Why Patent?

 What Does a Patent Do?

The question often arises why bother to patent? Well, let's firstly see what a patent is. The 35 US code section 101 states:

“Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.”

Figure 1: Invention

Further the 35 US code section 154 (a) (1) states:

“Contents-

Every patent shall contain a short title of the invention and a grant to the patentee, his heirs or assigns, of the right to exclude others from making, using, offering for sale, or selling the invention throughout the United States or importing the invention into the United States, and, if the invention is a process, of the right to exclude others from using, offering for sale or selling throughout the United States, or importing into the United States, products made by that process, referring to the specification for the particulars thereof.”

A patent, therefore, is a negative right. It does not give you the right to do something. It gives you the right to prevent others from doing something. It gives you the right:

“… to exclude others from making, using, offering for sale, or selling the invention …. or importing the invention, …”

What Use Does a Patent Have?

Figure 2: Patent Usage

A patent is an asset in your estate whether you're a natural person or a legal entity. You can sell a patent, or you can license a patent and earn an income from it. It, therefore, increases the value of a legal entity like a company. It also creates trust in the technology of the company if a company can show that its technology is justified and protected by a patent. People are therefore more inclined to invest in a company that has protected intellectual property like patents. If you are a natural person a patent is a good indication that you have some creative ability. Therefore, a patent increases your value as an employee. It shows some form of accomplishment. A natural person is also more inclined to receive a grant to do research if the field of his research is protected by intellectual property.

Patents Generate Wealth

Figure 3: Wealth

According to TechRepublic (Rayome, 2018) the top 10 most innovative countries, based on the number of patents issued per capita are:

1. Taiwan

2. Israel

3. United States

4. South Korea

5. Japan

6. Switzerland

7. Denmark

8. Sweden

9. Finland

10. Germany

According to WorldAtlas (Mala, 2021) some of the above countries have the following ranking as the richest countries in the world GDP per capita.

5.   Switzerland at $70 276.6

8.   United States at $65,279.5

11.  Denmark at $60,334.8

15.  Germany at $55,891.2

16.  Sweden at $55,027.4

19.  Finland at $51,619.8

30.  Korea, Rep. at $42,728.0

33.  Israel at $41,1947.6

It is of course true that countries' earnings per capita also depend on other things such as natural resources. However, having regard to countries like Japan and Switzerland having no or little natural resources it is clear that innovation and patenting plays a key role in the earnings per capita of a country.

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Mala, A. (2021, November 22). The 15 Richest Countries in the World. Retrieved August 1, 2022, from WorldAtlas: https://www.worldatlas.com/articles/the-richest-countries-in-the-world.html

Rayome, A. D. (2018, September 11). The 10 Most Innovative Countries in the World. Retrieved August 1, 2022, from TechRepublic: https://www.techrepublic.com/article/the-10-most-innovative-countries-in-the-world/

Attribution for figure 2

File: Patent 1847 koopman.jpg

From Wikimedia Commons, the free media repository

https://commons.wikimedia.org/wiki/File:Patent_1847_koopman.jpg