In the embryonic stages before developing any startup, it should be pertinent to obtain a patent for your product and service. There are chances that someone might try to imitate your innovative product or service. By obtaining patents, one can feel secured with the enhancement and protection of its product and services. It provides a tremendous advantage over your competitors.
Patents intrinsically hold versatility covering a more comprehensive range of issues relating to your startups such as product, material, process, composition and machines. Recently, there has been a growing awareness among entrepreneurs regarding intellectual property and laws related to it in India with many walking the first mile with trademark registration of company name and logo. And this has result in rising applicants for acquiring patents. Here’s why you too must consider doing it:
1. India has a fusion of laws around the world.
India has already signed and abides by international treaties related to patents like trade-related aspects of intellectual property rights (TRIPS), Paris convention, Budapest treaty and patent cooperation treaty (PCT). Application for patents comes under the PCT or Paris convention. When it’s submitted under PCT, it is known as an international patent application. Paris convention tends to provide 12 months of specified time under which one can file the patent application in Paris convention signatory countries. However, PCT provides 30/31 months for the same. Such a time window is useful in many respects.
2. Preserved products yield more interest.
Every startup should make the patent filling as its part and parcel of their product strategy. Especially in the embryonic stage of commercializing a product/service. A patent gives a surplus of leverages over the long-term that rationalizes invested cost and time. The sooner you apply for it, the better.
As it would provide expected results for your business with legality. Not only that, it would prevent others from imitating your product and service, giving an edge to your business over other competitors. As no other person or business would be allowed to sell, manufacture or advertise it without your prior consent. If they do so, you have all the right to sue them for contravention.
3. Patents can protect against potential rivals with devouring tendencies.
These days amazon denounces patent litigation, but what they don’t usually mention is that when its competitor Barnes & Noble used the identical system (‘one-click’ online purchasing system) as amazon’s as they acquired its patent in 1999. Later, Amazon complained about them for contravention. Court gave its judgment by commanding B&N to cease using a similar system with providing a direct edge to Amazon.
4. Patent safeguards the smooth and free operations of a startup.
Let’s take the case of Google who also tends to raise concerns over the patent. Initially, in 1998, before prior knowledge of its business plan, domain name and venture funding/finance, they filled PageRank patent NO. 6285999 then paid by Stanford varsity, which it’d been allocated patent with $336 million to license it thanks to their provisional patent application. Without acquiring that patent, as one analyst has said, “Google would have been trampled by imitating search engine offerings from Yahoo, Microsoft, and other big players who once dominated the market.”
5. A patent can multiply the possibilities that a startup will be acquired.
As aforementioned, patents can potentially defend your products and services against large rivals. Google’s Nest’s acquisition back in 2014 for $3.2 billion in cash was because of Nest’s intellectual property. “We believe Google would not have purchased the company if it did not possess the substantial and valuable intellectual property in the first place,” says Bernstein Research analyst Carlos Kirjner (reported in USA TODAY) while advising to investors.
6. Establishing business values
It provides safeguards and niche to your product from where no one can copy-cat it. This increases the value of your business on many fronts. It is like giving an identity to your products and services, which ensures quality and precision. Obliquely, it enhances the chances of securing favorable loans from banks and other financial institutions. Even if you want to sell your company in the future, it holds some intrinsic value that cannot be undermine while calculating the price. The patent represents the value of your company.
In conclusion
For competitive advantage and edge over other rivals, one must acquire patents for their business. It covers the smallest to broadest aspects of your business with its multifaceted provisions. The date of application becomes crucial while applying for it. The sooner you do it, the better concerning effectiveness. It takes a large amount of time and energy to do so. Nevertheless, the benefits you will get from it would surely outweigh the efforts you will be putting in. If one misses the bus to acquire patents for their business, someone else will benefit from it by stealing and using their ideas and innovations.
