It takes time and money to innovate and create a brand in the electronic business. Some entrepreneurs take advantage of using their resources to make profits on other investors’ sweat. It is this background that patent policy came about.
In simple terms, this is a policy that safeguards your product from external use- selling, buying, and importing – without your consent. The infringement of this leads to legal compensation that no company wants to be a party.
The electronics business is sensitive and needs proper care before you are thrown out of the market. People associate with a brand. If you do not patent, someone makes the exact make of the appliances and even patents it.
It is a legal case that you can’t win. Licensing the business should be the first move you make once you intend to sell to the public.
- Gain a monopoly
With a patent to the business, you have all the legal rights to put a price that you so wish when you have the market demand. A patented tankless water heating company can produce on-demand water heating appliances without fear of a loss. You are in control of what happens to the specific brand of devices.
You dictate the wholesalers and retailers on the price you want to sell the product. Without this, someone gets your product and puts up a buying price of choice without considering the inventor’s intention.
A monopoly is a concept in business that you trade-in when you have no competition. Once you are the only person who manufactures a specific electronic, why not take advantage and make money out of it? Prevent selling without licensing
- Own copyrights
You have all the rights to ownership of the product. For example, no entrepreneur can make any other stove of similar innovation. If he has to do that, then he must seek your consent.
The patent includes the name and novation as a package. With the rights at your disposal, you are at liberty to dictate the market, the pricing, and competition. Furthermore, it gives you business leverage to an extent you can file infringement suits and win with- the legal suit compensation is very high.
Do you know people patent a digital solution to make money out of copyrights and not necessarily get to the mainstream business?
- Increase your market share
Licensing and patent come in handy as a business strategy, especially for the small and micro-medium enterprises. You may lack the resources for mass production, yet your competitor has the capacity.
He can use that to throw you out of business within a short period. It acts as a barrier to enter a lucrative market. The main disadvantage of patency is the fact you have to unleash your innovation as part of the patent policy document. Investors can use it to make better and similar electronics to your disadvantage.
- Creates business harmony
A case study of business rivalry between Sony and LG brand of electronics against Samsung saw the fall of Samsung in the premium TV business. The competition had cost implications.
The giant companies used all their marketing resources not only to sell but also to make sure Samsung controls the lowest market share. The end of the war was a merger between the two companies on the market territory.
In addition, there was an agreement that Samsung to move to a different business set up without interference of the other companies. That is how they managed to thrive in the phone production business.
- Prevents unnecessary competition
No business is out to make losses. They use whichever means to ensure they increase their business profits. Once they notice the competitor ignored the patent policy, they may even apply and have it as their own.
As the original business owner, your hands are tied on how to go about it. You have to compete with them. The situation worsens when they have marketing resources than you. You may not handle the competition.
As much as a patent is the best route to safeguard your innovation. It comes with its share of disadvantages. Some of them include
- It’s expensive
- Consumes a lot of time
- You surrender technical information which can be used against you
- Has high maintenance costs
The advantages override the disadvantages, especially when you look at it from a long term perspective. In the electronics business, you may not deal with the adverse effects of not securing your invention.
People are on the lookout for that loophole to use it against you. Let this be part of your business plan. Make sure you are always ahead of the competition as much as it takes time and money.
