Patents

A patent is a legal document which is authorized by the Government of India granting “exclusive rights to the inventor to make, use and sell an invention”.

What Is The Need For Patents?

Innovative businesses have vast reserves of portfolio relating Intellectual property, these intangible assets account for majority of a company’s value.

The ever growing innovation in technology has accelerated the enormous need to protect such inventions for the benefit of the inventor. Organizations have reserved patents over time which marks the achievements of assets and strength of the organisation. Protecting patents enables the licensee to derive lucrative benefits out of the invention meanwhile safeguarding their intellectual property.

It provides an exclusive right to use, make and sell an invention.

The main purpose of these patent laws is to encourage scientific temperament and technological advancement .

What Can Be Patented ?

Any process or product which is new, involves inventive steps and has industrial utility. A patent is a unique privilege given for an innovation, encompassing a product or process that, fundamentally, introduces a novel method of accomplishing something or presents an original technical answer to a challenge. Securing a patent involves revealing technical details about the invention through a patent application, making this information public.

Requirements Of Patent Filling - There are certain requirements which should be satisfied before filling patent-

1) Novelty- The invention must be novel. It must not be a copied idea, an invention can only be eligible for protection by way of patent, if it is anticipated by public or is available in public domain such idea is not new, an invention should not be frivolous . An improvement which enhances the utility of a previous technology is also novel however , the improvement must be significant, and not an anticipated alteration.

2) Inventive Step- For an invention to be deemed valid, it must exhibit an inventive step or non-obviousness, indicating that it shouldn't be easily apparent to someone with expertise in the relevant technological field. The innovation should demonstrate a technical progress or a creative idea not readily discernible from existing knowledge or prior art.

3) Industrial Application- The invention must have industrial utility in a manner which is bonafide. It signifies that the sole utilisation should not be illegal.

4) Exceptions - Certain conditions set forth under section 3 and 4 provides restrictions on patentability. Before patent filling it must be satisfied that the invention is not be frivolous, is not be contrary to natural laws and public morality, besides these horticulture, agricultural processes , mathematical or computer programs, aesthetic creation, mental act or method, presentation of information, traditional knowledge , are not patentable. Sec. 4 further specifically restricts invention related to atomic energy.

Steps To Patent Filling

1. Patent Search- Conduct a comprehensive global search to determine the novelty of the invention. This step is crucial for assessing potential objections from the Indian Patent Office based on prior arts.

2. Drafting Patent Specification- After thorough worldwide searches, articulate the invention's specification in a techno-legal language. This includes a detailed description, working examples, and the best method for utilization. The specification can be provisional (without claims) or complete (with claims).

3. Patent Application Filing- Initiate the patent application procedure in India by filing the drafted provisional or complete specification. Use Form-2 for specification filing and Form-1 for the patent application, adhering to the Indian Patent Act. If provisional, file a complete specification within 12 months.

4. Patent Publication for Public Opposition- Once the patent application process is complete, the patent is published after 18 months from the filing date or priority date. This publication allows public viewing and objections on valid grounds.

5. Requesting Patent Examination- File a request for examination within 48 months of the patent filing date or priority date. The patent examiner issues an examination report with objections. Respond to the report within 12 months, potentially resolving objections through a show cause hearing, marking this phase as patent prosecution.

6. Grant of a Patent- If objections are satisfactorily addressed, and the examiner approves, the application proceeds to grant Patent Registration, concluding the registration procedure. If not satisfied, the applicant may need to repeat the entire patent procedure for patent protection.

IP MONETISATION

Mere presence of patent rights do not bring a monetary benefit, monetisation of such assets depends upon the owner. In order to procure a flow of income, strategic planning to bring the asset to market is required.

The very essence of IP is, IP is your asset is very much capable of generating revenue. Most of the technical and innovation derivatives are producing huge amount of profits to the IP owners. The tech companies run colossal businesses and derive gains. These intangible assets have potential to bring monetary benefits to the table.

Many a times the IP owner is unaware about the mechanism which helps to generate profits, it is necessary to have a strategic mind map, well planned strategies may help to add considerable financial value to the invention. Copyright, trademark, patents, trade secrets all of these intellectual properties work differently in the realm of financial markets, these all have different protection, different utility, different subject matter, all of these have a unique identity and utility.

Other factors to consider while strategically planning to monetise an IP are valuation of IP which helps to find the best estimate of value of the patent. Other important factor determining how much profit an IP may derive is dependent on the legal aspects, hiring a consultant and using similar strategies may help to find the best alternatives to put a price to the IP.

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Patent Monetisation

Patents are huge portfolio building tools, investing in research and development of a technology is expensive but it also opens the gateway to earn maximum profits out of the portfolio .

There are several factors which decide the marketability of a patent depending upon its nature and each of these patents require a unique monetisation strategy depending upon the business goal of the owner.

Patent monetisation is deriving financial benefits out of patents by different means such as patent licensing, selling patents etc.

The most common ways is to manufacture and sell goods to the market based on a patented technology but it would require a huge investment and infrastructure , this not the only way to monetise a patent can be simultaneously used by different parties which gives the owner an opportunity to put a price to its patented technology.

Different ways to Patent Monetisation

1)Licensing- The most prominent way to monetise a patent is licensing, it allows the patent owner to put a price to its property by agreeing to allow the other party to use their invention. The sum so received is called royalty which is payable to the owner for a fixed period of time.

There are different ways of licensing a patent each of which holds different terms and conditions channelising its utility .

2) Enforcement- When a patent right of the owner is breached by any party, the owner can enforce the unauthorised use of the patent against the infringing party. Usually the court procedure is hectic, so relying on negotiation can also be lucrative and time saving.

3) Selling of Patents- A direct sale of patent to other party can be the fastest way to monetise a patent. Usually when a patent owner has meagre resources and infrastructure to put the invention to a business market may sell to a company or entity based on the valuation of the invention

4) Patent Pool- A patent pool is an arrangement where two or more patent holders mutually agree to license their patents to each other or to external parties. Typically, patent pools are linked with intricate technologies that necessitate a combination of patents to offer effective technical solutions.

Stratergies To Ip Monetisation

The foremost requirement is to ensure a product or process which involves innovation and creativity .

1)EXPERTS ADVICE

i) Team building - A fundamental process to monetise patent is to ensure a productive team which would test and validate the technology by using prototypes and models.

ii) Professional Advice- It is advisable to contact a legal advisor who can identify and suggest eligibility of product or process which is aimed to be patented.

2)Identify Ip Assets- It is very important to identify the kind of IP and proceed accordingly . Talking particularly about the patents it is necessary to identify which of the methods of monetisation reaps best revenue out of the technology .

3)Extensive Research- Multiple factors such as demand of the patented product or process, commercial value, competition makes a huge impact on the value of patent. Determining the geographical space of a patent must also align with the expansion plan.

4)Choosing Monetisation Model- .The next step involves deciding how to monetize your intellectual property (IP). Depending on your objectives, resources, and market conditions, you might explore options such as licensing, selling, collaborating, or self-exploiting. Licensing involves granting others the right to use your IP for a fee or royalty, providing access to new markets and generating passive income. Selling entails transferring IP ownership for a lump sum or share of future profits, which can be advantageous for cashing out or exiting a market. Collaborating involves partnering with others to create, develop, or market your IP, offering access to new skills and resources. Lastly, self-exploiting uses your IP for creating and offering your own products or services, allowing you to maintain full control and benefits. However, each option comes with its own set of risks and considerations that should be carefully evaluated before making a decision.

Author : Komalpreet kaur, in case of any query, contact us at Global Patent Filing or write back us via email at support@globalpatentfiling.com.