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patents in business ( intellectual property - concept 22 )

 

Introduction: Why Patents Matter for Entrepreneurs

Every major invention that changed our world — from the light bulb to the smartphone — had one thing in common: legal protection.
Patents are not just pieces of paper or bureaucratic hurdles; they are the currency of innovation. They give inventors and companies the right to profit from their ideas — and prevent others from copying them for a certain period of time.

Whether you’re starting a tech company in Europe, designing machinery in Asia, or creating a new product line in the Middle East, understanding patents is essential. It can help you protect your idea before it becomes someone else’s brand.

 From Royal Privileges to Modern Innovation

The story of patents begins long before Silicon Valley or industrial labs existed.
Centuries ago, rulers granted exclusive privileges to craftsmen and inventors — not to reward creativity, but to control trade.
The word patent itself comes from the Latin litterae patentes, meaning open letters — official documents granting a right publicly.

One of the earliest known patent systems appeared in 15th-century Venice, where inventors of glassmaking techniques were given temporary monopolies. The idea quickly spread across Europe, shaping modern intellectual property law.
By the time of the Industrial Revolution, patents had become a crucial incentive for engineers and scientists to take risks, experiment, and innovate.

 The Evolution into Modern Patent Systems

In the 19th and 20th centuries, as technology advanced rapidly, countries began harmonizing their laws.
This led to international agreements such as the Paris Convention (1883) and later the European Patent Convention (EPC), which established shared rules among many nations.

Today, many inventors file their patents through the UKIPO (UK Intellectual Property Office) or the European Patent Office (EPO), depending on where they seek protection.
Similarly, Asian countries like Japan, South Korea, China, and India have built strong national patent systems that mirror international standards.

The goal everywhere is the same:

To reward innovation while ensuring society eventually benefits from shared knowledge once the patent expires.

 What a Patent Really Is

A patent is a legal right granted for an invention — something new, useful, and non-obvious.
It can be:

  • a product (like a new kind of engine),

  • a process (like a method for producing eco-friendly plastic), or

  • an improvement of something that already exists.

In exchange for publicly disclosing the invention, the inventor gains exclusive rights to use, sell, or license it — usually for 20 years from the filing date.

That exclusivity can be the difference between a small startup struggling to survive and one that dominates its market.

The Economic Power of Patents

Patents are not only about protection — they are also strategic business tools.
A well-structured patent portfolio can:

  • attract investors,

  • increase company valuation,

  • block competitors, and

  • create opportunities for licensing or partnerships.

For instance, many tech giants today earn billions annually not by selling products, but by licensing their patented technologies to others.
It’s not just about what you make — it’s about what you own.

 Understanding the UKIPO Procedure (Simplified)

To get a patent in the UK (and similarly in many other regions), the process follows five main steps:

  1. Filing the application — You submit documents describing the invention and its claims.

  2. Publication — After about 18 months, your application becomes public.

  3. Search and preliminary examination — The patent office checks if similar inventions already exist.

  4. Substantive examination — A detailed review ensures your invention meets all legal requirements.

  5. Grant — If approved, you officially receive your patent.

The process can take several years, but it’s designed to filter out vague or non-original ideas while rewarding genuine innovation.

 Amendment and Refinement

During the examination process, inventors often need to amend (adjust) their patent applications — to clarify details, fix language, or narrow the scope.
However, there are strict limits: you cannot broaden the protection or add new material that wasn’t originally included.

Why?
Because patents must be fair — they protect what was disclosed from the start, not what is added later when competition appears.

 The Timeline of a Patent

Typically:

  • Publication happens within 18 months of filing.

  • The grant, if successful, usually occurs within 4 to 5 years.

  • Once granted, the patent lasts 20 years, provided renewal fees are paid.

That means a good idea today could still be making you money two decades from now.

 The “Inventive Concept” — The Heart of a Patent

When courts examine patents (especially in disputes), one of the first things they identify is the inventive concept — the core idea that makes the invention new and unique.

It’s not just about what’s written in the patent; it’s about what problem the inventor was trying to solve.
For example:

  • If someone creates a new type of filter that traps more dust with less energy, the inventive concept isn’t “a vacuum cleaner” — it’s “a method for improved air filtration.”

Understanding this helps businesses avoid infringement and design products that innovate beyond existing patents.

 Common General Knowledge — The Invisible Baseline

When evaluating whether an invention is new, courts use a fictional figure: “the skilled person” — someone with average expertise in that technical field.
This skilled person is assumed to know all common general knowledge — standard information, techniques, or textbooks accepted by everyone in that industry.

