How much value can patent registration add to a business?
There's much more to the value of a company than its tangible assets, as just having the knowledge required for success can make a business much more appealing to investors.
For these reasons, it's important that all research and development is documented, as patent registration can then cement these ideas or products as the property of your business. On top of this, patents offer protection to this hard work and ensure it's yours for the duration of the agreement.
The dramatic effect patents have on the overall value of a business has been seen time and time again in large-scale acquisitions. If innovative patents have been proven to attract the attention of big money in the past, what's stopping you from consulting patent lawyers in Australia?
Just how much value can patents add?
It's an extreme example, but one that illustrates the point quite well. Google's multi-billion dollar acquisition of Motorola proved just how far patents can elevate the value of a business.
In a statement, Google outlined the role that Motorola's "patent portfolio" played in attracting the search engine creator to the deal. According to the company, this portfolio will help it to foster growth in its Android platform and encourage further innovation.
The agreement also allows Google to have access to resources it couldn't previously. As the company said in a statement "Google is great at software; Motorola is great at devices", showing how patents can broaden a company's expertise.
What do innovation patents mean for the economy?
IP Australia published a report detailing the trends surrounding innovation patents in the Australian economy, finding that while the system is being used, it's full potential is yet to be utilised in some areas.
In particular, small businesses are engaging with innovation patents very infrequently, with only 23 of these respondents filing up to five of their own patents.
According to IP Australia's report, nearly three-quarters (75 per cent) of small businesses will file one patent and then never engage with the system again, giving up the chance to add value to their business.
What's even more worrying is the frequency with which these businesses will let patents lapse once they expire. Around 78 per cent of these companies don't feel the patent is as valuable as the cost of renewing it, sacrificing much of their hard work and development.
Ultimately, patent registration in Australia requires an involved effort from businesses owners to ensure they are getting value from it. If you have a great idea but you're not sure what to do with it, contact patent lawyers at Alder IP to find out what the future could hold.