An Honest Look at Who Needs Patents - and who does not...
As an entrepreneur, you’ve likely asked yourself, “Do you need patents?” Or maybe “When do I need a patent?” or “Can I afford a patent?”. This blog post is dedicated to the first question. Or, more specifically, the question “Who needs patents?” because in contrast to what many entrepreneurs believe, patents are not a meaningful measure to invest in for everyone.
But if you need them to protect your products against copies – and to forbid others from making the same products with a different look – you need to know patents well.
Patents are powerful tools - if they are right for your business
Patents are powerful tools for protecting your inventions (ideas that turned into reality) from being used commercially by other businesses without your permission. So they can play a huge role in attracting funding in some technology niches – and collaboration partners in others.
However, not all business niches require patents to protect their revenue and success. Many businesses can attract customers, partners, and money without considering patenting.
This guide aims to unravel the world and shouldn’t of patents and shed light on their relevance to different entrepreneurs across various industries.
What are Patents?
A critical question that entrepreneurs ask is, “Who needs patents?”
To answer that, let’s first understand what a patent is.
Patents are legal instruments that give inventors or the owner of the patent exclusive rights to their inventions for a set period, generally 20 years.
They are country-specific and must be applied to each country where protection is sought. Deciding which countries you want to own a patent in will be discussed in a different blog post or course (stay tuned).
A patent is NOT something the authorities enforce for you as they do with other types of theft and illegal actions. You have to find the product that represents a theft of your invention and prove that it infringes upon your patent rights to stop it from continuing to steal your revenue and market share.
DIfferent Countries, different rules:
Who Needs Patents WHere?
In Europe, the European Patent Convention (EPC) provides a unified method for obtaining a patent.
However, once granted, the patent becomes a ‘bundle of national patents,’ needing individual enforcement in each country. Remember, to answer “who needs patents,” we must consider that different countries might have diverse patent standards.
Nevertheless, here is a brief overview of four things that apply in most – if not all – countries that you should factor in when considering patenting an invention.
What can be patented? The short version
The ultra-short breakdown of how to get a patent comes here. It is a bit more complex than this, but if you know the following, you can get started.
First, an invention is more than just a lightbulb idea. You need something real and workable, like a tangible product or a step-by-step process.
Second, your invention should do something that has technical features. It needs to solve some kind of real-world problem in a new way – but “technical” does not mean it has to be mechanic. It could be chemical, a process step that impacts the products physical stability, or a coating that makes a straightening iron less distructive etc. you get the point… right?!
Third, it’s got to be new. If it’s been talked about at a barbeque or shown off at a trade show… Then sorry, it can’t be patented anymore. And this one is where many entrepreneurs ruin their case. Chatting about things without a Non-disclosure (aka confidentiality agreement) can end your opportunity to patnt…
Lastly, it needs to be a head-scratcher, not something that makes people (who know the technical field, too) go, “Well, that’s obvious.” If your invention is a surprise or provides an unexpected win or side-effect that makes it more valuable – or available to, e.g., new uses, reduces waste or process steps and hasn’t been done or talked about before, you might be onto a winner!
Who Needs Patents? Technology based patents do → here are some examples
Technology based innovators need patents - and so do startups & SMEs
- Computer technology, electronics, machinery, devices & energy technology
When asking “Who needs patents?” technology-based innovators – including startups feature highly on the list.
These businesses are seldom in doubt about why and how they should utilize patents in their business. However, sometimes they believe they know enough but happen to overlook the common traps when working with external partners and experts, hiring employees, and involving more than one person in the development of their technology.
→ In addition to patents, these businesses will often generate and use a range of intellectual property to safeguard their business revenue, including design protection, trademarks, and Trade secrets.
The world of electric machinery and energy covers a lot of ground. We’re discussing various gadgets like lights, power supplies, basic electric stuff, and even specific technical methods. Some superb examples in this field would be power cables, magnets, relays, and even X-ray techniques.
Examples of tech startups who filed European patent applications about "energy technology" within the years 2019-2023
- Ossia Inc.
- LG Electronics
- Apple Inc.
- Baidu USA LLC
- Massachusetts Inst of Technology (MIT)
- Meta Platforms Inc.
- Microsoft Corp.
This list was generated by searching for the keyword “energy technology,” such as, PatBase or Lens.org, and sorting the results by companies who filed patent applications at the European Patent Organisation (EPO) in global patent databases without any further sorting.
Examples of tech startups who filed European patent applications about "machinery" within the years 2019-2023
- Kone Corp.
- Hitachi Construction Machinery Co. Ltd.
- Wirtgen GmbH
- Doosan Infracore Co.Ltd.
- General Electric Co.
- Kolbeco Construction Machinery Co. Ltd
- Kolbeco Construction Machinery Ltd
- Deere and Co.
This list was generated by searching for the keyword “machinery,” such as PatBase or Lens.org, and sorting the results by companies who filed patent applications at the European Patent Organisation (EPO) in global patent databases without any further sorting.
