Not So Obvious Reasons like 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 keepers to exclude others from making, selling, or importing to the US the patented product. If the patented products are infringed, owners may send cease and desist letters to the infringers, and if the infringers continue their infringing activities, the patent owners can go to 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 can be used as collaterals to have loans. Should you check out the assignment database of the US Patent and Trademark Office (USPTO), you will see that many patents are allotted to various banks. This is because patents are treated as tangible assets. They have their particular values, plus they can freely be transferred from one owner to a new, just like any other tangible properties. Banks could use patents as collaterals about 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 may be used to increase a company's value. A company's patent portfolio can be appraised, and it is value can included with the company's total asset value. Once the company is offered on the market, value of its patents can help drive its sales price. The stock prices of public companies could also increase after they acquire patents either by pursuing their own innovations, licensing, or purchasing them.

3. Patents may be used to settle disputes or lawsuits. Businesses might imagine they just don't need to obtain patents when they do not intend to be plaintiffs in infringement lawsuits. However, they don't realize that patents might help have them off infringement disputes or litigation. This is particularly common in industries in which the major players own various patents. When two companies within the same industry fight in the court over intellectual property 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. With these, competitors may 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 might be deterred from developing, selling or making similar items.