The advantage to patenting is that it provides the owner with
the fight to exclude others from making, using, selling or importing
the invention in the U.S. Without a patent, one must face the compe-
tition head-on. For a product with a short shelf-life, this may not be
so bad. However, for those products having a shelf-life greater than 3
years, the competition could defeat a business.
For those entities who wish to create a revenue stream through
the payment of royalties, patent protection may be the only option.
Patents secure the property fights in the invention and serve as a ve-
hicle for licensing new technology. The real advantage to having a
patent for an invention resides in the exclusive fights granted to the
patentee (Figure 9.1).
1. Edvinsson, Leif and Michael S. Malone (1997).
HarperCollins Publishers, Inc., New York.
(Resource for information about valuing a com-
pany based on its intellectual capital.)
2. Private communication with Anthony Venturino, Esq. of Stevens, Davis,
Miller & Mosher, L.L.P., Washington, D.C.
(Cost ofpatent litigation.)
3. Intellectual Property Insurance Services Corporation, Louisville, Ken-
(Company offering intellectual property insurance.)
4. First Principals, Inc., Cleveland, Ohio.
(Afirm specializing in technology trans-
fer and commercialization.)
5. "Research Disclosure," Kenneth Mason Publications, Ltd., U.K.
publication that prevents others from patenting similar technologies while minimizing costs and
eliminating the need to obtain a patent.)
6. McCarthy, J. T. (1996).
"McCarthy's Desk Encyclopedia of Intellectual
Property" 2nd ed., pp. 415-416. BNA Books, Washington, DC.
(Definition of statutory
The Commissioner of
Patents and Trademarks
Has received an application for a patent for a
new and useful inventiolt The title and descrip-
tion of the invention are enclosed. The require-
ments of law have been complied with, and it
has been determined that a patent on the in-
vention shall be granted under the law.
United States Patent
Grants to the person(s) having title to this patent
the right to exclude others from making, using,
offering for sale, orselling the invention
throughout the United States of America or im-
porting the invention into the United States of
America for the term set forth below, subject to
the payment of maintenance fees as provided
If this application was filed prior to June 8,
1995, the term of this patent is the longer of
seventeen years from the date of grant of this
patent or twenty years from the earliest effec-
tive U.S. filing date of the application, subject
to any statutory extension.
If this application was filed on or after June 8,
1995, the term of this patent it twenty years from
the U.S. filing date, subject to any statutory ex-
tension. If the application contains a specific
reference to an earlier filed application or ap-
plications under 35 U.S.C. 120, 121 or 365(c),
the term of the patent is twenty years from the
date on which the earliest application was filed,
subject to any statutory extension.
The ribboned page from a U.S. utility patent. This page is only available
to the patentee. The seal is gold foil and the ribbon is red. Note that the
page sets forth, in writing, a grant from the Commissioner of Patents
and Trademarks the right to exclude others from making, using, ofFer-
ing for sale, or selling the invention throughout the U.S. or importing
the invention into the U.S. for a specific term.