Patents are granted to inventors of new products in order to protect their ideas from being stolen. The patent holder has exclusive rights to manufacture, market and sell his inventions and make commercial gains from it. He can also enter into licensing agreements with other companies.
There are different types of patents like the design patent, utility patent and the plant patent. The inventor has to decide on How to patent an idea and what type of patent is suitable for his invention after careful study of pros and cons of patenting.
Advantages of patenting
- An inventor or a start-up firm, looking for capital or angel investors must disclose the details of their invention to potential investors. However, disclosing details to the investors might carry the risk of the idea being stolen or copied. Inventors must first file a patent for the invention before disclosing the details to third parties.
- Obtaining a patent helps the inventor to financially benefit by manufacturing, selling, licensing, importing and exporting the product. This legal monopoly on the product for a fixed period of time, can be extremely profitable for the inventor.
- Applying a patent for a new idea can help inventors to cut out competition. They can charge a premium price for the product since no one else will be selling the product.
- The patent holder can profit from licensing other companies to manufacture and market the inventions in return for certain sum of money or he can also sell the patent to interested companies, if he does not have enough finances to manufacture the product.
- Small businesses and start-ups can benefit by obtaining patents for their inventions and ideas. Potential investors are lured to invest in the company to get rights of the patents.
- Getting a patent for an invention helps to improve the credibility of the inventor or the start-up firm.
Getting a patent for a new invention is extremely beneficial for the entrepreneurs. However, the process of applying for a patent is stressful and cumbersome. Entrepreneurs can hire the services of patent attorneys or patent agents to guide them on How to patent an idea and help them to write the patent application in the correct way.