Patent: Overview, definition and example
What is a patent?
A patent is a legal right granted to an inventor, giving them exclusive rights to make, use, and sell their invention for a specific period, usually up to 20 years. In exchange for this protection, the inventor must publicly disclose how the invention works, enabling others to learn from it. Patents typically apply to new inventions or processes that are useful, novel, and non-obvious.
Why is a patent important?
Patents are important because they protect an inventor's intellectual property (IP), preventing others from copying, selling, or using the invention without permission. This exclusivity can help inventors and companies secure a competitive edge in the marketplace. Additionally, patents can increase the value of a business by granting rights that can be licensed or sold. For businesses, patents also provide legal recourse if their inventions are infringed upon.
Understanding patents through an example
Imagine a company, TechNova, develops a new smartphone charging technology that is faster and more efficient than anything currently on the market. TechNova files for a patent to protect the technology, ensuring that no one else can use, sell, or manufacture the same technology without their consent for the next 20 years. This patent allows TechNova to capitalize on its innovation and gives them a legal advantage over competitors.
An example of a patent clause
Here’s how a patent clause might look in an agreement:
“The Inventor hereby grants to the Company an exclusive, worldwide license to use, make, and sell the patented technology described in Patent No. [XXX], for the duration of the patent term. The Inventor agrees not to grant any rights to third parties for the use of the patented technology without the prior written consent of the Company.”
Conclusion
A patent grants exclusive rights to inventors, protecting their innovations and allowing them to profit from their creations. Whether you're developing new technologies or working with others’ inventions, understanding patents is crucial in ensuring your intellectual property is protected and that you’re not infringing on others’ rights. Patents play a significant role in the commercialization of new ideas and maintaining competitive advantages in the marketplace.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.