Any good Patent Owner knows that the key to success is to earn more money than the competition. Patents are a powerful but underappreciated tool. A patent can help you sell more of your product by providing legal protection from imitators and providing you with psychological leverage in the market. Patent Owners will learn how patents can be used to their advantage and how patents affect the psychology of sales with the help of examples.
Some studies have found that compared to the amount invested in non-patented alternatives, profits rise by 34% when a product is patented. However, you can only use the patents in the ways detailed below. Who in the sales force wouldn’t be thrilled by a pay raise of 34%?
Highlight the Innovation
An invention must be original and unexpected to be granted a patent. Patent Owners can use patents to highlight their products’ unique qualities and stand out from the competition. For example, Tesla highlights its electric vehicle and autonomous driving patents as proof of its pioneering spirit.
When trying to sell your patent, you should highlight the features that set it apart. You can do this by emphasizing the aspects of your patent that set it apart from similar products, such as its novel features, functionalities, or technological advancements. Customers looking for ground-breaking technologies or solutions to improve their products and services may be interested in purchasing your patent if you can effectively convey the innovation associated with it.
Further, showing how your invention solves a problem or meets a market need with examples or demonstrations will add considerable value to your patent. Demonstrating the usefulness of your invention through prototypes, case studies, or real-world applications can bolster your claims of innovation and entice buyers who understand the value of your patented technology.
Legal protection provided by patents helps ensure that consumers get the original product, not a fake one. Patents can be a powerful selling tool for businesses in industries where counterfeiting is rampant. The pharmaceutical industry relies on patents to reassure doctors and patients that their drugs are safe and effective.
Patents are essential in the pharmaceutical industry because they guarantee the quality, safety, and authenticity of the drugs prescribed to and taken by patients. The pharmaceutical industry spends billions of dollars on R&D to develop new drugs, and the patent system ensures that these companies can profit from their discoveries. Pharmaceutical Patent Owners can win the confidence of doctors and patients by emphasizing the patents associated with their products.
Similarly, if you work in an industry where imitations or illegal copies are expected, you can use patents as proof that you were the original inventor to win over skeptics. Assuring potential customers that their purchase is protected by law is more accessible when Patent Owners highlight the benefits of patents. This can be especially important in fields where brand reputation and consumer trust are especially at stake, like technology, fashion, or consumer goods.
To persuade a buyer that your patent is legitimate, you must highlight the patent numbers, issuance dates, and protection scope. Customers’ doubts about the patent’s validity can be put to rest if given accurate and complete details about the patent’s history.
Additionally, Patent Owners can highlight the thoroughness of the patent examination process. This emphasizes that the novelty and non-obviousness of the invention have been reviewed and approved by an independent authority, further strengthening the patent’s credibility and trustworthiness.
Create A Competitive Advantage
The exclusive right to produce, use, sell, and earn money from a patented invention belongs to the inventor and the company that developed it. By preventing imitators and limiting the market for new entrants, patents help businesses stand out from the crowd.
Let’s look at the Roomba, a popular robotic vacuum cleaner made by iRobot. The invention of the robotic vacuum cleaner Roomba altered the cleaning industry forever. We can elaborate on the idea of gaining a competitive edge through patent protection in selling a patent for the Roomba.
IRobot Corporation owns numerous patents covering the Roomba’s innovative technology and design. iRobot’s unique robotic vacuum cleaner is protected by several patents that guarantee the company’s sole manufacturing, distribution, and profit rights. iRobot has distinguished itself from rivals and gained a substantial market advantage by capitalizing on its patents.
Because of the patents covering Roomba, iRobot can keep competitors from making products that are functionally indistinguishable from their own, thus protecting its market share and distinctive qualities. This monopoly over the market helps iRobot keep its loyal customer base and solid reputation. As a result, competition is stifled because new entrants are discouraged from entering the market until iRobot’s patented features are broken, or an alternative solution is found.
In addition, iRobot can license its patented technology to competitors or enter into strategic partnerships thanks to the safety net provided by patent protection. This creates new profit opportunities and solidifies iRobot’s standing as the pioneer and standard-setter in robotic cleaning equipment.
It’s important to highlight the patent’s competitive advantage when selling a patent for a consumer product like the Roomba. Patent Owners can emphasize the value of the patented technology and the potential for increased profitability and market dominance by highlighting the patent’s exclusivity and market protection.
Increase Perceived Value
Patent Owners may be able to charge higher prices because of the increased interest in a patented product or service. Customers may be willing to pay a premium for a patented product because they associate patent protection with superior quality and originality. For instance, the Rolex name is worth more than its competitors because of its prestige and the uniqueness of its patented designs.
Precision, craftsmanship, and rareness are commonly associated with Rolex watches. Rolex watches benefit greatly from patents, contributing to their high market value. Several patents protect the company’s watches’ automatic winding mechanisms and water-resistant designs.
These patents add credibility to the Rolex brand and convince potential buyers of the watch’s superior craftsmanship, innovation, and care for detail. The patents prove that Rolex is dedicated to staying at the forefront of watchmaking innovation. Rolex can charge exorbitant prices for their timepieces because of the prestige and exclusivity associated with their patented technologies.
