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NLO Patents
blog 19 Mar 2019

"Why should I patent my invention?"

Patents
In this rubric, the basics regarding Intellectual Property will be explained. #YouAskWeAnswer.

Filing a patent application and following the patent granting procedure is an investment in money. Upon filing the patent application, it is important to know how you can recover these costs.

Strengthening your market and competitive position

Holding a patent means you are an innovative party. Buyers and competitors know you are developing new technology. Holding a patent means that you have the exclusive right to your invention for a certain period of time and in a particular country or countries. Nobody else may manufacture, sell or use the patented product without your permission and you can stop imports and exports. Furthermore, no one may use the patented working method without your permission. You can therefore use your patent to improve your market position.

Strengthening your negotiating position

Applying for a patent may strengthen your negotiating position. This can be helpful if as a small(er) party, you need to bargain with a larger counterparty. For example, by using a cross licence you may also access the counterparty's technology.

Strengthening your financial position

You can licence your patent right. This allows others to manufacture, sell and/or use the patented products, or apply the patented working method in exchange for money. If you do not wish to avail of the patent yourself, you can also sell it in its entirety.

For each invention you wish to use and/or sell, you should verify in advance whether any third party patents exist that might get in the way. In consultation with you, our advisors can perform a Freedom to Operate investigation to identify the risks.

Reasons to apply for a patent: in a nutshell

Firstly, it helps you improve your competitive position and it helps you inprove your negotiating position through a cross license. It will also help you generate income: license, sale. Moreover, it will benefit your image to the outside world for the investors. Lastly, you can recoup the investments in technology: use the invention yourself.

If you want to know more about what the Dutch government says on patents, read the website of The Netherlands Enterprise Agency here.

Read more about our patent services here