technology
by permitting access (perhaps with some restrictions) by
competitors to patented technologies.
Patents can also be used as a deterrent against litigation.
In some industries organisations develop extensive patent
portfolios in order to be able to fight back if threatened with
patent infringement proceedings.
Significant PR value can also be attached to patents.
Organisations which file large numbers of patents are
often regarded as being more innovative than those with
fewer filings. The idea of patents as a proxy for innovation
is increasingly prevalent, to the extent that to encourage
innovation many countries now offer “Patent Box” tax
breaks, which reduce the amount of tax payable by
companies on profits that can be attributed to patented
technologies.
Patents therefore offer numerous benefits, but they are
not without their disadvantages. For example, part of the
process leading to grant of a patent is that the invention
must be disclosed publicly in a patent application, in enough
detail that those working in the relevant field will be able to
make the invention.