Customers are typically willing to pay a higher price for a patented good or service because they view it as more special or innovative. Patents ensure that consumers get the real deal when buying a Rolex, as they cannot copy the watch’s innovative technologies or distinctive design.
When marketing a patent, it’s essential to stress its positive effects on the product’s or technology’s perceived value. Patent Owners can attract customers looking for premium, differentiated products by highlighting the exclusivity, innovation, and quality associated with the patent to justify higher prices.
A product or service’s marketability can be improved with a patent, increasing consumer appeal. Patent owners can use patents to promote their products’ distinctive qualities and advantages. In its advertising, Dyson emphasizes the vacuum cleaner brand’s patented technology.
Vacuum cleaners made by Dyson are known for their cutting-edge design and technology. Dyson’s vacuum cleaners are more marketable than ever, thanks in large part to patents that highlight how they stand out from the competition’s products.
The revolutionary cyclone suction technology and novel brush designs used by Dyson in their vacuum cleaners are protected by several patents. Because of their patents, Dyson can set itself apart from competitors and promote the benefits of their patented technologies.
Dyson emphasizes the value of their patented technologies in all of their advertising. They brag that their innovative cyclone technology significantly outperforms conventional vacuums in terms of suction power and efficiency. Dyson successfully positions their products as innovative, cutting-edge, and superior by emphasizing their patented technologies’ unique benefits and performance advantages.
Potential customers can rest assured knowing that Dyson has patents to back up their products. Thanks to this legal safeguard, customers can rest easy knowing that your product has been through extensive testing and is safe from copycats. As a result, consumers will have more faith in and appreciation for Dyson’s offerings.
Promoting the patent’s positive effects on the product’s or technology’s marketability is essential. Patent Owners can successfully market a product as the best option by emphasizing the patented innovations that set it apart from the competition. This may attract customers who care about originality, efficiency, and quality.
Secure licensing agreements
A new source of income for business owners is licensing patents to interested parties. Authorizing third parties to sell or produce your patented product is another way Patent Owners can increase their reach through licensing agreements. Microsoft, for instance, makes a ton of money by licensing its patents to other businesses.
Sonos is well-known for its cutting-edge, high-quality audio systems that simultaneously feature reliable wireless streaming and playback in multiple rooms. There are many benefits to licensing agreements when selling a patent for Sonos sound systems.
Patents have been issued to Sonos for various innovations used in their audio systems. These innovations range from their wireless communication protocols to their sophisticated speaker synchronization algorithms. Sonos can allow other companies to use their patented technologies in their audio products by licensing them. This opens the door to new revenue generation from royalties and license fees.
Patent Owners can make more money by signing licensing agreements with other companies so that their products can include Sonos’ patented technologies. This broadens the range of audio systems that can take advantage of features similar to those Sonos offers. Providing other companies with a license to use Sonos’ wireless communication protocol allows them to incorporate the technology into their products, increasing market penetration and giving consumers more options.
The audio industry can benefit from license agreements that encourage cooperation and compatibility. Sonos encourages the widespread adoption of interoperable audio system standards by licensing their patent technologies to competing manufacturers. This encourages customers to buy into a larger ecosystem of interoperable products and fosters a more consistent user experience.
Patent Owners can also benefit from other businesses’ manufacturing capacities and distribution channels by entering into licensing agreements with those businesses. Patent Owners can leverage large audio equipment manufacturers’ manufacturing know-how and distribution networks by licensing Sonos’ patented technologies from them. Sonos-like capabilities can now be made available to a larger audience.
Patents can be leveraged in partnership and collaboration discussions. As a competitive advantage, Patent Owners can offer to license their patents to prospective partners. For instance, patents on Google’s search engine technology have been leveraged in partnership negotiations with other tech firms.
Toyota and Panasonic are working together to improve EV battery technology. This cooperation exemplifies how patents can be leveraged to forge partnerships that fuel innovation.
Both Toyota and Panasonic contribute their unique strengths to the partnership. Toyota is a well-known automaker with a sizable share of the electric vehicle market, and Panasonic is a pioneer in rechargeable batteries. The partnership focuses on next-generation EV batteries with improved performance, increased range, and quick charging capabilities.
Panasonic will grant Toyota a license to use its patented battery technologies as part of the agreement, giving Toyota access to advanced battery options. Toyota can incorporate Panasonic’s cutting-edge battery technologies into its electric vehicle lineup to increase its competitiveness and meet the rising demand for high-performance EVs.
Toyota has a leg up on the competition thanks to the enhanced battery efficiency, durability, and overall EV performance made possible by Panasonic’s patent-protected battery technologies. Further development of EV battery technology is made possible by the partnership as both companies can pool their knowledge, expertise, and resources.
The agreement between Toyota and Panasonic is an example of how patents can be leveraged in business deals. Toyota’s dedication to sustainable mobility is strengthened by Panasonic’s patented battery technologies, which also improve Toyota’s current lineup of electric vehicles (EVs). The collaboration allows for exchanging ideas and resources, which benefits both businesses.