Manufacturing Industries - processes, production & material also need patents
- Manufacturing Industries - processes, production & material technology
Manufacturing industries often secure patents for processes and manufacturing plant parts or machinery to maintain their market position and prevent unapproved use of their assets and know-how. They also apply trade secrets and use design patents, trademarks, and other intellectual property rights to safeguard their innovation, revenue, and reputation.
Examples of tech startups who filed European patent applications about "manufacturing" within the years 2019-2023
- LG Energy Solutions Ltd.
- JFE Holdings Inc.
- Samsung Electronics Co. Ltd.
- BOE Technoology Group
- Commissariat A Lenergie Atomique ET AUX Energies Alternatives
- Siemens AG
- Boeing Co.
- Nippon Steel Corp.
This list was generated by searching for the keyword “manufacturing,” such as, e.g., PatBase or Lens.org, and sorting the results by companies who filed patent applications at the European Patent Organisation (EPO) in global patent databases without any further sorting.
Pharmaceutical & medicotech Are know to answer "me, me, me!" to "Who needs patents"- questions
- Drugs, drug imporvements, uses, manufacturing, medical devices, surgical equimnet, imaging technology, analytical tools, and more
“Who needs patents?” Pharmaceutical companies are another prime example due to the high cost and lengthy timelines of creating new drugs.
With the media coverage of pharmaceutical companies’ patents, it will probably not be a shock for you that patents and intellectual property rights, such as trademarks and design patents, are a significant part of the pharmaceutical industry, as they are in medico-tech, too.
Once the, e.g., medical drug patents expire, the generic companies can make legal copy products sold at lower prices in the pharmacies. Many countries’ authorities or insurance require substituting the original medical drug with generic versions whenever possible to reduce costs.
Therefore, patent protection of drug products is essential because governments and payers are incentivized to deliver and use copy-versions whenever available.
Examples of tech startups who filed European patent applications about "pharmaceutical" within the years 2019-2023
- Novartis AG
- March Sharp and Dohme LLC
- Hoffmann LA Roche Inc.
- Bayer AG
- Glaxosmithkline PLC
- Genentech Inc.
- ELI Lilly and Co. Ltd.
- Novo Nordisk A/S
This list was generated by searching for the keyword “pharmaceutical,” such as PatBase or Lens.org, and sorting the results by companies who filed patent applications at the European Patent Organisation (EPO) in global patent databases without further sorting.
Examples of tech startups who filed European patent applications about "medical device " within the years 2019-2023
- Medtronic Inc
- Philips Koninkll NV
- Canon Inc.
- First Affiliated Hospital Zhengzhou Univ.
- Union Hospital Tongji Medical College Huazhong Univ. SCI And Tech
- West China Hospital Sichuan Univ.
- Coloplast A/S
This list was generated by searching for the keyword “medical device,” such as PatBase or Lens.org, and sorting the results by companies who filed patent applications at the European Patent Organisation (EPO) in global patent databases without any further sorting.
Digital communications innovators need patents too
- Transmission of signals, interactive TV and streaming technology, Wireless communucation networks
The field of Digital Communication is a hotbed of innovation, underpinned by the key foundations of basic electronic circuitry and electronic communication. It’s all based on the building blocks of basic electronics and how they talk to each other. Within this field, there are three main areas each packing their own kind of tech wizardry, making Digital Communication an exciting place to be.
According to the “The Patent Index released by the European Patent Office (EPO) in 2022” Digital Communication, patent applications have shot up from 11,853 in 2018 to 16,705 in 2022. The major players in this field hail from the United States (30.1%), China (10.9%), Sweden (8.1%), Republic of Korea (7.9%), and Japan (7.3%). The top applicants in 2022 included big names like Qualcomm, Huawei, Ericsson, Samsung, ZTE, Nokia, Oppo, LG Electronics, NTT Docomo, and Apple. The surge in patent applications mirrors the growing demand for new tech in our increasingly digital world.
Transportation tech businesses utilize them
- Mechanics, aerodynamics, thermodynamics, batteries, fuel systems, and electronic control systems
The world of transportation and logistics has seriously leveled up in recent years. Gone are the days of being all about manual work; now, it’s all about tech, automatic processes, and, crucially, good communication. This is key to making sure everything in this massive network runs smoothly. As this industry has changed, there’s been a bigger push toward patents and intellectual rights to keep all those game-changing inventions safe and sound.
This provides seeds for investing in innovations and safeguarding them with intellectual property rights, including patents. You will find businesses like Robert Bosh GmBH, Volkswagen Group, Seimens, Toyota Jidosha KK, Nissan Motor Co. Ltd, Saint Gobain SA, Alstom SA, Qualcomm, AB Volvo, and Huawei Technology Co. Ltd. In many ways, digital communication and transportation go hand in hand, which is why you may see some of the companies mentioned above in the current category, too.
