Key Takeaways

  • A patent gives inventors exclusive rights to their inventions for a limited time, typically 20 years.
  • Patents encourage innovation by protecting new ideas and rewarding inventors with control over use and profit.
  • The patent process involves research, application drafting, examination by the USPTO, and maintenance fees.
  • There are three main types of patents: utility, design, and plant patents.
  • Understanding patent licensing and enforcement is crucial to maximizing the value of an invention.
  • A patent attorney can assist in drafting, filing, and defending your intellectual property rights.

You're probably wondering how do patents work and why. The short definition of a patent is that it is an exclusive right granted for a single invention. A patent:

  • Is an exclusive right to a new way of doing an established process;
  • Offers a new solution to an established problem
  • Is a unique creation that offers a unique, new, or novel way of achieving a means to an end

In order to get a patent, the inventor must include technical information about the product and disclose it to the public in the application.

When an inventor comes up with a new creation, usually the first thing they want to do is to get it patented. Patents are given by a government and are a way of giving the inventor ownership of their creation. For a specific period of time, a patent holder is allowed to control how the invention is used and allows them to realize financial gain from their work. A patent is a legally binding manifestation of a person's intellectual property. They allow the inventor to own and enforce their idea.

The owner of a patent may give permission or license third parties to use the invention on terms that all parties agree on. The owner may also sell the right to the invention to someone who then becomes the new owner of the patent. When a patent expires, usually after 20 years, the protection ends, and the invention belongs to the public domain. When a patent is in the public domain, anyone can exploit the invention on a commercial level without worrying about infringement.

Licensing a Patent

Someone who licenses a patent grants permission to another individual or organization to make use and sell their invention. This happens under agreed-upon terms and conditions for a defined purpose, an agreed-upon amount of time, and compensation. 

The reasons why a patent owner might grant a license to a third party are many. The owner of the patent may not have access to manufacturing facilities and allows others to make their invention for royalty payments. Or the patent owner may have the facilities but may not have the capacity to cover market demand. Licensing the patent to another manufacturer has the potential to create greater profits and expand the reach of the invention.

Understanding Patent Rights and Enforcement

Once a patent is granted, the owner has the exclusive right to make, use, sell, and import the invention. Enforcement is essential to prevent infringement—when another party uses the patented invention without permission. If infringement occurs, the patent owner can file a lawsuit in federal court to seek remedies such as:

  • Injunctions: Court orders stopping the infringer from continued use.
  • Damages: Monetary compensation for losses suffered due to infringement.
  • Royalty payments: Court-ordered payments similar to a licensing arrangement.

Enforcement can be complex because patent claims must be clearly defined and defensible. Therefore, drafting precise claims during the application process is crucial to strong legal protection. Patent litigation can also lead to settlements or cross-licensing agreements that expand market opportunities for both parties.

Why Should I Consider Patenting an Invention?

Patents provide the inventor with the exclusive right to prevent others from commercially exploiting the invention for 20 years from the date of filing the application. 

A patent also provides a return on investment. Inventors usually invest a considerable sum of money and time into developing their product. An exclusive patent right gives rise to the potential for a return of the time and money invested into the development. 

Having a portfolio of patents can make the company more interesting to a potential buyer. Someone looking to buy the company may find that the patents are worth exploiting and add to the overall value of the company. In the event that a partnership is being developed, a portfolio of patents could lead to a cross-licensing arrangement.

Patents can also demonstrate the expertise of the people employed by the company. Investors and business partners may view a patent portfolio as an asset to show lenders or potential business partners, draw interest from outside investors, and increase the market value of the company.

Types of Patents and What They Protect

Understanding how patents work begins with recognizing the types available through the U.S. Patent and Trademark Office (USPTO):

  1. Utility Patents: Protect functional aspects of inventions, such as machines, processes, or compositions of matter. This is the most common type of patent.
  2. Design Patents: Cover the unique visual appearance or ornamental design of a product rather than its function.
  3. Plant Patents: Granted for new and distinct plant varieties that can be asexually reproduced.

Each patent type offers different scopes of protection and filing requirements. Utility patents, for instance, require detailed claims and descriptions of the invention’s operation, while design patents focus on drawings and visual elements. Choosing the correct patent type ensures that your intellectual property rights align with your business goals.

How to Get a Patent

The first step towards getting a patent for a novel or brand new idea is to search the United States Patent and Trademark Office's patent database to find similar ideas that have already been patented. In the event the search comes up with similar inventions, but the new invention adds something that the originals do not have, it's time to turn to an expert in patents for help. 

An expert can be a patent attorney or patent agent. Patent lawyers typically have a technical or science degree and have met the patent office's qualifications. The attorney is capable of searching the database and determining if the new idea is unique enough for its own patent or is too similar to existing inventions to gain a patent. In the event the invention is patentable, the lawyer begins the application process to get the idea patented.

Steps in the Patent Application Process

To understand how patents work in practice, it’s important to look at the step-by-step process followed by the USPTO:

  1. Conduct a Prior Art Search: Identify whether your invention is new by searching existing patents and published materials.
  2. Prepare a Detailed Patent Application: Include an abstract, drawings, claims, and specifications explaining how the invention functions.
  3. File with the USPTO: Applications can be provisional (temporary placeholder for one year) or non-provisional (full application reviewed by an examiner).
  4. Examination and Office Actions: A patent examiner reviews the claims for novelty, usefulness, and non-obviousness. Applicants may need to respond to rejections or clarifications.
  5. Issuance and Maintenance: Once approved, the patent is granted, and the inventor must pay periodic maintenance fees to keep it active.

The entire process can take several years, depending on complexity and backlog. A well-crafted application written with the help of a patent attorney can significantly improve approval chances.

How Patents Encourage Innovation

The value of the patent system lies in its balance between exclusivity and public disclosure. By giving inventors a temporary monopoly, the system motivates creativity and investment while ensuring that new knowledge eventually enters the public domain. This trade-off stimulates technological advancement, competition, and collaboration across industries.

Moreover, patents play a strategic role in business growth. They can attract investors, enhance valuation during mergers, and provide leverage in negotiations or partnerships. Many large corporations and startups alike build their portfolios not only to protect their inventions but to strengthen their market position through cross-licensing and defensive filings.

Frequently Asked Questions

  1. How long does a patent last?
    Most utility patents last 20 years from the filing date, while design patents last 15 years from issuance. Maintenance fees are required for utility patents to remain in force.
  2. What happens when a patent expires?
    When a patent expires, it enters the public domain, allowing anyone to use, sell, or reproduce the invention without the original owner’s consent.
  3. Can I patent an idea without a prototype?
    Yes, a prototype isn’t required, but your application must include enough detail for someone skilled in the field to reproduce the invention.
  4. What is a provisional patent?
    A provisional application establishes an early filing date but doesn’t mature into a patent unless a full non-provisional application is filed within 12 months.
  5. Do I need a lawyer to file a patent?
    While not legally required, a patent attorney can help ensure your claims are clear, defensible, and strategically aligned with your business goals.

If you need help with getting a patent, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb