To Patent or Not to Patent: Managing Intellectual Property for Inventors

In the fast-paced world of innovation and technology, inventors are often racing to file for a provisional patent to protect their ideas. However, this provisional patent application process can be expensive, costing upwards of $5,000, and it initiates a 12-month countdown to patent conversion, which can cost more than $50,000. This leaves many inventors struggling to balance the cost of protecting their intellectual property with the funds required to develop and prove their ideas.

Furthermore, filing for a provisional patent does not provide proof that the value of the idea is even worth the cost of the patent. As a result, inventors may be better off delaying the patent application until they have established the value of their idea.

Ownership and protection of intellectual property do not have to include patents or copyrights. Patents can be useful later, provided the inventor has established value. If an inventor delays the patent application until immediately prior to the acceptance of funding, they can manage their cash flow to be able to afford to convert the patent, as long as they have a full 12 months of development and market trials.

In addition to delaying the patent application, there are several steps inventors can take to protect their intellectual property without resorting to patents. These include having all personnel and contractors on the project sign a no-interest declaration, using an assignment of rights deed for any party who was paid for their work on the project, and signing non-disclosure agreements with outside parties.

Confidentiality deeds with collaborators for production, design, sales, distribution, etc., can also be helpful. As long as an idea has not been publicly disclosed, it is still considered new.

If an inventor has a trial underway, they have 12 months before they need to lodge their provisional patent. Nearly 98% of US patent applications did not generate sufficient funds to recover their patent expenses after five years. This might suggest that patent attorneys, designers, consultants, accountants, and lawyers may be pushing inventors to act quickly and file for a patent, even if it is not in the inventor’s best interest.

It is worth noting that most military innovations are not patented because secrecy is preferred to prevent any information from being published. Patents are ultimately public documents, which means that anyone can see exactly how the invention was created.

This makes it easier for competitors to breach the patent or submit their own, similar patent with minor changes. It also means that they can produce the invention in countries where it is not patented.

Inventors who plan to license their idea should consider filing for a patent, but only just before signing the license agreement so that they have as much time as possible to generate fees to pay for the conversion.

In summary, inventors should carefully consider whether filing for a provisional patent is worth the cost and should delay the patent application until they have established the value of their idea.

There are other steps that inventors can take to protect their intellectual property, such as using no-interest declarations, assignment of rights deeds, non-disclosure agreements, and confidentiality deeds.

Finally, inventors should be aware of the limitations of patents and the potential drawbacks of filing for one. This does not mean that patents are a waste of money. It simply means your patenting should be timed for provisional lodgement after you have confirmed that your commercial model will return an income to you that will be greater than the patent investment.

For some inventors, the urgency is neutralized by a self-application, but this can be dangerous for your claim.

Patent attornies are a growth industry for a reason. They can do better searches, they know how to describe and they have been trained to see the creative and unique elements of your innovation, that give it competitive advantages and uniqueness. You just can't expect them to know if your particular product is going to be successful. I for one, do not advocate any inventor try to lodge a provisional patent themselves.

In the time you are working to confirm your market validation, your proof of concept, and your pricing-costing-sourcing process, talk softly and carry a big stack of blank NDAs.

Daniel,

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