Businesses and their owners in every industry often make use of patents. Patents provide much benefit to any business because they protect against infringements and competitors, stimulate further innovation, and serve as important business assets. One industry in which patents play an especially important role is the technological industry. The unique qualities of this industry have had a profound influence on the impact of patents within it.
What Patents Do for Technological Businesses
Technological businesses which have invented one or more products can protect their technological knowledge by using patents. Doing so ensures that this knowledge will not be taken and used by anyone else for unethical or illicit purposes. Patents may also draw investors to a technological business because the existence of active patents implies that new products are being developed. Investors will take note of this fact, understanding that such a business is one which is likely to see much future growth. Technological businesses which operate in areas of the industry with relatively low levels of market competition are particularly advised to file for patents. This is because their increased share of market power gives them additional motivation to invest in R&D, leading to the creation of more products which can be patented.
Patents and Technological Market Development
Patents do not only benefit technological businesses; they do much good for the market as a whole as well. Patents facilitate the transfer and exchange of knowledge through licensing. These transfers and exchanges facilitate the distribution of knowledge which drive innovation. They also define the parameters of the current technological market by way of disclosure of inventions. Patents provide insight about the inventions which are available for exchange or purchase. Through the knowledge acquired, appropriate price ranges can be determined. Thus, the exchange of knowledge through patents enhances the organization and structure of the market.
Patent Law Flexibility and the Technological Industry
In comparison to laws governing trademarks, patent laws often tend to be relatively flexible. The technological industry has often used this flexibility to its advantage. This is because strict mandates often must come in the form of broad legal solutions. Therefore, they often cannot be modified in advance to deal with changes in the pace and complexity of market competition. In addition, technological companies are constantly having to make decisions based on technological advancements, the supply of workers, and consumers’ desires. For this reason, the flexibility inherent within patent laws protects technological business owners from much financial risk.
Major Technological Companies and Patents
Many of the world’s leading technological companies have made use of patents to further improve their standing within the field. Companies such as Intel, Microsoft, IBM, Apple, Samsung, Google, and Qualcomm are granted thousands of patents every year. These technological giants take patents very seriously. For example, Apple and Samsung were involved in a series of lawsuits from 2011 to 2018 over smartphone patents. In 2012, Google spent US$12.5 billion (RM58.2 billion in today’s money) to acquire Motorola Mobility. This acquisition provided Google with access to over 20,000 patents. These companies take such drastic steps because they understand that patents not only boost revenue and innovation; they serve as defense against litigation, highlight their high level of creativity, and provide validation for all who work at these companies.
The technological industry is one which is developing and changing all the time. If your business is in this industry, do take note of the details surrounding patents and use these patents as much as possible to give your business the greatest possible advantages.
This article brought to you by Exy Intellectual Property Malaysia