Question

(c) Discuss the arguments for and against giving patent protection to inventions.

Answer 1

The benefits of securing a patent include:

1. Barrier to entry: ability to stop others from selling a competitive product, An exclusionary right is the first of three patent protection advantages. A patent erects an entry barrier so that others are unable to compete with the inventor. They would not be able to market their version of the patented product. If companies join the market, the inventor may sue rivals and make them "disgorge" earnings and require them to engage in marketing and sales attempts. If you believe that your technical solution will change soon, then it may be crucial to request expedited examination when you file your nonprovisional patent application. Be aware that if you begin marketing a product without seeking a patent, you may forfeit the ability to secure a patent
2. Increased profits and prices: because you can stop others from selling a competitive alternative, you can charge more for your product. The potential for enhanced pricing and profit is the second of three patent protection advantages. If there is important market demand, a patent enables an inventor to sell a product at a greater cost. It doesn't assist to boost the product's market demand. For this reason, the advantage of a patent is only helpful to inventors with products that are in great demand on the market.

   Put simply, the patent allows for the patent owner to be the only one who can sell the patented product. If there is no market demand, then this would be useless. However, if there is significant market demand and your patented product is selling like hotcakes so to speak, then you would theoretically able to raise your prices and be more profitable.

3. Leveled playing field: a patent can stop large companies from competing against you. The third of the three advantages of patent protection is that a patent level the field of play against big corporations. Large corporations often have a lot of benefits in the marketplace compared to a small business. Beyond those of a tiny business or solo inventor, they have financing, marketing relationships, distribution channels, and knowledge. If a small business or individual inventor were to sell the same product as a big corporation, the small business or individual inventor would probably lose, and the bigger corporation would capture more product market share.

If you decide to pay for a utility patent, it’s important to understand that they typically aren’t granted on a product per se, but rather on some aspect of the product. For example, the way it latches, the chemical composition, the algorithm. Unless an aspect that can be patented is the component that makes your product unique, then the actual legal protection granted with a patent may be of questionable value

Unless the patentable aspects are critical to your invention, an inventor is better off investing time and money in developing, launching and marketing the invention. A patent can be a useful tool, but it may not be necessary.

Inventors may need to defend a patent, spending time and money on legal fees. And if the patent challenge comes from a large, deep-pocketed company, an inventor may find a patent defense unable to sustain.