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Patents are defined as personal property by law. Therefore, when a patent issues,
it is an immediate asset to its owner. Patents have an immediate value and a deferred
value. In the immediate range, patents significantly increase a company net worth
since the patent presents a barrier to entry to the market by competitors. This
value is significant to investors, potential buyers, and stockholders. In many
cases, patents are used as investment collateral.
The value of a patent is also a significant part of the profits the invention
is expected to produce during the years in which the patent is valid, since the
patent defines the competitive advantage of the product. Sometimes even the knowledge
that a program is 'patent pending' is sufficient to deter competitors. Being able
to mark a product as 'patented' can be a significant advantage in marketing.
One should not forget the moral value of a patent. It validates one's inventiveness
and it provides the inventor with the deserved recognition, as a person that contributed
to humanity by increasing the human knowledge pool. A significant personal recognition
and a moral boost benefits all in the company.
Additional value stems from possible licensing of the technology. Significant
amounts of revenue are driven from licensing, and the prestige, with the attached
marketing differentiation, add yet more value than the plane direct monetary agreement
associated with licensing a patent.
It is clear that procuring a patent is procuring a highly valuable asset that
increases your company net worth, immediately and into the future.