However, this doesn’t include every past patent or obscure article. It’s about what professionals generally know and use daily.
So, when building your idea, think beyond what’s obvious to someone skilled in your area — because that’s where true innovation begins.


Why Patent Claims Are the Heart of Protection

Think of a patent as a territory you own — like land. The claims are your boundaries. They define exactly what you can control and profit from.

Without clear claims, your patent is vague, leaving your invention vulnerable to competitors or legal disputes. Conversely, overly broad claims can be rejected or later revoked.

In short: claims = the legal map of your invention.

 How Claims Work in Practice

  1. Comparison with prior art: Courts and patent offices check if your claims are genuinely new by comparing them to existing inventions.

  2. Comparison with alleged infringement: If someone copies part of your invention, courts examine whether their product or process falls inside your claims’ boundaries.

A strong set of claims can prevent competitors from making small modifications to bypass your patent. A weak set? Your innovation might be copied without legal recourse.

 Reading Claims Through the Eyes of the Skilled Person

Claims aren’t just read literally — they are interpreted through the lens of a hypothetical expert in your field, known as the skilled addressee.

This fictional person is:

  • knowledgeable in the technical field of the patent,

  • aware of common general knowledge,

  • objective, and not inventive themselves.

Courts ask:

“What would this skilled person understand the inventor meant by these words?”

This approach ensures claims are interpreted fairly — broad enough to protect innovation, but not so broad as to cover what others already know.

 Strategic Implications for Businesses

Patents are not just legal documents — they are business tools. Here’s how claims play into business strategy:

  1. Investor confidence: Clear claims show that your invention is well-defined and legally defensible, which reassures investors.

  2. Licensing opportunities: Strong claims make your patent attractive to companies willing to pay for a license.

  3. Market advantage: By covering key aspects of your invention, claims can block competitors from entering your niche.

  4. Risk management: Understanding claims helps avoid accidental infringement of existing patents — crucial for international business expansion.

Example: A startup creating a smart wearable might claim specific sensor arrangements and data processing methods. Competitors can still make general wearables, but the patented method is protected.

 Tips for Crafting Effective Claims

  • Be precise but not too narrow: Cover the core inventive concept without limiting yourself unnecessarily.

  • Anticipate competitors’ workarounds: Claims should address alternative methods to achieve the same result.

  • Align with your business strategy: If you plan to license, include claims that others cannot easily avoid.

  • Think globally: If you intend to sell in multiple regions, draft claims that comply with international patent norms.

Remember: a patent with excellent claims can be more valuable than the product itself.

 Claims in Legal Disputes

When patents are enforced in court, the claims are the reference point.
Courts will:

  • identify the inventive concept,

  • interpret claims through the skilled person, and

  • compare them to the allegedly infringing product or process.

Example:

  • Dyson v Hoover: The court examined the claims to identify the unique feature of Dyson’s vacuum, not just the device itself.

  • Eli Lilly v Human Genome Sciences: Courts checked whether the claimed method was sufficiently disclosed and inventive.

The takeaway: claims are where law and business intersect — they determine whether your invention is protected and enforceable.

 Global Perspective

Patents operate differently across regions, but the role of claims is universal. In the EU, US, Asia, or the Middle East:

  • Claims define the scope of monopoly,

  • Skilled person and common general knowledge are key in disputes,

  • Clear claims maximize both legal protection and business value.

Understanding claims is therefore critical for anyone looking to launch, expand, or license a product internationally.

 Conclusion: Turning Knowledge into Strategy

  • Patents are powerful, but only if your claims are carefully crafted.

  • The skilled addressee and common general knowledge are central to interpreting your patent.

  • Claims are the bridge between innovation and business advantage, ensuring you can profit from your ideas while defending them from competitors.

For entrepreneurs: the takeaway is simple: don’t just invent — protect, define, and strategize.

Q1: What is the primary purpose of a patent for an entrepreneur?
To give inventors exclusive rights to their inventions, preventing copying and allowing commercial profit
To prevent competitors from selling any products in the same market
To register a product name as a trademark
Q2: In patent law, who is the “skilled person” and why is this concept important?
A hypothetical expert in the technical field used to interpret claims and assess what is common general knowledge
An employee of the patent office who approves applications
A professional inventor who reviews competitors’ patents
Q3: Why are patent claims considered the “heart” of a patent?
Because they define the exact scope of the invention, what is protected, and what can be enforced against competitors
Because they describe the inventor’s biography and career
Because they determine the patent office fees



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