Patents and SMEs

Good morning everyone. I was recently asked about the value of patents for SMEs. I thought this may be a topical questions, so today’s blog is my input into the subject.

Definition
Let’s begin with a simple definition of a patent, and I apologise in advance for the jargon. A patent grants a temporary monopoly to the “claim(s)” it discloses. The claims explain the implementation of the idea and its scope. The activities in the patent may be performed by a person or corporate body in relation to a product or a process within the scope of the claim(s). In other words, the person holding the patent tells the world that if you do these three steps in this particular way, you will get a specific result. And by the way, if you do want to do these steps, you need to speak with me first, at least for 20 years.

3 elements needed to create value
All of this sounds great, but like all things, there is a trade-off. Primarily, this comes in the form of the time and money required to secure the patent – typically £100k – and then the prosecution and defence of the patent once it is granted. All three of these components need to be in place or the patent has little real value.

Claims strategy
Another key point is that the patent itself must support your business strategy. Patents that don’t do this are a waste of money, especially for an SME. As you consider how a patent could support your business strategy, keep these three themes in mind as your develop your claims strategy.

· First, ensure your claims cover the most commercially important part of the invention.
· Second, draft the patent to support your licensing strategy (i.e. design the product so that the highly novel elements are included into a single or few component(s)).
· Third, ensure you disclose and claim the complete process.

Seek professional advice
If my legal jargon so far hasn’t prompted you, let me do so here. Seek professional advice. I recognise that £100k is a lot of money, but if patents are a key supporting element to your business strategy, trying to save a few pennies on legal fees is a false economy.

Barry’s view
So where does all of this leave you. Well, if you are an SME with a hot new technology that will be the core revenue stream for your business, then by all means, consider patenting and consider how the drafting of that patent will maximise your idea’s commercial value. If this is not the case, I personally would find it hard to justify the investment.

A final thought
As I highlighted at the outset, patent law is a complex issue. You should seek professional advice to assess your personal situation. My goal is writing this blog, is to give you some insights that will help make that discussion more productive.

All the best.


Barry Larson
http://www.arbutusridge.co.uk
Better systems for your business™