Today’s business arena has become increasingly technological. In addition to more businesses adapting their operations to use technology, more small tech businesses have been emerging to supply the need for technical support and assistance. You may be interested to learn the United Nations Development Programme recently noted that over 90% of international businesses are classified as small businesses. It’s even more interesting to note these small businesses employ over 50% of all international workers.
You’ll have many concerns if you own one of those new businesses. As with any other industry, smaller new tech companies are wise to seek patents for any new products or developments they may devise. A review of the importance of patents may help managers to understand the implications of this concept better.
What is a Patent?
Unlike what some may think, a patent isn’t taken so your company will get the right to use your new service. Instead, a patent is intended to prevent other companies from using your product or service for their profit. Patents allow your small new tech company to use these inventions exclusively to establish themselves.
For a product or service to be awarded a patent, it must be proven to be new. It can’t have been previously presented for a patent by another company. Once a patent is granted to your company, you would be wise to automate its creation of new products. Business owners using automation is the equivalent of using all your company’s resources 24/7 to produce your product.
What Can a Patent Do for You?
As previously mentioned, patents prevent other companies from using your newly patented tech service for their profit. This exclusivity poses a serious threat to other companies if your idea could improve the success of their products. If a rival company wants to make a similar product, it may need to invest extra funds to avoid patent infringement.
A patent can also help your new tech company to receive an influx of venture capital. The implied quality of your patented product can bring attention to your company from potential investors. Getting a patent also assures investors your product is unique – so their investment will allow them to participate in your new business growth.
Is the Demand for Patents Growing?
With the increase in small new companies, there has been a steady increase in tech patent applications. The rate at which U.S. companies have applied for all patents has steadily increased in the past few decades. The number of patent applications has been the highest since the Industrial Revolution.
Patent cases are important enough to be heard in federal court, and many federal judges today are busy with such cases. Initial patent applications and patent appeals are both presented in federal courts. For example, Judge Ward conducted over 150 jury trials, presided over hundreds of patent cases, including Hatch-Waxman cases, and held in excess of 150 claim construction hearings.
Will Patents Help Your Business to Grow?
When you get your patent, it will help bring attention and revenue to your tech business.
Statistics have shown that once your product or service is patented, it is likely to steadily gain market share. A company can also increase its profit margin with continued development of products after they receive a patent.
Your business will eventually be ready for an IPO. It’s a fact of life that an influx of investment funds will help companies grow. Having a patent on your most innovative products or services will attract the best investors. Your company’s popularity will likely increase due to its acquisition of a patent.
Understanding the value of patents to your small tech business is vital. With the increase in demand for a more visible online presence, small tech businesses will be in demand. With a patented new tech product or service, your business could become the ‘go-to’ tech business.