Understanding “Invention” and Industrial Applicability for Global Business
What Counts as an Invention?
When thinking about patents, the first question is: what actually counts as an invention?
An invention is not just any idea—it’s a solution to a problem that can be practically applied. In patent law, the invention must be new, inventive, and capable of industrial application. This means it must bring something useful to the real world, not just exist in theory.
Example:
Imagine a new type of biodegradable packaging. The idea alone isn’t enough—you need a specific design, material, or process that works and can be produced for businesses globally. That concrete application is what makes it an invention.
Why “Capable of Industrial Application” Matters for Entrepreneurs
The requirement of industrial applicability ensures that your invention is useful and implementable, not just theoretical. For business purposes, this is crucial because investors, partners, and markets will only care about solutions that can be manufactured, sold, or deployed.
Example:
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Valid: A water purification filter that can be manufactured at scale and sold in multiple countries.
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Invalid: A “perpetual energy engine” that violates physical laws—no factory can produce it, so it has no industrial application.
This principle is global. Whether you’re in the EU, Asia, or the US, patent offices will ask the same question: can this be applied commercially?
The Evolution of the Concept
Historically, patents required a “vendible product”—something you could sell. Over time, the meaning expanded:
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Today, it’s enough that the invention has a useful effect, such as improving a process, reducing costs, or creating a new market opportunity.
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Courts now focus on whether a skilled professional in the field could see a practical use for it.
Example for Business Insight:
A startup in biotechnology identifies a new protein. Even if the protein could treat dozens of potential diseases, the patent must show at least one plausible commercial application. Investors will not fund a project unless someone could realistically manufacture or use the protein in the real world.
Avoiding “Speculative” Inventions
Many businesses fail at patents because the idea is too speculative. To be considered industrially applicable:
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Show how the invention works.
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Demonstrate a practical application in a real-world context.
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Focus on specific, achievable results, not every possible theoretical use.
Example:
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Rejected: A software algorithm claimed to “solve all cybersecurity problems” without demonstrating implementation.
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Accepted: The same algorithm applied to detect phishing emails, which can be deployed and tested.
Key Takeaways for Business Owners
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Your invention must solve a real-world problem.
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Think about scalability and practical use from the start.
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Even if your market is global, a patent office in Europe, the US, or Asia will assess whether the invention can actually be applied industrially.
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Focusing on specific applications makes your patent more robust and attractive to investors.
Turning an Invention into a Marketable Asset
Once you’ve established that your invention is capable of industrial application, the next step is ensuring it meets novelty and inventive step requirements. These steps are not just legal formalities—they are crucial for business strategy.
Novelty means your invention must be new, not already disclosed anywhere in the world. For entrepreneurs, this means conducting thorough market and patent research before filing:
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Check if similar products exist in your target markets.
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Investigate patent databases in the EU, US, and Asia.
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Consider prior art from academic papers, product catalogs, or even online demonstrations.
Example:
A startup developing a smart wearable might discover a similar device already patented in Japan. To avoid rejection, the team could adjust the design or functionality to create a new, patentable version.
Inventive Step: Standing Out in a Crowded Market
An invention may be new, but it must also be non-obvious. For business, this translates into creating products that offer real advantages over existing solutions.
Example:
Combining a coffee machine and a grinder in the same device might be obvious. But designing a machine that grinds beans differently for each coffee type and adjusts temperature automatically could qualify as inventive—and give your business a competitive edge.
Global Patent Strategy
Industrial applicability and inventive step are judged objectively by patent offices, but your business strategy must consider global markets:
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EU: Focus on technical implementation and practical industrial application.
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US: Utility is essential, but non-obviousness is scrutinized more strictly.
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Asia: Requirements vary by country—China and Japan emphasize both novelty and industrial utility.
Business tip: File patents early, protect your core innovation, and consider regional adaptations to maximize coverage.
Turning Patents into Competitive Advantage
Patents are not just legal tools—they can drive business growth:
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Attract investment: Investors prefer patented technology, as it reduces competition risk.
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Enable partnerships: Patents make licensing deals and joint ventures possible.
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Prevent copycats: Protect your market share by blocking competitors from using your invention.
Example:
A European startup patents a new solar panel coating that improves efficiency. By obtaining patents in the US and Asia as well, the company can license technology globally while preventing competitors from entering key markets.
Practical Steps for Entrepreneurs
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Document your invention carefully: Include technical details, prototypes, and potential applications.
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Verify novelty and inventive step: Conduct global searches and get professional patent advice.
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Demonstrate industrial applicability: Show that your invention works and can be manufactured.
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Strategize globally: Identify the most valuable markets and tailor your patent filings accordingly.
Conclusion
Understanding what constitutes an invention and ensuring it is industrially applicable is just the first step. For global business success:
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Ensure your invention is new, inventive, and useful.
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Align your patent strategy with market needs and opportunities.
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Use patents as a tool to grow, license, and protect your business worldwide.
By approaching patents strategically, an entrepreneur can turn an idea into a global asset, attracting investors, partners, and customers, while securing a competitive advantage.
Q1: What is required for an idea to be considered a patentable invention?
It must be new, inventive, and capable of industrial application It must be profitable immediately without testing It must already exist in another market
Q2: Why is “industrial applicability” important for entrepreneurs?
It ensures the invention is practically usable, manufacturable, and commercially deployable It guarantees the invention will be instantly profitable It allows the inventor to bypass legal scrutiny
Q3: Which of the following best illustrates a speculative invention that may not be patentable?
A water filter that can be manufactured and sold at scale A “perpetual energy engine” that violates physical laws and cannot be built A coffee grinder that adjusts temperature for different beans