Protect against infringement
Patents offer legal protection against infringement, allowing business owners to sue rivals who steal their ideas. Because of this safeguard, a business owner’s products and services are less likely to be copied by rivals, giving them a leg up in the market. As an illustration, Apple has sued Samsung for violating its iPhone and iPad patents.
GoPro’s innovative camera technology, sturdy housing designs, and mounting systems are protected by several patents. With these patents, GoPro is safeguarded from imitating its innovations and aesthetic choices.
Selling a patent requires emphasizing the defense it offers against copying. Patent Owners who own patents can sue rivals who copy their innovations if they do so infringe. This can give the Patent Owners an advantage in the market by discouraging potential infringers from using the inventions in question.
If a competitor releases a camera that uses GoPro’s patented technology or design elements without permission, GoPro can take legal action to prevent further infringement. Legal action can increase GoPro’s market share and ensure its innovations remain unique through injunctions, monetary damages, or licensing agreements.
Patent Owners can protect their R&D investments, their brand’s reputation, and their market share thanks to patents’ protection against infringement. Patent Owners can rest assured that their innovations will remain distinct from the competition thanks to the protection provided by patents.
The patent system provides legal protection, which can be used as a deterrent against would-be infringers. If competitors know the legal ramifications and liabilities resulting from copying a PatentOwners’ products or technologies, they will be less likely to do so. The Patent Owners’ ability to innovate and introduce new products to the market is bolstered, and their competitive edge is preserved thanks to this safeguard.
Build investor confidence
A company’s patent portfolio can be an essential selling point when seeking funding. Patents can inspire confidence in the company’s future success and innovation among investors. Investors seeking rapid expansion opportunities in the healthcare sector may be drawn to biotech firms with patents for novel drug discoveries.
In March 2014, Facebook paid $2.3 billion (in cash and stock) to acquire Oculus. Oculus had previously raised $2.5 million on Kickstarter4 before the acquisition. Before, during, and after the Oculus acquisition, Facebook was aware of the asserted patents through actual and constructive knowledge.
The 2014 funding wasn’t the first time Oculus had patents. Three patents owned by Oculus VR protect the Oculus Rift headset’s design. The United States Patent and Trademark Office (USPTO) has received multiple applications from Oculus VR, including one utility and three design patents.
Patents are widely used to indicate a company’s innovative capacity and competitive advantage to investors. Companies with patents have demonstrated their ability to develop innovative technologies and solutions that can potentially change entire markets. Because of the possible high returns, this can be an attractive investment opportunity.
Oculus attracted funding thanks to the revolutionary potential of virtual reality (VR), demonstrated by the company’s patented VR technologies like head-mounted displays and motion tracking systems. With these patents, Oculus has become a frontrunner in the fledgling virtual reality (VR) industry.
Patents offer protection against rivals, a central selling point to potential backers. Companies like Oculus can protect their innovations and stop imitators by securing patents. Investors will feel more secure in the company’s long-term viability and market position because of this safeguard against dilution and imitation by competitors.
It is essential to highlight the patient’s ability to attract investment and inspire confidence among investors when trying to sell the patent. The ability to innovate, shake up industries, and gain market share are all demonstrated by a company’s patent portfolio. The patent’s value can be emphasized as an asset that attracted investment in a successful company like Oculus, allowing Patent Owners to position the purchase as a chance for buyers to increase their investor appeal and leverage the confidence and support of investors.
Stay ahead of the competition
Protecting their innovations with patents helps Patent Owners keep innovating and staying ahead of the competition. Patent Owners can protect their market share and encourage further innovation by filing patents for their creations. Amazon, for one, can maintain its lead in the e-commerce market thanks to its patents on drone delivery technology.
Peloton’s interactive exercise bike and connected workout platform are just two examples of the company’s ground-breaking innovations in the fitness industry, both protected by patents. These patents are essential to Peloton’s ability to remain the market leader in the home fitness equipment sector.
For medium-sized businesses, the selling points of a patent are its ability to protect inventions and encourage innovation. A patent on the company’s innovative fitness equipment and technology can protect it from copycats in the market.
For example, the patented features that set Peloton apart from the competition are the company’s immersive workout experiences, real-time instructor interaction, and leaderboard functionality. The patents covering these innovations protect Peloton’s proprietary information and thwart copycats.
Obtaining patents is an excellent way for mid-sized companies like Peloton to give themselves an edge in the market. Patents serve as deterrents to imitation, making it more difficult for businesses to enter new markets. Because of this safeguard, medium-sized businesses can keep their current market share, expand their customer base, and invest in new technologies.
In addition, patents encourage medium-sized businesses to invest in R&D because of the security they provide for their inventions. With this guarantee, businesses are more likely to test innovative approaches, tools, and offerings that set them apart from rivals. They can innovate further and bring to market better products to respond to consumers’ changing demands.
When expanding their product lines and breaking into new markets, medium-sized businesses have an easier time thanks to patents. Patented technologies give businesses the security to experiment with new products or expand existing ones without worrying about copycats.