Analytical and measuring technologies-bases businesses protect their innovation through patents as well
- Assay, sensor, chambers, analysis, control, signal, cimmunication system, parameter, estimation, direction, calibration, adjusting
In many fields you’ve read above, measuring results to quantify or qualify “the way” or “how good” your innovation, product, or service works, whether the deliverable is stable, etc., is essential for maintaining a valuable product and happy customers.
Therefore, measuring an analysis technology has been important for a long while and is worth protecting against idea theft and copying. Examples of companies that have filed patent applications, also at the European Patent Organisation (EPO), who innovate in fields that help themselves or other businesses analyze and measure parameters of their business and product performance within 2019-2023 are:
Audio-visual technologies HAVE USED PATENTS FOR AGES AND ARE UPDATING THEIR TECH AS WE SPEAK
- Audio data, voice activity, video, mobile device, coding, capture, assistance, signal processing, information processing, strem, frame
This technology field could cater to many of the above fields and be part of electronics, analytics, and measuring. However, this field has been declining over the last decade because we “watch TV” and “listen to music” differently than when the TV and Stereoblaster had their height.
Nevertheless, innovation is ongoing, and new ways of providing this communication and entertainment are being developed.
Therefore, patent applications have been filed by the major players that you have seen me mention above several times already: Huawei Technologies Co. Ltd., Sony Corp., Fraunhofer GES, Microsoft Corp., Dolby INT AB, Sony Group Corp., Bose Corp., Google Inc., Intel Corp., Qualcomm Inc., and Samsung Electronics Co. Ltd.
Who Doesn't Need Patents?
Service-Based Enterprises
For service-based businesses, like consulting firms, online course creators, graphic designers, or digital marketing agencies, the question of “who needs patents?” typically isn’t a cause for concern.
Their business model is centered more on their expert knowledge and skills rather than producing specific technology-heavy methods or products.
Hence, patents often don’t play a significant role in their operations. Nevertheless, they create work products that are of value – and should not generate revenue without their involvement – or accept! They possess elements that give them a competitive edge, such as unique methodologies, marketing strategies, proprietary software, or even their brand identity, tone of voice, and trademark.
These unique assets set them apart from their competitors. They may require protection against copying or misuse by other competing firms or clients that do not understand that sharing the material with others than what you agreed to is a big “no-no.”
In this context, understanding and effectively utilizing tools such as confidentiality agreements, contracts, trademarks, copyrights, and even trade secrets can be vitally crucial for safeguarding their unique business aspects.
Retailers, shops and affiliate businesses
While most retailers, particularly those reselling branded products, often don’t find themselves asking, “Who needs patents?” Their business model typically focuses more on reselling products than creating innovative ones. Therefore, they are often right – patents are not (or only rarely) relevant to them.
However, they possess unique elements like their strategic sales approach, insightful understanding of customer needs, pricing methods, SEO strategies, social media presence, and newsletter distribution.
These aspects often set them apart from competitors and may require protection from copying or misusing by customers, competitors, and partners. Understanding and effectively utilizing tools such as confidentiality agreements, contracts, trademarks, copyrights, and domain name rights may be critically important in this context.
Entertainment & Food service businesses
Like retailers, food and entertainment services like restaurants often don’t consider “Who needs patents?” Their business model typically revolves around providing quality food and experiences rather than inventing new products. Therefore, patents may not be as relevant to them.
However, unique aspects distinguish them in a competitive market, such as their signature dishes, themed experiences, special events, pricing strategies, and even their online presence on social media and websites.
These unique elements often give them an edge over competitors and need protection against imitation or misuse by competitors, customers, and partners. Understanding and effectively utilizing confidentiality agreements, contracts, trademarks, copyrights, and domain name rights can safeguard these unique attributes.
conclusion - your next steps
“So, who needs patents?” Remember, this guide provides a broad overview; you must explore your business scenario. What works for others may work for you, but it is not necessarily what you need, want, or can manage right now.
Determining the answer for your business can be complicated and often requires professional guidance. However, there are many steps before hiring a patent attorney/adviser or IP lawyer.
Don’t hesitate to invest in understanding product protection and copy-defense tools since these are the first and most important steps to reaching your protective goals.
Knowing what you want and need will help you to guide your IP lawyer or patent attorney to provide precisely what you need, at your budget – not more or less.
Ready to understand your copy-defense options?
If you are ready to figure out if you need a patent – or can protect your business assets and products in other ways (too), you are at the right spot on the internet just now.
At PATENTsmarter™, I spend every hour of my work week making templates, guides, planning workshops, and courses – so you and all other entrepreneurs, innovators, and creators can learn what to consider and do – a long time before they need to hire attorneys and lawyers!
Your work deserves protection – AND you deserve the profit it generates! Check out my idearlify®SHOP for current offers, such as online courses, workshops, and webinars.
Or book a 1:1 sparring session, bundle, or pre-planned package for an even more comprehensive and focused mentoring opportunity with a professional – helping you to identify opportunities and risks. Equip yourself with knowledge today – your brilliant idea deserves the best protection.
