Why should I care about patents?
Intellectual property can be a valuable resource to companies, research institutions,
inventors and the general public in terms of economic growth and development. Ownership
of a patent, copyright or trademark has the potential to increase the value of an
institution in a number of ways, including generating revenue and securing a powerful
market position. IP can also be used as a source of information and become a valuable
tool for researchers and inventors alike.
Patents are probably the most widespread form of IP in biotechnology and are set
up by governments to encourage innovation. In return for public disclosure of innovations
and developments through publication of a patent, the government grants the patentee
the right to exclude others from practicing these innovations for a specific period
of time. It is hoped that these inventions will provide the basis for further innovations,
improve the economic position of the country and ultimately increase the standard
of living. Patents therefore can have implications for every person regardless of
their age, knowledge of IP and social status.
Patents provide valuable economic and social benefits to both researchers and the
general public alike. Some of the benefits are detailed below:
Why should I care about patent searching?
Disseminate research to society's benefit
The concept that social benefits arise from technological progress was the basis
for providing legal protection of intellectual outcomes in the form of patents,
copyright etc. The same concept is behind the publishing of the description of the
invention so that others skilled in the art can learn from the invention and build
upon it to ultimately result in economic growth. This also ensures that research
findings are not forgotten, overlooked or hidden in a laboratory but can be applied
in a practical way to directly benefit some, if not all, of the public.
Level the playing field and stimulate markets
By developing or purchasing IP and licensing it amongst the market place, market
share is decentralized, and as a result the technology is much more widely accessible
by all. By licensing amongst a large number of corporations and researchers, the
chance of further inventions and improvements are increased due to the large amount
of researchers with access to the technology and the diversity of skills that exist
amongst an increasingly wide range of innovators.
Increase the value of an institution
By increasing the size of its IP portfolio, an institution enhances its value, not
only in a monetary sense by licensing the IP to others, but also its market share.
The institution may capitalize on its IP portfolio to command a higher price in
merger or acquisition negotiations or to raise capital to fund further research.
Take-over bids are sometimes initiated by companies wanting access to an institution's
IP. IP portfolios can therefore also be used as bargaining chips in negotiations.
Recently companies have been known to pay exorbitant fees to access the rights to
a particular technology if they are aware that they may be able to bring an infringement
case against a 3rd party who is known to be making unauthorized use of the IP.
Generate revenue for the institution
Intellectual property can be out-licensed; that is, an institution holding a patent
can grant rights to other organizations to use specific parts of or the entire invention.
By out-licensing in such a way, patent holders can charge a fee for accessing their
technology or invention. It is not necessary to have a granted patent before licensing
can occur; a pending patent application can be the subject of license agreements.
While only about 1 out of 10 patents are commercially significant, there is always
the chance that the true commercial value of the patent will not become obvious
until many years (and many further improvements) after a patent is filed.
Generate revenue for the inventor
The patent system grants a legal monopoly to the inventor by preventing others from
practicing an invention without his permission. As discussed above, this provides
the opportunity to out-license the new technology. Furthermore, many public institutions
share royalties with inventors. If the inventor is a member of a company however,
the reward is usually indirect. In companies, inventors typically hold stock or
stock options that increase in value as a result of the IP.
Increase status for the inventor
If a researcher obtains a patent, he can refer to himself as an inventor and as
a result, his marketability as a researcher may be increased. The inventor may be
accorded this respect even if the patent does not have any market value.
Why should I care about patent searching?
Source of detailed information about a specific invention
Patents include a detailed specification section, which effectively describes the
invention to be patented in minute detail. As a requirement of patentability, the
invention must be described in enough detail to allow it to be reproduced by others
skilled in the same field. Examples of ways in which to use the invention are included.
Because of these stringent requirements, the details of an invention (e.g. a scientific
methodology) is described in much more detail than what is likely to be found in
scientific journals.
Source of information about the field of invention
Patents can provide key information regarding a field of invention. Because of the
requirement that patents contain a background to the invention, usually prior important
inventions in the field are outlined. These references can be used to compile a
summary of the important inventions that have occurred in a particular field and
also to trace the origin of a discovery. When patents are compiled into searchable
databases, the knowledge that can be acquired about a particular field of invention
is enormous. In the majority of cases, searching a patent database can provide an
excellent overview of a scientific field, while at the same time provide valuable
scientific information.
Review of important technology
The white papers on this web site are especially valuable. Our white papers are
produced primarily about important and commonly used technologies and the effects
of patents on commercialization and trade. White papers can thus be used to determine
the key intellectual property rights that exist in a particular field. White papers
are a simple way of determining whether a particular technology can be accessed
and what parts of the technology may still be available for commercialization. They
can also be a valuable source of scientific and commercial information.
Determining the major players in a field
White papers and patent searches are excellent ways of determining the controlling
institutions or inventors in a particular field. It is important to remember that
not all scientists publish their work in scientific journals. Instead, many work
for research companies who survive by commercialization and therefore mainly publish
patents in place of journal articles. Moreover, a scientific invention that is published
in a peer reviewed article or is presented to the larger scientific community may
still be subject to patent rights. Thus it is important to search legal databases
as well as scientific databases to determine the 'major players' in a particular
field.
Enabling forward planning for commercialization
White papers and patent databases provide valuable assistance when planning the
commercialization of an invention. Often times an inventor will either approach
or be approached by an entity looking to commercialize their invention. In
such cases, a licensing agreement between the parties may be necessary in order
for the manufacturer to access and use the invention. By searching patent
databases and white papers, manufacturers and other potential licensees are able
to determine who has existing licensing agreements with the inventor and whether
or not a commercial monopoly for the invention already exists.