Prosecuting a patent can be a lengthy and costly process. Organizations engaged in research and development and those that acquire concepts from outside parties often require legal assistance when they ask the United States Patent and Trademark Office (USPTO) to protect a cutting-edge concept or product.
Patent prosecution involves extensive research to verify that the requested patent does not duplicate or infringe on an existing patent. Particularly in the technology sector, new patents come out constantly, some of which can have profound implications for the entire industry.
When organizations have successfully prosecuted a patent, they technically have sole control over the ideas or products covered by the patent until the patent eventually expires. Organizations can potentially also monetize their patents by licensing them to competitors and other businesses in adjacent industries.
How does patent licensing work?
A patent licensing agreement is a written contract between two parties granting permission to use the intellectual property of one party in specific scenarios. Generally speaking, the party that holds the patent receives compensation based on the duration of the agreement. In some cases, they may even negotiate terms in which they receive compensation on a per-unit basis.
Other companies are often eager to expand their options by making use of technological advances achieved by their competitors. Ideally, patent licensing is a mutually-beneficial agreement where both parties receive something of value and adhere to the terms of the agreement.
Licensing can limit or contribute to infringement
Competitors and suppliers may be desperate to access new concepts or have the option of using specialized products or components. In some cases, they may violate a patent with the hope that the patent holder does not discover the infringement.
Negotiating a licensing agreement with a competitor or supplier that is likely to need access to a cutting-edge patented concept or product can be a savvy move that prevents infringement and costly intellectual property litigation.
However, licensing patented concepts can also trigger infringement in some cases. Competitors may produce more units than the licensing agreement allows. They may choose not to renew the agreement but may continue using patented concepts, products or components to produce their own goods.
Businesses negotiating licensing agreements often need to be aware of the benefits and drawbacks. They may need help integrating terms into their licensing agreements that adequately protect the company’s intellectual property.
Securing support with patent prosecution, patent licensing and patent enforcement can help businesses in the technology sector optimize their protection and revenue while better limiting risk and intellectual property infringement.