As you might suspect, there are advantages and disadvantages to patenting. Given these pros and cons, you need to decide whether or not to patent your inventions. To help you make informed decisions, this chapter discusses some of the important advantages and disadvantages of patenting.
Advantages of Patenting
Companies patent for a variety of different reasons. The most common reason is to prevent copying.
Barrier to Imitation
Under certain circumstances, patents can be an important barrier to imitation and a powerful mechanism to capture the returns to innovation.1 For example, the mobile telephone company Qualcomm was founded to exploit a technology called Code Division Multiple Access (CDMA), which allows more efficient ...