Top 15 Reasons Why a Patent is Important

20 September 2022
Dr. Niti Dewan

What is a Patent?

A patent is a legal right to an invention granted to a person or company that prevents others from replicating, using, or selling it. Patents are awarded by governments and have a term restriction. Patents are important for techno-commercial success.

The Reasons Why Patents Are Important

Let’s take a closer look at the 15 benefits of patenting for a business in India:

1. Patent Monopoly and Exclusivity

Patents provide monopoly or exclusivity on a product or process. Patent rights holders might be able to charge more or less for their protected product or process products if they have a technologically superior good or service.

2. Patent Term

Patent rights are negative rights, they exclude others from making, using, offering for sale, selling, or importing the patented product or process for a limited period of time. In most countries, the Patent Term is 20 years. Patent right holders can enjoy the extension of the patent term in some countries such as the USA and Europe, in case of procedural delays. The additional patent term gives additional exclusive rights to retain market position to the Patent rights holders.

3. Patents and Competitive Edge

Patents protect the owner's achievements from rivals and provide a competitive edge. Patent rights holders have the advantage over rivals by deterring unlawful usage and preventing them from replicating the invention/ innovation. This would limit competition from imitators, or prohibit rivals from replicating the inventions/innovations, lowering the potential danger of patent infringement and helping a patent holder, in becoming a dominating player in the respective technology domain. A patentable product or process gives you a competitive advantage in the marketplace.

4. Patents Licensing

Patent rights holders are in an advantageous position as they can have the option of licencing the patented technology, which allows them to charge others for the right to utilise their patented creations. In addition, they have the legal authority to prevent anyone from utilising their protected/patented invention. Patent rights holders can file a lawsuit and seek damages for illegal use of their invention/ innovation if they discover that someone has violated their rights.

5. Patents Cross-Licensing

Patent Cross=Licensing is possible in Patents. The Patent rights holder can enjoy the royalties based on the cross-licensing agreement with the interested parties.

6. Patents Monetization

The Patent rights holder can generate revenue by selling or licensing their patented invention/innovations. They develop, manufacture, market or commercialize their inventions/innovations for better business success. Patent rights are valuable assets, in case the patent rights holders are in debt, in such a situation they can adopt various monetization strategies and come out from the losses. Many successful organizations have very strong Patent Monetization regimes.

7. Patents and Profits

Since the Patent rights holders have exclusive rights on their product or process, they are in a good position to earn profits and get financial gain from it. The right holders are generally in a position to sustain themselves in the market based on their exclusive goods and services based on the patented product/processes and retain their monopoly. Many of the time the Patent rights holders are in a good position to gain gross profit, operating profit or net profit based on their innovative patented product/processes.

8. Patents and Technology

The majority of the scientific data and technical data is disclosed in Patent documents, which helps researchers to opt the future innovation and development strategies. Many of the researchers find the gaps in the existing technologies disclosed in the related prior art for further techno-commercial development and future success of their projects. The expired or unenforced Patents and their disclosed technology can be utilized without any fear of Infringement. Patent information on different technology domains is a magic tool for stakeholders of innovation.

9. Patents and Technology Transfer

Technology transfer is the process of transferring technology from laboratories, universities, or other research organisations to industry. Quite often the technology and their technical know-how are well disclosed in the Patent documents. In case of expired and or unenforced Patents, the Technology transfer Managers can use them for commercial success and validate the lab-to-market approach. Patent Professionals play an important role to investigate the vital information hidden in the ocean of Patent documents and help researchers to facilitate innovation and provide lead towards technology transfer.

10. Patents and Market Intelligence

The Market intelligence studies provide comprehensive, accurate, and quality insights into the market size, trends, product evolution, major players, and market share. The new technology development area is based on the Patents and is significant, as it helps to shed light on the acceptance of new technologies by the market along with the monetary success, plateau, or failure thereof. The deep-dive studies into the state of the market with respect to old or new technologies, products, and services based on the various parameters including Patents comes under the purview of Market Intelligence.

11. Patents and Competitor Intelligence

The competitor patent portfolio information is crucial as far as business success is concerned. The competitor technology tracking, portfolio, various stages and strategies of investment, technology transfers, marketing and financial planning is consisting of competitor intelligence and the study of Patents play a vital strategic role during competitor Intelligence.

12. Patents and Industry Intelligence

The study of extensive breadth and depth of information about industries and all products, services, and technologies comes under Industry Intelligence. Patents can be another important parameter for Industry Intelligence and provide key insights.

13. Patent Infringement and Damages

The Patent rights holder can litigate with infringers or those who violate their rights on certain products/processes. The successful outcome leads to generating damages and commercial gain and retaining monopoly in the appropriate territory wherein the rights are enforceable.

14. Patent Valuation and Investments

Patents are an important financial tool. Its valuation can be done via economical, legal or technical. Cost, Income and Market approaches are the classical methods, as well as quantitative methods such as renewal rates, value indicators are helpful to determine the Value of the Patents. If the Patents’ values are higher based on their impacts, the Investor attracts these successful Patent and their technologies. Patents are a useful tool to obtain funding from government and non-governmental agencies.

15. Patent Audit and Investigations

Portfolio analysis helps to identify the potential and monetization opportunities associated with Patent assets. Patent Audits help to streamline the Patent Management System in an organization and overall R & D function.


Patents are the most important Intellectual Property Rights, obtain through different stages such as filing, publication, examination, grant etc. For many firms, patent protection may be a useful economic tool as well as a significant investment in research & technology. Every firm may have an invention or innovation that must be protected since it might be a crucial and precious asset for techno-commercial business success.

R. K. Dewan & Co. (Patent and Trademark Attorney in India)

R K Dewan & Co is India’s leading law firm in patent litigation and prosecution. Following are the services regarding Patents, which our firm provides in India and beyond:

  • Drafting provisional & complete patent specifications for India and overseas
  • Filing and prosecuting applications at the Indian Patent Office and under the PCT
  • Filing and prosecuting applications internationally in co-operation with our foreign associates
  • Comprehensive patent searching with analysis & legal opinion.
  • Trademark Opposition watch services.
  • Post-registration services such as renewals and filing statements of working.
  • Licensing and transfer of technology.
  • Portfolio Management


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