You have an invention, an innovation, a breakthrough idea for society. However, you worry that when you publish that idea to society, some malicious third party will be able to steal the idea – whether it’s just a fleeting thought or the creative work you’ve been working on for decades. Accordingly, concepts such as intellectual property rights, industrial property rights, patents, protection certificates, patent registration, etc. were born. However, patent registration’s purpose is not only with the effect of protecting inventions, but it has many other important uses that are unmeasurable for businesses.
What is a patent?
A patent is a time-limit intellectual property right that prevents competitors from making, using, selling, exporting, or importing an invention.
According to Article 58 of the Consolidated Document 07/VBHN-VPQH in 2019 consolidating the Intellectual Property Law promulgated by the Office of the National Assembly on November 29, 2005, inventions are protected in the form of patents if the following conditions are met:
- Being novel;
- Involving an inventive step;
- Being susceptible to industrial application.
An invention is protected in the form of a utility solution patent if it is not common knowledge and meets the following conditions:
- Being novel;
- Being susceptible to industrial application.
The importance of patent registration
Sole Proprietorship
Currently, patent infringement activities for the purpose of doing business for personal profit are happening more and more in society. However, all such infringements can be protected by the law if the owner has registered for patent protection.
Not only preventing it but owning the exclusive right to the invention also grants the patent owner the right to claim for damages incurred to his or her business during the time the invention is infringed.
Limit competitors in the market
The owner of the exclusive right to an invention will be able to limit and prevent other individuals and organizations from infringing, exploiting, and using the protected invention for commercial purposes. Thereby, the patent owner will have fewer competitors in the same field in the market, reduce unfair competition and create favorable conditions to build a strong position and foothold in the market.
Earn high profits
Investing a considerable amount of money and precious time and effort in patent protection can be a difficult decision for some individuals and organizations, especially for small and medium businesses. However, owning an exclusive right to an invention will be able to generate economic benefits through the commercialization of such inventions. If the patent holders do not intend to exploit the invention themselves, they can earn a profit through selling, transferring the right to commercialize the invention to another business, etc.
Attract investment
When a business owns a patent, they have established a strong, unique, inviolable position in the market. In a sense, they had become a ‘throneless king’ possessing an exclusive right that no one in the world could encroach on. Therefore, there are many businesses and potential investors who want to cooperate and share that patent to mutually develop and earn profits with the patent holders.
Build a reputable image
Business partners, investors, and shareholders may find the patent owner’s patent portfolio a testament to their exceptional level of expertise, professionalism, and competence. Thereby, patent holders will become reputable in the investment partners’ eyes and accordingly, enhance their position and competitiveness in the market, have more opportunities to access investment funds, and seek new partners, etc.
Please find the list of international IP Firms here.