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Importance of Patents in Business development
Change is constant with time. Many years ago, patents were considered as exclusive and unaltered protection that encouraged owners to develop passionately into business.
However, with the intense business competition in the 21st century and trade friendly policies and laws, now, patents may be assigned and licenced to third parties for their commercial use and development of businesses as patents are also considered as assets just like any other tangible assets. Patents have become part of one of the properties of the businesses.
The registration for patent and publication invites public attention and recognition of such invention. These inventions provide opportunities to industries for development of much better products for their businesses. At the same time those industries are not required to copy or infringe the invention but may get license to use such inventions in a legal manner. These kinds of arrangements are helpful and adaptable for the development of business opportunities and innovative ideas.
The advantage of registration of patents is that since the information of patented inventions are made public, it gives an idea of the development that is going on in the world of innovations and estimation how much competition can be anticipated from such innovations. This may also compel the competitors to be in pace with the trend of innovations as all the information of new innovations are available publicly. This may influence competitors’ choice of pace in innovations and burden to keep up with the competition. This is because the information of patents such as the working process, terminologies and functionality of the patented technology or invention is available publicly and which is beneficial and open for the public at large to look into.
Patent licensing also helps generate revenue for businesses and inventors. Licensing an innovation for e.g. a technology to a well-equipped business person or a company who are in a better position to use such technology can enhance business. Many patent holders sell licenses of their innovations as intellectual property and break the monopoly and boosts the competition which ultimately compels the competitors to adapt to rapid developments of the world of innovations.
Patents may also increase the overall business goodwill as patents as intellectual and intangible asset is part of valuation of business and relied upon by mostly all the industries concerned thereto. Patents are worth as an asset as they can be licensed to generate revenue as well. Patents also protect from the third-party interventions or infringement against duplicity and unfair use of the patented innovations. To avoid the cost of purchase of license of patents, most industries prefer to rely upon their own innovation and encourage the same to remain and adapt to the competition.
The patent owners have right over use of their innovations and since right to use such innovation is restricted and in hands of the owner, it helps him to use such patent to expedite production and sell of product which is not there in market because of patent protection as well as he may sell the patent rights itself and these boost in sell of products and sell of patent rights attracts the huge financial revenue. Patents also attract global investors who are interested to invest in innovations and which may help boost the gain for global business. This revenue from patents may be used further for other innovations and research which may help further for commercial and industrial growth. The analytical study of patents may help to forecast future requirements and sense of appropriate timing for investment which may be beneficial for business development.